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2026.","page_number":15,"box":{"x":223,"y":938,"width":531,"height":12}},{"id":"46e26e48-d518-4ded-a826-a452465aaf90","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e192035-2d10-4b80-b885-de0b94eb7cb7","block_type":"box","text":"TABLE OF CONTENTS","page_number":16,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"6f454c6f-a4b7-4c27-8fe9-7ae7968f9afc","block_type":"box","text":"Page","page_number":16,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"a6ee50da-5fd1-40a9-bd93-30019cda4176","block_type":"box","text":"PART I","page_number":16,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"9b986211-313e-4a9b-841c-c4904ccf98b5","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":16,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"bea46078-bfa3-4d0f-9de3-a90e50ac451f","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6","page_number":16,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"a20770ff-19c7-484b-8a4a-96835b96a58c","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-10","page_number":16,"box":{"x":70,"y":141,"width":839,"height":9}},{"id":"dcd9f8d0-0390-489d-924c-d7e257fbadc1","block_type":"box","text":"Management, Advisory and Other Service Arrangements . . . . . . . . .","page_number":16,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"0aacc89e-c45b-4171-a7ef-ca37e96ecdbf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19","page_number":16,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"4bb0d5bf-9063-46ea-960b-0c68a248d6e8","block_type":"box","text":"Information on Sales Charges and Distribution Related Expenses .","page_number":16,"box":{"x":70,"y":174,"width":469,"height":11}},{"id":"431e9a15-c65d-4ee0-8b9c-84195f9a480b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":16,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"c2dc184e-da87-4930-8963-7a0b1209184b","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"8edee052-3bfc-490e-972b-3524322d88e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":16,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"7c9c4f41-ebab-4b8b-ba16-cc3169c0d1e6","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":16,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"2c5d4845-2289-4821-89ce-79a1fc0702d0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":16,"box":{"x":358,"y":207,"width":551,"height":9}},{"id":"8c0fdc1d-0db5-4f0f-8d0f-081f623dac6b","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"e9bd4fcf-dfbb-443b-9fc7-e1d5f2662e15","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-29","page_number":16,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"ef028b1f-6b1f-4f6f-9b00-428a2fcc2a4f","block_type":"box","text":"Financial Statements","page_number":16,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"9df314cf-0717-4d4b-a897-45f631df6e3a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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II-84","page_number":16,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"8e4cabd6-0fde-4836-bd21-966b2c7e22c1","block_type":"box","text":"Purchase of Shares","page_number":16,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"e365832e-fd18-4d2d-a6cd-d1553f7a5136","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-98","page_number":16,"box":{"x":211,"y":336,"width":698,"height":9}},{"id":"a88f2529-e3c9-494e-abd1-29ea5d1c5130","block_type":"box","text":"Redemption of Shares . .","page_number":16,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"ff51f629-7683-4843-bd39-d7be4d7a6bab","block_type":"box","text":"........................................................................... 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I","page_number":16,"box":{"x":244,"y":369,"width":627,"height":9}},{"id":"a82a9e3d-23e2-47ab-8b41-3cbb6e016a42","block_type":"box","text":"I-118","page_number":16,"box":{"x":874,"y":369,"width":35,"height":9}},{"id":"30ea9b7c-3397-44bc-becc-3306772abec6","block_type":"box","text":"Pricing of Shares","page_number":16,"box":{"x":69,"y":385,"width":119,"height":12}},{"id":"d5b2602e-de8d-48be-9be0-786776e688b5","block_type":"box","text":".................................................................................. I","page_number":16,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"cec333cc-0715-4a11-9307-264af6b34bbf","block_type":"box","text":"I-122","page_number":16,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"d237b95a-40bb-4aa8-86a6-3669ebd01803","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":16,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"703fc2a1-2495-425a-b7ec-d40783081617","block_type":"box","text":".............................................................. I","page_number":16,"box":{"x":358,"y":402,"width":513,"height":9}},{"id":"7489d02f-c25e-4341-92f5-af4b8e08a536","block_type":"box","text":"I-124","page_number":16,"box":{"x":874,"y":402,"width":35,"height":9}},{"id":"71a0de80-e3ff-4f90-a85e-cd8d89fcef4f","block_type":"box","text":"Dividends and Taxes . .","page_number":16,"box":{"x":70,"y":418,"width":159,"height":9}},{"id":"a63e48d9-d143-4345-8e5e-cc4bbccbdef9","block_type":"box","text":"............................................................................. I","page_number":16,"box":{"x":236,"y":418,"width":635,"height":9}},{"id":"ef206db2-0941-43ea-9d6b-99c6127478b3","block_type":"box","text":"I-128","page_number":16,"box":{"x":874,"y":418,"width":35,"height":9}},{"id":"7df2e720-6b69-46cd-82c3-e7e71d204bf0","block_type":"box","text":"Per formance Data","page_number":16,"box":{"x":69,"y":435,"width":129,"height":9}},{"id":"e0fe232b-2e03-4713-829e-77b3533c0ccf","block_type":"box","text":"................................................................................. I","page_number":16,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"965d0a3e-91d5-45dc-a4a6-fa828a103879","block_type":"box","text":"I-136","page_number":16,"box":{"x":874,"y":435,"width":35,"height":9}},{"id":"eca8081a-e6ee-4272-8194-55233d60c810","block_type":"box","text":"Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"83549f41-2362-49af-a469-b1c2325b8c71","block_type":"box","text":"........................................... I","page_number":16,"box":{"x":513,"y":451,"width":358,"height":9}},{"id":"304a2cb2-3677-4e02-bbc0-09a0cc05eed2","block_type":"box","text":"I-138","page_number":16,"box":{"x":874,"y":451,"width":35,"height":9}},{"id":"afaddec6-65f3-4370-8023-609c6da23ce5","block_type":"box","text":"General Information","page_number":16,"box":{"x":69,"y":467,"width":140,"height":9}},{"id":"434653de-1381-4c07-a50c-3dfba998622d","block_type":"box","text":"............................................................................... I","page_number":16,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"5932ebbf-126f-47fd-9ae7-9edd4fa9e22b","block_type":"box","text":"I-138","page_number":16,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"c2f72b76-0d6d-4bd0-a931-65d3a5cd5344","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":16,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"a808a9e3-9d14-4f04-87c9-ef492bfb6ab9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":16,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"25b23cfd-36f6-4b32-9a3f-0a3ff823afdd","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":16,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"78f364d5-c88e-428c-b4c0-5c4863ca0a05","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":16,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"90a89839-5aab-4c36-9b6f-04a884b0523a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59792d72-35c7-4969-b0a4-612c8d508fbc","block_type":"box","text":"PART I: INFORMATION ABOUT THE FUND","page_number":17,"box":{"x":340,"y":45,"width":298,"height":9}},{"id":"cde4638d-f095-4753-82ea-72f03d80b860","block_type":"box","text":"Par t I of this Statement of Additional Information (“SAI”) sets for th information about BlackRock Advantage","page_number":17,"box":{"x":102,"y":67,"width":763,"height":12}},{"id":"861b6de9-d846-420f-9953-d837cea6e24d","block_type":"box","text":"CoreAlpha Bond Fund (“CoreAlpha Bond Fund” or the “Fund”), a series of BlackRock Funds VI (the “Trust”). It","page_number":17,"box":{"x":69,"y":82,"width":778,"height":11}},{"id":"e1e044b0-7401-4c20-ab2b-5e30fb47764e","block_type":"box","text":"includes information about the Trust’s Board of Trustees (the “Board”), the advisory and management services","page_number":17,"box":{"x":70,"y":98,"width":793,"height":11}},{"id":"e8e1c66d-c51e-4a12-a480-600b7d964b07","block_type":"box","text":"provided to and the management fees applicable to the Fund and information about other fees applicable to and","page_number":17,"box":{"x":70,"y":113,"width":800,"height":11}},{"id":"782cd78d-0b18-47b6-91bf-2d872d4b9a94","block_type":"box","text":"services provided to the Fund. 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The Fund is a “feeder” fund that invests all of its","page_number":17,"box":{"x":70,"y":211,"width":804,"height":11}},{"id":"c515c354-263a-4632-b28f-ba7ce44f2d1c","block_type":"box","text":"assets in the Master Por tfolio, which has the same investment objective and strategies as the Fund. All investments","page_number":17,"box":{"x":69,"y":226,"width":831,"height":11}},{"id":"330e7f59-8251-4c00-8de6-d37963bcdaf0","block_type":"box","text":"for the Fund will be made at the Master Por tfolio level. This structure is sometimes called a “master/feeder”","page_number":17,"box":{"x":68,"y":241,"width":777,"height":11}},{"id":"55edcf4d-970e-49e2-969f-439f9f6d6a69","block_type":"box","text":"structure. The Fund’s investment results will correspond directly to the investment results of the Master Por tfolio. 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The","page_number":21,"box":{"x":69,"y":662,"width":802,"height":11}},{"id":"c688e89c-4d68-41fd-b2b2-4c2f260df9da","block_type":"box","text":"CFTC also subjects advisers to registered investment companies to regulation by the CFTC if the registered","page_number":21,"box":{"x":69,"y":677,"width":762,"height":11}},{"id":"de5a8869-b781-46fa-8676-241b74d908a1","block_type":"box","text":"investment company invests in one or more commodity pools. To the extent the Fund uses CFTC Derivatives, it","page_number":21,"box":{"x":70,"y":692,"width":787,"height":11}},{"id":"eafa7d06-f818-4c6a-ba95-18cce85f4e64","block_type":"box","text":"intends to do so below such prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading","page_number":21,"box":{"x":70,"y":707,"width":838,"height":12}},{"id":"d5024af1-9cc1-4c70-9e01-42096c245fef","block_type":"box","text":"such instruments.","page_number":21,"box":{"x":69,"y":723,"width":127,"height":8}},{"id":"ec632899-bb2f-4291-8f32-790073347c65","block_type":"box","text":"The Fund may have investments in “underlying funds” (and such underlying funds themselves may invest in","page_number":21,"box":{"x":101,"y":745,"width":764,"height":11}},{"id":"840f2f01-ea7d-47d6-9940-be9bf92c42dc","block_type":"box","text":"underlying funds) not advised by BlackRock (which for purposes of the no-action letter referenced below may include","page_number":21,"box":{"x":69,"y":760,"width":826,"height":12}},{"id":"365f460b-a7e5-4ad8-9fa6-98afc2b48b12","block_type":"box","text":"cer tain securitized vehicles, mor tgage real estate investment trusts and/or investment companies that may invest in","page_number":21,"box":{"x":69,"y":776,"width":834,"height":11}},{"id":"bb079090-d6b0-4284-b7ab-cb1d66798c06","block_type":"box","text":"CFTC Derivatives), and therefore may be viewed by the CFTC as a commodity pool. BlackRock has no transparency","page_number":21,"box":{"x":69,"y":790,"width":815,"height":12}},{"id":"ed77b394-eb03-477c-99ec-bb8f46bf03c4","block_type":"box","text":"into the holdings of these underlying funds because they are not advised by BlackRock. To address this issue of lack","page_number":21,"box":{"x":70,"y":806,"width":831,"height":11}},{"id":"23927ca2-f18a-4d0c-b15c-9e4ca6371422","block_type":"box","text":"of transparency, the CFTC staff issued a no-action letter on November 29, 2012 permitting the adviser of a fund that","page_number":21,"box":{"x":69,"y":821,"width":832,"height":11}},{"id":"877e8749-e458-4faa-b6d4-4ed40395b9e2","block_type":"box","text":"invests in such underlying funds and that would otherwise have filed a claim of exclusion pursuant to Rule 4.5 to","page_number":21,"box":{"x":70,"y":836,"width":803,"height":11}},{"id":"b3bcad37-d0b1-4669-97c3-51d69182dcd0","block_type":"box","text":"delay registration as a “commodity pool operator” until six months from the date on which the CFTC issues additional","page_number":21,"box":{"x":69,"y":851,"width":836,"height":11}},{"id":"5f6628c5-7979-4d34-96e8-a53e4bb207d0","block_type":"box","text":"guidance on the treatment of CFTC Derivatives held by underlying funds. BlackRock, the adviser of the Fund, has filed","page_number":21,"box":{"x":68,"y":866,"width":837,"height":11}},{"id":"1d24e89c-f26b-4a2d-a6b7-3f803f651943","block_type":"box","text":"a claim with the CFTC for the Fund to rely on this no-action relief. Accordingly, BlackRock is not subject to registration","page_number":21,"box":{"x":69,"y":881,"width":833,"height":11}},{"id":"688349b7-82c9-4097-b49e-94f7493b9c6a","block_type":"box","text":"or regulation as a “commodity pool operator” under the Commodity Exchange Act in respect of the Fund.","page_number":21,"box":{"x":69,"y":896,"width":743,"height":12}},{"id":"8dcda4de-3086-45d9-af17-f07c4bdc7f34","block_type":"box","text":"I-5","page_number":21,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"79f41831-5978-4c93-906b-8c44317c9461","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"07bedebd-029f-459c-9728-ee0cf60ead48","block_type":"box","text":"II. Investment Restrictions","page_number":22,"box":{"x":69,"y":45,"width":194,"height":9}},{"id":"6dffc41f-33f1-47a8-a01a-5f90ac95e98b","block_type":"box","text":"Fundamental Investment Restrictions of the Fund","page_number":22,"box":{"x":69,"y":75,"width":360,"height":9}},{"id":"4426be6c-9fe3-49a2-b611-cb2581329306","block_type":"box","text":"The Trust, on behalf of the Fund, has adopted restrictions and policies relating to the investment of the Fund’s","page_number":22,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"67acc4c0-4c8d-4bfa-9906-af7b642a294a","block_type":"box","text":"assets and its activities. Cer tain of the restrictions are fundamental policies of the Fund and may not be changed","page_number":22,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"3dca904d-732e-4d88-a496-20a6aaa33251","block_type":"box","text":"without the approval of the holders of a majority of the Fund’s outstanding voting securities (which for this purpose","page_number":22,"box":{"x":68,"y":128,"width":818,"height":11}},{"id":"e36fc7f3-6064-45c6-97cf-ce03eb8c742c","block_type":"box","text":"and under the Investment Company Act means the lesser of (i) 67% of the shares represented at a meeting at which","page_number":22,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"6232f4a1-c888-4b61-8952-5759ab3400bd","block_type":"box","text":"more than 50% of the outstanding shares are represented or (ii) more than 50% of the outstanding shares). The","page_number":22,"box":{"x":69,"y":158,"width":799,"height":11}},{"id":"1fd6ec12-c14c-4d4c-b96d-7e1e6138b575","block_type":"box","text":"Trust, on behalf of the Fund, has also adopted cer tain non-fundamental investment restrictions, which may be","page_number":22,"box":{"x":68,"y":173,"width":784,"height":11}},{"id":"e9692344-4265-4e4b-b2cf-b0b883eed099","block_type":"box","text":"changed by the Board without shareholder approval. None of the following fundamental or non-fundamental","page_number":22,"box":{"x":69,"y":188,"width":761,"height":12}},{"id":"b68cf054-9ae2-40e5-ae1b-5d846e94c92f","block_type":"box","text":"investment restrictions shall prevent the Fund from investing all of its assets in shares of another registered","page_number":22,"box":{"x":70,"y":203,"width":772,"height":12}},{"id":"2d13853e-a5e0-4b05-9bc3-7667cf6d96a5","block_type":"box","text":"investment company with the same investment objective and fundamental policies (in a master/feeder structure).","page_number":22,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"3ab15824-d426-476b-bc87-cdb8cdccd56e","block_type":"box","text":"Set for th below are the Fund’s fundamental and non-fundamental investment restrictions. The Master Por tfolio","page_number":22,"box":{"x":102,"y":241,"width":789,"height":9}},{"id":"4f16f871-383a-4055-a700-8f74928f9259","block_type":"box","text":"has adopted investment restrictions substantially identical to those set for th below for the Fund, which are","page_number":22,"box":{"x":69,"y":256,"width":761,"height":11}},{"id":"e930241e-b23e-479e-98f2-11f2473a6304","block_type":"box","text":"fundamental and non-fundamental, as applicable, policies of the Master Por tfolio. Unless otherwise provided, all","page_number":22,"box":{"x":68,"y":271,"width":804,"height":11}},{"id":"6f93fc58-390b-4da5-81d5-413dc6684400","block_type":"box","text":"references below to the assets of the Fund are in terms of current market value.","page_number":22,"box":{"x":69,"y":286,"width":573,"height":10}},{"id":"4c3372c5-d7d2-48d8-a4d3-759d5178c566","block_type":"box","text":"The Fund is subject to the following investment restrictions, all of which are fundamental policies. The Fund may","page_number":22,"box":{"x":101,"y":309,"width":800,"height":11}},{"id":"d673ecd0-f4d8-48e3-a4ba-d80091b44dd8","block_type":"box","text":"not:","page_number":22,"box":{"x":69,"y":325,"width":26,"height":8}},{"id":"be29202b-80ab-4197-b85d-2a406c26f723","block_type":"box","text":"(1) Concentrate its investments in a par ticular industry, as that term is used in the Investment Company Act.","page_number":22,"box":{"x":102,"y":347,"width":775,"height":11}},{"id":"8bbe3a68-3a86-4a95-a893-f6870bfc1e8e","block_type":"box","text":"(2) Borrow money, except as permitted under the Investment Company Act.","page_number":22,"box":{"x":102,"y":370,"width":533,"height":11}},{"id":"84963a2a-700c-4d0c-9adc-08fe980c86a9","block_type":"box","text":"(3) Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":22,"box":{"x":102,"y":392,"width":698,"height":12}},{"id":"7e2dd010-fb9c-4b82-ab08-c9f16cdee934","block_type":"box","text":"(4) Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments that are","page_number":22,"box":{"x":102,"y":415,"width":806,"height":11}},{"id":"3850bf17-205f-4315-9975-6366864b88e3","block_type":"box","text":"secured by, or linked to, real estate or interests therein, securities of real estate investment trusts, mor tgage-related","page_number":22,"box":{"x":69,"y":430,"width":835,"height":11}},{"id":"ed55318c-a6e2-4ee9-9401-23805f693ebb","block_type":"box","text":"securities and securities of issuers engaged in the real estate business, and the Fund may purchase and hold real","page_number":22,"box":{"x":69,"y":445,"width":817,"height":12}},{"id":"d0ed7d22-6300-46b2-be64-01914a72c96c","block_type":"box","text":"estate as a result of the ownership of securities or other instruments.","page_number":22,"box":{"x":69,"y":460,"width":497,"height":11}},{"id":"37ec337d-9960-4eea-9909-35c1e535e534","block_type":"box","text":"(5) Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the Fund","page_number":22,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"8646e38c-dfd0-4330-8d3f-7e225344bf70","block_type":"box","text":"may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":22,"box":{"x":69,"y":498,"width":588,"height":11}},{"id":"3598c9d8-9bfd-4d57-a3c3-7ee5b17b055c","block_type":"box","text":"(6) Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company Act.","page_number":22,"box":{"x":102,"y":521,"width":792,"height":11}},{"id":"44f2c728-9b83-4a4d-8aa2-25009b006138","block_type":"box","text":"(7) Make loans to the extent prohibited by the Investment Company Act.","page_number":22,"box":{"x":102,"y":544,"width":511,"height":11}},{"id":"43f6100e-aa48-4642-9cc0-842d272d8b3d","block_type":"box","text":"(8) Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":22,"box":{"x":102,"y":566,"width":733,"height":11}},{"id":"1868d75d-1ed7-47bd-87bf-be59a417e409","block_type":"box","text":"Investment Company Act.","page_number":22,"box":{"x":70,"y":581,"width":178,"height":11}},{"id":"8149abd2-28d5-40b4-833b-ce33f7b31196","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":22,"box":{"x":102,"y":604,"width":494,"height":11}},{"id":"6d6409ce-27fb-4d26-b121-f353c8ea91ae","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":22,"box":{"x":101,"y":627,"width":799,"height":11}},{"id":"b1fc74b6-9e48-4087-ab75-bbe4a6565dea","block_type":"box","text":"subject to change without shareholder approval.","page_number":22,"box":{"x":69,"y":642,"width":341,"height":11}},{"id":"d761021b-3d3f-476a-a388-3dd998342983","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":22,"box":{"x":101,"y":664,"width":796,"height":12}},{"id":"c0576d19-ed2e-4d18-b6f2-0af3c302cc2a","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":22,"box":{"x":68,"y":680,"width":811,"height":11}},{"id":"733560f5-48e8-4a79-b712-d441e41f97ec","block_type":"box","text":"that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in","page_number":22,"box":{"x":68,"y":695,"width":833,"height":11}},{"id":"c1f0ae6c-427e-4027-9d44-1a1b51d20124","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":22,"box":{"x":68,"y":710,"width":836,"height":11}},{"id":"8a326b3e-d5aa-4166-a5ab-4637f027a94d","block_type":"box","text":"could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be","page_number":22,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"54c509c2-d554-4897-95f5-60fd5d6b7f9e","block_type":"box","text":"interpreted from time to time. The policy also will be interpreted to permit investment without limit in the following:","page_number":22,"box":{"x":70,"y":740,"width":813,"height":11}},{"id":"7ffe5fac-ab6c-40fb-95cd-0dcc68203aee","block_type":"box","text":"securities of the U.S. government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":22,"box":{"x":69,"y":755,"width":820,"height":11}},{"id":"97bb413a-8200-495c-b249-66c65b0d7212","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":22,"box":{"x":69,"y":771,"width":809,"height":11}},{"id":"7e083b08-b948-4643-ade8-c7e60ee30098","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":22,"box":{"x":69,"y":785,"width":772,"height":12}},{"id":"63bc5ee1-7848-496d-ba38-250eaefd14b8","block_type":"box","text":"considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single","page_number":22,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"665d9d44-fdb1-47c1-aee8-bbc60073579c","block_type":"box","text":"jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities","page_number":22,"box":{"x":67,"y":816,"width":829,"height":11}},{"id":"e250b94e-b035-453b-bd07-86b1148b5242","block_type":"box","text":"are primarily related to financing the activities of the parents. Each foreign government will be considered to be a","page_number":22,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"2b012953-6250-4377-9889-7953d1410944","block_type":"box","text":"member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one","page_number":22,"box":{"x":69,"y":846,"width":840,"height":11}},{"id":"bc5502d2-6273-49fb-83f9-5e28dbcf402d","block_type":"box","text":"or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":22,"box":{"x":69,"y":861,"width":803,"height":11}},{"id":"6a203c7b-e2ed-4551-9799-2d842a8a3204","block_type":"box","text":"indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad authority to the","page_number":22,"box":{"x":70,"y":876,"width":807,"height":11}},{"id":"46b436dd-0868-47ee-80dc-1456eedc783b","block_type":"box","text":"Fund as to how to classify issuers within or among industries.","page_number":22,"box":{"x":70,"y":891,"width":438,"height":12}},{"id":"05e49ec7-90c8-4366-9598-ece4f6cee473","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"4eff96bd-5407-46ce-823d-6a407babef3a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"68cf7d6a-1d3c-407b-b3c6-24932df2cc28","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th in (2) above, the Investment","page_number":23,"box":{"x":101,"y":45,"width":750,"height":11}},{"id":"ab266097-00f5-4190-8fe3-470386490681","block_type":"box","text":"Company Act permits the Fund to borrow money in amounts of up to one-third of the Fund’s total assets from banks","page_number":23,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"1a4f5728-d653-4e69-a42d-0eee288d6005","block_type":"box","text":"for any purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders for temporary","page_number":23,"box":{"x":68,"y":75,"width":781,"height":11}},{"id":"97c2a3f6-a095-4b11-9236-66a739f51249","block_type":"box","text":"purposes. (The Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing,","page_number":23,"box":{"x":70,"y":90,"width":815,"height":11}},{"id":"12f701d0-4495-408f-99ac-092182d71294","block_type":"box","text":"the Investment Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the","page_number":23,"box":{"x":68,"y":105,"width":825,"height":11}},{"id":"aee05d19-e55b-427e-ab88-890f8ca63a18","block_type":"box","text":"amount of its borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including","page_number":23,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"0230d68b-6a19-4899-a91c-bcbad36d1c88","block_type":"box","text":"amounts borrowed), minus liabilities other than borrowings, bears to the aggregate amount of all borrowings.","page_number":23,"box":{"x":69,"y":135,"width":776,"height":12}},{"id":"b8aaf970-982f-41b7-a6a1-59d194c8e359","block_type":"box","text":"Borrowing money to increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments,","page_number":23,"box":{"x":70,"y":150,"width":828,"height":12}},{"id":"50557e6f-ad18-45a4-8a1a-d0fe02e61c41","block_type":"box","text":"such as reverse repurchase agreements, may be considered to be borrowings or involve leverage and thus are","page_number":23,"box":{"x":69,"y":166,"width":788,"height":11}},{"id":"1ea7e4ee-9c40-4d4c-8ef6-7d014b87be6c","block_type":"box","text":"subject to the Investment Company Act restrictions. In accordance with Commission staff guidance and","page_number":23,"box":{"x":69,"y":181,"width":737,"height":11}},{"id":"24d26564-f31f-4f1a-baa0-74437d8c0d97","block_type":"box","text":"interpretations, when the Fund engages in such transactions, the Fund instead of maintaining asset coverage of at","page_number":23,"box":{"x":70,"y":196,"width":817,"height":11}},{"id":"120a8eff-5207-4048-a3c8-cd420b036f7e","block_type":"box","text":"least 300%, may segregate or earmark liquid assets, or enter into an offsetting position, in an amount at least equal","page_number":23,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"7e2cb381-8357-45c2-b9ad-78628cb9244a","block_type":"box","text":"to the Fund’s exposure, on a mark-to-market basis, to the transaction (as calculated pursuant to requirements of the","page_number":23,"box":{"x":68,"y":226,"width":833,"height":11}},{"id":"7b59e9a9-646d-447c-ab0f-5f4670d7ff96","block_type":"box","text":"Commission). The policy in (2) above will be interpreted to permit the Fund to engage in trading practices and","page_number":23,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"31dba229-182c-4d9d-8ace-cb20e2be001d","block_type":"box","text":"investments that may be considered to be borrowing or to involve leverage to the extent permitted by the Investment","page_number":23,"box":{"x":70,"y":257,"width":830,"height":11}},{"id":"70fc0a80-e2ae-44bc-bce7-71894f39a9d8","block_type":"box","text":"Company Act and to permit the Fund to segregate or earmark liquid assets or enter into offsetting positions in","page_number":23,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"82956fa8-5c32-4d65-948b-34a355b7505e","block_type":"box","text":"accordance with the Investment Company Act. Shor t-term credits necessary for the settlement of securities","page_number":23,"box":{"x":69,"y":286,"width":767,"height":12}},{"id":"62a27a14-d35b-44a9-a2a0-e3f13c9f5e84","block_type":"box","text":"transactions and arrangements with respect to securities lending will not be considered to be borrowings under the","page_number":23,"box":{"x":68,"y":302,"width":822,"height":11}},{"id":"565a9a20-1185-4d09-a79c-76c2561b8d28","block_type":"box","text":"policy. Practices and investments that may involve leverage but are not considered to be borrowings are not subject","page_number":23,"box":{"x":70,"y":317,"width":823,"height":11}},{"id":"4875f068-8250-4ec7-b1aa-d03daa247d68","block_type":"box","text":"to the policy.","page_number":23,"box":{"x":68,"y":332,"width":89,"height":11}},{"id":"e8b73864-7453-4952-bdf3-7bec7c0816ae","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":23,"box":{"x":101,"y":355,"width":788,"height":11}},{"id":"8a60208f-444d-46ed-9e97-f365c9a2901f","block_type":"box","text":"Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of other","page_number":23,"box":{"x":68,"y":370,"width":840,"height":11}},{"id":"cbbd1388-f81c-4214-821b-48f7c4e75bc1","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits the Fund to have underwriting","page_number":23,"box":{"x":70,"y":385,"width":825,"height":11}},{"id":"28e04f9a-433c-4521-86ec-101c168f75e2","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":23,"box":{"x":69,"y":400,"width":811,"height":11}},{"id":"36b04eab-bb71-4490-aa6e-fed8d291b390","block_type":"box","text":"amount of the Fund’s underwriting commitments, when added to the value of the Fund’s investments in issuers","page_number":23,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"17cfe79f-3386-4a75-8aa0-c01d69574fc6","block_type":"box","text":"where the Fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25%","page_number":23,"box":{"x":68,"y":430,"width":818,"height":11}},{"id":"5209e2f8-3972-4106-9e79-78f29992653b","block_type":"box","text":"cap. A fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered","page_number":23,"box":{"x":69,"y":445,"width":833,"height":12}},{"id":"56f1c235-cc51-4dfe-92bd-011ca29515c5","block_type":"box","text":"to be an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed","page_number":23,"box":{"x":68,"y":460,"width":831,"height":12}},{"id":"ac0f8c65-9cbf-4738-9f09-7635874170b4","block_type":"box","text":"that the application of the Securities Act provisions described above would cause the Fund to be engaged in the","page_number":23,"box":{"x":68,"y":475,"width":799,"height":12}},{"id":"3532f9cf-98ef-4111-8157-d7b8c1148e83","block_type":"box","text":"business of underwriting, the policy in (5) above will be interpreted not to prevent the Fund from engaging in","page_number":23,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"f18340dd-4121-484f-b420-b6e2d4a34576","block_type":"box","text":"transactions involving the acquisition or disposition of por tfolio securities, regardless of whether the Fund may be","page_number":23,"box":{"x":68,"y":506,"width":811,"height":11}},{"id":"8360d408-4fab-4285-ab2a-3124ca25a729","block_type":"box","text":"considered to be an underwriter under the Securities Act or is otherwise engaged in the underwriting business to the","page_number":23,"box":{"x":69,"y":521,"width":834,"height":11}},{"id":"f3242aca-2f56-4da8-bc76-95825d1af6dc","block_type":"box","text":"extent permitted by applicable law.","page_number":23,"box":{"x":69,"y":536,"width":245,"height":11}},{"id":"4db60606-8e15-45e6-ac7d-733d6dc7c99d","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":23,"box":{"x":101,"y":559,"width":778,"height":11}},{"id":"6a903601-75bb-452b-873c-5e7c1f692beb","block_type":"box","text":"does not prohibit the Fund from making loans (including lending its securities); however, Commission staff","page_number":23,"box":{"x":69,"y":574,"width":759,"height":11}},{"id":"2c95e2c1-f64a-4594-b423-95914c7dd8e9","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":23,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"a230371b-50fa-4ef8-b9fb-9149307b50e7","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":23,"box":{"x":69,"y":604,"width":784,"height":11}},{"id":"fb5e8230-ed29-4e0a-b58f-9b4a1c2983aa","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":23,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"bf411adb-60d2-48d7-92d9-612f9118755a","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":23,"box":{"x":70,"y":634,"width":803,"height":11}},{"id":"c2a75224-1ba4-4153-9c97-35119384fa8c","block_type":"box","text":"loans.The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":23,"box":{"x":70,"y":649,"width":819,"height":12}},{"id":"f240f2c0-007f-4075-ae13-abad42284593","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":23,"box":{"x":70,"y":664,"width":751,"height":12}},{"id":"7627d0a5-2210-4a13-8035-60578add3ec6","block_type":"box","text":"government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":23,"box":{"x":68,"y":680,"width":812,"height":11}},{"id":"184dc85e-0ad2-4b56-8560-6347ca49f30b","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":23,"box":{"x":69,"y":695,"width":827,"height":11}},{"id":"7e396082-79d4-49dd-bf96-b481ae421cc4","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":23,"box":{"x":69,"y":710,"width":781,"height":11}},{"id":"18bcdeb7-60d3-4208-81da-ebae385841cb","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":23,"box":{"x":69,"y":725,"width":759,"height":11}},{"id":"fe3e929a-0038-421c-88c3-4e468cb19779","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":23,"box":{"x":70,"y":740,"width":774,"height":11}},{"id":"ae0b8ef6-d144-4d8a-9932-3aa79321bfe8","block_type":"box","text":"shareholder approval.","page_number":23,"box":{"x":69,"y":755,"width":153,"height":11}},{"id":"11c2ae3b-1d9d-43c2-8148-e5877bd1a296","block_type":"box","text":"Non-Fundamental Investment Restrictions of the Fund","page_number":23,"box":{"x":69,"y":785,"width":393,"height":9}},{"id":"6cf71895-96be-46ef-81b3-d3ea6709fcbd","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":23,"box":{"x":102,"y":808,"width":768,"height":11}},{"id":"b94df081-cca9-46db-bda6-a0c2deb3b7c0","block_type":"box","text":"approval, the Fund may not:","page_number":23,"box":{"x":69,"y":823,"width":197,"height":11}},{"id":"0768d84c-0d18-42b2-be06-9145bcf4d605","block_type":"box","text":"(1) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":23,"box":{"x":102,"y":846,"width":748,"height":11}},{"id":"26c2c9fb-4a91-4936-bc02-5a972f65f359","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":23,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"a4246f71-f07b-4017-a3d8-8db05791e986","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":23,"box":{"x":70,"y":876,"width":829,"height":11}},{"id":"1a13348e-b6b8-4ace-8b58-409165e2d33e","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":23,"box":{"x":70,"y":891,"width":808,"height":12}},{"id":"9f163b6f-27d0-424b-83db-d12bd331f529","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":23,"box":{"x":69,"y":906,"width":763,"height":12}},{"id":"157a4fc7-d936-49c8-aa9e-1c0cad65b5ea","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"607c9e23-ce9d-4fe5-88cc-6d9573ff1bc2","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec039f84-ce07-4589-8d70-9d175a37a116","block_type":"box","text":"(2) Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":24,"box":{"x":102,"y":45,"width":771,"height":11}},{"id":"d1ba4016-6155-4ae4-bb59-b241a8e995cb","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":24,"box":{"x":69,"y":60,"width":741,"height":11}},{"id":"7aa426de-9071-4866-8cf5-43522f7b9a26","block_type":"box","text":"Notwithstanding any other investment policy or restriction (whether or not fundamental), the Fund may (and does)","page_number":24,"box":{"x":102,"y":82,"width":806,"height":12}},{"id":"b38cb080-dfce-4556-a586-c5632b9e0a34","block_type":"box","text":"invest all of its assets in the securities of a single open-end management investment company with substantially the","page_number":24,"box":{"x":70,"y":98,"width":830,"height":11}},{"id":"7fd58d21-54e1-4f2d-a416-a13f1627f518","block_type":"box","text":"same investment objective, policies and limitations as the Fund. See “Account Information — Master/Feeder Mutual","page_number":24,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"86c0f8a5-03b5-49b2-8eb2-4b37a8c005f0","block_type":"box","text":"Fund Structure” in the Prospectus.","page_number":24,"box":{"x":70,"y":128,"width":244,"height":11}},{"id":"be8f4357-ff6b-41f3-8131-f3a9e8cfe272","block_type":"box","text":"Fundamental Investment Restrictions of the Master Portfolio","page_number":24,"box":{"x":69,"y":158,"width":445,"height":9}},{"id":"a1ead30f-dc3b-4fcf-872c-d17dee279c5a","block_type":"box","text":"The Master Por tfolio is subject to the following investment restrictions, all of which are fundamental policies.","page_number":24,"box":{"x":101,"y":181,"width":776,"height":11}},{"id":"009e8642-b861-462c-a583-6ade0a6b8da6","block_type":"box","text":"These restrictions cannot be changed, as to the Master Por tfolio, without approval by the holders of a majority (as","page_number":24,"box":{"x":68,"y":196,"width":814,"height":11}},{"id":"82250f3d-8cc0-4557-8ce4-22c15106bd08","block_type":"box","text":"defined in the Investment Company Act) of the Master Por tfolio’s outstanding voting interest. The Master Por tfolio","page_number":24,"box":{"x":69,"y":211,"width":813,"height":11}},{"id":"40db2950-985d-4d64-8d5d-d5704bb6a346","block_type":"box","text":"may not:","page_number":24,"box":{"x":69,"y":227,"width":59,"height":10}},{"id":"94c8e758-1e3e-4a4e-b14d-c2a812092b4f","block_type":"box","text":"(1) Concentrate its investments in a par ticular industry, as that term is used in the Investment Company Act.","page_number":24,"box":{"x":102,"y":249,"width":775,"height":11}},{"id":"40cfc35a-6530-4906-8ca0-bfd9230dd389","block_type":"box","text":"(2) Borrow money, except as permitted under the Investment Company Act.","page_number":24,"box":{"x":102,"y":272,"width":533,"height":11}},{"id":"ca8e9277-39b0-45d8-9c54-73b0cf30dde3","block_type":"box","text":"(3) Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":24,"box":{"x":102,"y":294,"width":698,"height":11}},{"id":"50857b89-07de-4fc1-b63b-cf7940a5ed96","block_type":"box","text":"(4) Purchase or hold real estate, except the Master Por tfolio may purchase and hold securities or other","page_number":24,"box":{"x":102,"y":317,"width":736,"height":11}},{"id":"536183b0-9873-4357-a9aa-4116b2373715","block_type":"box","text":"instruments that are secured by, or linked to, real estate or interests therein, securities of real estate investment","page_number":24,"box":{"x":70,"y":332,"width":808,"height":11}},{"id":"a6cf6a6a-8d69-4dcc-a203-ebea126f1c61","block_type":"box","text":"trusts, mor tgage-related securities and securities of issuers engaged in the real estate business, and the Master","page_number":24,"box":{"x":68,"y":347,"width":810,"height":11}},{"id":"3b2eb765-16c4-4572-976f-7af629a10b3e","block_type":"box","text":"Por tfolio may purchase and hold real estate as a result of the ownership of securities or other instruments.","page_number":24,"box":{"x":69,"y":362,"width":765,"height":11}},{"id":"0b8df0d7-7fe0-419f-bee7-7e7c12c2b808","block_type":"box","text":"(5) Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the Master","page_number":24,"box":{"x":102,"y":385,"width":806,"height":11}},{"id":"c226969a-3c01-4fe6-a54b-ac6fdbe29dda","block_type":"box","text":"Por tfolio may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":24,"box":{"x":69,"y":400,"width":653,"height":11}},{"id":"5924fb00-9ed2-4509-ac8d-6d5c9a22db42","block_type":"box","text":"(6) Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company Act.","page_number":24,"box":{"x":102,"y":423,"width":792,"height":11}},{"id":"655f3861-3d7a-45ba-a38c-c3cc61f58f81","block_type":"box","text":"(7) Make loans to the extent prohibited by the Investment Company Act.","page_number":24,"box":{"x":102,"y":445,"width":511,"height":11}},{"id":"1c110a14-bad0-46b1-8381-17c6c752510b","block_type":"box","text":"(8) Make any investment inconsistent with the Master Por tfolio’s classification as a diversified company under","page_number":24,"box":{"x":102,"y":468,"width":787,"height":11}},{"id":"3cf639a0-bb39-489d-ab45-986d99c2313d","block_type":"box","text":"the Investment Company Act.","page_number":24,"box":{"x":68,"y":483,"width":208,"height":11}},{"id":"3365f75c-a595-43e4-9242-b71960633c05","block_type":"box","text":"Notations Regarding the Master Por tfolio’s Fundamental Investment Restrictions","page_number":24,"box":{"x":102,"y":506,"width":575,"height":11}},{"id":"7abeb310-8375-47ef-92a7-17a0efc5cbb3","block_type":"box","text":"The following notations are not considered to be par t of the Master Por tfolio’s fundamental investment","page_number":24,"box":{"x":101,"y":528,"width":736,"height":12}},{"id":"47f82c11-f4f7-4a44-becf-55fde5c94d74","block_type":"box","text":"restrictions and are subject to change without shareholder approval.","page_number":24,"box":{"x":69,"y":544,"width":485,"height":11}},{"id":"5e96f6d0-566f-4331-9bb0-e8c108d198e4","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":24,"box":{"x":101,"y":566,"width":796,"height":11}},{"id":"2fac1ef3-94e1-4f1c-bd8b-ba0527cbbeae","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":24,"box":{"x":68,"y":581,"width":811,"height":11}},{"id":"c6480ae6-6988-47b2-84fa-0ed4d87144d6","block_type":"box","text":"that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in","page_number":24,"box":{"x":68,"y":596,"width":833,"height":12}},{"id":"c268632a-91d8-457b-88fa-9e7d7b90017c","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":24,"box":{"x":68,"y":612,"width":836,"height":11}},{"id":"2ee3fdd9-47db-4adc-a753-6ac285b0e7cd","block_type":"box","text":"could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be","page_number":24,"box":{"x":69,"y":627,"width":815,"height":11}},{"id":"eb4ef6e8-37ba-42da-9ecc-c6460ccbcb07","block_type":"box","text":"interpreted from time to time. The policy also will be interpreted to permit investment without limit in the following:","page_number":24,"box":{"x":70,"y":642,"width":813,"height":11}},{"id":"107f6968-1753-4846-b410-8598c76650ea","block_type":"box","text":"securities of the U.S. government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":24,"box":{"x":69,"y":657,"width":820,"height":11}},{"id":"401a9310-8302-4ea8-8f6e-0bc5d222c5c6","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":24,"box":{"x":69,"y":672,"width":809,"height":11}},{"id":"ed25960f-1edb-403a-ba50-49fc05b63b67","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":24,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"a3558b03-22eb-456c-84f9-c4443b8b50fd","block_type":"box","text":"considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single","page_number":24,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"e970a6c5-662a-4195-b41a-f8e531fed4d2","block_type":"box","text":"jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities","page_number":24,"box":{"x":67,"y":717,"width":829,"height":12}},{"id":"3ebfc380-c048-4e11-8475-5721b9aa92c7","block_type":"box","text":"are primarily related to financing the activities of the parents. Each foreign government will be considered to be a","page_number":24,"box":{"x":69,"y":732,"width":805,"height":12}},{"id":"504082ad-020e-44f6-82c7-375b7d655a33","block_type":"box","text":"member of a separate industry. With respect to the Master Por tfolio’s industry classifications, the Master Por tfolio","page_number":24,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"b8ea34f3-7a3b-4d55-a6d5-91bebc4984c8","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":24,"box":{"x":69,"y":763,"width":817,"height":11}},{"id":"9e7253e3-74ea-4ac0-9585-56c642b4cd20","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Master Por tfolio management. The policy also will be","page_number":24,"box":{"x":70,"y":778,"width":763,"height":11}},{"id":"f2ea1648-52fd-4e05-9309-6337254a3ace","block_type":"box","text":"interpreted to give broad authority to the Master Por tfolio as to how to classify issuers within or among industries.","page_number":24,"box":{"x":70,"y":793,"width":812,"height":11}},{"id":"0372b0e0-ac20-4cef-9c43-5b0da504e7c9","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th in (2) above, the Investment","page_number":24,"box":{"x":101,"y":816,"width":750,"height":11}},{"id":"26de8460-8e42-48cb-a3c5-01bdf9f27de1","block_type":"box","text":"Company Act permits the Master Por tfolio to borrow money in amounts of up to one-third of the Master Por tfolio’s","page_number":24,"box":{"x":69,"y":831,"width":813,"height":11}},{"id":"8fd7931c-e330-45b1-b361-f1873f97d962","block_type":"box","text":"total assets from banks for any purpose, and to borrow up to 5% of the Master Por tfolio’s total assets from banks or","page_number":24,"box":{"x":68,"y":846,"width":836,"height":11}},{"id":"7b6edc42-511f-4101-97f5-614005b45bfb","block_type":"box","text":"other lenders for temporary purposes. (The Master Por tfolio’s total assets include the amounts being borrowed.) To","page_number":24,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"cb1526a0-adfe-4808-a62e-38d5e3b0829e","block_type":"box","text":"limit the risks attendant to borrowing, the Investment Company Act requires the Master Por tfolio to maintain at all","page_number":24,"box":{"x":70,"y":876,"width":811,"height":11}},{"id":"7c4b6296-44eb-4f88-a469-3683a21f9f75","block_type":"box","text":"times an “asset coverage” of at least 300% of the amount of its borrowings. Asset coverage means the ratio that the","page_number":24,"box":{"x":68,"y":891,"width":839,"height":12}},{"id":"b95d3982-0057-47e1-be1e-799e378fc39f","block_type":"box","text":"value of the Master Por tfolio’s total assets (including amounts borrowed), minus liabilities other than borrowings,","page_number":24,"box":{"x":68,"y":906,"width":809,"height":12}},{"id":"d4b69b24-aa10-4b49-8931-c971781e32b9","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"63adc024-3d24-47f0-a2ad-1f082e479ac1","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9270b8c-9f56-4234-9880-8d475f66bcde","block_type":"box","text":"bears to the aggregate amount of all borrowings. Borrowing money to increase por tfolio holdings is known as","page_number":25,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"24d3683c-2a07-444f-9687-f9e11aad4a39","block_type":"box","text":"“leveraging.” Cer tain trading practices and investments, such as reverse repurchase agreements, may be considered","page_number":25,"box":{"x":70,"y":60,"width":836,"height":11}},{"id":"b3c1d3da-49ac-47fb-a697-7e278920b4cd","block_type":"box","text":"to be borrowings or involve leverage and thus are subject to the Investment Company Act restrictions. In accordance","page_number":25,"box":{"x":68,"y":75,"width":830,"height":11}},{"id":"cc99e373-1254-49e7-b2cf-06356bf09533","block_type":"box","text":"with Commission staff guidance and interpretations, when the Master Por tfolio engages in such transactions, the","page_number":25,"box":{"x":68,"y":90,"width":810,"height":11}},{"id":"de9991b9-875b-48fd-b571-5400708a0d67","block_type":"box","text":"Master Por tfolio instead of maintaining asset coverage of at least 300%, may segregate or earmark liquid assets, or","page_number":25,"box":{"x":70,"y":105,"width":830,"height":11}},{"id":"73144190-1b5a-4902-b1d0-dd74e35686e5","block_type":"box","text":"enter into an offsetting position, in an amount at least equal to the Master Por tfolio’s exposure, on a mark-to-market","page_number":25,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"899b8dd9-b2c9-448c-b397-75514baf3fad","block_type":"box","text":"basis, to the transaction (as calculated pursuant to requirements of the Commission). The policy in (2) above will be","page_number":25,"box":{"x":69,"y":135,"width":828,"height":11}},{"id":"b38997c7-1789-4710-a444-157ab28f68d3","block_type":"box","text":"interpreted to permit the Master Por tfolio to engage in trading practices and investments that may be considered to","page_number":25,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"45caecf6-899d-478f-9642-84ed87850ddf","block_type":"box","text":"be borrowing or to involve leverage to the extent permitted by the Investment Company Act and to permit the Master","page_number":25,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"e28e7a95-2147-4c38-9788-444efa39b2b6","block_type":"box","text":"Por tfolio to segregate or earmark liquid assets or enter into offsetting positions in accordance with the Investment","page_number":25,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"14964171-de51-49e1-9897-fe6e4314dce2","block_type":"box","text":"Company Act. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":25,"box":{"x":69,"y":196,"width":797,"height":11}},{"id":"a6fd5644-689e-4f53-9615-21e91b88a751","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":25,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"da99ff2f-8e32-4bba-a3ec-9cd40a60ab14","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":25,"box":{"x":69,"y":226,"width":643,"height":11}},{"id":"52f7c750-64e3-4b80-bd4d-1aa94422bb8f","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":25,"box":{"x":101,"y":249,"width":788,"height":11}},{"id":"79cf23f1-82f6-41d0-934b-717b1ea564f3","block_type":"box","text":"Act does not prohibit the Master Por tfolio from engaging in the underwriting business or from underwriting the","page_number":25,"box":{"x":68,"y":264,"width":786,"height":11}},{"id":"8d2ae1ea-3e8d-4592-aa1c-aedd93f29716","block_type":"box","text":"securities of other issuers; in fact, in the case of diversified funds, the Investment Company Act permits the Master","page_number":25,"box":{"x":69,"y":279,"width":826,"height":11}},{"id":"70a4ac13-1f8b-4967-a916-495f91b8d5d8","block_type":"box","text":"Por tfolio to have underwriting commitments of up to 25% of its assets under cer tain circumstances. Those","page_number":25,"box":{"x":69,"y":294,"width":763,"height":11}},{"id":"dc166ebe-102d-4a3e-90bb-0a596098fb76","block_type":"box","text":"circumstances currently are that the amount of the Master Por tfolio’s underwriting commitments, when added to the","page_number":25,"box":{"x":69,"y":309,"width":833,"height":11}},{"id":"50c91507-71c8-4e19-b43c-5561c361163a","block_type":"box","text":"value of the Master Por tfolio’s investments in issuers where the Master Por tfolio owns more than 10% of the","page_number":25,"box":{"x":68,"y":324,"width":780,"height":9}},{"id":"7f54deb9-2df6-43fe-9a5b-1ef617770cda","block_type":"box","text":"outstanding voting securities of those issuers, cannot exceed the 25% cap. A fund engaging in transactions involving","page_number":25,"box":{"x":69,"y":339,"width":832,"height":12}},{"id":"9c1d7627-ea21-448b-8fef-439376d4d925","block_type":"box","text":"the acquisition or disposition of por tfolio securities may be considered to be an underwriter under the Securities Act.","page_number":25,"box":{"x":68,"y":355,"width":834,"height":11}},{"id":"5db5c7a6-7838-4e32-95f8-32aa92be7630","block_type":"box","text":"Although it is not believed that the application of the Securities Act provisions described above would cause the","page_number":25,"box":{"x":68,"y":370,"width":797,"height":11}},{"id":"72914fa1-6133-405b-8c86-eb0b6200154f","block_type":"box","text":"Master Por tfolio to be engaged in the business of underwriting, the policy in (5) above will be interpreted not to","page_number":25,"box":{"x":70,"y":385,"width":791,"height":11}},{"id":"ca778402-8539-4d21-ad03-773435061b79","block_type":"box","text":"prevent the Master Por tfolio from engaging in transactions involving the acquisition or disposition of por tfolio","page_number":25,"box":{"x":70,"y":400,"width":775,"height":11}},{"id":"4445465d-6b24-46ca-8d7f-ccc5825e68aa","block_type":"box","text":"securities, regardless of whether the Master Por tfolio may be considered to be an underwriter under the Securities","page_number":25,"box":{"x":69,"y":415,"width":819,"height":11}},{"id":"283221c5-9fee-4cbf-892f-ed4c2d0c7a2b","block_type":"box","text":"Act or is otherwise engaged in the underwriting business to the extent permitted by applicable law.","page_number":25,"box":{"x":68,"y":430,"width":704,"height":11}},{"id":"cde411f1-734c-4de8-906f-eb6116bfe120","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":25,"box":{"x":101,"y":453,"width":778,"height":11}},{"id":"3c485259-d8ec-4334-bd70-94e2965b7137","block_type":"box","text":"does not prohibit the Master Por tfolio from making loans (including lending its securities); however, Commission staff","page_number":25,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"f91f6336-57ee-4dcb-a608-274f8cf30542","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":25,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"d168d9de-48d2-4df2-bb85-52c50d0e609b","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":25,"box":{"x":69,"y":498,"width":784,"height":11}},{"id":"5080e16b-1549-4649-8873-27fcf3b5bb7f","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":25,"box":{"x":69,"y":513,"width":791,"height":12}},{"id":"a4cb985a-7f6a-488f-922a-d90154db3b72","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":25,"box":{"x":70,"y":528,"width":803,"height":12}},{"id":"0e838274-df03-40ac-95ea-e121745374da","block_type":"box","text":"loans.","page_number":25,"box":{"x":70,"y":544,"width":40,"height":9}},{"id":"5a0d850e-be48-4418-b312-936d7667e5a5","block_type":"box","text":"The Master Por tfolio is currently classified as a diversified fund under the Investment Company Act. This means","page_number":25,"box":{"x":101,"y":566,"width":797,"height":11}},{"id":"264f5371-4d20-4b90-ae86-f427128cb0a8","block_type":"box","text":"that the Master Por tfolio may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by","page_number":25,"box":{"x":68,"y":581,"width":833,"height":12}},{"id":"a1f4c2ac-bf59-478f-a7a8-73fde1c8b3eb","block_type":"box","text":"the U.S. government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with","page_number":25,"box":{"x":68,"y":596,"width":797,"height":12}},{"id":"bb4a4462-60bb-47ac-869c-5fb92b224200","block_type":"box","text":"respect to 75% of its total assets, (a) more than 5% of the Master Por tfolio’s total assets would be invested in","page_number":25,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"36cbb586-dae1-4740-8093-6f7869a20cc9","block_type":"box","text":"securities of that issuer or (b) the Master Por tfolio would hold more than 10% of the outstanding voting securities of","page_number":25,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"df7511b8-4d43-4666-b74a-4e9164ddacf8","block_type":"box","text":"that issuer. With respect to the remaining 25% of its total assets, the Master Por tfolio can invest more than 5% of its","page_number":25,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"8c1dc36f-793b-46fc-b23f-3b9c96f10eac","block_type":"box","text":"assets in one issuer. Under the Investment Company Act, the Master Por tfolio cannot change its classification from","page_number":25,"box":{"x":69,"y":657,"width":824,"height":11}},{"id":"37996f86-96a0-4a24-a0d1-3acac4cbd0c5","block_type":"box","text":"diversified to non-diversified without shareholder approval.","page_number":25,"box":{"x":69,"y":672,"width":413,"height":11}},{"id":"c87cd459-5544-4261-bb6b-123da5ef6bee","block_type":"box","text":"Non-Fundamental Investment Restrictions of the Master Portfolio","page_number":25,"box":{"x":69,"y":702,"width":477,"height":9}},{"id":"624f279a-e677-48db-b4e1-aa12b338d17a","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board of Trustees of MIP II","page_number":25,"box":{"x":102,"y":725,"width":770,"height":11}},{"id":"5fbeb870-23eb-4a8b-bb68-06f60ac79889","block_type":"box","text":"without shareholder approval, the Master Por tfolio may not:","page_number":25,"box":{"x":68,"y":740,"width":424,"height":11}},{"id":"36cf954c-bf7c-4910-a304-0c09e829ad1e","block_type":"box","text":"(1) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":25,"box":{"x":102,"y":763,"width":748,"height":11}},{"id":"64fdc398-970d-418f-b3e0-31223a674bd3","block_type":"box","text":"Company Act. As a matter of policy, however, the Master Por tfolio will not purchase shares of any registered open","page_number":25,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"d213e8f4-e2eb-46dc-93e3-5616d5e16c87","block_type":"box","text":"end investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":25,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"5de29934-c05b-41e1-844b-2013186dd441","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Master Por tfolio has knowledge that its shares","page_number":25,"box":{"x":68,"y":808,"width":814,"height":11}},{"id":"928ccac2-8d82-4f3b-932c-046c4138b968","block_type":"box","text":"are purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":25,"box":{"x":69,"y":823,"width":823,"height":12}},{"id":"d7d823c2-3995-4b8d-8f9d-6f4ee3bf7d66","block_type":"box","text":"12(d)(1).","page_number":25,"box":{"x":70,"y":838,"width":59,"height":11}},{"id":"a7bebc4c-b2ee-47e9-8afb-c7ecb4f752cd","block_type":"box","text":"(2) Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Master","page_number":25,"box":{"x":102,"y":861,"width":774,"height":11}},{"id":"606d55f5-2030-4d89-a50a-dbabf2a4a92f","block_type":"box","text":"Por tfolio’s Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":25,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"bf6c5b9e-7912-4c7a-a6c8-af4a538ef5f5","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"c30d2200-5e82-46f3-b6a9-77180ad7faa6","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49f4236e-1627-4c54-bbdf-cfc8af4b453f","block_type":"box","text":"III. Information on Trustees and Officers","page_number":26,"box":{"x":69,"y":45,"width":290,"height":9}},{"id":"4f1a5886-dc1e-4417-aec1-4b80534f8518","block_type":"box","text":"The Board consists of nine individuals (each a “Trustee”), seven of whom are not “interested persons” of the","page_number":26,"box":{"x":101,"y":67,"width":780,"height":11}},{"id":"c1df8eba-7b53-4c73-9595-4bf2120b7cf8","block_type":"box","text":"Trust as defined in the Investment Company Act (the “Independent Trustees”). The same individuals serve on the","page_number":26,"box":{"x":68,"y":82,"width":810,"height":12}},{"id":"8d6bb65d-b89c-45fe-80fe-7047ff4865dd","block_type":"box","text":"Board of Trustees of MIP II. The registered investment companies advised by the Manager or its affiliates (the","page_number":26,"box":{"x":70,"y":98,"width":783,"height":11}},{"id":"1574bb5b-091d-4118-a236-bb3d713904f9","block_type":"box","text":"“BlackRock-advised Funds”) are organized into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income","page_number":26,"box":{"x":70,"y":113,"width":794,"height":11}},{"id":"d9b3a9f4-3d09-41c0-a9d0-1fc347bda17e","block_type":"box","text":"Complex, and the iShares Complex (each, a “BlackRock Fund Complex”). The Trust and MIP II are included in the","page_number":26,"box":{"x":69,"y":128,"width":805,"height":11}},{"id":"f5a25619-f5e7-4c5c-a27e-e7d54a5d3fe6","block_type":"box","text":"BlackRock Fund Complex referred to as the BlackRock Fixed-Income Complex. The Trustees also oversee as board","page_number":26,"box":{"x":70,"y":143,"width":814,"height":11}},{"id":"6dff2142-22bf-4bec-b57e-e1fcb05fb83e","block_type":"box","text":"members the operations of the other open-end and closed-end registered investment companies included in the","page_number":26,"box":{"x":69,"y":158,"width":797,"height":11}},{"id":"cb6bccb8-95a0-4f63-9c97-fbcb7fbcc12c","block_type":"box","text":"BlackRock Fixed-Income Complex.","page_number":26,"box":{"x":70,"y":173,"width":238,"height":11}},{"id":"f3e15ba5-7149-4093-9ca4-b95603655288","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board and the","page_number":26,"box":{"x":101,"y":196,"width":789,"height":11}},{"id":"cf001c5a-ea7a-4ba3-9ef7-1bd14b83b27e","block_type":"box","text":"Chief Executive Officer are different people. Not only is the Chair of the Board an Independent Trustee, but also the","page_number":26,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"2a8be356-b9dd-440b-91a5-7214ccdd2a68","block_type":"box","text":"Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The Board has six standing","page_number":26,"box":{"x":69,"y":226,"width":781,"height":11}},{"id":"b4647d5d-c6ca-4e09-b725-a8dd886affb1","block_type":"box","text":"Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a","page_number":26,"box":{"x":69,"y":241,"width":750,"height":11}},{"id":"b9f444e1-035c-4797-878c-b366b39ced85","block_type":"box","text":"Per formance Oversight Committee, a Securities Lending Committee and an Executive Committee. The role of the","page_number":26,"box":{"x":69,"y":256,"width":803,"height":12}},{"id":"cdc19361-d332-4084-9bbb-cfcf321e2467","block_type":"box","text":"Chair of the Board is to preside over all meetings of the Board and to act as a liaison with service providers, officers,","page_number":26,"box":{"x":69,"y":271,"width":836,"height":12}},{"id":"263451f0-1d03-454c-89ec-dd299199b9c9","block_type":"box","text":"attorneys, and other Trustees between meetings. The Chair of each Committee per forms a similar role with respect","page_number":26,"box":{"x":69,"y":286,"width":824,"height":12}},{"id":"0f9578da-ff63-4c56-84b1-ab99199cc4e2","block_type":"box","text":"to the Committee. The Chair of the Board or a Committee may also per form such other functions as may be","page_number":26,"box":{"x":68,"y":302,"width":770,"height":11}},{"id":"28575dd8-0b9c-4e89-bbb5-447aa853917c","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":26,"box":{"x":69,"y":317,"width":809,"height":11}},{"id":"52da3af8-9a51-4fc7-b86a-80f8017eaf15","block_type":"box","text":"presence of the Fund’s management, in executive sessions or with other service providers to the Fund. The Board","page_number":26,"box":{"x":70,"y":332,"width":812,"height":11}},{"id":"886d1f53-6cd2-4a16-ada2-4f93dd9d4ae0","block_type":"box","text":"has regular meetings five times a year, including a meeting to consider the approval of the Fund’s investment","page_number":26,"box":{"x":69,"y":347,"width":780,"height":11}},{"id":"12d02ac9-1c8d-4f1d-b935-22903416a2bf","block_type":"box","text":"management agreement, and, if necessary, may hold special meetings before its next regular meeting. The Audit","page_number":26,"box":{"x":69,"y":362,"width":805,"height":11}},{"id":"bc91b3f5-efff-4e44-b07f-3d62ad2178bd","block_type":"box","text":"Committee, the Governance and Nominating Committee, the Compliance Committee, the Per formance Oversight","page_number":26,"box":{"x":69,"y":377,"width":801,"height":12}},{"id":"76fc7e1c-4db8-4fa8-bda1-2f046f59eab9","block_type":"box","text":"Committee and the Securities Lending Committee each meets regularly and the Executive Committee meets on an ad","page_number":26,"box":{"x":69,"y":392,"width":837,"height":12}},{"id":"c7b54061-07c8-4122-aec8-9fb3e0b10b58","block_type":"box","text":"hoc basis to conduct the oversight functions delegated to that Committee by the Board and repor ts its findings to the","page_number":26,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"fc2bfad7-4042-4385-8752-766a91616eaa","block_type":"box","text":"Board. The Board and each standing Committee conduct annual assessments of their oversight function and","page_number":26,"box":{"x":70,"y":423,"width":773,"height":11}},{"id":"d362c54d-91d6-4ca0-8d98-787a42c2f2f1","block_type":"box","text":"structure. The Board has determined that the Board’s leadership structure is appropriate because it allows the Board","page_number":26,"box":{"x":69,"y":438,"width":838,"height":11}},{"id":"d06289d6-dd63-466e-bc8f-146ed15c4b5f","block_type":"box","text":"to exercise independent judgment over management and to allocate areas of responsibility among Committees and","page_number":26,"box":{"x":68,"y":453,"width":823,"height":11}},{"id":"37c940cc-7c01-4f3f-83b8-28f81fda2e18","block_type":"box","text":"the Board to enhance oversight.","page_number":26,"box":{"x":68,"y":468,"width":227,"height":11}},{"id":"86365ad4-306d-43a9-86d9-bc20b575c0f5","block_type":"box","text":"The Board decided to separate the roles of Chief Executive Officer from the Chair because it believes that having","page_number":26,"box":{"x":101,"y":491,"width":805,"height":11}},{"id":"fff1fe45-090c-4872-a397-fda2f84641af","block_type":"box","text":"an independent Chair:","page_number":26,"box":{"x":69,"y":506,"width":155,"height":11}},{"id":"1c30f09d-c4ee-4ec3-9ace-6f2caa9324cb","block_type":"box","text":"•","page_number":26,"box":{"x":102,"y":529,"width":6,"height":4}},{"id":"09022fb3-0796-49d7-9fd3-1b76da7b290c","block_type":"box","text":"increases the independent oversight of the Fund and enhances the Board’s objective evaluation of the Chief","page_number":26,"box":{"x":135,"y":526,"width":771,"height":11}},{"id":"732e51a0-a634-4661-a4af-21ca6fab8bc9","block_type":"box","text":"Executive Officer;","page_number":26,"box":{"x":135,"y":541,"width":121,"height":11}},{"id":"f763e3f0-912a-4274-bf63-d850c09adf12","block_type":"box","text":"•","page_number":26,"box":{"x":102,"y":564,"width":6,"height":5}},{"id":"2b51c3dd-ea18-43b5-a3ce-b48d01fa5061","block_type":"box","text":"allows the Chief Executive Officer to focus on the Fund’s operations instead of Board administration;","page_number":26,"box":{"x":134,"y":561,"width":717,"height":11}},{"id":"d3a98980-6cfa-4de5-aec7-82c464936995","block_type":"box","text":"•","page_number":26,"box":{"x":102,"y":584,"width":6,"height":5}},{"id":"569e995e-55e9-4c41-b79b-85fd4598e8d8","block_type":"box","text":"provides greater oppor tunities for direct and independent communication between shareholders and the","page_number":26,"box":{"x":135,"y":581,"width":742,"height":12}},{"id":"66a106af-50b9-46d5-a6f0-9763ccc004bb","block_type":"box","text":"Board; and","page_number":26,"box":{"x":135,"y":597,"width":76,"height":10}},{"id":"385d472e-8cc7-4d51-8c4a-01bc60605868","block_type":"box","text":"•","page_number":26,"box":{"x":102,"y":620,"width":6,"height":4}},{"id":"5f26c4ee-c99f-436c-809a-35dd8cd8b4da","block_type":"box","text":"provides an independent spokesman for the Fund.","page_number":26,"box":{"x":135,"y":617,"width":356,"height":11}},{"id":"51ab08e5-e0a6-4d51-b599-b2a09c10ce2c","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":26,"box":{"x":101,"y":639,"width":777,"height":12}},{"id":"bd1410b6-0711-4009-a4f4-a1feef34b5f6","block_type":"box","text":"overseeing the Manager, sub-advisers, other service providers, the operations of the Fund and associated risks in","page_number":26,"box":{"x":69,"y":654,"width":811,"height":12}},{"id":"2edb518f-6dea-4a57-aee2-ef62e4f70a90","block_type":"box","text":"accordance with the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s char ter,","page_number":26,"box":{"x":69,"y":669,"width":826,"height":12}},{"id":"0892e897-0e35-4cf0-9357-4ef72d50fde9","block_type":"box","text":"and the Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s","page_number":26,"box":{"x":69,"y":685,"width":743,"height":11}},{"id":"fd945b75-f0e5-48ac-9fae-0323bb9e86a0","block_type":"box","text":"per formance, operations, and investment strategies and techniques. The Board also conducts reviews of the","page_number":26,"box":{"x":70,"y":700,"width":776,"height":11}},{"id":"2bec355f-d9a7-4a48-b4c3-b538a0a51c37","block_type":"box","text":"Manager and its role in running the operations of the Fund.","page_number":26,"box":{"x":70,"y":715,"width":419,"height":11}},{"id":"ec00e563-e552-4c2e-80e8-1ffd7f2787e5","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager, sub-advisers or other","page_number":26,"box":{"x":102,"y":738,"width":793,"height":11}},{"id":"bc39ec8d-671e-4fe5-826a-098f519e2b43","block_type":"box","text":"service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":26,"box":{"x":69,"y":753,"width":787,"height":11}},{"id":"7ae75e80-5c1f-4a06-9855-5d1fae63d42d","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":26,"box":{"x":69,"y":768,"width":832,"height":11}},{"id":"2e3175cb-7791-4082-a2db-96037e1970f6","block_type":"box","text":"there are a number of risk management functions per formed by the Manager, sub-advisers or other service providers,","page_number":26,"box":{"x":68,"y":783,"width":839,"height":11}},{"id":"3c5b940d-b0c0-4b17-8fb3-d0c5f5383c4f","block_type":"box","text":"as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight is par t of the","page_number":26,"box":{"x":69,"y":798,"width":789,"height":11}},{"id":"e1ad61f1-b592-4e97-b351-7ceb2069b0fe","block_type":"box","text":"Board’s general oversight of the Fund and is addressed as par t of various Board and Committee activities. The","page_number":26,"box":{"x":70,"y":813,"width":790,"height":11}},{"id":"40aa4970-e324-43ad-aeb7-023f014788c2","block_type":"box","text":"Board, directly or through Committees, also reviews repor ts from, among others, management, the independent","page_number":26,"box":{"x":70,"y":828,"width":799,"height":12}},{"id":"ff63e733-f5fe-4899-b1ea-8474e56cc26f","block_type":"box","text":"registered public accounting firm for the Fund, the Manager, sub-advisers and internal auditors for the Manager or its","page_number":26,"box":{"x":69,"y":843,"width":833,"height":12}},{"id":"f136f274-920d-4c3a-aed5-012dbecbed2f","block_type":"box","text":"affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s risk","page_number":26,"box":{"x":69,"y":858,"width":774,"height":12}},{"id":"f192ad92-57e1-4a2f-a5d9-fb331c04e73d","block_type":"box","text":"functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees and","page_number":26,"box":{"x":68,"y":874,"width":809,"height":11}},{"id":"f4ef8133-c682-4259-8470-5e24d8cbf0e5","block_type":"box","text":"facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities and","page_number":26,"box":{"x":68,"y":889,"width":818,"height":11}},{"id":"c577f225-05cc-4bb8-87a8-c5cc04ad79d3","block_type":"box","text":"associated risks. The Board has approved the appointment of a Chief Compliance Officer (“CCO”), who oversees the","page_number":26,"box":{"x":69,"y":904,"width":831,"height":11}},{"id":"895b3140-2c4d-4099-8d6f-94ec23d88afb","block_type":"box","text":"I-10","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c3c431dc-abeb-42b2-9607-038e457ce5fb","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06b95427-12c1-4d19-9970-4015e4159ff2","block_type":"box","text":"implementation and testing of the Fund’s compliance program and repor ts regularly to the Board regarding","page_number":27,"box":{"x":70,"y":45,"width":760,"height":11}},{"id":"ecb67d6c-74da-4c3e-9f2b-5cae938aaa81","block_type":"box","text":"compliance matters for the Fund and its service providers. The Independent Trustees have engaged independent","page_number":27,"box":{"x":69,"y":60,"width":804,"height":11}},{"id":"90270068-9fc3-4576-b723-ebc8d293e002","block_type":"box","text":"legal counsel to assist them in per forming their oversight responsibilities.","page_number":27,"box":{"x":70,"y":75,"width":524,"height":11}},{"id":"1c74fbf0-7c47-4283-a004-bbd0de52897c","block_type":"box","text":"Audit Committee.","page_number":27,"box":{"x":101,"y":98,"width":122,"height":9}},{"id":"998e2e8e-2aff-4cfe-beb4-c0c74fa41033","block_type":"box","text":"The Board has a standing Audit Committee composed of Lorenzo A. Flores (Chair), J. Phillip","page_number":27,"box":{"x":229,"y":98,"width":651,"height":11}},{"id":"267482f1-ef53-4194-a7d3-84408779df7c","block_type":"box","text":"Holloman and Ar thur P. Steinmetz, all of whom are Independent Trustees. The principal responsibilities of the Audit","page_number":27,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"8a877dec-28c2-4270-bc5e-ed8e0dcc63b8","block_type":"box","text":"Committee are to assist the Board in fulfilling its oversight responsibilities relating to the accounting and financial","page_number":27,"box":{"x":69,"y":128,"width":810,"height":11}},{"id":"2beb9a61-3283-414b-93f9-6454a5788d5a","block_type":"box","text":"repor ting policies and practices of the Fund. The Audit Committee’s responsibilities include, without limitation:","page_number":27,"box":{"x":69,"y":143,"width":786,"height":11}},{"id":"ef2d9b0d-f9fb-4b96-8a4c-931209ca03bd","block_type":"box","text":"(i) approving, and recommending to the full Board for approval, the selection, retention, termination and","page_number":27,"box":{"x":69,"y":158,"width":739,"height":11}},{"id":"91569303-9f43-4295-9b11-001121e46f82","block_type":"box","text":"compensation of the Fund’s independent registered public accounting firm (the “Independent Registered Public","page_number":27,"box":{"x":69,"y":173,"width":792,"height":11}},{"id":"95d300c7-d89d-438f-ba38-edf8a4f35f07","block_type":"box","text":"Accounting Firm”) and evaluating the independence and objectivity of the Independent Registered Public Accounting","page_number":27,"box":{"x":68,"y":188,"width":824,"height":12}},{"id":"427bef22-dcf0-437a-bd50-c92a1c634062","block_type":"box","text":"Firm; (ii) approving all audit engagement terms and fees for the Fund; (iii) reviewing the conduct and results of each","page_number":27,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"ff082c71-ff7f-4603-b952-614614d43eb5","block_type":"box","text":"audit; (iv) reviewing any issues raised by the Fund’s Independent Registered Public Accounting Firm or management","page_number":27,"box":{"x":69,"y":219,"width":824,"height":11}},{"id":"d69be114-a253-4c45-be8b-7c4c728c0d41","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund, its internal controls, and, as","page_number":27,"box":{"x":69,"y":234,"width":785,"height":11}},{"id":"f65fcf42-3157-4f45-a4b0-d8027159fc77","block_type":"box","text":"appropriate, the internal controls of cer tain service providers and management’s response to any such issues;","page_number":27,"box":{"x":69,"y":249,"width":791,"height":11}},{"id":"a1a23853-d997-4db2-8e90-d3ba24b05146","block_type":"box","text":"(v) reviewing and discussing the Fund’s audited and unaudited financial statements and disclosure in the Fund’s","page_number":27,"box":{"x":69,"y":264,"width":801,"height":11}},{"id":"2e3006ef-b451-4b20-a5cc-387d62ac9a46","block_type":"box","text":"shareholder repor ts relating to the Fund’s per formance; (vi) assisting the Board’s responsibilities with respect to the","page_number":27,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"886234ab-0f27-4bf7-bfa1-8b8e3f429e16","block_type":"box","text":"internal controls of the Fund and its service providers with respect to accounting and financial matters; and","page_number":27,"box":{"x":70,"y":294,"width":764,"height":11}},{"id":"0a17312c-7fb2-4d31-b2b6-2436165eff67","block_type":"box","text":"(vii) resolving any disagreements between the Fund’s management and the Fund’s Independent Registered Public","page_number":27,"box":{"x":69,"y":309,"width":809,"height":11}},{"id":"3762399a-5080-4988-a807-eaa2c3baabf6","block_type":"box","text":"Accounting Firm regarding financial repor ting. The Board has adopted a written char ter for the Board’s Audit","page_number":27,"box":{"x":68,"y":324,"width":770,"height":12}},{"id":"7dc2e499-6b01-43ce-b474-028e24d88928","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Audit Committee met four times.","page_number":27,"box":{"x":69,"y":339,"width":706,"height":12}},{"id":"d6b6ed2a-b1ea-4d95-a49c-b2d2da129866","block_type":"box","text":"Governance and Nominating Committee.","page_number":27,"box":{"x":102,"y":362,"width":286,"height":11}},{"id":"3fb140ce-c6f6-448d-807e-98e349188f5c","block_type":"box","text":"The Board has a standing Governance and Nominating Committee","page_number":27,"box":{"x":394,"y":362,"width":471,"height":11}},{"id":"0f605f06-e163-4b6e-97a9-4a3df62ade15","block_type":"box","text":"composed of W. Carl Kester (Chair), Cynthia L. Egan, J. Phillip Holloman and R. Glenn Hubbard, all of whom are","page_number":27,"box":{"x":69,"y":377,"width":791,"height":12}},{"id":"f8f1c7e1-5b36-45c3-a6c4-077eb9765c08","block_type":"box","text":"Independent Trustees. The principal responsibilities of the Governance and Nominating Committee are: (i) identifying","page_number":27,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"f2a50543-85df-413f-8a89-150b0cf64f1f","block_type":"box","text":"individuals qualified to serve as Independent Trustees and recommending Board nominees that are not “interested","page_number":27,"box":{"x":70,"y":407,"width":820,"height":12}},{"id":"78f22d52-ed33-4285-89d3-f11e7b516e74","block_type":"box","text":"persons” of the Fund (as defined in the Investment Company Act) for election by shareholders or appointment by the","page_number":27,"box":{"x":70,"y":423,"width":829,"height":11}},{"id":"24617c58-f569-4b45-8db6-99876ea33778","block_type":"box","text":"Board; (ii) advising the Board with respect to Board composition, procedures and Committees of the Board (other","page_number":27,"box":{"x":70,"y":438,"width":806,"height":11}},{"id":"9032c65e-f2fb-4a61-bf53-3b22920b1588","block_type":"box","text":"than the Audit Committee); (iii) overseeing periodic self-assessments of the Board and Committees of the Board","page_number":27,"box":{"x":68,"y":453,"width":800,"height":11}},{"id":"de203121-6368-44bd-bba6-4ea2be41c2bd","block_type":"box","text":"(other than the Audit Committee); (iv) reviewing and making recommendations in respect to Independent Trustee","page_number":27,"box":{"x":69,"y":468,"width":801,"height":11}},{"id":"8b0ced56-f97a-465f-b0ba-44ab46739850","block_type":"box","text":"compensation; (v) monitoring corporate governance matters and making recommendations in respect thereof to the","page_number":27,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"3afe2068-50a3-4f72-b3c5-3eef46c951d3","block_type":"box","text":"Board; (vi) acting as the administrative committee with respect to Board policies and procedures, committee policies","page_number":27,"box":{"x":70,"y":498,"width":831,"height":11}},{"id":"a6261897-ea43-41e1-b605-1872d3161186","block_type":"box","text":"and procedures (other than the Audit Committee) and codes of ethics as they relate to the Independent Trustees;","page_number":27,"box":{"x":69,"y":513,"width":808,"height":11}},{"id":"0fad894a-20f0-45e4-9521-5fa4ff593f6a","block_type":"box","text":"and (vii) reviewing and making recommendations to the Board in respect of Fund share ownership by the Independent","page_number":27,"box":{"x":69,"y":528,"width":838,"height":12}},{"id":"8ee61959-4b48-41e2-8795-8b2ebaa36492","block_type":"box","text":"Trustees. The Board has adopted a written char ter for the Board’s Governance and Nominating Committee. During","page_number":27,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"51d5d9bc-feec-495a-9532-147fbf3059e3","block_type":"box","text":"the fiscal year ended December 31, 2025, the Governance and Nominating Committee met four times.","page_number":27,"box":{"x":68,"y":559,"width":734,"height":11}},{"id":"608dcdeb-80dd-4609-b01d-e578993ec603","block_type":"box","text":"The Governance and Nominating Committee of the Board seeks to identify individuals to serve on the Board who","page_number":27,"box":{"x":101,"y":581,"width":803,"height":12}},{"id":"42121483-0233-482d-b9c1-27db74a5e32d","block_type":"box","text":"have a diverse range of viewpoints, qualifications, experiences, backgrounds and skill sets so that the Board will be","page_number":27,"box":{"x":69,"y":596,"width":825,"height":12}},{"id":"dd070c35-3920-4138-a978-dca92c88055d","block_type":"box","text":"better suited to fulfill its responsibility of overseeing the Fund’s activities. In so doing, the Governance and","page_number":27,"box":{"x":69,"y":612,"width":759,"height":11}},{"id":"2745c823-4bc4-4ad0-a5ec-804610988813","block_type":"box","text":"Nominating Committee reviews the size of the Board, the ages of the current Trustees and their tenure on the Board,","page_number":27,"box":{"x":70,"y":627,"width":833,"height":11}},{"id":"56cc1019-83b6-4e97-aa66-5705b1051cab","block_type":"box","text":"and the skills, background and experiences of the Trustees in light of the issues facing the Fund in determining","page_number":27,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"5edc9cea-d3f5-478f-858a-b5cb84c5ed22","block_type":"box","text":"whether one or more new trustees should be added to the Board. The Board as a group strives to achieve diversity in","page_number":27,"box":{"x":68,"y":657,"width":836,"height":11}},{"id":"eea0ce1a-baf9-4520-9069-988d29c13e7c","block_type":"box","text":"terms of gender, race and geographic location. The Governance and Nominating Committee believes that the","page_number":27,"box":{"x":68,"y":672,"width":775,"height":11}},{"id":"967bc2b3-80a8-4c37-bb34-95bbd1865703","block_type":"box","text":"Trustees as a group possess the array of skills, experiences and backgrounds necessary to guide the Fund. The","page_number":27,"box":{"x":68,"y":687,"width":801,"height":11}},{"id":"5a76fdbe-251b-4353-89d4-cf11ca91e8db","block_type":"box","text":"Trustees’ biographies included herein highlight the diversity and breadth of skills, qualifications and exper tise that","page_number":27,"box":{"x":68,"y":702,"width":815,"height":12}},{"id":"b313d8ff-59ae-4b17-81dd-718b46bb8408","block_type":"box","text":"the Trustees bring to the Fund.","page_number":27,"box":{"x":68,"y":718,"width":219,"height":11}},{"id":"233d2712-334f-4e83-a3bc-8e9cc2796c31","block_type":"box","text":"The Governance and Nominating Committee may consider nominations for the office of Trustee made by Fund","page_number":27,"box":{"x":101,"y":740,"width":783,"height":11}},{"id":"317bcba7-af6c-4694-9676-7fe22f07b6d5","block_type":"box","text":"shareholders as it deems appropriate. Fund shareholders who wish to recommend a nominee should send","page_number":27,"box":{"x":69,"y":755,"width":759,"height":11}},{"id":"0c0321c4-d21c-4c90-b0bd-1fbcfade7514","block_type":"box","text":"nominations to the Secretary of the Trust that include biographical information and set for th the qualifications of the","page_number":27,"box":{"x":69,"y":770,"width":830,"height":12}},{"id":"87fd92ca-8c96-49ae-8d68-720eea6cb915","block_type":"box","text":"proposed nominee.","page_number":27,"box":{"x":70,"y":786,"width":135,"height":10}},{"id":"67142f65-31f2-4c32-81d2-5e4bd5ea31ff","block_type":"box","text":"Compliance Committee.","page_number":27,"box":{"x":102,"y":808,"width":168,"height":11}},{"id":"3abc45c7-838f-4acf-b707-095fa41fe97c","block_type":"box","text":"The Board has a Compliance Committee composed of Cynthia L. Egan (Chair), Stayce D.","page_number":27,"box":{"x":276,"y":808,"width":628,"height":11}},{"id":"037be596-3b57-4f77-907e-81943ead264a","block_type":"box","text":"Harris, R. Glenn Hubbard and W. Carl Kester, all of whom are Independent Trustees. The Compliance Committee’s","page_number":27,"box":{"x":70,"y":823,"width":813,"height":11}},{"id":"75a10bfd-1064-4e69-b972-48468bc32a59","block_type":"box","text":"purpose is to assist the Board in fulfilling its responsibility with respect to the oversight of regulatory and fiduciary","page_number":27,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"623c2ced-b5bb-488c-bcbe-77a3cbd1fffa","block_type":"box","text":"compliance matters involving the Fund, the fund-related activities of BlackRock, and any sub-advisers and the Fund’s","page_number":27,"box":{"x":69,"y":853,"width":831,"height":12}},{"id":"c056a3d5-429e-4fbf-aafd-ad60564db5e8","block_type":"box","text":"other third par ty service providers. The Compliance Committee’s responsibilities include, without limitation:","page_number":27,"box":{"x":69,"y":869,"width":765,"height":11}},{"id":"5dbab84d-4e9b-490a-977e-a95536cfd733","block_type":"box","text":"(i) overseeing the compliance policies and procedures of the Fund and its service providers and recommending","page_number":27,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"0e8c7267-a2b3-4d2f-99fe-f5f20a2b1bee","block_type":"box","text":"changes or additions to such policies and procedures; (ii) reviewing information on and, where appropriate,","page_number":27,"box":{"x":69,"y":899,"width":762,"height":11}},{"id":"86a87faf-ed3f-4178-867a-045eb913ffb2","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3e4f3d3d-9239-426d-a0dc-2fd753ebf98a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2504171-db05-4269-99fa-6fa4070f3f39","block_type":"box","text":"recommending policies concerning the Fund’s compliance with applicable law; (iii) reviewing information on any","page_number":28,"box":{"x":69,"y":45,"width":791,"height":11}},{"id":"2fc11c17-d014-43bc-ae18-21a1f8dcaabe","block_type":"box","text":"significant correspondence with or other actions by regulators or governmental agencies with respect to the Fund and","page_number":28,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"6797edde-b194-46ff-adaf-67f8307c1a7d","block_type":"box","text":"any employee complaints or published repor ts that raise concerns regarding compliance matters; and (iv) reviewing","page_number":28,"box":{"x":69,"y":75,"width":822,"height":11}},{"id":"ced7a955-a39e-4ed0-a016-f065332289d7","block_type":"box","text":"repor ts from, overseeing the annual per formance review of, and making cer tain recommendations in respect of, the","page_number":28,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"ad4b45ea-f7bf-4857-99a2-49d0498f3854","block_type":"box","text":"Fund’s CCO, including, without limitation, determining the amount and structure of the CCO’s compensation. The","page_number":28,"box":{"x":70,"y":105,"width":803,"height":11}},{"id":"09e2603a-7d46-4594-b397-b006e50a847c","block_type":"box","text":"Board has adopted a written char ter for the Board’s Compliance Committee. During the fiscal year ended","page_number":28,"box":{"x":70,"y":120,"width":747,"height":12}},{"id":"f8c03be7-fd8f-466c-bd9d-8be61752c04b","block_type":"box","text":"December 31, 2025, the Compliance Committee met four times.","page_number":28,"box":{"x":70,"y":135,"width":460,"height":11}},{"id":"afef2bc1-aa01-40ca-b7f3-1f6f8f082b12","block_type":"box","text":"Per formance Oversight Committee.","page_number":28,"box":{"x":102,"y":158,"width":248,"height":11}},{"id":"0006b8d5-a563-472a-afaf-a8118c8834ef","block_type":"box","text":"The Board has a Per formance Oversight Committee composed of Ar thur P.","page_number":28,"box":{"x":356,"y":158,"width":530,"height":11}},{"id":"cde3e3c3-a695-4abe-9288-d2144d3e587d","block_type":"box","text":"Steinmetz (Chair), Cynthia L. Egan, Lorenzo A. Flores, Stayce D. Harris, J. Phillip Holloman, R. Glenn Hubbard and W.","page_number":28,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"1c83b956-b931-4c1e-8569-9e14a94e11e3","block_type":"box","text":"Carl Kester, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is to assist the","page_number":28,"box":{"x":69,"y":188,"width":832,"height":12}},{"id":"2d0a0124-6c39-4cfd-a01a-efa137300f15","block_type":"box","text":"Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to the Fund’s investment","page_number":28,"box":{"x":70,"y":203,"width":819,"height":12}},{"id":"04a68d05-5ef4-448e-a4c5-0b50a371fa14","block_type":"box","text":"objective, policies and practices. The Per formance Oversight Committee’s responsibilities include, without limitation:","page_number":28,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"b810d5fd-93d6-4632-980e-6613a62b0036","block_type":"box","text":"(i) reviewing the Fund’s investment objective, policies and practices; (ii) recommending to the Board any required","page_number":28,"box":{"x":69,"y":234,"width":803,"height":11}},{"id":"7037b697-f9d2-4bdd-85d4-7824d361972b","block_type":"box","text":"action in respect of changes in fundamental and non-fundamental investment restrictions; (iii) reviewing information","page_number":28,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"18ebf75b-9904-40bf-aeac-406b9322f0f5","block_type":"box","text":"on appropriate benchmarks and competitive universes; (iv) reviewing the Fund’s investment per formance relative to","page_number":28,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"fc73c69a-6941-4126-84a3-c5605bfe428e","block_type":"box","text":"such benchmarks; (v) reviewing information on unusual or exceptional investment matters; (vi) reviewing whether the","page_number":28,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"6d71175a-0933-4c14-97c8-90961c2a4910","block_type":"box","text":"Fund has complied with its investment policies and restrictions; and (vii) overseeing policies, procedures and controls","page_number":28,"box":{"x":70,"y":294,"width":837,"height":11}},{"id":"ac8f33df-b3a1-4370-b4bd-8c57391263d5","block_type":"box","text":"regarding valuation of the Fund’s investments. The Board has adopted a written char ter for the Board’s Per formance","page_number":28,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"d772ea97-0ed1-4880-89e2-8668a0737d60","block_type":"box","text":"Oversight Committee. During the fiscal year ended December 31, 2025, the Per formance Oversight Committee met","page_number":28,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"864fdedc-8d8b-480f-ade0-4d983d586e8f","block_type":"box","text":"four times.","page_number":28,"box":{"x":68,"y":339,"width":76,"height":9}},{"id":"bc4b46ba-b1d3-416d-8631-9e0e959e22b4","block_type":"box","text":"Securities Lending Committee","page_number":28,"box":{"x":102,"y":362,"width":213,"height":11}},{"id":"e8ce8a71-adb6-40be-95ab-7e603c21642d","block_type":"box","text":". The Board has a Securities Lending Committee composed of Cynthia L. Egan","page_number":28,"box":{"x":316,"y":362,"width":556,"height":11}},{"id":"64908865-7349-48f3-944a-f10fc6bd7aae","block_type":"box","text":"(Chair) and W. Carl Kester, both of whom are Independent Trustees. The principal responsibilities of the Securities","page_number":28,"box":{"x":69,"y":377,"width":813,"height":11}},{"id":"5f8ffbc2-22dc-49b6-a957-33183a93038e","block_type":"box","text":"Lending Committee include, without limitation: (i) suppor ting, overseeing and organizing on behalf of the Board the","page_number":28,"box":{"x":70,"y":392,"width":815,"height":12}},{"id":"7fefe793-c655-486c-bd5f-2a02899fadec","block_type":"box","text":"process for oversight of the Trust’s securities lending activities; and (ii) providing a recommendation to the Board","page_number":28,"box":{"x":70,"y":407,"width":805,"height":12}},{"id":"d91db040-a93c-4716-b0de-31f5c31f58a4","block_type":"box","text":"regarding the annual approval of the Trust’s Securities Lending Guidelines and the Trust’s agreement with the lending","page_number":28,"box":{"x":69,"y":423,"width":840,"height":11}},{"id":"8d72a370-eb21-4821-84c1-d0fbcd95c147","block_type":"box","text":"agent. The Board has adopted a written char ter for the Board’s Securities Lending Committee. During the fiscal year","page_number":28,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"c0c07ac8-58c8-4c92-a501-145fcbc6992e","block_type":"box","text":"ended December 31, 2025, the Securities Lending Committee met two times.","page_number":28,"box":{"x":69,"y":453,"width":555,"height":11}},{"id":"7f4fdf47-caf7-45f4-b5b0-b46ead6cc21d","block_type":"box","text":"Executive Committee.","page_number":28,"box":{"x":102,"y":476,"width":152,"height":8}},{"id":"3a8cd869-6930-4376-8537-29b70a5a9cf8","block_type":"box","text":"The Board has an Executive Committee composed of R. Glenn Hubbard (Chair) and W. Carl","page_number":28,"box":{"x":260,"y":475,"width":645,"height":12}},{"id":"ac07b9d5-6e49-44aa-ac1d-e3cb0af7d551","block_type":"box","text":"Kester, both of whom are Independent Trustees, and John M. Perlowski, who serves as an interested Trustee. The","page_number":28,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"93af5032-9c61-433a-ad96-3c53e7c4a375","block_type":"box","text":"principal responsibilities of the Executive Committee include, without limitation: (i) acting on routine matters between","page_number":28,"box":{"x":70,"y":506,"width":832,"height":11}},{"id":"4f123348-c749-415f-adff-034c7b343fc0","block_type":"box","text":"meetings of the Board; (ii) acting on such matters as may require urgent action between meetings of the Board; and","page_number":28,"box":{"x":69,"y":521,"width":828,"height":11}},{"id":"e59550a8-8391-4c90-9d73-727945e1d428","block_type":"box","text":"(iii) exercising such other authority as may from time to time be delegated to the Executive Committee by the Board.","page_number":28,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"ca87641c-b376-47eb-a153-c99b8189b5fc","block_type":"box","text":"The Board has adopted a written char ter for the Board’s Executive Committee. During the fiscal year ended","page_number":28,"box":{"x":68,"y":551,"width":764,"height":11}},{"id":"75733589-35fa-498e-860c-a77139608fb3","block_type":"box","text":"December 31, 2025, the Executive Committee did not meet.","page_number":28,"box":{"x":70,"y":566,"width":429,"height":11}},{"id":"5a04436d-75d1-480d-aeb5-3ffef3a10511","block_type":"box","text":"The Independent Trustees have adopted a statement of policy that describes the experiences, qualifications,","page_number":28,"box":{"x":101,"y":589,"width":775,"height":11}},{"id":"1e9f4da9-275f-4831-ae99-bf2565939a16","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":28,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"9b551363-c75e-4c63-a717-388e36d66420","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":28,"box":{"x":69,"y":619,"width":830,"height":11}},{"id":"449e5a93-d7ca-4017-9bb6-b0353438a2d3","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy as well as the","page_number":28,"box":{"x":69,"y":634,"width":828,"height":11}},{"id":"11d4999e-b1e6-483e-9a8c-dd509dccaa57","block_type":"box","text":"standards set for th in the Trust’s Bylaws. Fur thermore, in determining that a par ticular Trustee was and continues to","page_number":28,"box":{"x":69,"y":649,"width":835,"height":12}},{"id":"42876cf4-e73c-4a21-aeac-b62508b40b8c","block_type":"box","text":"be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was","page_number":28,"box":{"x":69,"y":664,"width":805,"height":12}},{"id":"ddce79ba-8bca-49cb-a8e2-8024edc997f3","block_type":"box","text":"controlling. The Board believes that, collectively, the Trustees have balanced and diverse experiences, skills,","page_number":28,"box":{"x":69,"y":680,"width":773,"height":11}},{"id":"a70bcf99-0599-4802-8edd-6569b640d613","block_type":"box","text":"attributes and qualifications, which allow the Board to operate effectively in governing the Fund and protecting the","page_number":28,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"4b078d14-991c-47ff-a043-140acaa012e1","block_type":"box","text":"interests of shareholders. Among the attributes common to all Trustees is their ability to review critically, evaluate,","page_number":28,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"543221fc-84d2-4835-956a-04c113465c5b","block_type":"box","text":"question and discuss information provided to them, to interact effectively with the Manager, sub-advisers, other","page_number":28,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"cf5af170-ebbe-4b5c-92ee-66ba7cf1da75","block_type":"box","text":"service providers, counsel and independent auditors, and to exercise effective business judgment in the","page_number":28,"box":{"x":69,"y":740,"width":744,"height":11}},{"id":"ddd0c5d6-0468-4196-a4fe-9647189aa49c","block_type":"box","text":"per formance of their duties as Trustees. Each Trustee’s ability to per form his or her duties effectively is evidenced by","page_number":28,"box":{"x":70,"y":755,"width":840,"height":11}},{"id":"eccc976e-fb0c-4715-9ee4-a1b71244c3e7","block_type":"box","text":"his or her educational background or professional training; business, consulting, public service or academic","page_number":28,"box":{"x":69,"y":770,"width":768,"height":12}},{"id":"a2afb9e4-aa75-4ea4-9bad-8c82c6590b66","block_type":"box","text":"positions; experience from service as a board member of the Trust or the other funds in the BlackRock Fund","page_number":28,"box":{"x":70,"y":785,"width":771,"height":11}},{"id":"9353385f-37c8-4572-a321-e0e2aee32747","block_type":"box","text":"Complexes (and any predecessor funds), other investment funds, public companies, or not-for-profit entities or other","page_number":28,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"fb45dc46-8cbb-4743-9818-449fa9459bbf","block_type":"box","text":"organizations; ongoing commitment and par ticipation in Board and Committee meetings, as well as his or her","page_number":28,"box":{"x":69,"y":816,"width":782,"height":11}},{"id":"cb7532ae-f1ec-46c5-aec2-e8f48e553b1b","block_type":"box","text":"leadership of standing and other committees throughout the years; or other relevant life experiences.","page_number":28,"box":{"x":70,"y":831,"width":719,"height":11}},{"id":"04d65960-aa82-44f1-871f-c77e96b75497","block_type":"box","text":"I-12","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bbdb6804-d69b-4e2d-9136-94a4e1f89368","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55df1e51-9d89-4c13-ac4e-03fb10d09c32","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each Trustee that suppor t the","page_number":29,"box":{"x":101,"y":45,"width":784,"height":11}},{"id":"16d4545f-c25f-4154-a8a5-59c1544171d5","block_type":"box","text":"conclusion that he or she should serve on the Board.","page_number":29,"box":{"x":69,"y":60,"width":378,"height":9}},{"id":"3c8d1e2b-a68a-4a26-9bac-254bdc0c53d1","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":29,"box":{"x":68,"y":88,"width":409,"height":9}},{"id":"e412abe0-a3ae-4df3-940a-34e4cfdb1f31","block_type":"box","text":"Independent Trustees","page_number":29,"box":{"x":70,"y":105,"width":154,"height":10}},{"id":"cf7de32c-ef40-4eaa-8a78-f29a1b4bdbae","block_type":"box","text":"R. Glenn Hubbard R. Glenn Hubbard has served in numerous roles in the field of economics, including as","page_number":29,"box":{"x":70,"y":120,"width":814,"height":11}},{"id":"48c8122e-e562-4809-9235-480fcd5fcf45","block_type":"box","text":"the Chairman of the U.S. Council of Economic Advisers of the President of the United","page_number":29,"box":{"x":264,"y":135,"width":606,"height":9}},{"id":"bdee368c-e6c0-4b73-8c2b-ec7eabe2d2f1","block_type":"box","text":"States. Dr. Hubbard has served as the Dean of Columbia Business School, as a member","page_number":29,"box":{"x":265,"y":150,"width":635,"height":10}},{"id":"9316b5de-313a-4d02-9b08-1a4ef00a5355","block_type":"box","text":"of the Columbia Faculty and as a Visiting Professor at the John F. Kennedy School of","page_number":29,"box":{"x":265,"y":165,"width":602,"height":11}},{"id":"1913cf36-2d7c-43aa-aa26-92cd119875e5","block_type":"box","text":"Government at Harvard University, the Harvard Business School and the University of","page_number":29,"box":{"x":265,"y":180,"width":608,"height":11}},{"id":"1035d157-cb1e-416f-915a-2b0d9db95bca","block_type":"box","text":"Chicago. Dr. Hubbard’s experience as an adviser to the President of the United States","page_number":29,"box":{"x":265,"y":195,"width":613,"height":11}},{"id":"79f03dde-661e-42b3-952f-0240b751fd08","block_type":"box","text":"adds a dimension of balance to the Fund’s governance and provides perspective on","page_number":29,"box":{"x":265,"y":210,"width":595,"height":12}},{"id":"70ae7834-4119-4809-81b5-4a17c8031458","block_type":"box","text":"economic issues. Dr. Hubbard’s service on the boards of ADP and Metropolitan Life","page_number":29,"box":{"x":265,"y":225,"width":597,"height":11}},{"id":"dc2fa6ad-5d0c-4c7f-985f-66396e9a45b7","block_type":"box","text":"Insurance Company provides the Board with the benefit of his experience with the","page_number":29,"box":{"x":265,"y":241,"width":581,"height":11}},{"id":"ecb648c4-ba71-4df7-8ecc-75957a62418e","block_type":"box","text":"management practices of other financial companies. Dr. Hubbard’s long-standing service","page_number":29,"box":{"x":265,"y":256,"width":632,"height":11}},{"id":"a600c563-0bed-4071-831a-c7c61fcf2639","block_type":"box","text":"on the boards of directors/trustees of the closed-end funds in the BlackRock Fixed","page_number":29,"box":{"x":265,"y":271,"width":594,"height":11}},{"id":"2859f208-f8b5-4ddb-8037-359acc90699d","block_type":"box","text":"Income Complex also provides him with a specific understanding of the Fund, its","page_number":29,"box":{"x":265,"y":286,"width":573,"height":11}},{"id":"34af0c4e-5681-4afa-afd4-a3ac468e4307","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Hubbard’s","page_number":29,"box":{"x":265,"y":301,"width":589,"height":11}},{"id":"04453210-31a5-4a67-b023-37b190cc2d5c","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Chair of the","page_number":29,"box":{"x":265,"y":316,"width":595,"height":11}},{"id":"fad3e258-4fb7-45ac-af57-c5af24eba47a","block_type":"box","text":"Board, Chair of the Executive Committee and a member of the Governance and","page_number":29,"box":{"x":265,"y":331,"width":562,"height":11}},{"id":"be03ed19-888d-4570-8689-51e05c200b05","block_type":"box","text":"Nominating Committee, the Compliance Committee and the Per formance Oversight","page_number":29,"box":{"x":265,"y":346,"width":592,"height":12}},{"id":"9f1e4934-dce4-42d9-8c92-749d3312117c","block_type":"box","text":"Committee.","page_number":29,"box":{"x":265,"y":362,"width":80,"height":8}},{"id":"8c543dd6-c31a-45f0-bbd6-22f83a01884c","block_type":"box","text":"W. Carl Kester The Board benefits from W. Carl Kester’s experiences as a professor and author in","page_number":29,"box":{"x":68,"y":384,"width":786,"height":11}},{"id":"d0bd4ed4-8956-4e3e-84a7-fe62727f1a5f","block_type":"box","text":"finance, and his experience as the George Fisher Baker Jr. Professor of Business","page_number":29,"box":{"x":264,"y":399,"width":578,"height":12}},{"id":"9d144d99-a2e5-4eea-86b5-1a1e6ab33fb9","block_type":"box","text":"Administration at Harvard Business School and as Deputy Dean of Academic Affairs at","page_number":29,"box":{"x":264,"y":414,"width":618,"height":12}},{"id":"f616d719-7b85-42ac-abe2-da725b623b42","block_type":"box","text":"Harvard Business School from 2006 through 2010 adds to the Board a wealth of","page_number":29,"box":{"x":265,"y":429,"width":581,"height":12}},{"id":"f61e2c5c-6751-4a87-affc-b809f4c001fc","block_type":"box","text":"exper tise in corporate finance and corporate governance. Dr. Kester has authored and","page_number":29,"box":{"x":265,"y":445,"width":613,"height":11}},{"id":"b8b0bbff-4258-47f2-8e44-752626f39cf3","block_type":"box","text":"edited numerous books and research papers on both subject matters, including co-editing","page_number":29,"box":{"x":265,"y":460,"width":641,"height":11}},{"id":"1b08442d-b50d-4b44-8171-a6d538ff9d68","block_type":"box","text":"a leading volume of finance case studies used worldwide. Dr. Kester’s long-standing","page_number":29,"box":{"x":265,"y":475,"width":599,"height":11}},{"id":"36b9bc1b-dd5e-4c84-b899-1eb7e73e44c1","block_type":"box","text":"service on the boards of directors/trustees of the closed-end funds in the BlackRock","page_number":29,"box":{"x":265,"y":490,"width":605,"height":11}},{"id":"b7ef9fbe-76a8-431d-b0a8-9b58fe6f6919","block_type":"box","text":"Fixed-Income Complex also provides him with a specific understanding of the Fund, its","page_number":29,"box":{"x":265,"y":505,"width":613,"height":11}},{"id":"e8fb3440-b0f0-4a91-8e62-0e7427824a41","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Kester’s","page_number":29,"box":{"x":265,"y":520,"width":576,"height":12}},{"id":"44efd6e1-4968-442d-ae6c-c7d58278e841","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Vice Chair of the","page_number":29,"box":{"x":265,"y":535,"width":630,"height":12}},{"id":"dad12b51-ac15-4923-9425-5ed0e65a4305","block_type":"box","text":"Board, Chair of the Governance and Nominating Committee and a member of the","page_number":29,"box":{"x":265,"y":550,"width":576,"height":12}},{"id":"119ce6fb-8c00-4f22-8e8f-59ac37af1f01","block_type":"box","text":"Executive Committee, the Compliance Committee, the Per formance Oversight Committee","page_number":29,"box":{"x":265,"y":566,"width":634,"height":11}},{"id":"cd55f140-9a3d-44c2-8153-0daa508d530b","block_type":"box","text":"and the Securities Lending Committee.","page_number":29,"box":{"x":265,"y":581,"width":275,"height":11}},{"id":"67cd8388-2472-4d1b-9504-065ee522cafc","block_type":"box","text":"Cynthia L. Egan Cynthia L. Egan brings to the Board a broad and diverse knowledge of investment","page_number":29,"box":{"x":69,"y":603,"width":775,"height":12}},{"id":"c0ff2b65-0ee5-4474-ab6e-f0b999067d71","block_type":"box","text":"companies and the retirement industry as a result of her many years of experience as","page_number":29,"box":{"x":264,"y":618,"width":613,"height":12}},{"id":"b675458c-626f-4b2a-9d92-f4edd888e6c2","block_type":"box","text":"President, Retirement Plan Services, for T. Rowe Price Group, Inc. and her various senior","page_number":29,"box":{"x":265,"y":634,"width":633,"height":11}},{"id":"9eb78821-2a55-4b80-afee-3f15d6442611","block_type":"box","text":"operating officer positions at Fidelity Investments, including her service as Executive Vice","page_number":29,"box":{"x":265,"y":649,"width":636,"height":11}},{"id":"520196b5-541e-489d-983b-d9e9cdeed51c","block_type":"box","text":"President of FMR Co., President of Fidelity Institutional Services Company and President","page_number":29,"box":{"x":265,"y":664,"width":629,"height":11}},{"id":"c53becd2-af5a-4339-bf35-4d37ef59ab67","block_type":"box","text":"of the Fidelity Charitable Gift Fund. Ms. Egan has also served as an advisor to the U.S.","page_number":29,"box":{"x":265,"y":679,"width":617,"height":11}},{"id":"07ca59b4-180e-4b94-98b5-a7c6038a9456","block_type":"box","text":"Depar tment of Treasury as an exper t in domestic retirement security. Ms. Egan began her","page_number":29,"box":{"x":265,"y":694,"width":642,"height":11}},{"id":"0d28fa05-9794-497d-bcb6-cefe801a5cc6","block_type":"box","text":"professional career at the Board of Governors of the Federal Reserve and the Federal","page_number":29,"box":{"x":265,"y":709,"width":608,"height":11}},{"id":"071fd449-bc53-40db-a648-bf86d383c8e1","block_type":"box","text":"Reserve Bank of New York. Ms. Egan is also a director of UNUM Corporation, a publicly","page_number":29,"box":{"x":265,"y":724,"width":620,"height":12}},{"id":"1ac282db-365c-44f3-b4d9-94944b3d67d6","block_type":"box","text":"traded insurance company providing personal risk reinsurance, and a director and Chair of","page_number":29,"box":{"x":264,"y":739,"width":643,"height":12}},{"id":"cbcafb01-fe57-4fac-b530-768cec5d03ed","block_type":"box","text":"the Board of The Hanover Group, a public proper ty casualty insurance company. Ms. Egan","page_number":29,"box":{"x":264,"y":755,"width":640,"height":11}},{"id":"04e7fd4c-3c29-4499-8fa3-91d55e3dfb55","block_type":"box","text":"is also the lead independent director and non-executive Vice Chair of the Board of","page_number":29,"box":{"x":265,"y":770,"width":583,"height":11}},{"id":"5e388021-5df9-44c6-ac3a-8122f6f3ea12","block_type":"box","text":"Huntsman Corporation, a publicly traded manufacturer and marketer of chemical products.","page_number":29,"box":{"x":265,"y":785,"width":643,"height":11}},{"id":"8a4448a9-6d78-43c2-a729-afbc2fa5234d","block_type":"box","text":"Ms. Egan’s independence from the Fund and the Manager enhances her service as Chair","page_number":29,"box":{"x":265,"y":800,"width":636,"height":11}},{"id":"a88ae9c3-047b-4a80-aa55-f643ffd27e75","block_type":"box","text":"of the Compliance Committee, Chair of the Securities Lending Committee and a member","page_number":29,"box":{"x":265,"y":815,"width":631,"height":11}},{"id":"f996f0a4-1a2b-409d-8d01-8d39d403474c","block_type":"box","text":"of the Governance and Nominating Committee and the Per formance Oversight Committee.","page_number":29,"box":{"x":265,"y":830,"width":642,"height":11}},{"id":"528d28d6-5a41-4f12-98ca-d7ff70ff4476","block_type":"box","text":"I-13","page_number":29,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"e6fdb711-3b84-4322-a7f3-4d525d817c6f","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a2e1199-fc3b-4872-aeb5-1f548b9f019e","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":30,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"5623ac87-b564-4e27-bcf2-e7c9573f0344","block_type":"box","text":"Lorenzo A. Flores The Board benefits from Lorenzo A. Flores’s many years of business, leadership and","page_number":30,"box":{"x":70,"y":65,"width":796,"height":12}},{"id":"abc2faf4-d2af-4247-8362-de0e06d58dfa","block_type":"box","text":"financial experience in his roles at various public and private companies. In par ticular,","page_number":30,"box":{"x":264,"y":81,"width":612,"height":11}},{"id":"4f129919-b28c-4f6d-9524-74fc5cacb975","block_type":"box","text":"Mr. Flores’s service as Chief Financial Officer of Lattice Semiconductor Corporation, a","page_number":30,"box":{"x":265,"y":96,"width":611,"height":11}},{"id":"d1aaf7dd-b7a5-4334-af60-70c75a28beee","block_type":"box","text":"semiconductor company that designs, develops, and markets programmable logic","page_number":30,"box":{"x":265,"y":111,"width":582,"height":11}},{"id":"bd57c12e-a585-4402-8f27-76b73f1d45fc","block_type":"box","text":"products and related software, Chief Financial Officer of Intel Foundry, a semiconductor","page_number":30,"box":{"x":265,"y":126,"width":622,"height":11}},{"id":"2dae0564-4f87-47c3-b7c7-4d74610de403","block_type":"box","text":"manufacturing unit of Intel Corporation, Chief Financial Officer and Corporate Controller of","page_number":30,"box":{"x":265,"y":141,"width":639,"height":11}},{"id":"fd89a781-301d-4287-9ec4-d09bde4caf54","block_type":"box","text":"Xilinx, Inc., a technology and semiconductor company that supplies programmable logic","page_number":30,"box":{"x":264,"y":156,"width":622,"height":11}},{"id":"a8a944de-85b9-4677-a8dc-3e112c40a5e6","block_type":"box","text":"devices, and Vice Chairman of Kioxia, Inc., a manufacturer and supplier of flash memory","page_number":30,"box":{"x":265,"y":171,"width":631,"height":11}},{"id":"32eabed3-a88c-444f-8f6b-55f278f419b9","block_type":"box","text":"and solid state drives, and his long experience in the technology industry allow him to","page_number":30,"box":{"x":265,"y":187,"width":610,"height":11}},{"id":"76c212f7-23e0-48ad-b026-06eae81c99b1","block_type":"box","text":"provide insight into financial, business and technology trends. Mr. Flores’s knowledge of","page_number":30,"box":{"x":265,"y":201,"width":629,"height":12}},{"id":"21c76739-f65b-4c6e-bf7e-5f749e0f3ae4","block_type":"box","text":"financial and accounting matters qualifies him to serve as Chair of the Audit Committee.","page_number":30,"box":{"x":264,"y":217,"width":630,"height":11}},{"id":"caacc497-d132-4c0f-8708-7b2ef0e15d27","block_type":"box","text":"Mr. Flores’s independence from the Fund and the Manager enhances his service as a","page_number":30,"box":{"x":265,"y":232,"width":610,"height":11}},{"id":"016da26e-b10f-459a-ad99-6bee8ea587fa","block_type":"box","text":"member of the Per formance Oversight Committee.","page_number":30,"box":{"x":265,"y":247,"width":358,"height":11}},{"id":"ad29ff8c-47d6-4482-8e6c-5b8469b2aec9","block_type":"box","text":"Stayce D. Harris The Board benefits from Stayce D. Harris’s leadership and governance experience gained","page_number":30,"box":{"x":69,"y":269,"width":832,"height":12}},{"id":"48c347e5-cf39-4de7-9e7b-08f9b3d37348","block_type":"box","text":"during her extensive military career, including as a three-star Lieutenant General of the","page_number":30,"box":{"x":265,"y":285,"width":617,"height":11}},{"id":"823361c0-83a3-463c-96d7-20776700b3b8","block_type":"box","text":"United States Air Force. In her most recent role, Ms. Harris repor ted to the Secretary and","page_number":30,"box":{"x":265,"y":300,"width":637,"height":11}},{"id":"755a1032-172d-4ddb-b4f3-8daa49782827","block_type":"box","text":"Chief of Staff of the Air Force on matters concerning Air Force effectiveness, efficiency","page_number":30,"box":{"x":265,"y":315,"width":617,"height":11}},{"id":"fa75b5fa-cefc-4860-a618-9ca738be953e","block_type":"box","text":"and the military discipline of active duty, Air Force Reserve and Air National Guard forces.","page_number":30,"box":{"x":265,"y":330,"width":635,"height":11}},{"id":"17a1e746-bf93-4977-ad67-23b4dcf87480","block_type":"box","text":"Ms. Harris’s experience on governance matters includes oversight of inspection policy and","page_number":30,"box":{"x":265,"y":345,"width":643,"height":11}},{"id":"28c248ea-b0b6-4bb2-8228-5a057d6233b0","block_type":"box","text":"the inspection and evaluation system for all Air Force nuclear and conventional forces;","page_number":30,"box":{"x":264,"y":360,"width":614,"height":11}},{"id":"66143f80-32a1-4df6-88f9-eacf5169bae6","block_type":"box","text":"oversight of Air Force counterintelligence operations and service on the Air Force","page_number":30,"box":{"x":265,"y":375,"width":573,"height":12}},{"id":"84d8fca6-207c-4742-928f-24e1c410f57c","block_type":"box","text":"Intelligence Oversight Panel; investigation of fraud, waste and abuse; and oversight of","page_number":30,"box":{"x":265,"y":390,"width":612,"height":12}},{"id":"26436063-340f-44db-a42f-b21829c5cb85","block_type":"box","text":"criminal investigations and complaints resolution programs. Ms. Harris is also a director","page_number":30,"box":{"x":264,"y":406,"width":630,"height":11}},{"id":"40f73c9e-409c-4ce6-9c0e-bfe733d73fa9","block_type":"box","text":"of The Boeing Company. Ms. Harris’s independence from the Fund and the Manager","page_number":30,"box":{"x":265,"y":421,"width":599,"height":11}},{"id":"40408d9c-880e-4043-b368-a8b8bdc55ae1","block_type":"box","text":"enhances her service as a member of the Compliance Committee and the Per formance","page_number":30,"box":{"x":265,"y":436,"width":623,"height":11}},{"id":"3d43a997-327c-4b5d-bb75-2061cf28728a","block_type":"box","text":"Oversight Committee.","page_number":30,"box":{"x":265,"y":451,"width":151,"height":11}},{"id":"82c4a167-c628-46e9-94db-8d8258411c19","block_type":"box","text":"J. Phillip Holloman The Board benefits from J. Phillip Holloman’s many years of business and leadership","page_number":30,"box":{"x":69,"y":474,"width":800,"height":11}},{"id":"1d51774a-3e31-47a3-a9a2-4ac8f35f29cc","block_type":"box","text":"experience as an executive, director and advisory board member of various public and","page_number":30,"box":{"x":265,"y":489,"width":612,"height":11}},{"id":"7ae1d88d-bb22-45bf-89ad-65028a3e254f","block_type":"box","text":"private companies. In par ticular, Mr. Holloman’s service as Board Chairman of Vestis","page_number":30,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"ccc8ef1f-2a05-4253-ba2b-38bc13d7e579","block_type":"box","text":"Corporation, President and Chief Operating Officer of Cintas Corporation allows him to","page_number":30,"box":{"x":265,"y":519,"width":612,"height":11}},{"id":"1abd617c-bc0f-4a72-b56e-6bec4d87675e","block_type":"box","text":"provide insight into business trends and conditions. Mr. Holloman’s knowledge of","page_number":30,"box":{"x":265,"y":534,"width":581,"height":11}},{"id":"5c6100fb-9a19-4a97-a511-57beb896740e","block_type":"box","text":"financial and accounting matters qualifies him to serve as a member of the Audit","page_number":30,"box":{"x":264,"y":549,"width":579,"height":11}},{"id":"014ae8a7-8102-447e-bc00-594eb948e4cc","block_type":"box","text":"Committee. Mr. Holloman’s independence from the Fund and the Manager enhances his","page_number":30,"box":{"x":265,"y":564,"width":629,"height":12}},{"id":"c6926bdc-ecb4-4df3-877d-11210fc89d1d","block_type":"box","text":"service as a member of the Governance and Nominating Committee and the Per formance","page_number":30,"box":{"x":265,"y":579,"width":639,"height":12}},{"id":"6418fb82-790f-4eb2-907b-a61728c0d633","block_type":"box","text":"Oversight Committee.","page_number":30,"box":{"x":265,"y":595,"width":151,"height":11}},{"id":"d9edfaea-6917-42ba-a6f4-ce85dd143fe9","block_type":"box","text":"Ar thur P. Steinmetz The Board benefits from Ar thur P. Steinmetz’s many years of business and leadership","page_number":30,"box":{"x":68,"y":617,"width":808,"height":11}},{"id":"e853aa7f-25d7-4c06-813a-7d1b67481945","block_type":"box","text":"experience as an executive, chairman and director of various companies in the financial","page_number":30,"box":{"x":265,"y":632,"width":624,"height":11}},{"id":"115d08d0-3c73-48da-a1b4-c140067f0cba","block_type":"box","text":"industry. Mr. Steinmetz’s service as Chairman, Chief Executive Officer and President of","page_number":30,"box":{"x":265,"y":647,"width":622,"height":12}},{"id":"8b4b7645-f695-4147-ac16-53082288bdbc","block_type":"box","text":"the OppenheimerFunds, Inc. and as Trustee, President and Principal Executive Officer of","page_number":30,"box":{"x":264,"y":663,"width":629,"height":11}},{"id":"52c9cf93-7c7d-45fc-a220-bfc77ba16551","block_type":"box","text":"cer tain OppenheimerFunds funds provides insight into the asset management industry.","page_number":30,"box":{"x":264,"y":678,"width":621,"height":11}},{"id":"1a694ec7-bd82-456a-bb4d-0523bb577e78","block_type":"box","text":"He has also served as a Director of ScotiaBank (U.S.). Mr. Steinmetz’s knowledge of","page_number":30,"box":{"x":265,"y":693,"width":604,"height":11}},{"id":"10389da3-bd89-4e5f-81cc-4cd41a839fb4","block_type":"box","text":"financial and accounting matters qualifies him to serve as a member of the Audit","page_number":30,"box":{"x":264,"y":708,"width":579,"height":11}},{"id":"4d71d31c-c717-4b6e-bce5-a598e92045de","block_type":"box","text":"Committee. Mr. Steinmetz’s independence from the Fund and the Manager enhances his","page_number":30,"box":{"x":265,"y":723,"width":632,"height":11}},{"id":"e83ed385-e672-4310-abde-1953087c4bd0","block_type":"box","text":"service as Chair of the Per formance Oversight Committee.","page_number":30,"box":{"x":265,"y":738,"width":415,"height":11}},{"id":"b76a3a36-f920-40a5-a285-7ecf5c912b80","block_type":"box","text":"I-14","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"00976a83-49e4-4e30-92b5-6eb5c8d425a3","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c4c22e4-dde0-419f-8d0c-921206f4cb3a","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":31,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"d44b2b1b-2fe6-4d20-af03-4e62150ffb12","block_type":"box","text":"Interested Trustees","page_number":31,"box":{"x":70,"y":66,"width":138,"height":8}},{"id":"90aae30c-da99-4879-b8b9-19d7b0e8e795","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":31,"box":{"x":70,"y":81,"width":823,"height":11}},{"id":"eeb4c4fa-c74a-4dbf-8bfb-b7d564ff42bd","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":31,"box":{"x":264,"y":96,"width":593,"height":11}},{"id":"ad6aa023-8ee7-42df-ba15-a1b48d165fd6","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":31,"box":{"x":265,"y":111,"width":629,"height":11}},{"id":"d8d41090-8aa9-4957-80cb-1638b1af4824","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":31,"box":{"x":265,"y":126,"width":639,"height":11}},{"id":"fefd1420-ea2e-4e64-88c5-8015afa41eb3","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":31,"box":{"x":265,"y":141,"width":617,"height":11}},{"id":"ff5c3b6d-ee24-4482-973d-60aaf502d451","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":31,"box":{"x":264,"y":156,"width":634,"height":11}},{"id":"83e3fd9e-be4a-4c43-9446-7c24a8dcacd5","block_type":"box","text":"a Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":31,"box":{"x":265,"y":171,"width":637,"height":11}},{"id":"392ee92a-c820-459e-8907-346466628947","block_type":"box","text":"and iShares","page_number":31,"box":{"x":265,"y":186,"width":84,"height":9}},{"id":"82bd20e0-4b2a-47eb-9778-81e01c54dbaa","block_type":"box","text":"®","page_number":31,"box":{"x":350,"y":187,"width":6,"height":4}},{"id":"3abc619e-0657-4346-9e7a-6389347dc643","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":31,"box":{"x":362,"y":186,"width":478,"height":11}},{"id":"cb00b488-214c-4c1d-8595-0f291ed281f1","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":31,"box":{"x":265,"y":202,"width":585,"height":11}},{"id":"b88e1e2d-125d-48cd-ac8e-4b1b98709848","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":31,"box":{"x":265,"y":217,"width":620,"height":11}},{"id":"769c5761-3ec1-49e3-9c86-d32dc7019ac7","block_type":"box","text":"serves as a board member for the funds in the BlackRock Multi-Asset Complex.","page_number":31,"box":{"x":265,"y":232,"width":565,"height":11}},{"id":"a9eae8d8-1165-4544-9018-b6a96cb26726","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Managing Director of BlackRock, Inc. since 2009, as","page_number":31,"box":{"x":69,"y":254,"width":821,"height":12}},{"id":"ae675265-cfb3-4f7e-b646-77f946f0d1ff","block_type":"box","text":"the Head of BlackRock Global Accounting and Product Services since 2009, and as","page_number":31,"box":{"x":264,"y":269,"width":595,"height":12}},{"id":"58f2e3f6-86ac-4982-a95a-77d73e3637c9","block_type":"box","text":"President and Chief Executive Officer of the Fund provides him with a strong","page_number":31,"box":{"x":265,"y":285,"width":542,"height":11}},{"id":"e21688a7-f927-4b26-92be-ac726ea1b47b","block_type":"box","text":"understanding of the Fund, its operations, and the business and regulatory issues facing","page_number":31,"box":{"x":265,"y":300,"width":634,"height":11}},{"id":"0057fc20-f076-4fb9-85e5-92f93d1d7520","block_type":"box","text":"the Fund. 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Perlowski","page_number":34,"box":{"x":78,"y":508,"width":127,"height":9}},{"id":"e5c12bfd-680e-4a66-a3df-64c06e8806d3","block_type":"box","text":"................................................","page_number":34,"box":{"x":211,"y":516,"width":385,"height":1}},{"id":"eb0f3354-ca4d-40f3-a834-50ca41a43bb5","block_type":"box","text":"None Over $100,000","page_number":34,"box":{"x":666,"y":508,"width":228,"height":11}},{"id":"9f549f4e-2377-4224-9cd6-25cf2632d26d","block_type":"box","text":"* Includes share equivalents owned under the deferred compensation plan in the Supervised Funds by cer tain Independent Trustees who have","page_number":34,"box":{"x":70,"y":533,"width":815,"height":9}},{"id":"3216d964-ef1b-4a11-8b0e-22237ba05e96","block_type":"box","text":"par ticipated in the deferred compensation plan of the Supervised Funds.","page_number":34,"box":{"x":69,"y":543,"width":414,"height":9}},{"id":"e6312b73-09c7-4ecb-806c-986176f17dce","block_type":"box","text":"As of April 2, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially owned an","page_number":34,"box":{"x":101,"y":564,"width":792,"height":11}},{"id":"4cf37fe9-8c89-4cd2-bfe9-fc5eef8daead","block_type":"box","text":"aggregate of less than 1% of any class of the outstanding shares of the Fund.","page_number":34,"box":{"x":69,"y":579,"width":553,"height":11}},{"id":"77e96bb2-ea8d-4a23-9c3a-0c4d9cd30391","block_type":"box","text":"As of December 31, 2025, none of the Independent Trustees of the Trust or their immediate family members","page_number":34,"box":{"x":101,"y":601,"width":779,"height":12}},{"id":"785c9560-0301-4f31-a2a3-51af6cccd43e","block_type":"box","text":"owned beneficially or of record any securities of the Fund’s investment adviser, sub-advisers, principal underwriter, or","page_number":34,"box":{"x":69,"y":617,"width":836,"height":11}},{"id":"0ae6afcc-9dd2-4a7a-9d0f-9188201657f6","block_type":"box","text":"any person directly or indirectly controlling, controlled by, or under common control with such entities.","page_number":34,"box":{"x":69,"y":632,"width":721,"height":11}},{"id":"bc4af721-547d-49ea-8590-064b2091e4d8","block_type":"box","text":"Compensation of Trustees","page_number":34,"box":{"x":69,"y":662,"width":190,"height":11}},{"id":"5e4e4029-83c0-4553-b609-390a29cae388","block_type":"box","text":"Each Independent Trustee is paid an annual retainer of $370,000 per year for his or her services as a Board","page_number":34,"box":{"x":102,"y":684,"width":775,"height":12}},{"id":"cbfcc829-7164-45ed-947a-88b1c02ec6ce","block_type":"box","text":"member of the BlackRock-advised Funds, including the Trust and MIP II, together with out-of-pocket expenses in","page_number":34,"box":{"x":69,"y":700,"width":794,"height":11}},{"id":"e1d36ba9-5924-40ad-bf7c-88834c6e9dc2","block_type":"box","text":"accordance with a Board policy on travel and other business expenses relating to attendance at meetings. In","page_number":34,"box":{"x":69,"y":715,"width":775,"height":11}},{"id":"79d9207e-82a6-4172-847c-636fa7deb2de","block_type":"box","text":"addition, the Chair of the Board and the Vice Chair of the Board are paid an additional annual retainer of $140,000","page_number":34,"box":{"x":69,"y":729,"width":822,"height":12}},{"id":"759e0b2c-2d38-43e2-aef6-58753ce6fcdd","block_type":"box","text":"and $84,000, respectively. The Chairs of the Audit Committee, Per formance Oversight Committee, Compliance","page_number":34,"box":{"x":69,"y":744,"width":790,"height":12}},{"id":"4a58b222-1847-4cd5-8527-c69ff6ac032d","block_type":"box","text":"Committee, Governance and Nominating Committee and Securities Lending Committee are paid an additional annual","page_number":34,"box":{"x":69,"y":760,"width":832,"height":12}},{"id":"0c447061-c82a-4b8c-9329-cbc211f67030","block_type":"box","text":"retainer of $55,000, $42,500, $50,000, $42,500 and $20,000, respectively. Each of the other members of the","page_number":34,"box":{"x":69,"y":775,"width":804,"height":11}},{"id":"e256a3d0-0405-411c-b3ea-6d2d6f3aa97a","block_type":"box","text":"Audit Committee, Compliance Committee, Governance and Nominating Committee and Securities Lending Committee","page_number":34,"box":{"x":68,"y":791,"width":837,"height":11}},{"id":"c3a36478-ade2-4d4a-a3bc-6d07848677a2","block_type":"box","text":"are paid an additional annual retainer of $30,000, $25,000, $25,000 and $15,000, respectively, for his or her","page_number":34,"box":{"x":69,"y":805,"width":795,"height":12}},{"id":"a471128f-28b5-403e-97c8-d5f20f2b88c1","block_type":"box","text":"service on such committee. An Independent Trustee may receive additional compensation for his or her service as a","page_number":34,"box":{"x":69,"y":821,"width":830,"height":11}},{"id":"94b11d00-076f-42d9-a3f0-b24ef6b8722b","block_type":"box","text":"member or Chair, as applicable, of one or more ad hoc committees of the Board. The Fund will pay a pro rata por tion","page_number":34,"box":{"x":69,"y":836,"width":832,"height":11}},{"id":"5e1c7640-4f29-4513-9edb-e88ab7c9f4ca","block_type":"box","text":"quar terly (based on relative net assets) of the foregoing Trustee fees paid by the funds in the BlackRock Fixed","page_number":34,"box":{"x":69,"y":851,"width":789,"height":11}},{"id":"3794e13d-b64a-460d-b031-9517656d9e31","block_type":"box","text":"Income Complex.","page_number":34,"box":{"x":70,"y":866,"width":119,"height":11}},{"id":"5a9c3d22-f665-49be-bd47-f24e4d2a6767","block_type":"box","text":"The Independent Trustees have agreed that a maximum of 50% of each Independent Trustee’s total","page_number":34,"box":{"x":101,"y":889,"width":711,"height":11}},{"id":"60f7a347-898e-4a0a-8df3-927583a41365","block_type":"box","text":"compensation paid by funds in the BlackRock Fixed-Income Complex may be deferred pursuant to the BlackRock","page_number":34,"box":{"x":69,"y":904,"width":801,"height":11}},{"id":"c4b299e7-3b03-454c-ae48-705e51521841","block_type":"box","text":"I-18","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0d128065-dfda-44b2-94c0-e5d41f7d1757","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b66c488c-e3af-4fca-bdc4-67bbc881154c","block_type":"box","text":"Fixed-Income Complex’s deferred compensation plan. Under the deferred compensation plan, deferred amounts earn","page_number":35,"box":{"x":70,"y":45,"width":833,"height":11}},{"id":"332f3afb-259f-4c85-9608-03c3e27a08c7","block_type":"box","text":"a return for the Independent Trustees as though equivalent dollar amounts had been invested in shares of cer tain","page_number":35,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"4bc726c2-f357-46b4-8243-42c8950b0bd9","block_type":"box","text":"funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has approximately the","page_number":35,"box":{"x":68,"y":75,"width":802,"height":11}},{"id":"f3a604fe-07ee-4873-9c9d-2798f5fcb092","block_type":"box","text":"same economic effect for the Independent Trustees as if they had invested the deferred amounts in such funds in","page_number":35,"box":{"x":69,"y":90,"width":814,"height":11}},{"id":"20d763e6-68f5-4678-a15c-e65611419031","block_type":"box","text":"the BlackRock Fixed-Income Complex. The deferred compensation plan is not funded and obligations thereunder","page_number":35,"box":{"x":68,"y":105,"width":800,"height":11}},{"id":"60ccb984-139e-43d4-9704-7d78d77ce4c5","block_type":"box","text":"represent general unsecured claims against the general assets of a fund and are recorded as a liability for","page_number":35,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"57a92212-1318-4a5e-bd56-a3573b0036bf","block_type":"box","text":"accounting purposes.","page_number":35,"box":{"x":69,"y":136,"width":151,"height":11}},{"id":"0158190f-31fd-471f-89bb-f5bb95886dc6","block_type":"box","text":"The following table sets for th the compensation paid to the Trustees by MIP II, on behalf of the Master Por tfolio,","page_number":35,"box":{"x":101,"y":158,"width":801,"height":11}},{"id":"e813d6c9-8498-4649-b209-4455a1fa03a0","block_type":"box","text":"for the fiscal year ended December 31, 2025 and the aggregate compensation, including deferred compensation","page_number":35,"box":{"x":68,"y":173,"width":805,"height":11}},{"id":"9b4daf9b-4573-4a1e-a08e-bc0efd29d6fb","block_type":"box","text":"amounts, paid to them by all BlackRock-advised Funds for the calendar year ended December 31, 2025. The","page_number":35,"box":{"x":69,"y":188,"width":775,"height":11}},{"id":"7da34243-1399-4549-9e1f-eafd269f6c28","block_type":"box","text":"Trustees received no additional compensation from the Trust on behalf of the Fund.","page_number":35,"box":{"x":68,"y":203,"width":595,"height":11}},{"id":"16e46125-7750-4133-b053-13c4b420ab55","block_type":"box","text":"Name","page_number":35,"box":{"x":69,"y":272,"width":32,"height":7}},{"id":"7ecbe906-80d8-4509-9ed0-42535946c231","block_type":"box","text":"1","page_number":35,"box":{"x":102,"y":272,"width":4,"height":4}},{"id":"18c2ba59-09ca-4bbe-86b0-05988217c3e8","block_type":"box","text":"Compensation","page_number":35,"box":{"x":510,"y":252,"width":83,"height":9}},{"id":"685badb1-7093-47d8-a4fc-b5079c86fa4b","block_type":"box","text":"from the","page_number":35,"box":{"x":527,"y":262,"width":49,"height":7}},{"id":"c8e2a9ad-fd8d-4ec8-924b-1b69f237a697","block_type":"box","text":"Master Portfolio","page_number":35,"box":{"x":505,"y":272,"width":94,"height":7}},{"id":"05b6be35-b8d6-48ae-a0e8-d27ff43d9cdd","block_type":"box","text":"Estimated Annual","page_number":35,"box":{"x":630,"y":252,"width":101,"height":7}},{"id":"f19e2512-366f-40db-a704-1483eea5933a","block_type":"box","text":"Benefits upon","page_number":35,"box":{"x":641,"y":262,"width":79,"height":9}},{"id":"c875327f-0fd1-405f-a85b-cc84664d68f9","block_type":"box","text":"Retirement","page_number":35,"box":{"x":648,"y":272,"width":65,"height":7}},{"id":"c3a64232-7932-4c2c-9b37-e0d30113fc70","block_type":"box","text":"Aggregate Compensation","page_number":35,"box":{"x":761,"y":232,"width":148,"height":9}},{"id":"7ff9270f-104c-4e64-821d-097fe05d0ce2","block_type":"box","text":"from the","page_number":35,"box":{"x":811,"y":242,"width":49,"height":7}},{"id":"a9434a77-1665-4051-a546-de742f8daf9f","block_type":"box","text":"Master Portfolio and","page_number":35,"box":{"x":776,"y":252,"width":119,"height":7}},{"id":"ea131026-72dd-4d14-9205-7e92e1172817","block_type":"box","text":"Other BlackRock","page_number":35,"box":{"x":785,"y":262,"width":102,"height":7}},{"id":"28304b09-5525-400a-9b43-076b6b1bd241","block_type":"box","text":"Advised Funds","page_number":35,"box":{"x":788,"y":272,"width":84,"height":7}},{"id":"61ac46cb-476c-4712-a82c-77b2a492fe60","block_type":"box","text":"2,3","page_number":35,"box":{"x":873,"y":272,"width":9,"height":4}},{"id":"9373c3de-32ce-461f-9b97-4b2f6200f1b8","block_type":"box","text":"Independent Trustees","page_number":35,"box":{"x":70,"y":290,"width":154,"height":11}},{"id":"3ace6acb-d221-49e5-8277-cf461cb2e42f","block_type":"box","text":"Cynthia L. Egan","page_number":35,"box":{"x":79,"y":305,"width":108,"height":11}},{"id":"a3b0c258-da87-4ed8-b271-49bd1f14f055","block_type":"box","text":"4","page_number":35,"box":{"x":189,"y":305,"width":4,"height":5}},{"id":"aec99f07-ae01-41ae-978c-d10bba024072","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,275","page_number":35,"box":{"x":202,"y":304,"width":376,"height":11}},{"id":"e7a0ee20-52af-4aed-84db-4245039d0f1c","block_type":"box","text":"None $580,000","page_number":35,"box":{"x":663,"y":304,"width":208,"height":11}},{"id":"e516226b-b154-40a7-b1ae-c0d3e0b23b92","block_type":"box","text":"Lorenzo A. Flores","page_number":35,"box":{"x":79,"y":320,"width":121,"height":9}},{"id":"1c19d3fd-cd19-409c-82f0-a12f18dd34e1","block_type":"box","text":"5","page_number":35,"box":{"x":201,"y":320,"width":4,"height":5}},{"id":"32bb5e80-a7b4-42c8-865e-a00b8850e2ed","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,049","page_number":35,"box":{"x":211,"y":319,"width":367,"height":11}},{"id":"7f37f356-f65d-43d0-82fe-9ece75fb34a4","block_type":"box","text":"None $400,000","page_number":35,"box":{"x":663,"y":319,"width":208,"height":11}},{"id":"f612c248-e0a2-4da9-a749-43ad8476b4df","block_type":"box","text":"Stayce D. Harris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,037","page_number":35,"box":{"x":79,"y":334,"width":499,"height":12}},{"id":"ece32dcf-c2c0-4e52-ba35-5c055a1181b1","block_type":"box","text":"None $395,000","page_number":35,"box":{"x":663,"y":334,"width":208,"height":12}},{"id":"efc45c49-22f6-4f0c-baa5-92a3ebfd6a25","block_type":"box","text":"J. Phillip Holloman. .","page_number":35,"box":{"x":78,"y":350,"width":143,"height":11}},{"id":"66111b92-9764-44c3-8b72-c7a21f995a32","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,105","page_number":35,"box":{"x":227,"y":349,"width":351,"height":12}},{"id":"84d2cd1d-1a7f-45bb-a546-fe574087de67","block_type":"box","text":"None $425,000","page_number":35,"box":{"x":663,"y":349,"width":208,"height":12}},{"id":"d1191074-f7e8-4227-abc8-a6e2e5f04b4b","block_type":"box","text":"R. Glenn Hubbard . .","page_number":35,"box":{"x":79,"y":365,"width":142,"height":9}},{"id":"6e668458-2c63-4b3f-84d2-fd103f32a68a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,410","page_number":35,"box":{"x":227,"y":365,"width":351,"height":11}},{"id":"e07da6bb-070d-4e54-9f1e-ba1e25368a62","block_type":"box","text":"None $560,000","page_number":35,"box":{"x":663,"y":365,"width":208,"height":11}},{"id":"6f416d1a-7984-46a2-9170-3bcf949c5ca4","block_type":"box","text":"W. Carl Kester","page_number":35,"box":{"x":78,"y":380,"width":102,"height":9}},{"id":"8b869db7-2f35-4c7b-967b-5324c44dc1e5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,448","page_number":35,"box":{"x":186,"y":380,"width":392,"height":11}},{"id":"2719a78d-778c-4ffc-949d-cb6cfb0758c2","block_type":"box","text":"None $671,500","page_number":35,"box":{"x":663,"y":380,"width":208,"height":11}},{"id":"612ffeff-51a7-4e12-bd2c-94b66419c310","block_type":"box","text":"Catherine A. Lynch","page_number":35,"box":{"x":79,"y":396,"width":131,"height":11}},{"id":"e727662f-e1aa-43e5-b5e9-e7d1856b5644","block_type":"box","text":"6","page_number":35,"box":{"x":211,"y":396,"width":5,"height":4}},{"id":"925e72b3-386d-4e34-bbaf-bc027ae37512","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,317","page_number":35,"box":{"x":219,"y":395,"width":359,"height":11}},{"id":"c1fa93b5-3270-403a-87d3-036ddecac238","block_type":"box","text":"None $610,000","page_number":35,"box":{"x":663,"y":395,"width":208,"height":11}},{"id":"c51afcac-b973-4d56-b14b-ab492a45b6aa","block_type":"box","text":"Ar thur P. Steinmetz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,179","page_number":35,"box":{"x":78,"y":410,"width":500,"height":11}},{"id":"2809cac1-d625-4905-9732-2543ddff536e","block_type":"box","text":"None $537,500","page_number":35,"box":{"x":663,"y":410,"width":208,"height":11}},{"id":"efd581d2-a5ca-4cb4-a7b4-900634e1e8ba","block_type":"box","text":"Interested Trustees","page_number":35,"box":{"x":70,"y":426,"width":138,"height":9}},{"id":"f173c2c1-aa7b-41e5-8b64-e138fb9a5f63","block_type":"box","text":"Rober t Fairbairn .","page_number":35,"box":{"x":79,"y":441,"width":125,"height":9}},{"id":"ba5a3517-4f1d-4200-99b3-8edadbbdcfce","block_type":"box","text":".................................","page_number":35,"box":{"x":211,"y":448,"width":262,"height":2}},{"id":"60950876-9d5a-465a-9b88-4e60bb4050b3","block_type":"box","text":"None None None","page_number":35,"box":{"x":535,"y":441,"width":318,"height":9}},{"id":"fd0e8468-997d-4343-b349-50a44daa86da","block_type":"box","text":"John M. Perlowski","page_number":35,"box":{"x":78,"y":456,"width":127,"height":9}},{"id":"84f4254b-0a45-417b-b735-d10ce68f6316","block_type":"box","text":".................................","page_number":35,"box":{"x":211,"y":463,"width":262,"height":2}},{"id":"d754d571-1c03-41b8-8e8c-76a894662588","block_type":"box","text":"None None None","page_number":35,"box":{"x":535,"y":456,"width":318,"height":9}},{"id":"3847e360-b2cc-4753-aad1-0739929a9243","block_type":"box","text":"1","page_number":35,"box":{"x":69,"y":481,"width":3,"height":3}},{"id":"341e579d-162a-4816-9da1-e523b910f221","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":35,"box":{"x":94,"y":480,"width":786,"height":9}},{"id":"81dcda7a-8af1-4853-9700-42b012a48fb3","block_type":"box","text":"page I-15.","page_number":35,"box":{"x":94,"y":491,"width":55,"height":9}},{"id":"3e686839-0b1e-48b7-adf0-1d0c22c6eaf5","block_type":"box","text":"2","page_number":35,"box":{"x":69,"y":503,"width":3,"height":4}},{"id":"40c7995f-aaaa-479b-877b-966854514b03","block_type":"box","text":"For the Independent Trustees, this amount represents the aggregate compensation earned from the funds in the BlackRock Fixed-Income","page_number":35,"box":{"x":94,"y":503,"width":782,"height":9}},{"id":"08f3672a-d41c-4877-ba67-6e0a7c0b6311","block_type":"box","text":"Complex during the calendar year ended December 31, 2025. Of this amount, Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard, Dr. Kester,","page_number":35,"box":{"x":93,"y":513,"width":801,"height":9}},{"id":"d7bb2dab-0843-4a89-8a22-68d3700f37bf","block_type":"box","text":"Ms. Lynch and Mr. Steinmetz deferred $200,000, $197,500, $212,500, $280,000, $546,859, $603,900 and $268,750, respectively,","page_number":35,"box":{"x":94,"y":523,"width":776,"height":9}},{"id":"f6f05cc4-900f-42c8-935d-0907f47fbeab","block_type":"box","text":"pursuant to the BlackRock Fixed-Income Complex’s deferred compensation plan.","page_number":35,"box":{"x":94,"y":533,"width":457,"height":9}},{"id":"4eb545f5-1e6b-4084-b888-f2bd32c76146","block_type":"box","text":"3","page_number":35,"box":{"x":69,"y":546,"width":3,"height":4}},{"id":"88095cba-9110-4206-b46e-dad02b531a70","block_type":"box","text":"Total amount of deferred compensation payable by the BlackRock Fixed-Income Complex to Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard,","page_number":35,"box":{"x":93,"y":546,"width":810,"height":9}},{"id":"2b4aa235-1b80-481e-8da5-7df61d2e1d19","block_type":"box","text":"Dr. Kester, Ms. Lynch and Mr. Steinmetz is $1,055,218, $1,032,387, $1,101,752, $5,907,215, $2,544,830, $720,927 and $603,379,","page_number":35,"box":{"x":94,"y":555,"width":787,"height":10}},{"id":"fbd88270-5171-439e-9039-38dfbfc85fc1","block_type":"box","text":"respectively, as of December 31, 2025. Ms. Egan did not par ticipate in the deferred compensation plan as of December 31, 2025.","page_number":35,"box":{"x":94,"y":566,"width":748,"height":9}},{"id":"338509e2-27eb-4c43-a2e9-559db01969ad","block_type":"box","text":"4","page_number":35,"box":{"x":68,"y":579,"width":4,"height":3}},{"id":"1efb0ea3-d242-426a-bf1d-2bee99de96bb","block_type":"box","text":"Ms. Egan became Chair of the Securities Lending Committee, effective as of March 9, 2026.","page_number":35,"box":{"x":94,"y":579,"width":529,"height":9}},{"id":"9da611ee-20d8-42d3-afe8-91fc71785318","block_type":"box","text":"5","page_number":35,"box":{"x":69,"y":591,"width":3,"height":4}},{"id":"380d4c51-375e-4326-9bfe-946fa5157d96","block_type":"box","text":"Mr. Flores became Chair of the Audit Committee, effective as of March 9, 2026.","page_number":35,"box":{"x":94,"y":591,"width":456,"height":9}},{"id":"31718325-3271-4ac1-801b-67b34d24d37d","block_type":"box","text":"6","page_number":35,"box":{"x":69,"y":604,"width":3,"height":4}},{"id":"85aae385-0f32-4970-a20c-caf7cf36cf20","block_type":"box","text":"Ms. Lynch resigned as a Trustee of the Trust effective as of March 9, 2026.","page_number":35,"box":{"x":94,"y":604,"width":433,"height":9}},{"id":"4b0df2f7-f044-4664-ba1e-d328e086ae1b","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":35,"box":{"x":69,"y":632,"width":432,"height":11}},{"id":"ca172608-256b-48b0-885a-343c6e5eec08","block_type":"box","text":"Advisory Contract","page_number":35,"box":{"x":68,"y":663,"width":131,"height":11}},{"id":"da4e67e6-88cd-49e2-b499-2270f125486d","block_type":"box","text":"The Fund invests all of its assets in shares of the Master Por tfolio. Accordingly, the Fund does not invest directly","page_number":35,"box":{"x":101,"y":685,"width":804,"height":12}},{"id":"a107e51f-ce12-4e2d-8520-9146dc91785f","block_type":"box","text":"in por tfolio securities and does not require investment advisory services. All por tfolio management occurs at the","page_number":35,"box":{"x":70,"y":700,"width":804,"height":12}},{"id":"17c2f146-0f45-4e0a-b0cc-d4446099d8ce","block_type":"box","text":"level of the Master Por tfolio.","page_number":35,"box":{"x":70,"y":715,"width":200,"height":9}},{"id":"26088dc9-bef7-4200-9dc2-e800eb0b831d","block_type":"box","text":"BlackRock provides investment advisory services to the Master Por tfolio pursuant to an investment advisory","page_number":35,"box":{"x":102,"y":738,"width":774,"height":11}},{"id":"df8634af-2fdd-497e-832c-d9486dc9e8a6","block_type":"box","text":"contract (the “Advisory Contract”) with MIP II. Pursuant to the Advisory Contract, BlackRock furnishes to MIP II’s","page_number":35,"box":{"x":69,"y":753,"width":798,"height":11}},{"id":"d3b02bbb-97b2-4279-8023-345ac4798a56","block_type":"box","text":"Board of Trustees periodic repor ts on the investment strategy and per formance of the Master Por tfolio.","page_number":35,"box":{"x":70,"y":768,"width":736,"height":12}},{"id":"0a570370-2421-4b22-8424-6bc3a03c5fcb","block_type":"box","text":"BlackRock is an indirect wholly-owned subsidiary of BlackRock, Inc.","page_number":35,"box":{"x":102,"y":791,"width":477,"height":11}},{"id":"633a073d-ebda-4e38-92c6-ac2515557fb2","block_type":"box","text":"The Advisory Contract is subject to annual approval by (i) MIP II’s Board of Trustees or (ii) vote of a majority (as","page_number":35,"box":{"x":101,"y":814,"width":791,"height":11}},{"id":"c97ccaaa-19cc-4fea-95e1-853de183b3d9","block_type":"box","text":"defined in the Investment Company Act) of the outstanding voting interests of the Master Por tfolio, provided that in","page_number":35,"box":{"x":69,"y":829,"width":819,"height":11}},{"id":"5d139fda-c917-4623-ac43-965891184270","block_type":"box","text":"either event the continuance also is approved by a majority of the Independent Trustees of MIP II, by a vote cast in","page_number":35,"box":{"x":69,"y":844,"width":816,"height":11}},{"id":"858a42f4-d3be-4b25-8dae-1f3bd744be34","block_type":"box","text":"person at a meeting called for the purpose of voting on such approval. The Advisory Contract is terminable without","page_number":35,"box":{"x":70,"y":859,"width":815,"height":11}},{"id":"7e0e78c4-fab1-46f2-a2ed-1803d7a97af9","block_type":"box","text":"penalty on 60 days’ written notice by either par ty. The Advisory Contract will terminate automatically, as to the Master","page_number":35,"box":{"x":70,"y":874,"width":839,"height":11}},{"id":"8b135a44-7a8e-4ef4-9bea-18793f10ae5e","block_type":"box","text":"Por tfolio, in the event of its assignment (as defined in the Investment Company Act).","page_number":35,"box":{"x":69,"y":889,"width":602,"height":12}},{"id":"0637a8f6-bbc2-404f-b9d6-4f5b3d828d4f","block_type":"box","text":"I-19","page_number":35,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"f4f58f73-82b3-47ec-8055-bf2a505c2c46","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d89d636-f0de-4717-b605-f5aa69624bd1","block_type":"box","text":"From time to time, BlackRock may waive such fees in whole or in par t. Any such waiver will reduce the expenses","page_number":36,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"cd53846c-66ee-4bd1-96a8-ac51ad954242","block_type":"box","text":"of the Master Por tfolio and, accordingly, have a favorable impact on its per formance.","page_number":36,"box":{"x":69,"y":60,"width":604,"height":11}},{"id":"b2c00896-1363-4a8d-b056-ed5d68738b76","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Master","page_number":36,"box":{"x":102,"y":82,"width":765,"height":12}},{"id":"57dc22e7-e7d9-4300-9b05-39ce4967feaf","block_type":"box","text":"Por tfolio’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and","page_number":36,"box":{"x":69,"y":98,"width":801,"height":11}},{"id":"72fe1abf-7c8e-48b0-b1c4-ed72d194354d","block_type":"box","text":"exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":36,"box":{"x":69,"y":113,"width":796,"height":11}},{"id":"5f569593-9b58-4dbc-891b-cc96f8dde392","block_type":"box","text":"June 30, 2027. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":36,"box":{"x":69,"y":128,"width":797,"height":11}},{"id":"7fd0d7d8-0b69-435f-9f28-8a87e6f78b1a","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":36,"box":{"x":69,"y":143,"width":789,"height":11}},{"id":"eb214edb-1c3a-4e47-a9ce-d2b57cf2b51e","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2027. The contractual agreements may be terminated upon 90 days’","page_number":36,"box":{"x":70,"y":158,"width":810,"height":11}},{"id":"9ec8204b-d326-4095-9fd1-b37c0f36a639","block_type":"box","text":"notice by a majority of the Independent Trustees of MIP II or by a vote of a majority of the outstanding voting","page_number":36,"box":{"x":69,"y":173,"width":771,"height":11}},{"id":"eb5fd0ab-c897-4e40-bac8-f73bf77631d5","block_type":"box","text":"securities of the Master Por tfolio.","page_number":36,"box":{"x":69,"y":188,"width":238,"height":9}},{"id":"a007c413-139d-429e-b139-0af5b6cdd1a9","block_type":"box","text":"Pursuant to the Advisory Contract, BlackRock may from time to time, in its sole discretion to the extent","page_number":36,"box":{"x":102,"y":211,"width":735,"height":11}},{"id":"1f9ec1de-9470-45ac-89e5-ea97e3c4b718","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":36,"box":{"x":70,"y":226,"width":838,"height":11}},{"id":"6e686edb-4a6f-4853-9eae-d8c3f4cb2f3b","block_type":"box","text":"per form investment advisory services with respect to the Master Por tfolio. In addition, BlackRock may delegate","page_number":36,"box":{"x":70,"y":241,"width":794,"height":11}},{"id":"03b2028c-4973-4738-bbb3-f12b470abb7d","block_type":"box","text":"cer tain of its investment advisory functions under the Advisory Contract to one or more of its affiliates to the extent","page_number":36,"box":{"x":69,"y":256,"width":826,"height":11}},{"id":"a79cad98-3849-4d95-8868-21335c255c2b","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":36,"box":{"x":70,"y":272,"width":827,"height":11}},{"id":"c4b64cc7-0b41-47ef-9a88-78e4272382c2","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":36,"box":{"x":69,"y":287,"width":486,"height":11}},{"id":"985063b7-b1e9-4d4b-9b7b-6fba6c185943","block_type":"box","text":"BlackRock has entered into sub-advisory agreements with BlackRock International Limited (“BIL”) and with","page_number":36,"box":{"x":102,"y":309,"width":758,"height":11}},{"id":"9f513239-c288-446a-9c82-b7910563b47b","block_type":"box","text":"BlackRock Fund Advisors (“BFA”) (together with BIL, the “Sub-Advisers”) (the “Sub-Advisory Agreements”). Pursuant","page_number":36,"box":{"x":70,"y":324,"width":822,"height":12}},{"id":"c8db5251-bbff-4150-8ee2-f6fd78a970aa","block_type":"box","text":"to the Sub-Advisory Agreements, each Sub-Adviser manages a por tion of the Master Por tfolio’s por tfolio and receives","page_number":36,"box":{"x":68,"y":339,"width":838,"height":12}},{"id":"e6187b12-08e5-4898-bfc6-c3fdbba31410","block_type":"box","text":"for services it provides for that por tion of the Master Por tfolio for which each Sub-Adviser acts as sub-adviser a fee","page_number":36,"box":{"x":68,"y":355,"width":821,"height":11}},{"id":"e8e44ef2-0770-41a0-9ccc-6889d38d5ffa","block_type":"box","text":"equal to a percentage of the management fee paid to BlackRock under the Advisory Contract.","page_number":36,"box":{"x":69,"y":370,"width":666,"height":11}},{"id":"0414799b-1493-4154-a2e0-d2df47bfc6a0","block_type":"box","text":"For each of the fiscal years shown below, the Master Por tfolio paid to BlackRock the following management fees","page_number":36,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"c90f4047-dc4d-4e45-8ff2-ffb7a61ff3ff","block_type":"box","text":"(which include amounts paid by the Manager to the Sub-Advisers), net of waivers and/or offsetting credits, if any:","page_number":36,"box":{"x":69,"y":407,"width":806,"height":12}},{"id":"5a386682-2533-478a-a9a8-e06a2a4a99ef","block_type":"box","text":"Fiscal Year Ended December 31,","page_number":36,"box":{"x":654,"y":436,"width":188,"height":8}},{"id":"2f8084a3-3acd-4f5e-8db3-18e5a8fb258e","block_type":"box","text":"Fund Name","page_number":36,"box":{"x":69,"y":452,"width":64,"height":7}},{"id":"535a40f3-e3f6-43f2-99b1-1d405db0cded","block_type":"box","text":"2025 2024 2023","page_number":36,"box":{"x":616,"y":452,"width":265,"height":7}},{"id":"d0e690f9-c1ac-4411-90a6-e37a6000dd5b","block_type":"box","text":"Advantage CoreAlpha Bond Master Por 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31,","page_number":36,"box":{"x":706,"y":537,"width":187,"height":8}},{"id":"407cef1a-7f17-4f3d-9b5c-e20bc99f8a28","block_type":"box","text":"Fund Name","page_number":36,"box":{"x":69,"y":552,"width":64,"height":7}},{"id":"3d81ec51-d19d-47f4-bd7a-a34142c86d5e","block_type":"box","text":"2025 2024 2023","page_number":36,"box":{"x":701,"y":552,"width":197,"height":7}},{"id":"c7c51714-2d42-48b4-949a-2792a48f3b12","block_type":"box","text":"Advantage CoreAlpha Bond Master Por tfolio .","page_number":36,"box":{"x":68,"y":570,"width":322,"height":11}},{"id":"02a67995-e738-4bbd-af03-935d86933bde","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,864 $3,989 $6,840","page_number":36,"box":{"x":396,"y":569,"width":513,"height":11}},{"id":"9532a411-28db-414e-942e-12689b3cb513","block_type":"box","text":"For the fiscal years shown below, BlackRock waived the following management fees with respect to the Master","page_number":36,"box":{"x":102,"y":594,"width":788,"height":11}},{"id":"8b96b15c-35b4-4f9c-8dcd-927b524ce6df","block_type":"box","text":"Por tfolio:","page_number":36,"box":{"x":69,"y":609,"width":63,"height":9}},{"id":"fde8f350-e374-49a8-b17d-c8794edb617f","block_type":"box","text":"Fiscal Year Ended December 31,","page_number":36,"box":{"x":691,"y":637,"width":188,"height":9}},{"id":"3ebb4a0f-bc24-4cbb-9cbf-184aff1c86af","block_type":"box","text":"Fund Name","page_number":36,"box":{"x":69,"y":653,"width":64,"height":7}},{"id":"adb3f4f4-be03-4860-9f73-192d34e16d72","block_type":"box","text":"2025 2024 2023","page_number":36,"box":{"x":677,"y":653,"width":216,"height":7}},{"id":"fba22f64-1e12-4c63-9a22-4d909cdc15d0","block_type":"box","text":"Advantage CoreAlpha Bond Master Por 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In most cases, these benchmarks are the same as the benchmark or benchmarks against","page_number":38,"box":{"x":70,"y":470,"width":830,"height":11}},{"id":"4e411b58-5b8b-42fe-ab30-4301e813273c","block_type":"box","text":"which the per formance of the Fund or other accounts managed by the por tfolio managers are measured. Among","page_number":38,"box":{"x":68,"y":485,"width":801,"height":11}},{"id":"663dda80-12b4-4aa6-9cf9-18e18ecd7fa3","block_type":"box","text":"other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each por tfolio","page_number":38,"box":{"x":69,"y":500,"width":819,"height":11}},{"id":"8e51fb32-048f-44a5-a2aa-e4290e6b9dda","block_type":"box","text":"manager’s compensation based on the per formance of the Fund and other accounts managed by each por tfolio","page_number":38,"box":{"x":69,"y":515,"width":797,"height":11}},{"id":"735a0fed-7a5e-4161-a5c1-06a5fdb96bde","block_type":"box","text":"manager relative to the various benchmarks. Per formance of fixed-income funds is measured on a pre-tax and/or","page_number":38,"box":{"x":69,"y":530,"width":807,"height":12}},{"id":"21fac2c1-91ef-4e1a-8395-cde92574a7f7","block_type":"box","text":"after-tax basis over various time periods including 1-, 3- and 5-year periods, as applicable. 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ICE BofA 3-Month U.S. Tr","page_number":38,"box":{"x":243,"y":680,"width":504,"height":9}},{"id":"eb3ca0c7-b8a7-4afd-9205-5ea00e3071d8","block_type":"box","text":"easury Bill Index; FTSE","page_number":38,"box":{"x":747,"y":680,"width":162,"height":11}},{"id":"608d4f12-6d64-4592-8432-84555a96d075","block_type":"box","text":"3-Month U.S. Treasury Bill Index.","page_number":38,"box":{"x":623,"y":694,"width":232,"height":11}},{"id":"0adc990e-a6d3-4f54-8f1e-c0bd4f46bfba","block_type":"box","text":"Jasmita Mohan","page_number":38,"box":{"x":69,"y":709,"width":107,"height":9}},{"id":"0b9b1cf6-252a-4037-863d-7dd7eea3cebf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A combination of market-","page_number":38,"box":{"x":186,"y":709,"width":572,"height":9}},{"id":"9d25200f-95e4-42f2-bd73-78d825f7bdf7","block_type":"box","text":"based indices (e.g.,","page_number":38,"box":{"x":759,"y":709,"width":138,"height":11}},{"id":"c675047b-db27-466d-b496-1bb07b08b19f","block_type":"box","text":"Bloomberg U.S. Aggregate Bond Index), cer tain","page_number":38,"box":{"x":573,"y":724,"width":333,"height":11}},{"id":"97fdc139-4ea5-4aec-b49b-40d3d71af3fa","block_type":"box","text":"customized indices and cer tain fund industry","page_number":38,"box":{"x":579,"y":738,"width":321,"height":11}},{"id":"2c27d8f8-642d-4f26-a043-aa191e78aa1b","block_type":"box","text":"peer groups.","page_number":38,"box":{"x":696,"y":754,"width":87,"height":10}},{"id":"04f6a309-415c-4acb-8996-8ccd23b732c0","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":38,"box":{"x":102,"y":777,"width":389,"height":11}},{"id":"0448db07-d252-491f-80d1-4f83553c2414","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":38,"box":{"x":499,"y":777,"width":383,"height":11}},{"id":"f95e3e52-6030-41d6-9345-d2c49d7f3915","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":38,"box":{"x":70,"y":792,"width":815,"height":11}},{"id":"7ac507ec-90e6-46c8-bfe9-d1dc482cd2cd","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":38,"box":{"x":68,"y":807,"width":522,"height":11}},{"id":"c6d762ed-0bec-46f5-b2ac-98a7e1511022","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":38,"box":{"x":102,"y":829,"width":760,"height":12}},{"id":"c3298532-62e5-4666-ac3a-b58fd349ab5c","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":38,"box":{"x":69,"y":845,"width":795,"height":11}},{"id":"f932de9e-47ac-4485-aa66-f4366cde68fc","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":38,"box":{"x":69,"y":860,"width":805,"height":11}},{"id":"c5749b7c-a216-4fcf-a03d-498f11205dbf","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":38,"box":{"x":69,"y":875,"width":822,"height":11}},{"id":"6680ea01-1b6d-4ca7-b939-5b8fcc4ba6b3","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":38,"box":{"x":68,"y":890,"width":839,"height":11}},{"id":"4bb3021b-9148-4932-bb49-31a48b3429ca","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":38,"box":{"x":69,"y":905,"width":802,"height":11}},{"id":"28d042e0-c3bd-4299-97cc-d43464ae34f5","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"edf12c3e-f7e5-4ff6-8c28-c660c1c6b91f","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43df7d65-95d0-45e4-a6fe-1b4a6c395671","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":39,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"8a5a868b-704a-41ff-8b64-4805b0868cb9","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":39,"box":{"x":70,"y":60,"width":801,"height":11}},{"id":"52c535c4-f9bb-426d-aa09-2e876c23c760","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":39,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"76a157fb-8f78-445d-9898-8584e026fceb","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":39,"box":{"x":69,"y":90,"width":479,"height":11}},{"id":"7090c25c-07d5-4f8a-b354-2caafae6df64","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":39,"box":{"x":102,"y":113,"width":785,"height":11}},{"id":"4ac6f9ec-6c72-4f30-9be7-a35f9b2621b5","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":39,"box":{"x":68,"y":128,"width":836,"height":11}},{"id":"662ea43a-2fcd-43df-aae4-74626ac76fe9","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":39,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"907c5292-9f2f-4eb7-9386-abf41850b397","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":39,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"d6e471a2-d947-4b48-8213-fed91d017136","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":39,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"4a8cdedf-60e6-4dd1-9498-42086b963cba","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":39,"box":{"x":69,"y":188,"width":414,"height":12}},{"id":"81d365d9-b15a-492c-9c5f-d06c3217073d","block_type":"box","text":"Other Compensation Benefits.","page_number":39,"box":{"x":101,"y":211,"width":218,"height":11}},{"id":"f31fe647-5a98-465f-8362-975a00ae5e59","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":39,"box":{"x":327,"y":211,"width":552,"height":11}},{"id":"9a12c0be-ade7-47f8-92d0-66dbff4193b0","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":39,"box":{"x":69,"y":226,"width":582,"height":11}},{"id":"2f67e1a7-2b76-4925-a69b-41acc894aa40","block_type":"box","text":"Incentive Savings Plans","page_number":39,"box":{"x":102,"y":249,"width":167,"height":11}},{"id":"d03cf7af-9f7d-4a4a-9153-c38b8e33a395","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":39,"box":{"x":274,"y":249,"width":614,"height":11}},{"id":"5505b49b-67d3-44b8-b7c2-56bf19de8831","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":39,"box":{"x":69,"y":264,"width":831,"height":11}},{"id":"3e81c5bc-7149-47cd-a781-0796f7670087","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":39,"box":{"x":70,"y":279,"width":785,"height":11}},{"id":"d0a7e0ee-a1a6-41e9-bbc3-2fb8eb6d36fb","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":39,"box":{"x":69,"y":293,"width":830,"height":12}},{"id":"0d63eaeb-f447-4c45-869e-99f59920ced4","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":39,"box":{"x":69,"y":309,"width":799,"height":11}},{"id":"5856c3fb-dded-401b-85bc-c66369cbe56d","block_type":"box","text":"($350,000 for 2025). The RSP offers a range of investment options, including registered investment companies and","page_number":39,"box":{"x":69,"y":324,"width":831,"height":12}},{"id":"b7b0dafd-c3f6-489b-8588-75d4e6c09f2c","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":39,"box":{"x":69,"y":339,"width":798,"height":12}},{"id":"9df3e766-2ab2-4fee-a75c-0db82e2c58db","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":39,"box":{"x":70,"y":355,"width":809,"height":11}},{"id":"aeba4e9d-99a5-4d59-8e81-a8422bb4a70f","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":39,"box":{"x":68,"y":370,"width":793,"height":11}},{"id":"9524e072-9512-4665-b176-25f28d0d5b9f","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":39,"box":{"x":70,"y":385,"width":832,"height":11}},{"id":"82577d8b-0e32-4b23-8544-47ccd7a2a036","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":39,"box":{"x":68,"y":400,"width":805,"height":11}},{"id":"2176318c-ecb0-4124-a4b3-50adb211f1fe","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":39,"box":{"x":69,"y":414,"width":808,"height":12}},{"id":"fb16d138-1ec8-4ad5-a999-fcebffb2f55a","block_type":"box","text":"par ticipate in these plans.","page_number":39,"box":{"x":70,"y":430,"width":185,"height":11}},{"id":"fbe8286e-1aea-4a73-9ad6-d27e9a4595b9","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":39,"box":{"x":69,"y":460,"width":268,"height":12}},{"id":"6ca0698e-8a62-4a28-851f-b5ba6fcca72b","block_type":"box","text":"As of December 31, 2025, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":39,"box":{"x":101,"y":483,"width":775,"height":11}},{"id":"45cd924e-8405-4530-85cd-0b5b84e67985","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":39,"box":{"x":69,"y":498,"width":519,"height":11}},{"id":"8fdc9ec5-4a57-471f-9068-ad120b5dbcbd","block_type":"box","text":"Portfolio Manager","page_number":39,"box":{"x":69,"y":537,"width":105,"height":8}},{"id":"e31c62a0-f772-4215-b4d9-c3820fb50d02","block_type":"box","text":"Dollar Range of Equity","page_number":39,"box":{"x":759,"y":526,"width":129,"height":9}},{"id":"28d3cbf7-796f-4056-9f36-466b8edb55d1","block_type":"box","text":"Securities Beneficially Owned","page_number":39,"box":{"x":736,"y":537,"width":173,"height":8}},{"id":"ba0a908a-7471-4554-938a-47e67ce3fe74","block_type":"box","text":"Scott Radell","page_number":39,"box":{"x":69,"y":554,"width":84,"height":9}},{"id":"db45aad8-b089-4fb8-b0a6-ae6d796aee51","block_type":"box","text":"....................................................................","page_number":39,"box":{"x":157,"y":562,"width":548,"height":1}},{"id":"5b8db8b2-947d-44ba-baf3-a27a182a20b3","block_type":"box","text":"$10,001 - $50,000","page_number":39,"box":{"x":754,"y":554,"width":138,"height":11}},{"id":"fe9f9e80-eff8-42b0-ae64-6e2297f9c81d","block_type":"box","text":"Jeffrey Rosenberg, CFA","page_number":39,"box":{"x":69,"y":569,"width":165,"height":12}},{"id":"9b58f7a9-a4bd-4f93-afbc-310fd4ba5567","block_type":"box","text":"..........................................................","page_number":39,"box":{"x":239,"y":577,"width":466,"height":1}},{"id":"897c907a-f35c-4dc9-b200-582c4df4e85a","block_type":"box","text":"$10,001 - $50,000","page_number":39,"box":{"x":754,"y":569,"width":138,"height":11}},{"id":"f818c4f3-0062-4345-a213-f875e916f84f","block_type":"box","text":"Jasmita Mohan","page_number":39,"box":{"x":69,"y":585,"width":107,"height":8}},{"id":"69bb7c64-e4f0-401f-8353-d6c853b25c90","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":39,"box":{"x":182,"y":584,"width":621,"height":10}},{"id":"0265fe10-db8a-485a-9d39-1016030ff09b","block_type":"box","text":"$10,000","page_number":39,"box":{"x":808,"y":584,"width":62,"height":11}},{"id":"13f92ab2-e283-42d4-b413-2c56a050370d","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":39,"box":{"x":69,"y":616,"width":403,"height":11}},{"id":"ff7c91ea-4a57-4bef-8c8a-171efc6e20a3","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":39,"box":{"x":102,"y":639,"width":727,"height":11}},{"id":"f6080850-9dc7-4982-a9c2-d76b124100d3","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":39,"box":{"x":70,"y":654,"width":814,"height":11}},{"id":"58b7efd0-34d6-4dd8-be2d-819ad2098a3d","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":39,"box":{"x":70,"y":669,"width":837,"height":11}},{"id":"f1ca6398-50fe-4d26-847d-09e639640b8d","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":39,"box":{"x":70,"y":684,"width":810,"height":11}},{"id":"d49526db-6c32-4c83-bf73-4f91d3596dec","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":39,"box":{"x":69,"y":699,"width":782,"height":11}},{"id":"e90cef76-c910-4bd3-82f4-9adca85a711a","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":39,"box":{"x":69,"y":714,"width":830,"height":12}},{"id":"7f8b42af-825d-474c-b53e-e8f17a1a4a4f","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":39,"box":{"x":69,"y":730,"width":828,"height":11}},{"id":"1b6dfa92-6846-48aa-afa3-0abb5d5d7889","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":39,"box":{"x":68,"y":744,"width":834,"height":12}},{"id":"ef313444-08ed-484d-a4e9-ea136a7385cf","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":39,"box":{"x":70,"y":760,"width":777,"height":11}},{"id":"f6712c01-9545-440c-8e01-08a5ac5359d3","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":39,"box":{"x":70,"y":775,"width":821,"height":11}},{"id":"1d544335-e3c1-407d-bac7-354debdf1f67","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":39,"box":{"x":69,"y":790,"width":819,"height":11}},{"id":"83e014bb-4fbc-4ea4-b241-9a8dfe6652ca","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":39,"box":{"x":69,"y":805,"width":832,"height":11}},{"id":"3ee68919-a260-4d68-b8f2-747e0bfe7756","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":39,"box":{"x":68,"y":820,"width":804,"height":11}},{"id":"ee2c1d56-0ac5-4f45-a962-8ec0371a2edc","block_type":"box","text":"securities. 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BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":40,"box":{"x":68,"y":128,"width":823,"height":11}},{"id":"59b2c93f-3d14-47cb-8669-0ab043215fda","block_type":"box","text":"with no account receiving preferential treatment. 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The services provided by BlackRock or Shareholder Servicing","page_number":40,"box":{"x":70,"y":286,"width":803,"height":12}},{"id":"fdf00a03-f46f-4a9f-98dc-e0a1d65d0c35","block_type":"box","text":"Agents may include serving as an agent of the Fund for purposes of accepting orders for purchases and redemptions","page_number":40,"box":{"x":68,"y":302,"width":835,"height":11}},{"id":"8d386691-c0ba-48de-a9bf-c3187d5902d5","block_type":"box","text":"of Fund shares, providing administrative suppor t and account service such as processing purchases and","page_number":40,"box":{"x":69,"y":317,"width":747,"height":11}},{"id":"2238e48b-968c-468d-be12-9419871594ba","block_type":"box","text":"redemptions of shares on behalf of individual and omnibus Fund accounts, answering shareholder inquiries, keeping","page_number":40,"box":{"x":69,"y":332,"width":830,"height":11}},{"id":"a60c211b-e4c5-405d-b704-49ef4646acec","block_type":"box","text":"records, transmitting repor ts and communications from the Fund, and providing repor ts on the status of individual","page_number":40,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"c65a91c7-8054-46f1-8cd4-395d96f7f418","block_type":"box","text":"and omnibus accounts. Shareholder Servicing Agents may provide these services, in whole or in par t, by operating","page_number":40,"box":{"x":69,"y":362,"width":818,"height":11}},{"id":"5588aaf1-a4d4-47fb-b119-325a28b5b650","block_type":"box","text":"electronic transaction systems or websites through which shareholders may obtain information or engage in purchase","page_number":40,"box":{"x":69,"y":377,"width":839,"height":12}},{"id":"9f1b2f23-9f4d-4a64-9359-7e92acca11a4","block_type":"box","text":"or redemption transactions of Fund shares. 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Therefore, payments to a Shareholder Servicing Agent may create potential conflicts of interest between","page_number":40,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"62f41790-5000-47ad-8972-f8336290a6fb","block_type":"box","text":"the Shareholder Servicing Agent and its clients where the Shareholder Servicing Agent determines which investment","page_number":40,"box":{"x":68,"y":476,"width":831,"height":11}},{"id":"76d0bf9c-baf8-42ff-818a-df15a899d932","block_type":"box","text":"options it will make available to those clients.","page_number":40,"box":{"x":69,"y":491,"width":325,"height":11}},{"id":"0b5366d0-3e5b-4d6f-b05a-518f5a512bae","block_type":"box","text":"Pursuant to its Administration Agreement with the Trust, as described in the section entitled “Administration","page_number":40,"box":{"x":102,"y":514,"width":770,"height":11}},{"id":"3953a37f-3dfc-4fff-91f2-3d38ad4fbc78","block_type":"box","text":"Arrangements,” BlackRock pays shareholder servicing fees to cer tain Shareholder Servicing Agents in amounts not","page_number":40,"box":{"x":68,"y":528,"width":824,"height":12}},{"id":"9316543b-8026-4ac7-a383-fc99aa773895","block_type":"box","text":"exceeding maximum fee rates approved by the Board for those shareholder servicing, sub-administration,","page_number":40,"box":{"x":69,"y":543,"width":750,"height":12}},{"id":"17347786-994f-4864-b71c-a37409da059c","block_type":"box","text":"recordkeeping, sub-transfer agency and processing services that the Shareholder Servicing Agents per form for their","page_number":40,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"2841e83a-33f7-4851-82af-85516ff82f40","block_type":"box","text":"clients that would otherwise be per formed by BlackRock or the Fund’s other service providers. 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The custodian, among other responsibilities, maintains a","page_number":41,"box":{"x":69,"y":82,"width":820,"height":12}},{"id":"4f9afccd-2c40-48f1-a165-571a46917b98","block_type":"box","text":"custody account or accounts in the name of the Fund and Master Por tfolio, receives and delivers all assets for the","page_number":41,"box":{"x":69,"y":98,"width":816,"height":11}},{"id":"6f25f775-92b3-4bc8-9295-d48f3db12ae0","block_type":"box","text":"Fund and Master Por tfolio upon purchase and upon sale or maturity, and collects and receives all income and other","page_number":41,"box":{"x":70,"y":113,"width":823,"height":11}},{"id":"59dccbe3-2bf7-4b19-8724-de45120572a2","block_type":"box","text":"payments and distributions on account of the assets of the Fund and Master Por tfolio.","page_number":41,"box":{"x":70,"y":128,"width":615,"height":11}},{"id":"c85ea708-78f4-400f-aa78-d01a3713e655","block_type":"box","text":"Transfer and Dividend Disbursing Agent","page_number":41,"box":{"x":68,"y":158,"width":287,"height":11}},{"id":"3729bc7e-59d6-411f-bc61-a57369fb9914","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal offices at 118 Flanders Road, Westborough,","page_number":41,"box":{"x":102,"y":181,"width":790,"height":11}},{"id":"5287f60f-a6a7-49e9-8bd9-29ef19aa1339","block_type":"box","text":"Massachusetts 01581, a subsidiary of The Bank of New York Mellon Corporation, acts as the Fund’s transfer and","page_number":41,"box":{"x":70,"y":196,"width":810,"height":11}},{"id":"16385a96-9ce3-4708-8760-4b55ca354e6f","block_type":"box","text":"dividend disbursing agent.","page_number":41,"box":{"x":69,"y":211,"width":185,"height":11}},{"id":"78a71461-451a-4b8e-b19b-8894409eef44","block_type":"box","text":"Credit Agreement","page_number":41,"box":{"x":69,"y":241,"width":129,"height":11}},{"id":"b9ebd946-3ad3-454b-90fa-8ed4b329e982","block_type":"box","text":"MIP II, on behalf of the Master Por tfolio, along with cer tain other funds managed by the Manager and its","page_number":41,"box":{"x":102,"y":264,"width":743,"height":11}},{"id":"a613f4a5-d921-463e-b57f-e6ecb838a73b","block_type":"box","text":"affiliates (“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which","page_number":41,"box":{"x":69,"y":278,"width":834,"height":12}},{"id":"20656791-c79f-4c82-bded-25220645ec5a","block_type":"box","text":"facility terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). 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The costs of borrowing may reduce the Master Por tfolio’s return. The Master","page_number":41,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"7279a041-9f87-435b-bc00-799948664cd9","block_type":"box","text":"Por tfolio is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment amount","page_number":41,"box":{"x":69,"y":430,"width":816,"height":11}},{"id":"5e52971d-c1af-49d2-9ce4-02ff41830d11","block_type":"box","text":"based on its net assets. If the Master Por tfolio borrows pursuant to the Credit Agreement, the Master Por tfolio will","page_number":41,"box":{"x":69,"y":445,"width":819,"height":12}},{"id":"3964c706-b2f9-49a9-bf08-df5daf0686da","block_type":"box","text":"be charged interest at a variable rate.","page_number":41,"box":{"x":69,"y":461,"width":268,"height":11}},{"id":"60a0d8df-a54f-4695-b1b3-e8ef57e97d11","block_type":"box","text":"V. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 81 $ 81","page_number":42,"box":{"x":375,"y":280,"width":527,"height":10}},{"id":"d886a31d-409e-4bfd-8f5a-f8a809993145","block_type":"box","text":"Fiscal Year ended December 31, 2023 . . .","page_number":42,"box":{"x":70,"y":295,"width":299,"height":11}},{"id":"ceb4e07c-543f-4b60-9a07-a6d36ad813ab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 84 $ 84","page_number":42,"box":{"x":375,"y":295,"width":527,"height":10}},{"id":"10a3db67-d0d2-47ac-bafd-3727e0081fbb","block_type":"box","text":"The table below provides information about the 12b-1 fees the Fund paid to BRIL under the Fund’s 12b-1 plan. 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Though not subject to a sales charge, cer tain share classes may be subject to","page_number":42,"box":{"x":69,"y":712,"width":833,"height":11}},{"id":"10fcc9b3-474b-4c7d-b99c-bd5ac23779c2","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":42,"box":{"x":69,"y":727,"width":813,"height":11}},{"id":"b73b006b-ca79-410d-94cb-3f3da764cc7c","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":42,"box":{"x":69,"y":742,"width":377,"height":11}},{"id":"c695b8a9-bff0-417c-a2a5-b9fd6a34d189","block_type":"box","text":"VII. 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Brokerage","page_number":43,"box":{"x":613,"y":49,"width":125,"height":9}},{"id":"dfb8929a-2c9a-466b-81c1-181cc33ca0e6","block_type":"box","text":"Commissions Paid","page_number":43,"box":{"x":623,"y":59,"width":106,"height":7}},{"id":"e2fb953d-4718-478a-a7e3-6b7ad39abdd3","block_type":"box","text":"Brokerage Commissions","page_number":43,"box":{"x":769,"y":49,"width":140,"height":9}},{"id":"4b591e75-a479-4a1e-9cc1-a76587dd3c7e","block_type":"box","text":"Paid to Affiliates","page_number":43,"box":{"x":791,"y":59,"width":96,"height":7}},{"id":"5fa3c0af-c06c-4f7f-9334-4d25da016618","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . .","page_number":43,"box":{"x":70,"y":77,"width":439,"height":10}},{"id":"c9209426-8953-456a-ac30-97559e54421f","block_type":"box","text":".........","page_number":43,"box":{"x":515,"y":84,"width":67,"height":2}},{"id":"ca7b1fe4-7de9-4dc1-8248-1ada9aebff1b","block_type":"box","text":"$65,588 $0","page_number":43,"box":{"x":645,"y":76,"width":203,"height":11}},{"id":"1a2415fe-9530-4245-851f-5bcdbd59bf5b","block_type":"box","text":"For the fiscal year ended December 31, 2025, the brokerage commissions paid to affiliates by the Master","page_number":43,"box":{"x":102,"y":101,"width":758,"height":11}},{"id":"16d2a566-9074-4c8c-b8a4-3faa0156ca1b","block_type":"box","text":"Por tfolio represented 0% of the aggregate brokerage commissions paid and involved 0% of the dollar amount of","page_number":43,"box":{"x":69,"y":116,"width":796,"height":11}},{"id":"cdcd4aa5-63fd-4264-b19a-928ecf60710b","block_type":"box","text":"transactions involving payment of commissions during the year.","page_number":43,"box":{"x":68,"y":131,"width":451,"height":11}},{"id":"f485f0a7-aee7-4d8a-840b-de336e68b414","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid by the Master Por tfolio to brokers","page_number":43,"box":{"x":101,"y":154,"width":788,"height":11}},{"id":"847e3cac-f74f-4ab4-96f3-f4a54f6f5dda","block_type":"box","text":"for providing third-par ty research services and the approximate dollar amount of the transactions involved for the","page_number":43,"box":{"x":68,"y":169,"width":805,"height":11}},{"id":"524f399e-e04d-4676-abb3-aa39b362bccc","block_type":"box","text":"fiscal year ended December 31, 2025. The provision of third-par ty research services was not necessarily a factor in","page_number":43,"box":{"x":68,"y":184,"width":826,"height":11}},{"id":"4d9235c2-6338-42d8-83c6-8b004bf4b76b","block_type":"box","text":"the placement of all brokerage business with such brokers.","page_number":43,"box":{"x":68,"y":199,"width":422,"height":11}},{"id":"bb9ae9dc-0dd3-488a-9aaf-d9f28ccf5ea2","block_type":"box","text":"Amount of Commissions","page_number":43,"box":{"x":329,"y":227,"width":141,"height":7}},{"id":"af5bdfde-f1d6-4012-a043-6a6fcd0fd173","block_type":"box","text":"Paid to Brokers for Providing","page_number":43,"box":{"x":316,"y":237,"width":168,"height":9}},{"id":"2105baf7-0a90-40bd-b80a-4d59aaa1ea14","block_type":"box","text":"Research Services","page_number":43,"box":{"x":346,"y":247,"width":108,"height":8}},{"id":"d03b581f-d3ab-4df4-9802-29f05b9d3688","block_type":"box","text":"Amount of Brokerage","page_number":43,"box":{"x":537,"y":237,"width":124,"height":9}},{"id":"63ca0c3e-9f24-418d-af72-4fe7d47cbeb9","block_type":"box","text":"Transactions Involved","page_number":43,"box":{"x":536,"y":247,"width":126,"height":8}},{"id":"1e10e9d7-f128-4ac4-8cbb-cdd7220dd1a2","block_type":"box","text":"$0 $0","page_number":43,"box":{"x":391,"y":264,"width":217,"height":11}},{"id":"4f8e6e89-9be6-4a72-ad49-e0bfacedf405","block_type":"box","text":"As of December 31, 2025, the value of the Master Por tfolio’s aggregate holdings of the securities of its regular","page_number":43,"box":{"x":101,"y":289,"width":797,"height":11}},{"id":"d4a0627c-05cd-4c9a-9588-b13e6fe61aa5","block_type":"box","text":"brokers or dealers (as defined in Rule 10b-1 under the Investment Company Act) or their parents, if any por tion of","page_number":43,"box":{"x":69,"y":304,"width":812,"height":11}},{"id":"187e5fe1-f7ba-4fd5-a3d1-178e84b008fa","block_type":"box","text":"such holdings were purchased during the fiscal year ended December 31, 2025, is as follows:","page_number":43,"box":{"x":69,"y":319,"width":671,"height":12}},{"id":"8edd4a39-a717-45c9-8024-ad0c286283d5","block_type":"box","text":"Master Portfolio","page_number":43,"box":{"x":69,"y":348,"width":94,"height":7}},{"id":"79c99f9a-bb3b-4e5f-8759-47727fe06c8f","block_type":"box","text":"Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":43,"box":{"x":603,"y":348,"width":306,"height":8}},{"id":"f2c9d417-2ef5-4014-8838-78ff66f219d0","block_type":"box","text":"JPMorgan Chase & Co.","page_number":43,"box":{"x":69,"y":365,"width":162,"height":12}},{"id":"21ee7c86-395b-4154-882c-02a356030943","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $5,927","page_number":43,"box":{"x":235,"y":365,"width":619,"height":11}},{"id":"bdc1840f-40a6-4ab0-9363-f0de895ddddd","block_type":"box","text":"Wells Fargo & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":43,"box":{"x":68,"y":380,"width":470,"height":12}},{"id":"ef3160a0-cebe-418c-8348-1196c7bc7cab","block_type":"box","text":". . . . D $5,376","page_number":43,"box":{"x":545,"y":380,"width":309,"height":11}},{"id":"a313bf68-6a9a-45d4-8ddc-716483ff0c1d","block_type":"box","text":"Bank Of America, N.A.","page_number":43,"box":{"x":70,"y":395,"width":155,"height":11}},{"id":"09e28075-40b6-4cd7-9599-8c2f68209f32","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $5,243","page_number":43,"box":{"x":235,"y":395,"width":619,"height":11}},{"id":"96119693-9a9b-4606-acf3-b8bba616c446","block_type":"box","text":"Morgan Stanley & Co. LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $4,112","page_number":43,"box":{"x":70,"y":410,"width":784,"height":12}},{"id":"93a070b5-06a2-4b33-8a86-09218cd97a4d","block_type":"box","text":"Securities Lending","page_number":43,"box":{"x":68,"y":442,"width":135,"height":11}},{"id":"1b8f8fad-0724-4306-9128-1bd16b17a42c","block_type":"box","text":"To the extent that the Master Por tfolio engages in securities lending, the Master Por tfolio conducts its securities","page_number":43,"box":{"x":101,"y":465,"width":804,"height":11}},{"id":"313c43d0-8134-4c00-9034-c845271994da","block_type":"box","text":"lending pursuant to an exemptive order from the Commission permitting it to lend por tfolio securities to borrowers","page_number":43,"box":{"x":70,"y":480,"width":814,"height":11}},{"id":"c76c9c84-fc4a-4982-b1d3-1e1c69e2f1e3","block_type":"box","text":"affiliated with the Master Por tfolio and to retain an affiliate of the Master Por tfolio as securities lending agent. To the","page_number":43,"box":{"x":69,"y":495,"width":837,"height":11}},{"id":"ad2022f0-cdf8-4026-aad2-98de6f23e155","block_type":"box","text":"extent that the Master Por tfolio engages in securities lending, BlackRock Institutional Trust Company, N.A. (“BTC”),","page_number":43,"box":{"x":69,"y":510,"width":820,"height":11}},{"id":"da456168-0e10-40ba-be2c-5c563d3e625b","block_type":"box","text":"acts as securities lending agent for the Master Por tfolio, subject to the overall supervision of the Manager, pursuant","page_number":43,"box":{"x":69,"y":525,"width":830,"height":12}},{"id":"ebc46316-9998-4cf2-b166-0290f5556f51","block_type":"box","text":"to a written agreement (the “Securities Lending Agency Agreement”), BTC administers the lending program in","page_number":43,"box":{"x":68,"y":540,"width":777,"height":12}},{"id":"914fa763-08bc-4b87-8203-f93b6973e288","block_type":"box","text":"accordance with guidelines approved by MIP II’s Board.","page_number":43,"box":{"x":69,"y":556,"width":391,"height":11}},{"id":"e1ae70af-8c35-4a59-b1f3-e75818e4d356","block_type":"box","text":"To the extent the Master Por tfolio engages in securities lending, the Master Por tfolio retains a por tion of the","page_number":43,"box":{"x":101,"y":578,"width":775,"height":11}},{"id":"2e0a9c86-8bf0-4751-9eff-0971a48914ce","block_type":"box","text":"securities lending income and remits the remaining por tion to BTC as compensation for its services as securities","page_number":43,"box":{"x":69,"y":593,"width":808,"height":12}},{"id":"3b0fcd6b-eb17-45f2-b18c-9f6185d43e2c","block_type":"box","text":"lending agent. Securities lending income is generally equal to the total of income earned from the reinvestment of","page_number":43,"box":{"x":70,"y":608,"width":812,"height":12}},{"id":"24e9141a-0072-40a7-afec-7fb3158e7b17","block_type":"box","text":"cash collateral (and excludes collateral investment fees as defined below), and any fees or other payments to and","page_number":43,"box":{"x":69,"y":623,"width":812,"height":12}},{"id":"3b65c223-ca5f-46d1-9e8a-4426eba72d07","block_type":"box","text":"from borrowers of securities. As securities lending agent, BTC bears all operational costs directly related to securities","page_number":43,"box":{"x":68,"y":639,"width":840,"height":11}},{"id":"281b959d-4817-42f2-a18a-283fdd6853f7","block_type":"box","text":"lending. The Master Por tfolio is responsible for fees in connection with the investment of cash collateral received for","page_number":43,"box":{"x":70,"y":654,"width":830,"height":11}},{"id":"5c09af6f-3ede-4eab-993d-3562d9ad1f2e","block_type":"box","text":"securities on loan in a money market fund managed by BlackRock (the “collateral investment fees”); however, the","page_number":43,"box":{"x":69,"y":669,"width":811,"height":11}},{"id":"84e3066e-e84b-43e8-a634-33d4896d1c2e","block_type":"box","text":"securities lending agent has agreed to reduce the amount of securities lending income it receives in order to","page_number":43,"box":{"x":69,"y":684,"width":774,"height":11}},{"id":"8881d8b8-f812-4bb9-b194-63142f66b08b","block_type":"box","text":"effectively limit the collateral investment fees a Master Por tfolio bears to an annual rate of 0.04%. Such money","page_number":43,"box":{"x":69,"y":699,"width":796,"height":11}},{"id":"7f8686cf-090b-40f5-8f25-43f89329e512","block_type":"box","text":"market fund shares will not be subject to a sales load, redemption fee, distribution fee or service fee.","page_number":43,"box":{"x":69,"y":714,"width":725,"height":11}},{"id":"b2742ae0-4c65-41fc-95a1-f1231201e249","block_type":"box","text":"To the extent that the Master Por tfolio invests cash collateral in a non-government money market fund, the Fund","page_number":43,"box":{"x":101,"y":737,"width":800,"height":11}},{"id":"c5008874-67e2-478b-9111-957a66a80064","block_type":"box","text":"may be subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be","page_number":43,"box":{"x":69,"y":752,"width":802,"height":11}},{"id":"4f7e9ce7-4f78-417d-a373-5f402f9d6c29","block_type":"box","text":"imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its","page_number":43,"box":{"x":70,"y":767,"width":778,"height":11}},{"id":"bb487722-9028-4ce1-912f-1c28d9010971","block_type":"box","text":"delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money","page_number":43,"box":{"x":69,"y":782,"width":821,"height":12}},{"id":"2a82e664-d901-4dfc-a70d-47136804a00f","block_type":"box","text":"market fund. Additionally, the Master Por tfolio will be subject to a mandatory liquidity fee if the money market fund’s","page_number":43,"box":{"x":69,"y":797,"width":830,"height":12}},{"id":"1eb955e2-4b22-4e44-95dc-3dc601be57cc","block_type":"box","text":"total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs","page_number":43,"box":{"x":68,"y":812,"width":817,"height":12}},{"id":"08f9544e-2012-4b28-848c-91a2fe1944fd","block_type":"box","text":"are de minimis (i.e., less than one basis point (0.01%)). The money market fund will determine the size of the","page_number":43,"box":{"x":69,"y":828,"width":783,"height":11}},{"id":"f1c938e3-89af-4c47-93e5-476206a9580c","block_type":"box","text":"mandatory liquidity fee by making a good faith estimate of cer tain costs the money market fund would incur if it were","page_number":43,"box":{"x":69,"y":843,"width":834,"height":11}},{"id":"9392751e-3f10-4bc0-92f8-19f508c1c710","block_type":"box","text":"to sell a pro rata amount of each security in the por tfolio to satisfy the amount of net redemptions on that day. There","page_number":43,"box":{"x":68,"y":858,"width":835,"height":11}},{"id":"3513ac83-24b5-4922-a66e-decf67e26954","block_type":"box","text":"is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro","page_number":43,"box":{"x":70,"y":873,"width":839,"height":11}},{"id":"bb2c4d7f-514b-4b29-86cd-79c3021564cc","block_type":"box","text":"rata amount of each por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity","page_number":43,"box":{"x":69,"y":888,"width":816,"height":11}},{"id":"090a4ea9-44a0-45a2-ab99-bd1127bfe33f","block_type":"box","text":"I-27","page_number":43,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"6a634846-40b4-4661-b8bc-e2e528a42301","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad0f2ca6-e405-498d-a0cb-fd722667c502","block_type":"box","text":"fee of 1% on the value of shares redeemed on that day. The imposition of any such discretionary or mandatory","page_number":44,"box":{"x":68,"y":45,"width":791,"height":11}},{"id":"9cae0d86-6b54-498e-931f-0344544c2f7b","block_type":"box","text":"liquidity fee would reduce the Master Por tfolio’s returns on securities lending.","page_number":44,"box":{"x":70,"y":60,"width":552,"height":11}},{"id":"d87c1c78-70d1-4bfe-945c-1225b161b8c8","block_type":"box","text":"Under the securities lending program, the Master Por tfolio is categorized into one of several specific asset classes.","page_number":44,"box":{"x":70,"y":82,"width":822,"height":12}},{"id":"7a0ccf12-dbff-4424-a4e2-6b1c19ffd5d0","block_type":"box","text":"The determination of the Master Por tfolio’s asset class category (fixed income, domestic equity, international equity,","page_number":44,"box":{"x":68,"y":98,"width":832,"height":11}},{"id":"5ff29145-a866-4bfb-a8b8-bf233b6bd348","block_type":"box","text":"or fund of funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to","page_number":44,"box":{"x":69,"y":113,"width":833,"height":11}},{"id":"787f40d0-7b9c-418b-94c2-8b3d27cc2aa8","block_type":"box","text":"by MIP II and BTC.","page_number":44,"box":{"x":69,"y":128,"width":128,"height":11}},{"id":"75abda67-7a7b-4117-83ba-75d935f13026","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) if the Master Por tfolio were to engage in securities","page_number":44,"box":{"x":102,"y":150,"width":766,"height":12}},{"id":"85465b1c-e66e-4d85-9ae0-fe1cdd7d2db0","block_type":"box","text":"lending, the Master Por tfolio retains 82% of securities lending income (which excludes collateral investment fees)","page_number":44,"box":{"x":70,"y":166,"width":808,"height":11}},{"id":"fa203832-2d73-475a-9ac4-603f34d8b1e4","block_type":"box","text":"and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment","page_number":44,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"4e0fa300-4cd1-4c13-b4f9-76658bab55d8","block_type":"box","text":"fees.","page_number":44,"box":{"x":68,"y":196,"width":35,"height":9}},{"id":"1cfc95a8-7a29-4c3c-9b00-9f4ab1dad449","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":44,"box":{"x":102,"y":218,"width":753,"height":12}},{"id":"f44eb184-6213-4ac2-b78c-23329a3ce5b5","block_type":"box","text":"earned across the BlackRock Fixed-Income Complex in a calendar year exceeds specified thresholds, the Master","page_number":44,"box":{"x":69,"y":234,"width":803,"height":11}},{"id":"5dfd55f3-f209-4908-bf29-88e576205451","block_type":"box","text":"Por tfolio, pursuant to the current securities lending agreement, will receive for the remainder of that calendar year","page_number":44,"box":{"x":69,"y":249,"width":814,"height":11}},{"id":"4542f8b2-27d4-444c-b011-4f6f595f2e7a","block_type":"box","text":"securities lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees);","page_number":44,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"42deb1bc-c494-4a65-ab89-9a8f7bf3c21a","block_type":"box","text":"and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment","page_number":44,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"2bd28bcb-ab72-44aa-bd58-237d66251050","block_type":"box","text":"fees.","page_number":44,"box":{"x":68,"y":294,"width":35,"height":9}},{"id":"4f41b93e-19a6-4890-84c6-bf299721f27d","block_type":"box","text":"The services provided to the Master Por tfolio by BTC, in the most recent fiscal year ended December 31, 2025,","page_number":44,"box":{"x":101,"y":317,"width":797,"height":11}},{"id":"45ecd02d-2cf0-4735-aab7-7e5c72f0406f","block_type":"box","text":"primarily included the following:","page_number":44,"box":{"x":70,"y":332,"width":221,"height":11}},{"id":"22dc9709-dbdf-41a5-8d87-8c8085d360f4","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":44,"box":{"x":69,"y":352,"width":818,"height":11}},{"id":"771c7740-93e6-4560-b13d-657b9b475018","block_type":"box","text":"on behalf of the Master Por tfolio with each such borrower;","page_number":44,"box":{"x":102,"y":367,"width":414,"height":11}},{"id":"aa0adbb0-4aeb-4178-843c-024c003fb754","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":44,"box":{"x":69,"y":387,"width":538,"height":12}},{"id":"c2ecd322-ba26-4d22-bb71-c2d54e4350a2","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":44,"box":{"x":69,"y":407,"width":330,"height":12}},{"id":"09b506ec-4c67-4219-9041-206401a997ea","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":44,"box":{"x":69,"y":428,"width":834,"height":11}},{"id":"217ddd3b-f2bf-4d92-8c8b-bda4a00abb9c","block_type":"box","text":"of excess collateral, as necessary;","page_number":44,"box":{"x":102,"y":443,"width":246,"height":11}},{"id":"cfc8469a-5f9f-4304-a49a-c6c46f7b83f5","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":44,"box":{"x":69,"y":463,"width":562,"height":11}},{"id":"9a8a2b41-8189-4c19-bb50-1105aff99572","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":44,"box":{"x":69,"y":483,"width":665,"height":11}},{"id":"687f0ae1-ca8e-45d5-8882-2a635a85f2dc","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":44,"box":{"x":69,"y":503,"width":822,"height":12}},{"id":"4bf94840-7e82-4e83-80b3-542696213bb9","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":44,"box":{"x":101,"y":518,"width":803,"height":11}},{"id":"64e3c24f-3fcd-4405-b271-0a5f53483ea5","block_type":"box","text":"of the loaned securities; and","page_number":44,"box":{"x":102,"y":533,"width":203,"height":11}},{"id":"b5a9079f-125b-4d8b-9a0e-40898c16ddb6","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Master Por tfolio at 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Class K Shares","page_number":46,"box":{"x":680,"y":195,"width":214,"height":9}},{"id":"075225cc-2510-4d48-a5df-1406b6da43ba","block_type":"box","text":"Empower Trust 8515 E. Orchard Road 2T2","page_number":46,"box":{"x":70,"y":233,"width":558,"height":11}},{"id":"2d675e55-8123-4a45-9b6e-36a65383404a","block_type":"box","text":"Greenwood Village, CO 80111","page_number":46,"box":{"x":425,"y":248,"width":214,"height":11}},{"id":"9d9e83cd-affa-4847-aa78-26ab91483826","block_type":"box","text":"17.08% Class K Shares","page_number":46,"box":{"x":681,"y":233,"width":213,"height":9}},{"id":"fee9f2d8-1dde-4820-8fc9-8de16cb50c91","block_type":"box","text":"Mac & Co 500 Grant Street","page_number":46,"box":{"x":70,"y":271,"width":523,"height":9}},{"id":"f84c5195-5f0e-4be9-9df4-de8878ab1aa8","block_type":"box","text":"Pittsburgh, PA 15258-0000","page_number":46,"box":{"x":435,"y":286,"width":194,"height":11}},{"id":"683bd905-4f2b-449b-9f30-ee93e9c2d838","block_type":"box","text":"10.42% Class K Shares","page_number":46,"box":{"x":681,"y":271,"width":213,"height":9}},{"id":"8d7afeff-3cbe-4ea7-a73f-9d12775a9117","block_type":"box","text":"National Financial Services LLC 499 Washington Boulevard","page_number":46,"box":{"x":70,"y":309,"width":557,"height":11}},{"id":"bbd9c424-863b-4c1e-af72-7a0afd98abc1","block_type":"box","text":"5","page_number":46,"box":{"x":505,"y":324,"width":8,"height":9}},{"id":"dd1fd030-5ad5-4185-b54b-10676ed13221","block_type":"box","text":"th","page_number":46,"box":{"x":514,"y":324,"width":6,"height":5}},{"id":"3204663b-ddbf-4236-bdd2-dd262fe2153a","block_type":"box","text":"Floor","page_number":46,"box":{"x":527,"y":324,"width":33,"height":9}},{"id":"a2abe0e5-0148-48ed-94ca-6c62d78ee301","block_type":"box","text":"Jersey City, NJ 07310-2010","page_number":46,"box":{"x":433,"y":339,"width":197,"height":11}},{"id":"4ba18964-9b27-41b9-8602-b787829ef134","block_type":"box","text":"7.30% Class K Shares","page_number":46,"box":{"x":685,"y":309,"width":209,"height":9}},{"id":"afc6881b-d90a-4e73-ba30-516431d60566","block_type":"box","text":"IX. Financial Statements","page_number":46,"box":{"x":69,"y":370,"width":179,"height":9}},{"id":"698a0250-2ace-4943-a711-057f735c227e","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":46,"box":{"x":101,"y":393,"width":726,"height":11}},{"id":"caca34d0-4579-48f0-ae4d-8a75f6782b8e","block_type":"box","text":"Statements and Additional Information for the fiscal year ended December 31, 2025, as filed with the SEC on Form","page_number":46,"box":{"x":69,"y":408,"width":823,"height":11}},{"id":"680e6da5-a88a-4437-a25e-8d12c4a4e1d9","block_type":"box","text":"N-CSR (the “2025 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the","page_number":46,"box":{"x":70,"y":423,"width":804,"height":11}},{"id":"219a6ab4-6ea1-45d8-abbf-1f4b6d37f30c","block_type":"box","text":"2025 Annual Financial Statements are incorporated by reference herein. The 2025 Annual Financial Statements have","page_number":46,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"404e2b59-27fc-4d07-8b29-fafe1a3ca95d","block_type":"box","text":"been audited by PricewaterhouseCoopers LLP. The repor t of PricewaterhouseCoopers LLP is incorporated herein by","page_number":46,"box":{"x":69,"y":453,"width":820,"height":12}},{"id":"4eeeb61b-b7d3-4f02-9859-85b63c3b56b0","block_type":"box","text":"reference. Such 2025 Annual Financial Statements have been incorporated herein in reliance upon such repor t given","page_number":46,"box":{"x":69,"y":469,"width":834,"height":11}},{"id":"8af132d4-983b-435f-b1e3-ec8514440229","block_type":"box","text":"upon PricewaterhouseCoopers LLP’s authority as exper ts in accounting and auditing. Additional copies of the Fund’s","page_number":46,"box":{"x":69,"y":484,"width":829,"height":11}},{"id":"be868660-65f0-45e3-b333-02905e9cafd1","block_type":"box","text":"annual and semi-annual repor ts to shareholders and the Fund’s Annual and Semi-Annual Financial Statements and","page_number":46,"box":{"x":69,"y":499,"width":818,"height":11}},{"id":"fa2d0297-dd76-4e7e-9465-af4bb9dad306","block_type":"box","text":"Additional Information may be obtained at no charge by telephoning the Distributor at the telephone number","page_number":46,"box":{"x":68,"y":514,"width":771,"height":11}},{"id":"32fe19c3-d6d8-4e58-a32a-51cda0677ed2","block_type":"box","text":"appearing on the front page of this SAI.","page_number":46,"box":{"x":69,"y":529,"width":279,"height":11}},{"id":"1320d6a6-913a-4fab-9abd-2c1e56a4f1b7","block_type":"box","text":"I-30","page_number":46,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e15b20f8-871d-4417-bb2a-16b3adc15347","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e462f2d-8600-45b4-862c-84f8f7b4dd1a","block_type":"box","text":"PART II","page_number":47,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"e440c2d8-ab81-4d41-bb39-53b6f8beccba","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":47,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"0cdd076f-5f60-4126-882b-8f6342783073","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":47,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"cf1d0ab9-5a32-46f3-a739-b299ead35dcf","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":47,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"e5b5e1b7-5639-4e14-92f4-3c3a8643407a","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":47,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"1b59939d-24a6-4d5c-ad26-d02b0dbbde71","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":47,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"3e8c64e3-8109-4671-a3cd-be1f44984d9e","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":47,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"96ede0f7-b63c-49cb-9632-563936cbd47e","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":47,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"3257c7ef-f32a-4c59-beb0-f3872932e7a2","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":47,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"1b1f4a18-89d3-4186-b25f-6837b57df0bd","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":47,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"d7ed7e8b-d025-4049-ad9b-71dac0808845","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":47,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"cfa66a32-766a-432f-af65-3921556a6a16","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":47,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"751e85f3-6f2f-467e-92b8-1c31250fcf7d","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":47,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"6694a032-e0c7-43a8-8e3d-9c4a0e90f8ed","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":47,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"3729c5cb-83af-4751-a1b6-34606eda4d13","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":47,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"f8a613f9-5a21-4686-b777-96b212792e47","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":47,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"5b936343-4270-447f-a737-dd9dd0593320","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":47,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"62ac185d-ecc0-4dd1-bd43-6b9b0a1a8fdd","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":47,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"30bb7678-800b-477f-92fb-2bf1f815e3f2","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":47,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"edf77465-960f-44b3-8423-93a582a80284","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":47,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"4217302d-c242-4bb8-bd1f-f9aa2632cbb9","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":47,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"d81b94b1-022b-4fbd-804c-8680aaa8bd01","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":47,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"14f1ac6a-9df5-43db-9a56-8b696e4883d6","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":47,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"4dd9c237-146d-4af2-aec0-97e919ba2559","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":47,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"dd66954d-54d8-45a8-8603-314911c13d90","block_type":"box","text":"par ticular Fund.","page_number":47,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"f9fb88d3-4021-489c-a895-3c9b4f427a73","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":47,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"5a75dd24-59a0-449e-bcc8-4b83f7c71c84","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":47,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"51871d98-cd05-451a-ad5b-d8b06b1ca77c","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":47,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"9360f827-d446-431c-a474-f755673dce49","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":47,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"2cd4b6e9-b8b6-4c2a-a36a-d75eade3e159","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":47,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"9e7c7bb3-6dc8-4dcd-9841-811930fb8646","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":47,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"31d5a157-942b-43f8-8163-75c8a10f371a","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":47,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"67ce5094-53e2-4740-8cb1-fe8876f0bbab","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":47,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"bd44b5df-6973-41fe-832e-5d85cf9f7bf1","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":47,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"159eeb7e-c90e-4e7a-9794-263f1306c5ea","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":47,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"c441513c-d9ea-436a-8c51-f17017f4d6d7","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":47,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"fb7de2fc-3897-4160-972a-6ac92a3db6ba","block_type":"box","text":"Asset-Backed Securities.","page_number":47,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"9db182e1-4856-4c15-a3a8-387c42c78618","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":47,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"4d2c92af-d33e-4384-af05-90de71b727a9","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":47,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"1f7cd764-12af-4463-8c91-ce1bef1b644f","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":47,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"8933d38d-b868-4d64-8bb2-1c4845547094","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":47,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"5069a309-75a8-47db-af4f-8228490d0776","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":47,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"a706b8db-5453-4571-90ba-d168d0ff798c","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":47,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"8393b54e-5597-4c24-b338-79d7445ac6ea","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":47,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"34654b91-56a4-4e9a-adc5-218a978a0e0b","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":47,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"6a9beebb-7d13-4018-bb4c-2c59d5519edb","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":47,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"a61d518c-7b52-4061-a8ec-167df400b8bd","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":47,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"23369a3c-fcb0-4815-a678-2c53a317d2be","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":47,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"34e81a9f-316d-4ee5-9392-c0f9dd09a092","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":47,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"abbc4016-91cd-414d-a5e6-17e75159ba32","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":47,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"993ec069-0147-495e-ab2b-36483af14ab6","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":47,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"383a1d4e-31ba-4557-ba67-859736d9b84d","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":47,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"5ccbb6ca-5553-432f-ae7f-470b7277945b","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":47,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"75965741-3be4-46a1-bb83-63ec1d157c59","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":47,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"65ee5b91-2a14-4fdd-baf0-3d9e8886bf47","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":47,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"eaa9e42c-86d0-4746-831e-ac0f350f9345","block_type":"box","text":"II-1","page_number":47,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"d7551af6-6218-41d5-a223-4c41a934236e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f874184a-a31d-4d40-8f48-a5182f7a54bd","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":48,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"435e7221-e4b5-4cd1-9757-9257e492f272","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":48,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"ac6ecdaf-f271-42c4-ba7c-25ef5d2e7aea","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":48,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"ce464f8c-0acc-4bf2-a3d3-d613222210cb","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":48,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"5619bcdb-e6de-4edb-95d9-cead7f1fcded","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":48,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"d627634d-8cec-47dc-b207-a100a94052b3","block_type":"box","text":"Asset-Based Securities.","page_number":48,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"b5f24a7f-e9a1-4c6b-9fc7-7549d68e700a","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":48,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"6381054f-d956-432a-abab-74b245f2e5e1","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":48,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"b21c092c-a504-425a-a208-eb27b099fb8f","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":48,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"5e0a05ce-9d61-470b-9d8b-568f982afa7c","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":48,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"7844d3f6-4235-48ce-b7b0-296bfdbb1afb","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":48,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"9dce0264-28fb-4af1-b3e7-8e2fcced5cf3","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":48,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"5afdbda6-ab28-493a-ad2a-3bdddcfa1371","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":48,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"e788666e-6444-4cae-9486-5ea4b8060ee0","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":48,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"a12090e7-ed1e-4b8c-a150-d1b6cd45e5ff","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":48,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"90bad4ae-de20-4ccb-b613-4d9d80e4143f","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":48,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"b78e026e-96be-4838-8652-ab8b988b7f65","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":48,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"4b3a6e69-bea4-4b39-b524-946df3a10ed5","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":48,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"fe94f541-4986-4f6e-abb1-bc75407dd861","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":48,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"9a4be94b-9cd2-488d-bbde-292274cecaad","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":48,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"bac5d945-2b51-4584-9525-c3d7558f845d","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":48,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"c498f481-8774-4688-8571-3c57bc60f2fc","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":48,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"bd113416-6f1a-416a-bb55-fb8ab2b03533","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":48,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"076f9add-c800-4873-810b-b311cf110eea","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":48,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"41ff364e-9155-4d55-ab8e-5414960d8151","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":48,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"ebe4740f-1f9d-4eb2-9432-371feaa3fd09","block_type":"box","text":"appreciation in the underlying asset.","page_number":48,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"fb769bc3-aa0d-4fa4-a14b-94ff3fddca0f","block_type":"box","text":"Precious Metal-Related Securities.","page_number":48,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"3f4485ec-d86d-40bb-b3a3-03d13ca3d467","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":48,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"9583b3bf-3c5f-4bc5-8f69-ae4e77cc782e","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":48,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"c649b176-b951-4a42-86af-56c1458e9b7b","block_type":"box","text":"e.g.","page_number":48,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"d32376b8-fc52-499f-aac5-bee55867326b","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":48,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"2ed9c143-7d8b-43d5-8365-e76e0a8881f0","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":48,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"def81ee3-b93c-45e2-8ecd-4dfee8fdfcbc","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":48,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"8aea6483-424e-4406-ab09-dcf039df8c8f","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":48,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"ee2c6f6a-b786-44c8-b80c-e0b4a7aa9ef3","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":48,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"24a8af42-0857-4a0b-b80f-76c586eb8dca","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":48,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"3c179f45-bfc4-4fec-b2f8-561e377a7ab4","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":48,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"174c27e6-3516-4c90-a681-e4f0fd656b69","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":48,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"3dfd4924-542f-4320-bb93-4d23f1db1de8","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":48,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"c147658e-5c0a-48ac-b36f-4d32676b4d5a","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":48,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"5178f8e2-2de1-4453-954e-4ea2ee385f9b","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":48,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"b423791e-6700-40a1-b58d-0dc5e80f841f","block_type":"box","text":"South African gold production.","page_number":48,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"e1bf4a97-a54d-4a0c-a7d8-d9e8e4cac004","block_type":"box","text":"Borrowing and Leverage.","page_number":48,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"302476a4-baf2-42bb-bdbc-3d41acff1f55","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":48,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"f7f78fe6-c5a2-4417-8614-951419252934","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":48,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"87268daa-6f43-4f1b-ac37-71c7a12d9cfb","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":48,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"7ebb71c0-b735-4d60-9e8c-2a766144efea","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":48,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"d26fce02-933f-4169-ae86-a34e6dcd9efb","block_type":"box","text":"other securities transactions.","page_number":48,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"fae9bb46-c425-40ef-8eb8-47220fb81cee","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":48,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"08052545-8473-4b48-82e0-09b553d7c7d5","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":48,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"a5f61a3e-c6c8-4c60-ab68-3b4c40a3005c","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":48,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"e53bed52-d40c-43e5-a9c0-18b7c91272f4","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":48,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"5d8a23bc-6ccb-41af-8a62-67883adb21cf","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":48,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"5063bf65-7c1c-4821-ab31-86b455911902","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":48,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"0b80f99b-b1d8-420a-be1e-9d9118ff53a7","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":48,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"11b0cee4-10e9-4d98-9eab-4677b526a5ed","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":48,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"93e79097-eb67-4074-a8e8-4ba4ae980ce5","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":48,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"29e06c0a-402f-4741-88ea-7a11d494d864","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":48,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"e9f3356d-da47-47d0-ae22-e06826da5531","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":48,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"a427355b-5a0e-4365-bd7c-a9733ab67764","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":48,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"2a9e7a2c-60f1-4b10-af72-0a8bef9cd2df","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":48,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"71bd303b-dd47-4538-95f6-055afb27c967","block_type":"box","text":"II-2","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"08675937-8a94-43be-84bc-ea5a292f0363","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e891656-ac1c-4d79-a79b-7ea229767d6f","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":49,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"bbf5f321-5994-4db6-8488-d6001e060142","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":49,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"e0bad3ff-c5b7-45ff-b94e-3c048efa4b74","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":49,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"ba0d4585-fe7e-463e-84cf-1cbfcd83e012","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":49,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"29a34ade-c30d-4244-b21c-f67bbb4d2cda","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":49,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"e8055b73-1bce-4bb1-a5b4-4a68aee26b5b","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":49,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"d970d2fb-b531-4022-8ede-eeecd34e77ff","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":49,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"02d26751-af31-45cc-a52d-e61a29dd9dd1","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":49,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"7db6c972-4fff-4a5a-8af8-8498c80c3b08","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":49,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"d1698d6c-762c-4696-adbe-d1e773a19e81","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":49,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"057376c7-6052-475c-9027-ae01f40754fa","block_type":"box","text":"Cash Management.","page_number":49,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"cfbbd88e-afa5-4ae7-8f18-c366dc20d657","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":49,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"b6bec4d7-7c14-4fed-8e15-f976c4cc51e6","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":49,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"72e0cfce-b9e4-40aa-a9f3-c5a630a073a3","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":49,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"4db7b541-1292-483b-b386-613b37f9f10b","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":49,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"49c17770-92ba-4917-b8a4-e6be6d2a1cc3","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":49,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"f3ae7f9a-607b-41e4-bca6-fda04113583e","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":49,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"cd560f65-f073-416d-b946-be83468a6944","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":49,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"69e1cedc-514c-427f-bfe8-3e35291ab7bd","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":49,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"e29b6af2-1903-4182-9247-8ae269655db6","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":49,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"f8b752be-006a-456e-801e-aafca05893d5","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":49,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"3540d31b-9e39-47e1-8742-3ca8dcc4527b","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":49,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"e4f65c91-79b2-4774-a595-18af03cd0ce1","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":49,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"0bba86fa-1df6-42d2-9c8d-b3cf2af46b7b","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":49,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"145247a9-2487-43ef-b0bc-0ab38c9aa62f","block_type":"box","text":"Collateralized Debt Obligations.","page_number":49,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"d1dbfbf0-77cc-434c-a361-df1417be9b9e","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":49,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"7b926851-9cf6-495f-ae11-08ebaf56db39","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":49,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"d976eac5-458f-495f-be74-d042745a4fd9","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":49,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"30c635b3-733f-45f6-8e0a-42634a7301d3","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":49,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"b5097cba-fa26-44c5-b437-928f6bdbdaaa","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":49,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"bdbbf265-f5f2-4c2d-99cf-bb24528e5607","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":49,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"18bdcd58-c00e-4ddc-8046-6769fe675c34","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":49,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"84db14a7-8732-47e5-bae0-ff5cebc81f80","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":49,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"623c01ad-32ef-4c90-b618-404e6351230f","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":49,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"de4d5c7b-0b8f-49f8-9931-31b6d63e2730","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":49,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"d3c48fa0-24fd-466b-bc53-784e2244c871","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":49,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"f9870a6f-a4b5-4675-b06e-24ed33f38b12","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":49,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"e2b8ff87-d534-4b93-a418-f7d30d866cae","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":49,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"169e2707-36db-4865-8928-5b03b4c625d5","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":49,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"ebdb14d4-7dcc-45e1-8b63-58a901d5ace8","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":49,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"4fa8c3e5-7b8c-4382-aee9-20427033a20f","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":49,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"9249db01-419f-4a32-9812-0834740ff02d","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":49,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"94a93c3f-007e-4b14-a62e-feeb46f19fcf","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":49,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"0e5d1c07-b906-4206-8bda-ada01dd8d3d0","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":49,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"94efad45-32a1-4b42-a2e3-f1985afb5ac5","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":49,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"e35c3b9d-9b80-43e6-b5e6-75cb34d5e92d","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":49,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"d6b9501e-96fb-4cad-b079-76c7574ae228","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":49,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"3f377fbc-f912-4139-b63c-ad2b59a5fba4","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":49,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"cc35220e-68e4-490c-842d-3d9d25cee722","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":49,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"ece69da3-bdb0-4eda-8625-adbd5cbb48c0","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":49,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"4ca5c9b3-3150-4ee4-bc80-a7dc47f4e046","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":49,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"8c2e785b-1ddd-49ec-bd44-fb98895f2031","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":49,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"67ff2dcd-8fba-45fe-a677-b9287f886e6d","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":49,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"b21ea1aa-5420-45f9-b5af-1fe8f23f6f5f","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":49,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"c2a0cc6b-0646-456b-9018-35fb64d92a5f","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":49,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"cf32324b-8e59-404d-b866-4d101d568fb5","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":49,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"32f44c4c-4769-4bab-8c2b-d5aded3a62f6","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":49,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"0ef09fcc-48b2-4705-9a9c-cc4af83278c8","block_type":"box","text":"II-3","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"15b77789-68ad-476c-8b5a-fa4921e99072","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1baf6ba8-6472-4225-a902-4fdf1fb1f72e","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":50,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"4433ae3e-f9da-4230-b319-1ffe939352ed","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":50,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"8be97125-54e5-4d3b-a609-0576552b46e6","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":50,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"405f6ce2-7f02-4d5a-8311-0827f88b050a","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":50,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"e80cb512-6ddf-43e8-a834-2bd121924bce","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":50,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"a750e673-9bc0-4c49-a289-baac1ad20549","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":50,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"dc2b9721-336a-4da9-ad4e-68133ae31142","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":50,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"b80b7918-3536-4788-9a00-591629e42db4","block_type":"box","text":"Commercial Paper.","page_number":50,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"594f1f03-a238-4437-9923-a781de0a0381","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":50,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"826039a2-49e8-4f17-899a-df4157c80d6f","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":50,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"d7b71b0f-88c7-49bf-9975-7b6d95415d61","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":50,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"b09937cb-02f3-4074-9a76-10c17b0481fb","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":50,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"8c36e507-3f8a-48a0-b92a-664997948028","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":50,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"997229af-8712-4db3-880e-f2bd7cd63204","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":50,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"463c9609-48e9-4b82-b7ee-503f6d508781","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":50,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"5af3ed4d-4eeb-471f-b6b6-0619247a0071","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":50,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"2978f16a-139e-4f44-9d87-904dfbdc6da0","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":50,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"838c3cff-cc13-4c8d-8208-774e641859f1","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":50,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"cfa66227-e9c0-4381-a6fc-7a559f7d2dc3","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":50,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"ae899e32-3692-474d-b2b9-a468c35ca97a","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":50,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"2b91e762-1212-4337-8698-36f23b1761b4","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":50,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"2ae2a7d2-ffd8-48af-ba63-507b8b0c4daf","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":50,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"d7da34c4-ca63-4710-a842-1abf4046a9f2","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":50,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"3c2df9f5-fd6d-45c9-81da-93c544ba46a0","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":50,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"c5c68353-27d9-4b7e-949d-2b1781eb8510","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":50,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"d215c470-db8b-4606-8775-da687c536b72","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":50,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"15995a58-b23c-4bac-98d5-52dc42260c73","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":50,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"41e62c71-a1ee-4025-8e3c-6824acec2aa9","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":50,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"5b8150a2-73b4-4ff1-b77d-7f6a8c30d2d6","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":50,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"2999f335-ba58-4d1c-b6fa-67ddec4f3aae","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":50,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"58be882c-87d5-4582-abde-5ffa77a91ad4","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":50,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"61c388ed-eb8c-4d7e-b2d1-e9733de0f567","block_type":"box","text":"variable.","page_number":50,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"2dce8a76-0969-4ebf-b275-93fce719b199","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":50,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"2311004a-e1c0-4455-9ae5-7e2ea226d8cc","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":50,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"45e56dc4-7c90-4bb6-9e25-b52bef7725ad","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":50,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"db62175c-7793-4845-b016-c6c62ddc1ef7","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":50,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"5dd238e7-406c-4234-a913-da44552dccd4","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":50,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"c2425ce6-ccee-482c-98aa-c2d9467ff2f7","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":50,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"dd56efda-f332-44d4-9609-460377a4897f","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":50,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"27202578-cae1-457b-94fe-6619fb0dede2","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":50,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"d128cbb9-a9da-422d-88c6-c1ee3f1c5c4e","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":50,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"e669d879-b33e-4bed-9daf-837da0dca4ce","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":50,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"8840c246-729a-4bba-9d2c-b0668634a204","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":50,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"afae3768-0ada-43f9-b9db-4743cc5961b4","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":50,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"7f9877cd-b9c2-4c20-8b39-17384186555a","block_type":"box","text":"correlation with stocks and bonds.","page_number":50,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"1705117b-9c0c-4081-95b7-82a3e9b3df5e","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":50,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"7851cb03-54f8-41ae-8c9f-eb0d566931ac","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":50,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"698a0fc0-7acd-49a7-aa07-d78a0bc18b5c","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":50,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"d2632558-836a-440c-afcc-6953dc600cb2","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":50,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"252f04df-7fe9-48b7-b4f1-ac705e16d631","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":50,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"9ed568a2-d941-42bc-bbd5-4ea299f1f761","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":50,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"8d14476e-a3bb-45f1-9eaf-2c81eb10a18a","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":50,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"0245059e-82cd-464d-b8cf-5ba703ba023a","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":50,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"a60857b4-97ab-494f-af3f-1c6979f7d635","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":50,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"23005a46-bb1d-4ab1-b43b-dfc56cead431","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":50,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"9315bd87-2131-474e-a843-32df5e44ef4e","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":50,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"806d1adf-fb35-42da-a711-86ea6ad91493","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":50,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"4fc05561-a52a-42fe-befb-a3eab9b46c95","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":50,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"7d931523-57d2-4b95-b7aa-dea62a12fb1f","block_type":"box","text":"II-4","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2ec6c890-3b51-42b7-9faa-727440ccbc0f","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9020265e-9545-4462-9868-ac66885d1ebc","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":51,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"74906d2c-ab08-4963-afa9-f3ca4b36d60d","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":51,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"219a6347-2eb8-4989-9a36-38896ce3282d","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":51,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"0c1a508c-e052-4fbc-8710-2e49f0b2efa4","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":51,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"f4d31d90-7d9f-42e6-bbcd-0e76f4148b5b","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":51,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"97affc06-ac35-4bea-89bf-b85afacb0135","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":51,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"237d7519-c1fc-4ac2-ba23-693365c75b1f","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":51,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"7d25a2c4-7cc4-46c5-a222-d6aa844130c8","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":51,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"9736db89-654a-4f5f-b6ab-1d2830bafaa3","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":51,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"3a430e60-b890-48c3-96a9-3e1526528c14","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":51,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"dd192060-7ab6-43fd-a401-9b08a085c5b0","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":51,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"b3681303-427b-4bbe-ab2e-9b4a00795320","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":51,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"7cc85a69-a406-48a8-b02c-b4f05ef4e8fb","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":51,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"8b8f87e2-9f02-444e-8aa1-d139b4eee991","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":51,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"abb5abeb-d1ea-431e-a85d-7f0d1e93df2c","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":51,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"cfda37da-80a4-4da7-bd3d-7d04ccce73b5","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":51,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"e36be8ea-0532-4a95-9ad3-062b595d7435","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":51,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"6135102e-e766-4787-92e4-a2de5cd2da37","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":51,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"e27d5255-fb95-406c-ad31-d75a727ec8d8","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":51,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"11ef570d-521f-468f-9181-08b7bf693977","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":51,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"7c153197-5d88-40aa-b183-1fe172a3aa53","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":51,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"0a445631-c91f-460a-8b5e-027e4e5c66fd","block_type":"box","text":"the Manager believes are relevant.","page_number":51,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"75728476-e0ed-4287-bc36-6b4042a85c6c","block_type":"box","text":"Limitations on Leverage.","page_number":51,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"e42ab10f-62c0-48c2-929a-3694d4e7e276","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":51,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"b86ce0b0-c629-478a-aa27-37fcf15f3285","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":51,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"8435488b-496e-454e-b78e-2d5e1e2601ec","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":51,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"b0af9efc-d84e-4d6b-9666-631cc3702fe8","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":51,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"85241124-bda9-4d82-9cdb-7189a0562535","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":51,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"99c9ea73-1a14-4e5c-986b-4a7f617b15ef","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":51,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"75779022-05db-4bc6-8bd7-0b61930a6f17","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":51,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"797c4441-e452-45e6-b702-ec174cfcc167","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":51,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"fb3bbfd9-e6cb-498d-bc0c-02c2a1a2dd7e","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":51,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"74f8afdb-bcfc-4e84-9d5c-39bce6a4e8f5","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":51,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"36204daa-eeb0-44f7-b528-1485a42cbc58","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":51,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"75beb4c1-f2a9-484d-9f6c-9ca04c1e0d35","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":51,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"b7d6ed52-8796-493a-97af-b2ec1989d3fd","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":51,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"225614a1-276b-4c46-8786-10eb0ee7c8b5","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":51,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"db77cb93-1d1e-463b-9f9b-eae6f299abba","block_type":"box","text":"Counterpar ty Risk.","page_number":51,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"e1232f8a-40fa-431a-b743-a6917f79cdd5","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":51,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"f060fb89-7f4d-489c-8cc4-2b6a0ac86f24","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":51,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"9d47786d-0c8d-4aca-a0e3-c87b641afc32","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":51,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"faea33c3-c87a-4660-8d02-eae88ecfa8c2","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":51,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"b4825d14-04e4-49c5-b7cb-852695713aba","block_type":"box","text":"e.g.","page_number":51,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"d22e44f8-79c8-46da-bd90-d3a1a65a7e79","block_type":"box","text":",","page_number":51,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"69150cfd-7134-40c0-9f37-56302ddb79c9","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":51,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"2ca81f38-28d2-439a-86a3-5a434c1df3d5","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":51,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"eca3ece8-5b9f-49ad-b66d-00c7c4b9ef97","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":51,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"6aa31925-264f-43bc-a067-3624ab595df2","block_type":"box","text":"obligations under the structured note.","page_number":51,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"244148cd-1384-4b8a-99d1-3b3ce90cc066","block_type":"box","text":"Convertible Securities.","page_number":51,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"79637c68-4eb2-47ad-9cc5-647ea203d45a","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":51,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"081aab5d-2a0c-4840-b558-f7a36d597e87","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":51,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"be70b400-f91d-49d9-8ffd-6e32f206ae82","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":51,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"40487230-ebf1-4d13-a37a-253d6986eaf0","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":51,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"c350ef97-30ec-431d-84fa-1c19a78ba3a5","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":51,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"31efb869-1a6e-402c-8c76-56f20a260cc1","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":51,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"601cb3d2-a66c-4a97-ae8d-695be25bc0cd","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":51,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"57cd1e87-2c16-4364-b417-5dab6b96bab8","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":51,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"da27a80f-1d97-499f-bfe4-581ddc50258b","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":51,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"ece93df2-a852-412c-886e-83c4434c1bc4","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":51,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"906b93ac-7d21-4b49-9687-08b64a5a8745","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":51,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"d439c6f5-6360-426b-9ce6-edcd69c98613","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":51,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"498fc00f-ecc6-40be-99ec-a858d007e26c","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":51,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"8200567e-bc79-44f0-bedd-9ea6eecc88b5","block_type":"box","text":"II-5","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"fd71af35-768d-4b17-b24a-162a7f333990","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cac0ab1d-897e-4305-8e57-4596d500121e","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":52,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"6bf7eb17-921d-4cd6-8bac-8a2290839637","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":52,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"4cf685c3-99eb-4551-97ca-a4ea8f157d14","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":52,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"ee87dc89-b94a-40eb-81f0-98f45292405c","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":52,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"4c0d00d9-ea40-437f-a1ec-0bb4eaa44b1e","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":52,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"19b66917-9ca7-4acc-88b7-416c6a86df8f","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":52,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"2be03a9c-dbcf-49de-8467-8068451af305","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":52,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"ca924d2e-cd0d-4b3e-be06-6f2c31114b03","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":52,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"e9a07507-f3cb-481b-8136-6a56bacc3cdf","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":52,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"83aba16f-d289-4f61-afed-bf9ec054754b","block_type":"box","text":"things.","page_number":52,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"cf553d21-094d-4b17-bc0b-830bead1b458","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":52,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"a3b62380-8766-4539-9f13-0f6b1628a8b9","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":52,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"becaa84b-c617-45de-a32e-30aad6203af6","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":52,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"f17c86bc-56df-4755-8799-8ddf2713f34f","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":52,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"f63d2838-324c-47ac-9d96-8f6d29a7a7c2","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":52,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"cbc80e68-0ec9-4115-bc0c-ad034c70283c","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":52,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"73b8f0f7-eba3-4d1f-8bd1-2f15240981e5","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":52,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"837a5801-dde2-45c2-9c3b-981ec30b10f7","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":52,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"15b451d3-6fbc-485e-a0e1-cd2974f4b06d","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":52,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"710be5f4-d62a-469d-9f3b-948f87a2fdfa","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":52,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"b10ff097-37f2-45de-a875-58f182348d76","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":52,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"63488fb9-4191-4d15-b8ad-4ea0e926e788","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":52,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"e8fd37f4-86ed-4e62-abeb-be4cfb6115fa","block_type":"box","text":"i.e.","page_number":52,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"49dda656-392e-4557-ad95-3919a17f8f26","block_type":"box","text":", strictly on the basis of its yield) is","page_number":52,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"0bdbf8e7-3919-4a8b-ad39-e9bd5074aa56","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":52,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"60dfdb5c-cb43-4579-ba0d-2efff5e6face","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":52,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"f84dbb1f-3f7c-4ea9-954a-a0b9c4c52d7f","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":52,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"ce7904a0-11d5-44f5-bf05-947bcf666796","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":52,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"c34f4de2-50a6-4b64-b8b7-37c66db59b91","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":52,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"a0144379-fe51-4679-843a-7c071130e275","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":52,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"d79689e3-a526-4348-92ab-3816f39a5060","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":52,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"a35a5c73-dcbc-4784-8aae-d83ac10c2371","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":52,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"145650e5-dc4a-440c-a7c4-0a8212a7717e","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":52,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"12657ed2-e776-4dca-8c1c-0e3c9c4f83dd","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":52,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"0c544cb5-44c8-4535-811c-0b23e2d20204","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":52,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"316d3a00-8acb-4f44-9509-2f0350377310","block_type":"box","text":"than the securities’ investment value.","page_number":52,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"866ce9e9-1e05-4591-8cee-2237a17c6b55","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":52,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"b2d4bada-63f2-4f88-ac57-06eab91dbcf1","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":52,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"85336e2f-2aaa-4c2f-a756-6c8ace1f696f","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":52,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"219dfa68-94a2-4987-b8ba-c8ad15b2b776","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":52,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"7b349bc1-50a4-40f8-973c-d39ea75edba5","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":52,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"925fba07-801d-44bf-9588-dd07ec60d3be","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":52,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"385fd595-971f-4654-b6cd-23ada4a4b181","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":52,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"290911e5-44ee-436f-bd0b-877ee8a7aabc","block_type":"box","text":"security under cer tain circumstances.","page_number":52,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"2f460330-4ca2-4725-8eaa-0913b6bcb738","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":52,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"5725f343-1d1c-40b7-949a-e6cfa969f051","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":52,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"11da7021-97bc-44f0-845b-61ae093813c0","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":52,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"8b84c087-5a5e-479c-be13-f700c9cb2dbd","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":52,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"06d77060-a2ff-4a72-9c46-7c89d38accae","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":52,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"1a19282a-5cf1-4e83-8553-af1428d40e87","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":52,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"3800eaff-3191-41cb-b87f-18edebd731b8","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":52,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"596f2af3-dbcb-40b6-82fa-9e5f207079b2","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":52,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"f2364649-8996-4b57-8eca-1b3d94b279fd","block_type":"box","text":"i.e.","page_number":52,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"8bc68eb7-6da0-4961-8493-5de35be46695","block_type":"box","text":", fixed-income (“fixed","page_number":52,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"5f3b2a30-0f9c-4878-8b8b-5ffe9d10a176","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":52,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"b65f30ec-2afc-4bfa-9c23-89efb62ade86","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":52,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"1c41f6b6-b48c-4e8d-89b2-a3509d699d91","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":52,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"b84bd82b-c344-4a02-8b06-236e1a39c2c3","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":52,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"1813ea3e-b86e-40a5-bb61-3f8a61616c54","block_type":"box","text":"II-6","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3fc152ac-e0c4-45c4-82cb-e8760845a5e2","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"338a76be-7ab4-4edc-84cd-0bfd2cd8a973","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":53,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"071842d7-c7a9-439c-abb4-22bee674a295","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":53,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"af7cf243-2cc1-4f94-a144-c437fea110d4","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":53,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"c4f23bbb-32e8-4b5f-8bcf-153de9579f0d","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":53,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"448f49f7-4fc0-4e1f-a827-da9e7306131c","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":53,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"77950724-73ed-47de-95cd-13721176e942","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":53,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"a757616c-60ce-4bd2-9020-4357059e2808","block_type":"box","text":"component.","page_number":53,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"3d50e7d7-202f-4d2a-abd0-34f698bf8c79","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":53,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"8e60730e-0d4c-4806-b2fb-52308d148477","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":53,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"ee452a84-32f4-44ac-9d4d-9884877c4702","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":53,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"f97d3b9b-890c-487b-99b0-3869080ed0b3","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":53,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"a8123b31-a0bc-497b-b622-aaa1c160ef9b","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":53,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"f19f003b-3953-49ea-b652-1cc6ec835199","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":53,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"1b4ce33b-b171-4c7a-8a8a-798c581433db","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":53,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"b29d8b15-aa31-45d7-acdf-134bc712db95","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":53,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"3d12b425-7ade-4f05-8cbc-29d2cd67517e","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":53,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"548b531e-1839-4fdb-89ab-4beea3f8561d","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":53,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"5932d81a-6f7c-455f-9104-3524c5afafb0","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":53,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"68bc07fb-9c9f-48a4-9637-e9be572b8103","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":53,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"e92c70a8-cf49-4e87-b843-3b35be3cb035","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":53,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"df526ab6-94df-4c4b-b4f9-7ff1209f5d4e","block_type":"box","text":"favorable market conditions.","page_number":53,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"a7e82429-4865-4692-ab55-d6d093c48d52","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":53,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"805e51c0-9b11-4318-a167-1a4e2446d9f6","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":53,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"06459354-bddc-4705-a8f4-67d81ab3f2d0","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":53,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"5a26e7d5-82a9-4b8a-baee-8ac5928d88b6","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":53,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"5c905edb-ec49-40df-836d-4f72115fb39a","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":53,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"56b625b7-c230-4622-b4e8-179ba4deed90","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":53,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"855094a4-853b-4b42-89d8-590c37a1d303","block_type":"box","text":"Corporate Loans.","page_number":53,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"9435a0ef-72cb-4af1-a348-997e6924639d","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":53,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"651d4f44-e947-4cb6-b10b-cdfbe8b78299","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":53,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"e72ccea3-d1aa-451a-a51b-a5f5170dc27b","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":53,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"2898d22d-54cb-4cee-a1f5-2360091f98a7","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":53,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"7fb80d63-5ca3-4b9d-b294-6968c54836b0","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":53,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"a48dd83d-69d5-48a0-bcd3-ccf49100d044","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":53,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"b41b16e5-730a-47f2-9259-ea6791177d6c","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":53,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"1a0a9360-0036-4ae1-a638-65ca570ed32b","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":53,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"e968c26f-b873-4efb-b778-85a82c5f8532","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":53,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"848d2ded-e869-4e09-9880-2a6b41503bc8","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":53,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"3db16916-6704-4eb3-8310-048cae917f15","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":53,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"c72637ff-32a8-4d61-a985-6e7cf77d5906","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":53,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"d80f954f-7f3d-4996-be0c-ab6431928522","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":53,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"45146ade-c1ca-4197-8e64-20496956581f","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":53,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"b933918b-cc7d-4bc3-89a0-9ea1103a02e9","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":53,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"86636a83-7f48-4f29-85a3-32ac636e54b3","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":53,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"4cf15621-6319-4622-b7c0-092f75d5f67e","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":53,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"89c1d886-1a1a-42f0-9f3d-2c41a8059e8d","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":53,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"6dfe88d8-8837-485a-80c1-52eba0c7bfd9","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":53,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"ff4d216b-046d-4af8-88f7-faa3c8bafcfe","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":53,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"97ecd60d-6f47-410e-888b-824e0ddc2dfd","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":53,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"c6475f6f-30d8-41cc-bca9-e3fa45081b55","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":53,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"ff5ab872-5e95-41f7-8834-66d3c009a7c1","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":53,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"8d3b1cad-9b30-4770-9bfc-608bf37106a7","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":53,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"5bda9a42-3a6e-466e-bdae-a03094d94cbc","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":53,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"c838db42-f263-4535-9a25-87350baf9f37","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":53,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"144eaa28-48bc-4163-acfa-f1ac1ffe5c72","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":53,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"050227eb-7d94-401a-8a79-797c7c6a1344","block_type":"box","text":"of the borrower.","page_number":53,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"6d2bdd5b-75af-4bfc-98e6-a051498273f6","block_type":"box","text":"II-7","page_number":53,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"54e522a5-43b0-46a5-86d1-a76dea5d7fe7","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f896401b-aaf3-40a4-b232-a59035f13826","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":54,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"10d37a1e-36e1-4341-a87a-fd1ef6ba957f","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":54,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"49ed48c1-be58-4fec-94f5-c635cef707eb","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":54,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"145b815f-09a0-4a15-8cb8-e240d1e600a0","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":54,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"c8561575-a8bf-4646-8056-3be3bf7c08c8","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":54,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"c0fa7e94-a7bd-4b45-a67f-ec5e3b75ad7f","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":54,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"81722d13-22ba-4407-9daa-d383ba9d1c7e","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":54,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"5511cb1b-285f-4f50-b23a-8f82e96f718d","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":54,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"9dd832f3-c134-4844-9a68-d7f068e82d7c","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":54,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"ebefe9c2-c26c-4fda-ac0a-157cda984136","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":54,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"6c3a74d3-cb5f-42fb-bcc8-61ab6a4082aa","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":54,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"457625e3-7e47-4f09-a909-912df921bf1b","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":54,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"862d3f19-3401-4c89-8729-fb298438e083","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":54,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"0a75c2b7-e9bb-4ef0-9e13-6653595eeca2","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":54,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"cc6ab2b7-43b6-47ff-ae5b-8be76d9a2e67","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":54,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"220e0ce7-c818-4ec2-8203-d38a80c9936a","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":54,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"a1e12a09-495a-4a5b-b4ce-3d91ecf204a1","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":54,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"fdde2173-6b54-4ddc-8cc7-1cf9ba10d36d","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":54,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"db235d4f-1ff5-4a07-8d2b-da50e5748b76","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":54,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"fe48fe6e-8d2a-494e-81e1-a66a97c8cc4e","block_type":"box","text":"state law.","page_number":54,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"8f6bda2c-8775-4b50-869f-c3f9e7aae81d","block_type":"box","text":"Direct Lending.","page_number":54,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"fcf69308-6672-4702-a690-38e2e3abde29","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":54,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"4978f5b4-6d4d-4ce4-8da9-6dbff78a86ef","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":54,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"75ef3a80-19a7-4d63-9579-a84aba68036e","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":54,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"a8e8c167-8896-4990-b6a0-ed136227133c","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":54,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"d4fbf0a6-6e46-484c-a30d-512e71dc371a","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":54,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"76333b95-ce9a-4b87-bc1e-7d6537004c60","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":54,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"7bb87b6a-0355-4981-a0c1-0b4368943090","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":54,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"1f9d14bd-6c92-4340-8cf9-04b989b5c64c","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":54,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"799c654b-0e87-4c23-9d71-e65070ad7d14","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":54,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"36bae681-8967-4dfd-b118-d35846473bea","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":54,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"db31c012-dae6-4825-8aba-a88c6764b983","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":54,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"147936f4-971b-4f62-8df3-bcd7b0b4dab2","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":54,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"17137063-848f-46c5-98d6-22997dadd43a","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":54,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"d4b4d0cc-ab79-4350-a987-d7099966a1f6","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":54,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"a511e425-4f14-4c48-b95c-6fc2d90efe82","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":54,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"47ad620d-2f6f-411c-b761-3ec164e44e8e","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":54,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"b41b076c-d5a6-4f73-81cd-4c19050a268b","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":54,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"ee12866e-3ee7-4779-bf9e-3f04ed0a3ca8","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":54,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"2b031642-f3e2-483d-a80a-359bba9e6579","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":54,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"f2ef5950-768e-4b0f-97be-99692d57f7c4","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":54,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"ef1b7d94-bffa-4167-885b-3b52d6872566","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":54,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"6fa2fed2-d0f1-465c-8046-dea0e4c1e891","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":54,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"a67047d0-f780-4eff-9990-4cff7ee030c8","block_type":"box","text":"Credit Linked Securities.","page_number":54,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"eba63dff-70a7-4d75-a883-6cb2aa3759e4","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":54,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"4aa91b66-1fab-4ed6-957c-0246c1199f64","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":54,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"c4677520-c5ac-4fa7-808b-77b4e0ed3825","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":54,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"f1c4248c-2dee-4f6a-9aaa-d54735d07d17","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":54,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"9bd0b641-aa34-4330-9698-0d5136049211","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":54,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"28a8d0a9-4cb5-4a91-af38-197396b28a38","block_type":"box","text":"traditional income producing securities are not available.","page_number":54,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"4d6915ba-4504-4382-b016-800725a139e6","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":54,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"0be81656-ddd1-4c25-9d75-010068c0e8ea","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":54,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"4bf8b7ec-4d66-455c-9afb-c70783d04c0a","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":54,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"f3a219ae-ad26-4778-9955-0d4cf7c05d87","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":54,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"e33a7d70-999c-4e52-904b-9bfd5da69882","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":54,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"1e1e29dd-a498-4f36-91db-602a6914c682","block_type":"box","text":"II-8","page_number":54,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1066c91a-be01-4717-9c8f-bef86d9c4018","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a851bacf-2d40-440e-88f0-32af0ceca516","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":55,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"786cfe7e-7764-41a9-95ad-919744a24b14","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":55,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"ad7240d0-3ac7-48cd-b7ff-0600eb06738d","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":55,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"c4a4054b-df7e-4d7b-b8db-772d6222e38e","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":55,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"37f86450-74ef-455a-852e-cf2477d1454a","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":55,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"a3ff1de3-06fa-4fad-81f9-4a4884c26a06","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":55,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"b4326172-ad09-44df-a072-57d4b75c62c9","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":55,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"a1b4ff5f-4fd8-491e-b251-6d4b91d098ba","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":55,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"78b1fd38-c160-40cd-8abb-06e5f40f76f5","block_type":"box","text":"investments.","page_number":55,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"38e80633-75ae-4906-8dfe-3382ea94a2bd","block_type":"box","text":"Debt Securities.","page_number":55,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"70c50f0c-e98c-4a71-a0ff-b478aec303b8","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":55,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"9b7a9bbf-d73c-4ac7-8bc5-b1d8bebbd57a","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":55,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"f27aed3e-27f1-4b55-8111-4b2d90bea848","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":55,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"90f3f020-8526-4a40-930d-4f25065cd840","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":55,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"5676c4f1-9751-4ae8-a9e2-5f9753041750","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":55,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"d5305127-827f-4cc5-a6c8-497bba14e396","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":55,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"6f8d48dd-cb79-47a6-a880-da9999eea170","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":55,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"2b781797-2c3a-4c8d-89d0-12634af3c701","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":55,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"63bdc067-ccd1-4465-9c21-3dc2d8f9f0ac","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":55,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"0ae4583c-514c-470a-95b2-170c17fc1dbd","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":55,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"6e9ea73f-b714-4303-bbc3-c1018e3c3777","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":55,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"16edca30-da79-4f42-8966-3a89312f5032","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":55,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"3379f5d5-4bfd-49cf-ab33-7a61aae3efa9","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":55,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"07c9a349-ea50-4791-b2d4-2c248bd380fe","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":55,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"17a64280-b59a-46d3-908f-35ec478a24d2","block_type":"box","text":"lose value. This is known as extension risk.","page_number":55,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"c9cc36a4-bdcc-4b84-94ea-09f439f7e223","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":55,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"294f0703-6c01-415c-9174-8dd034111e08","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":55,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"275b4385-e7ce-4dcb-856f-c59807a40cb7","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":55,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"6fa4d945-3bf1-40a5-8324-678f3fce4611","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":55,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"12ed0db2-d053-49bf-b43c-b5423ebb8688","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":55,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"2c91be99-8e02-4c33-832c-337fbef3191d","block_type":"box","text":"Floating and Variable Rate Securities","page_number":55,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"bd6737a2-1fc4-46d7-a2ad-67f44b7d79ef","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":55,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"8283953c-c0bd-4a25-a0a5-13324bc66c53","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":55,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"2536833c-4696-47d4-9ab0-14302e91a071","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":55,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"be14071f-e922-4682-8a8e-5ddb2c5cc69f","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":55,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"55085eaa-2a10-4288-b9ab-e4af1c19ed64","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":55,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"5ce2cf02-6541-48dc-abcf-d7e7d46ae96f","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":55,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"ad76b20b-a4d5-47d8-8cd4-8e1882378dce","block_type":"box","text":"market interest rates.","page_number":55,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"22448765-03e6-4b06-992a-a06a6bbbec8d","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":55,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"5deb6083-3ee4-4f8a-b159-b527ddcdf101","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":55,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"35ca0af0-65f8-49bc-a574-5752422c2954","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":55,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"265646cc-e7fa-40e6-85b4-590a926bd37a","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":55,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"192ee3b6-d5ca-4d3d-a29e-e78b3b4644bd","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":55,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"45251b04-6501-4812-9aca-80066df28591","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":55,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"5ced97d5-d2f2-4b2e-98ec-ca021a0abc93","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":55,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"fb383fc0-dc16-409f-a326-90e156f2ac3e","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":55,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"c93b6d66-4d15-4b4c-849a-2f199d6b6440","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":55,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"8ed95c52-9c76-4af8-8caf-08bd323341dc","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":55,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"df4ad9d1-691f-4429-b38c-403a5fef3a30","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":55,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"357724cf-56f3-455c-bed6-b5127ec20036","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":55,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"7f0e45b4-a227-47a2-afb1-60cbbf782279","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":55,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"af298f30-66e9-4aa1-84bf-3f7d16e8bc5a","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":55,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"8115d04c-097e-4d54-b595-795bcf2ccf22","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":55,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"f592828a-302a-4e86-91cb-8f8db0d872cd","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":55,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"f83bd14b-abe9-442e-973e-8ccd5726f906","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":55,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"0cbe44ea-b144-4f61-87a6-2e93ae20b13e","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":55,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"b86d916b-b02a-41d7-9233-4a42ee567a8e","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":55,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"9d802387-73c1-449e-9afe-4cbc02410821","block_type":"box","text":"II-9","page_number":55,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b0a47af5-6d93-43e5-84c0-de3a5e5b2ad1","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f5c8ea7-ce96-4352-9b65-eb4b3acc3226","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":56,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"bfadbd7d-0f7b-444f-9c4a-fdcf16a26ff8","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":56,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"6acf4f0b-6785-4645-914f-75aeeeafea51","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":56,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"5dd74d41-a99c-40da-9df1-859e05f9eb2b","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":56,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"ab6b173c-c612-489b-97fd-8940fc6a5cd0","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":56,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"727ff181-e28d-4a17-8dde-c1b0233bf4eb","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":56,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"2266b9e7-4589-4543-9ef5-697cf1135909","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":56,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"d54c144f-87f3-4745-9ec4-c7a9c94f584a","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":56,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"6216939a-a2a0-498a-98f6-4804faaed6a1","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":56,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"4bfdf13d-6eda-415c-924d-e9023e2be195","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":56,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"debaf266-6e40-41e1-913c-729c7f48ebca","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":56,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"c04a6655-088a-42f8-98f1-a3b1b342f030","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":56,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"6d4cbc08-4062-4f8b-950b-0c72fda0ee0a","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":56,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"7b1b4770-27b8-48f6-acdf-ec6e08f4630f","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":56,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"e376fd5c-d4f2-42cb-87d8-b34830fe4987","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":56,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"aee4ca26-1dbf-4287-82a9-82bcb57e5061","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":56,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"70b3fe4e-2c45-4548-8c79-08dc5c5799e4","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":56,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"0f398ca7-42bb-48ec-8662-00a2bc4431ba","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":56,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"9375e7dc-e588-4131-b57b-93818e5e2221","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":56,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"f9dd27d6-e449-4068-a8b0-3f44d9e89dcf","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":56,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"da823b5a-9ed3-40f3-a08c-d6bc2e2ea744","block_type":"box","text":"United States.","page_number":56,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"3cf44699-e079-4384-8a12-77c147133e62","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":56,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"5dd4cf3e-a6a6-4c04-a955-8888a8ca2b93","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":56,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"568f54ce-0a5f-499b-af65-54b3e4f04b51","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":56,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"85230c6e-aab1-4eca-9647-6d4d6e468981","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":56,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"e9cb252e-fd5d-49ed-8895-83800504d55c","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":56,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"5e08b839-a366-47ab-bd06-6d51e23bb49b","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":56,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"e14dceb2-2df7-4f64-93c4-2dad7b791e77","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":56,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"f8820cc2-22bb-485d-b2f9-86c5c6aa7e67","block_type":"box","text":"i.e.","page_number":56,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"3b4d95c2-a662-4368-9e50-99025f233b7d","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":56,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"a60bd841-08eb-485b-bb98-fb16b64e4dc8","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":56,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"fa90d589-1c26-4d64-8b7a-ad7455dd2699","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":56,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"27607b18-ae23-4d24-85f6-95e772853838","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":56,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"dfc44988-2cbe-4ecb-9589-9bdf954b0801","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":56,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"fc0fd513-bf74-4c88-80f5-706ca8430f8a","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":56,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"1ceff238-a7fc-4d88-bda8-34b192060be8","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":56,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"fa6d4881-db00-4e89-9c35-0a7d7fb9d295","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":56,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"93f58d16-f67a-48c3-93fb-18fc580e7296","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":56,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"f808bfac-2095-4be5-b2aa-90a78c157240","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":56,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"f5f0f117-a65b-42e4-8496-2e8d55c5c3d1","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":56,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"c754b88f-8089-400a-8bf5-314c36019307","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":56,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"5da6c83c-e62a-49c5-851d-b647a8c1ec64","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":56,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"d93d8e10-1040-477e-82a0-8213f1236e31","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":56,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"411d0208-180e-4925-9ecc-9f588dfe3f6a","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":56,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"39ad4154-8f57-4403-922d-907c90ab57f3","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":56,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"aa81efb4-568d-4dd0-b362-2298804ec3e6","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":56,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"dae38dc7-a14f-4890-b125-f249e45b355e","block_type":"box","text":"risk than higher rated securities.","page_number":56,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"eb903b88-6e54-4543-9378-e7f34d534f05","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":56,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"4fca11fe-d0a8-4f1f-9b54-073cba18e07c","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"8e550c35-abe2-4d8e-b961-48a8e2a035fc","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":56,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"6b14839a-7308-42b9-85b1-4a0406aab4bf","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":56,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"361bae3b-3131-4398-a527-9bdc2c60f96b","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":56,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"03e1dc9c-ab11-4812-a1c0-417132d0fe0e","block_type":"box","text":"unavailability of additional financing.","page_number":56,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"18048c97-d727-48cb-b329-d7d4202a9393","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"ad2faec6-ec4a-4014-8824-4824113c2ccd","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":56,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"ab48ac4b-c878-497b-8536-668b2e2521e9","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":56,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"514e564d-c9b5-4a0f-b907-af6bd40b2da4","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":56,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"12dfa57d-66b6-48a2-addf-8b518590ea4a","block_type":"box","text":"II-10","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"489ae257-e182-4446-9a03-909c6bc5ca53","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"426d1e03-5883-4bbd-9fc2-68cb1fde4c29","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":57,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"5a4eb4dd-5eea-44d2-ae55-ab0e6b0fdadd","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":57,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"1709c13e-18e5-452e-8a3e-a663b0452ce9","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"32bbe2cc-3848-4102-a5ec-68cf5ed449a7","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":57,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"44cf900a-7e3c-4604-a5de-5118d08dfe9a","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":57,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"c1012fee-cf36-4b77-a314-cb5a92b1eebf","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":57,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"01f53eec-7c7a-441f-bb5d-a4b3c7673578","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":57,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"1415598e-c06c-4607-9b6a-c0823984f995","block_type":"box","text":"investors in higher rated securities.","page_number":57,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"f58ccf8d-e4bd-4ba3-a284-c01c57cfa26a","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"943692df-0bae-404d-97af-3b7dee792d63","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":57,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"99cd952e-4c5a-4039-accc-34850d162b99","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":57,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"21e2b429-695a-4f7a-83d7-84674688a0f8","block_type":"box","text":"lower yields and may lose income.","page_number":57,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"c3533623-b587-4b7f-afe8-b8468fa83dbc","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"bd1fdb69-f046-4c03-acd5-39835c0138b4","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":57,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"ec74df52-2572-4604-b66a-6b8f5465c6a0","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":57,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"cc63c046-81e8-4454-a231-11a7653db8a8","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"31517e13-9a69-46d1-b09b-f5fb18a8563e","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":57,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"f3b88d33-97a1-446c-a3a4-a0e5d9169c9b","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":57,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"87de5cfc-f3de-4829-83bc-8269d177a959","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":57,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"c4792c8c-941f-46a9-b0d8-d4851f34e49a","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":57,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"d414f708-5886-4e1d-ab55-9b5c9e86be3e","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":57,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"6e7ee6bf-f965-4783-9126-d4bd9d741f4b","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":57,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"20b58c57-3e39-4fe7-ad33-93ccc36c3c09","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":57,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"6d86a37e-98c7-4e51-989a-90ee7986de3d","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"c84420db-41bc-4986-8f28-714354d9dbab","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":57,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"9a0bb5c2-7c6a-43e5-b182-dcd3ed693da2","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":57,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"6d530dd4-2841-486e-9340-4c9b41f56721","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":57,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"9eb7dffc-a165-4085-90df-bb43a24fd209","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":57,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"e046d094-fd12-4bcd-a94a-b60986232bff","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":57,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"ae3d7297-98f4-4eac-b171-8be893a3560c","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":57,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"2a85780a-7208-4f43-825b-a9f98ad3e4ce","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":57,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"d20335c4-8927-427a-a3b2-ae9a4e33c2aa","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":57,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"8a3d918c-580b-4a2a-8485-02ec13eec7a6","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":57,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"a7536c61-acb0-4937-9f71-3e568615979d","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":57,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"a0c50546-50e1-456d-9ab0-d309929b3065","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":57,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"409991ab-6697-49f2-b064-1cf316fd5217","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":57,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"b5017df1-dfa5-416c-b578-9fa1d5464712","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":57,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"dbeaa546-58a2-4236-81b8-211750e363fc","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":57,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"312d66db-6fb2-43d4-a824-f8f3c845e6aa","block_type":"box","text":"role in determining such valuations.","page_number":57,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"c7c13a37-013b-459d-8020-344687345bfe","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"dd056c83-193d-495f-b9cc-5fb0909cf2c8","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":57,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"4bde5491-99c8-4d4f-84d1-e112ccff4e9a","block_type":"box","text":"a defaulting issuer.","page_number":57,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"ba3264ed-e46c-439c-9803-43a4b362c87d","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"da950ec2-0bc3-4d45-9fa4-9a743baa5405","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":57,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"3f961d4f-c043-4514-be07-c38b575331b2","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":57,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"7762ae81-64a4-45cd-8b65-a77fb0bc643b","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":57,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"b5e6f9e5-658e-42ff-9017-591f7d9b6075","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":57,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"1ffa5596-1aa9-4513-a35e-39b805062896","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":57,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"c7450fc2-9905-49e7-9b33-c68b4e66a2b8","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":57,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"0b6d8194-cce2-47b6-a9c9-55819bd04ff4","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":57,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"b71abb1c-59c5-40e8-a173-fcdc8c940fdc","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":57,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"5a01452a-eb8e-4e11-ad21-9b1e68b36fb6","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"f9e05e34-3cd2-45b8-bde0-04be2a23f2a8","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":57,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"d0efd9bc-bcbf-415e-9fe4-8aa2671bfef0","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":57,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"22418f43-1e9e-4ebc-9e3e-85a6718d6074","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":57,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"40b328fa-45bd-4e6e-b32e-9d35bf83977f","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":57,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"6fb1ecd5-ec6c-4254-a2cb-4e6ebcc57ada","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":57,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"8dc86477-07ae-4851-82c9-cdd1d83a9b5a","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":57,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"cb1c78c3-99ce-4a67-9a00-4646ea6cbdb2","block_type":"box","text":"higher-rated securities.","page_number":57,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"ff3ae87a-d869-4cb1-b6f5-95908e10d4a7","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":57,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"02434fa7-cd8a-4152-bac2-411dc55ffcc7","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":57,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"a95a2143-d2d5-4c46-9d6b-964b21d6e24f","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":57,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"deeabcfa-731a-4978-9edb-1e4d42fb5b5b","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":57,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"1f4f2c15-b37f-42e2-9f1f-3365a3765766","block_type":"box","text":"II-11","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b3c79b4-25aa-4ab3-a4b6-7477490254a2","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"046919b3-4feb-40c8-b583-78c6b12e465b","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":58,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"0db08f0c-eadc-4ca9-8ca8-5e08055fd248","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":58,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"80a5a75a-3353-4e37-98b4-b7b43130a98d","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":58,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"cfd7a120-b28e-4ba5-8424-10b1569df33d","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":58,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"a3f3b23a-dd7d-4764-9d65-940c1a1f8fe4","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":58,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"5f0a5958-9e75-4649-9823-3b99972c2f69","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":58,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"9b475cb2-6aa3-452f-a35c-b914ee17bf9a","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":58,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"e1145392-c494-484d-89f5-a9f8ee71c4d7","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":58,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"1d634685-9a92-42c5-a5ea-57f269a50a28","block_type":"box","text":"Mezzanine Investments.","page_number":58,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"121b3e75-c77a-47e8-b744-2c8722b4f90c","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":58,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"a7db23c1-5d76-453c-9581-081374f99e69","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":58,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"6693ef12-4247-4597-bcaa-510a45cc4cc7","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":58,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"42a65953-0310-47a1-a3ab-290e208356e4","block_type":"box","text":"e.g.","page_number":58,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"602a49a8-9af8-498e-b15b-749cbf8196ae","block_type":"box","text":", with","page_number":58,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"4026193b-4d2b-4ea4-b917-475b71a4c8a4","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":58,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"e26c4ee9-2614-4417-b383-31cba024a325","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":58,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"d84abded-c52b-4bd1-8ef5-5c2091b9a667","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":58,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"690c26a6-0293-4bb6-b75d-b6a7e6ebc70f","block_type":"box","text":"other obligations of the issuer.","page_number":58,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"0184bbe5-6051-4a4d-ae01-27209262e417","block_type":"box","text":"Pay-in-kind Bonds.","page_number":58,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"1c503487-8041-4208-b4ba-d3447bd399fc","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":58,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"6a8c0720-229a-4ca6-8afb-908761f7e59c","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":58,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"d9123aa5-dd28-4f60-93a9-53ad7945e504","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":58,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"4deb83ee-dd22-44fb-87d1-79f6e397d71c","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":58,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"6880575a-a9fe-4851-9a54-2c9a1bdd9f86","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":58,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"9ad4ec91-06c1-497e-947f-f5e353df39c0","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":58,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"3dbb2829-c3c9-4619-9819-d418921d7077","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":58,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"96647219-6c78-46ef-9bae-da8518980f28","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":58,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"f1007f97-c531-432d-901d-876c3a05cd43","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":58,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"ebd601d2-5379-4c6c-b4ee-fbe51de66664","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":58,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"9f8ff65c-bfa0-4afb-b809-69581a3f2005","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":58,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"36675b72-1b1e-46f4-8098-f85800103ed6","block_type":"box","text":"Supranational Entities.","page_number":58,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"eaeb80cd-5668-496d-8b6c-6903bcfd089f","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":58,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"ab1890f3-6bc4-425e-92f4-10a7f230f593","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":58,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"d3b0109a-6b91-461b-9ab2-be22395a2eb9","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":58,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"06529d6b-49d8-44c6-adce-0a523272b33a","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":58,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"52e01e25-f6f2-448a-9a07-b41006eae752","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":58,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"73641dc3-7a8a-46ef-81ef-69a5dec1b575","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":58,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"a26c81f9-339c-4236-88d1-c797ef751461","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":58,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"44f663f0-87b2-481a-b4ad-de11700934de","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":58,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"0d0da6a5-4d9c-4802-91e6-4928f056d304","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":58,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"33df8858-4175-471c-bbe7-a94b43abeb2c","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":58,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"17addf8c-3df5-4eaf-9d0b-0e790942f053","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":58,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"4cde2f7b-54d6-46ac-ac71-133c00c061e3","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":58,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"72244c22-da10-4319-8403-138df0fe678f","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":58,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"387d2114-fd37-4a26-b4dc-723d338e8609","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":58,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"e04b3822-b7aa-4bd9-92d0-ae0342c8aeaa","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":58,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"74f4c2c7-3123-4910-b313-101e29e4e714","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":58,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"f4ab450b-0045-4de3-a063-4b05c4e07131","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":58,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"edada6a5-edda-4963-bb0c-1522d9feddd9","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":58,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"fef69845-11aa-4e0f-97f5-24645b2de663","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":58,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"564b3f1b-4a81-40df-a4ef-a0c14bacc02b","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":58,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"175cacdd-78e6-4473-b3f1-373222983196","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":58,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"dd0ea617-123b-4979-9659-7ee97ef3e61c","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":58,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"ad697a29-fb78-497b-9d2f-2366ea9fcd3a","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":58,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"ae5f55eb-a43c-4200-83db-02b522615870","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":58,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"0be6b046-30e0-4bdf-af15-477e214710de","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":58,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"801733e6-71d4-4430-aaf0-be866b63f9a8","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":58,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"9bb3569b-de8e-47e7-8e79-faae799bf1e9","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":58,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"3e7a5327-bb2d-4039-88ae-3c7330ae040d","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":58,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"572e7dbf-3bab-4aa1-ac6f-3364a9d5b9a4","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":58,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"e1182da5-f3c3-4e48-a90f-2ec4954f2fc3","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":58,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"be5315c4-53ef-458f-90d0-a3ac35c30fe1","block_type":"box","text":"II-12","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c37bb463-1b41-4cc5-93ef-4424dab5030e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbb98572-b663-4a2b-ab6f-f6fe23784108","block_type":"box","text":"Derivatives.","page_number":59,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"db61728f-4801-4aa1-a6ee-6a6dbd2ac02f","block_type":"box","text":"General.","page_number":59,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"d5456846-8f4e-43d4-acaf-652bbc862397","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":59,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"81e83709-1c5d-43b6-a039-dccba84d2f0f","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":59,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"9cd4cde6-f4c7-4429-9b67-349d17f7bf23","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":59,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"e6c7e69c-6697-4ad0-b8fa-3648ca90ec1d","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":59,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"9e6f03a1-023a-41d7-ab95-6d96b36bbc96","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":59,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"54c7394c-6b62-475d-9b4b-3e602d56415a","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":59,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"89cf696a-ef56-4142-addb-ba4cda600ec7","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":59,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"b79f6dbd-e7e2-4b5b-b41b-ba4f71d4fd92","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":59,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"b1aa070f-3faa-43d3-be98-df03bd8acdfc","block_type":"box","text":"i.e.","page_number":59,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"532bdaa0-f816-475b-9f36-778081caf5c1","block_type":"box","text":", the payment","page_number":59,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"f8161d5f-5dfb-45c2-aac5-b7de7648ace5","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":59,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"ea30f2e9-fe2b-410e-b420-80899d6644ae","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":59,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"ce64cb25-293f-4bb9-9544-2a8dddf035d5","block_type":"box","text":"Hedging.","page_number":59,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"0e751bf6-44e7-441e-8cee-abf92b0bfcd6","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":59,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"ce80b972-174c-436f-98e3-3f9bf8c3abad","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":59,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"9bb93618-b54c-40b8-b52c-7a3629b20c95","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":59,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"d9bf81bb-70b5-48a3-ab51-3e4a57fc3e0a","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":59,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"2326addd-cfb9-4896-b732-c73233620a56","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":59,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"a975ab62-5819-4889-9ea0-27a9b9381304","block_type":"box","text":"correlation risk,","page_number":59,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"d4482e95-e243-4362-87b9-83806447ff38","block_type":"box","text":"i.e.","page_number":59,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"12057155-8a20-4adb-92ff-2faf8ebdf07c","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":59,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"b23f39f8-c72e-497e-8a08-2e28dcf55392","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":59,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"e89106ee-104c-44a6-a79c-8dc4c0a92246","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":59,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"38583cbf-fc0c-4fe3-932d-3a4496591ce2","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":59,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"94457ec9-a372-41b5-bdf6-76998158be54","block_type":"box","text":"Speculation.","page_number":59,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"cb344aa6-eedc-4a6c-9580-f335d5e1e3eb","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":59,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"6a66d6dd-27db-4269-8684-c7cadaad9529","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":59,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"b1361f43-0473-42f1-8c6d-8e2bbf007143","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":59,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"b9cbdc31-ee06-45b7-a7f9-5d25a700f4ee","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":59,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"ecf3fde4-29cd-4335-ad65-0d0c4b07515b","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":59,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"80f00d52-dcaa-40ff-97d0-8500d80de128","block_type":"box","text":"Regulation of Derivatives.","page_number":59,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"6f5cd15c-fae7-4a30-b34f-e925361515d9","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":59,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"7256bde0-b276-4376-8b2c-1365ee1dbf1a","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":59,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"8bedfae0-3405-49db-9969-c22045230d1a","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":59,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"b1f0a938-3b8d-452c-9c88-0213cf4954c2","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":59,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"5c8ead30-036f-47fb-bffd-1c2ba4f27941","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":59,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"d047a52f-bb6b-4a16-a677-5e343cfe6418","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":59,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"7174abea-d31e-4bee-b25d-78e5d562d5a2","block_type":"box","text":"coverage”).","page_number":59,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"e501316c-fd5d-4143-840a-ea207e7d890a","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":59,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"2257a8a9-05cd-45fb-8074-eb18e1cd98cd","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":59,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"9cc43dcd-92ea-4d1f-9234-8382837e574e","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":59,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"a1c353d2-6849-4477-8999-2a5c8102b057","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":59,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"518ca376-e7c2-41aa-9f1b-cdd1d969205b","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":59,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"b6157eb8-5eab-42b1-8f70-2f5fe750c310","block_type":"box","text":"financing transactions (","page_number":59,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"9a47e007-f9c8-4287-b0c9-8e9deac43110","block_type":"box","text":"e.g.","page_number":59,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"b2cb8ed4-fc13-4178-89ba-3bab8ac10c6b","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":59,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"de0e304f-c2f4-498f-b303-8550bf629c23","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":59,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"155fde1e-24b6-43f0-b29e-6516ecbbfc90","block_type":"box","text":"securities (","page_number":59,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"0e616fe1-9a4f-4e34-b850-2daece0d9969","block_type":"box","text":"e.g.","page_number":59,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"b7c9ca59-635d-4b26-9181-e91235c3487a","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":59,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"7d8ae310-62a3-42ab-a893-f2a2977e4061","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":59,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"cf815271-6f05-4da1-84e8-27e75d13a2b9","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":59,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"03aead06-483d-48bc-833d-e45f89de1f67","block_type":"box","text":"Commitments”).","page_number":59,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"6d978658-047e-422d-b7fa-c6f117defa57","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":59,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"465045d9-800d-47e9-822d-5cf85c247ee8","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":59,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"9828b689-2c4e-4799-984b-3d3cf1909c52","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":59,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"fd94084c-223f-4044-9a61-802480204e3b","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":59,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"af04e581-b7d1-4360-bb28-a371a5bfcb4e","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":59,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"24d0310f-cffd-479c-9f09-8ef3fc2edbbe","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":59,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"46e47260-83d9-4eee-9744-4d792896f909","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":59,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"b6870487-d89a-4e3e-ab19-cf53f74307a0","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":59,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"14fcbc36-5c84-443e-873a-50f1b563287c","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":59,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"b0bd9373-416f-493f-92f7-fd7f1825bd90","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":59,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"3ea952de-c932-4951-ae29-02506d0900f1","block_type":"box","text":"II-13","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9473c5ec-5b38-4857-bcc4-cd97692cadcf","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff5e3f0b-1367-4311-90cb-5f13ff44d3ed","block_type":"box","text":"Dodd-Frank Regulations.","page_number":60,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"360f6467-7c11-4a88-8421-863741cf7e45","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":60,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"1955f20c-8daf-4a52-9f5d-8680a59a3184","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":60,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"3196d57e-992a-4c11-9ac9-3a19274fcc73","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":60,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"e4727fed-8463-460c-b22e-76e95d880a08","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":60,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"17d08f30-5354-44ad-8739-5ea8caed5a44","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":60,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"7342794f-8f26-4dde-b5ed-2e913e20a2cc","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":60,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"d13fbe87-537a-49f4-bdf2-f0511ee4e150","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":60,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"03264668-f3c9-4a5e-894c-a98145654f07","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":60,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"3d2e1c15-8429-4a5b-bd10-bbaa30f8f89b","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":60,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"ef3ffdc8-5a66-4e3f-86b5-38fea5177f44","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":60,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"9d47e62e-f30d-46ea-a474-29aa1bba9433","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":60,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"eca9a35a-219e-40bc-a21b-d84c3f91ea9a","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":60,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"db78e1f3-69a4-4450-be09-237f809be391","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":60,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"71acb331-4fc8-4a9e-a91e-78c8a9628337","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":60,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"7ed24a33-4bcb-49f5-96c5-c620c16041d2","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":60,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"58684e3d-970f-4a20-8e52-15960bda75d8","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":60,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"0841a164-6eea-46aa-bee1-73699576ea5f","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":60,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"0850e788-c3c5-4cb5-80fe-9f0ccbec67cf","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":60,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"f10c8c0b-0aea-4560-bb98-2ba72dfb1506","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":60,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"d64e8460-85a1-4f68-a08d-bb53d75a2252","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":60,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"337500d3-8a48-4a5f-8a13-55d4afc19df9","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":60,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"f7edb846-93c0-4ae2-bc80-ec6203a653d3","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":60,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"1c4e8f52-fbd7-4566-9497-c8fe703288e9","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":60,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"00ab6d57-d986-4260-8c30-ad1d729ea1a5","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":60,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"70d2ba03-9ef4-4d19-baba-59ee1fc81beb","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":60,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"66bad347-ab0e-4cbf-9242-4176ee218ba2","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":60,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"d030626d-c0ed-4889-ba13-9a7a2155553a","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":60,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"b1d715f5-da47-4d59-9682-ac9d5ef3c53f","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":60,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"9edac960-2877-41b9-b88b-a8ed010e2bc4","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":60,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"f4ad3f2f-0d98-4962-976e-7b98b97df7a9","block_type":"box","text":"member.","page_number":60,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"13000dbf-1b3a-43fb-941d-0cf791fd65e8","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":60,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"5bf9130c-1587-452f-a75b-f5ecb8345faa","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":60,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"61fbb482-94b1-4c4a-afed-067d6a3d690d","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":60,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"4a13fcd7-c515-41d5-885e-f22d0898f3b8","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":60,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"487aa87f-5f70-4983-b26f-be8fa656ad45","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":60,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"aeb044bb-6627-4722-9650-7ee021c76c94","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":60,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"1cab9225-5639-440d-82f9-1be4897aab45","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":60,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"7b19d929-259b-43ca-af2e-59e1947346d1","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":60,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"7ac62679-4843-412c-bcc2-05ba12122315","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":60,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"3d187705-8c08-4eb8-b792-9e58da8c6ada","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":60,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"ea1d601b-2eab-4a4f-8491-7dec6eb36f7d","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":60,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"c3f8894f-b998-4356-97e7-9e9b572db415","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":60,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"b08e12b3-539e-40f3-8b76-bcc01e2b441e","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":60,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"c15baf56-8135-4722-9a07-39b3f812407a","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":60,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"54db83c8-e6ab-4adc-92a2-f9c587c71eaa","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":60,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"48098964-26af-4689-a7f9-b42f34584135","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":60,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"55e22073-aa35-4603-bea4-9761d8c2a135","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":60,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"54baddac-d022-457d-8d00-22635a01361a","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":60,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"7fdc7a95-ea9c-4ca7-967f-d45c49c54fc0","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":60,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"39f1e030-5c07-4d46-9237-84d22734c1bf","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":60,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"b17447f3-7f50-409b-84ae-54444d424675","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":60,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"5fd23a20-722a-4a55-85e0-a851e9b66c09","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":60,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"f70f08f0-ca3e-4d93-be83-3de7df29af05","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":60,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"3f4f74ba-b7d4-4361-993f-cbdf65e12a22","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":60,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"5f83dede-bd05-4251-a554-4cc241a26b64","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":60,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"e61359a9-c4d4-49ca-a972-f5365a29fbe8","block_type":"box","text":"II-14","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7fde76b-ea58-4df9-9a68-0d7fdc250460","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73d984eb-2386-48c4-98d7-598b3576b17a","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":61,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"c2037f63-c238-4357-a8f4-f6027a433330","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":61,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"de1c413a-b1ac-4b6d-83e4-c15d27036bff","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":61,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"914227ee-478e-47c3-8da4-33852fc32575","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":61,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"06b0b3ba-b11b-443f-a65d-30829e86b888","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":61,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"a6d5c9b2-05cc-447a-af57-02a7a19e8211","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":61,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"40bc5d7c-7581-4063-a8d4-edf919bd1336","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":61,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"87d4a86c-bd02-45ce-aa0c-d6a7953b5908","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":61,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"0eacd844-347d-44f5-82d7-bb6c2bc4d5ed","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":61,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"0652f798-6c3d-4931-a6ca-f07605d54b35","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":61,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"c3df5355-435e-4c7c-a2f4-3cb637a345db","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":61,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"341f1275-3fe8-4627-80f4-1fa5b68beeb6","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":61,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"f908aeb3-5636-49a9-8742-3aa3e348e43d","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":61,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"d7459cf0-e690-4b43-b604-e10c5d0a2f90","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":61,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"abbcd6da-3aa4-4272-aca5-f2910b287a0e","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":61,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"c9e49039-e5ab-4393-867b-375fc92e70c5","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":61,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"7a1a8607-223d-4aeb-b6a2-c66a80c26bf9","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":61,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"0300e4af-9bf0-487d-b713-0c91a02d4c1d","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":61,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"7e9507dc-2c4e-474c-9f7b-137b60a88894","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":61,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"de4dd922-3e97-48fe-a5e9-eb6fb041049a","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":61,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"87fd7a1f-712f-489a-a3ef-aed6ce0f5f87","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":61,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"8063d76c-56bf-407b-91ca-45084e2cc89c","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":61,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"46e228cb-6ed3-4717-98b5-57c8624e1cbb","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":61,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"e7bcd6ad-be08-4eec-9c03-ad91dd9a8978","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":61,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"8b66a87b-873b-452c-9b8e-ea568023c5b2","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":61,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"df7f1f51-7db9-414f-9bd2-714360407279","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":61,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"f83f6d9f-1705-44ca-9fb8-580b0276d13c","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":61,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"b5eb719d-faad-4be9-8e85-e1a70dc0f72b","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":61,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"62cd3c71-6304-4daf-a9a5-2d153e01f319","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":61,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"45e1ed70-627a-4caf-bfe0-692833bd2ccd","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":61,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"9533b1ac-9631-4a70-9b0d-6cc052c157fd","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":61,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"076e9d32-e696-4546-a0fb-f51403cc36e3","block_type":"box","text":"collateral received under such contracts.","page_number":61,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"88e2ffef-886f-4df6-a4bb-4f76b3cf21fb","block_type":"box","text":"Risk Factors in Derivatives.","page_number":61,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"ab6f1df1-bdd3-40b1-993b-1684902cc1cf","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":61,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"62c858ab-069d-4803-9d2f-8c137ef1b871","block_type":"box","text":"Correlation Risk","page_number":61,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"847669bc-a5e0-483d-ae15-5a039a90e644","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":61,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"ab4a887d-2d83-4ce4-b8e1-4f0b2690bce2","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":61,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"6970f85e-9ae5-448c-a9d1-88a6d92240ed","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":61,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"ba97cf3b-221f-496e-adc4-8a2d8cc9b381","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":61,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"6c5587f4-b648-4689-9fd5-81be561b1f37","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":61,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"5f2507c8-0ca8-4231-8fd0-c6490220ff98","block_type":"box","text":"Counterpar ty Risk","page_number":61,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"4ba5f9cf-f1a8-45d4-abfd-773b039a86f0","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":61,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"ee06e22d-d898-4d6b-b569-decec8462e4c","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":61,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"f787beac-ffb9-40cb-8f22-a448f36f5c4d","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":61,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"516382f3-2cd0-4f00-9742-3f9c2357edd2","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":61,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"0c953eed-9d2d-47ff-9347-1c3646ec813c","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":61,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"69a6a2f9-201a-450b-b4d5-2c59590efb95","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":61,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"2c15fbfe-277f-490f-944c-3edd8eb4b08b","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":61,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"81b4e029-8f7e-4f26-bf98-38e6b2cabd8d","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":61,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"98717fa2-ca80-4126-a907-164f61a87122","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":61,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"2f8befec-590d-46e9-b277-f30d3ddfa5b5","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":61,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"a5baf95b-9ba0-4038-b2f0-38f1c841d001","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":61,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"d6a9adab-e1aa-400c-a193-5378c802dc12","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":61,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"47035ea4-bdfd-41fe-8bef-f57191a4f8a1","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":61,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"0c5f4384-6850-48fa-9c09-c06a6c10d7e5","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":61,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"c107d393-f5a3-4e22-ac8c-80cf03c7fca2","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":61,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"b98348f2-0aac-46ff-bb47-55cfb27014d9","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":61,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"618bddae-c9ac-415f-9c3f-7d6b6dce4a9f","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":61,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"bd5f076d-cbf0-4d9b-a6f4-572ba3de11c9","block_type":"box","text":"II-15","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c1f6a440-7839-4c18-8b4f-e33127f4760b","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70556904-c541-49f8-8a1f-ac7ab49ea130","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":62,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"37d613e1-be82-49bf-8783-91d484eeb301","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":62,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"7f2de58b-0009-46e6-a629-d4782ab790b7","block_type":"box","text":"by the clearing member.","page_number":62,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"3f623c71-a1f5-401e-942c-13db441bc8ba","block_type":"box","text":"Credit Risk","page_number":62,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"e01950d3-a4d5-4c61-b020-392357834239","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":62,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"47a881fe-804a-4a51-91f3-73c2762ddd4a","block_type":"box","text":"honor its financial obligations.","page_number":62,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"95b10e2a-cc82-4087-b6d6-fd48c56702fb","block_type":"box","text":"Currency Risk","page_number":62,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"c4d3f626-9c28-4d7a-b817-2f89a1174bd0","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":62,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"40f53ba3-d095-4eb4-8f77-d881421eb92d","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":62,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"126341c7-9dc9-457d-ad96-e59cdc8cc320","block_type":"box","text":"Illiquidity Risk","page_number":62,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"c0e2daf6-e3fd-4b7d-b1d4-703faf4d8620","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":62,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"08587001-f09f-43fb-ad23-4b9712fd3399","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":62,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"95d12df4-df38-4db9-ac46-115e2f3cbca6","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":62,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"66db465f-14cc-4e0d-ba9d-707d995bc841","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":62,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"3c6efe74-36ae-4cb8-8c34-07a26cc9eaa8","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":62,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"b78ca265-454d-4f20-a822-063d0932462e","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":62,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"35d8a45a-65ba-4495-8ffd-bcd8536c06a6","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":62,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"6ceb4be9-27f7-4973-b5e4-a33abb2b4fc0","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":62,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"d36dd8ee-c7b0-4b15-b4c5-557ba3482143","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":62,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"2aa9a195-790c-47ab-96e4-f90ab6338a57","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":62,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"28117efa-5d0e-4a2c-a7b5-3e4c56655995","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":62,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"a45d98a4-bd90-497b-b042-e37ebc9d1156","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":62,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"b9919881-f5a4-4df3-88c4-0edbee8895b8","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":62,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"83dbfc59-dfcf-43a9-bb4f-f73f97fdb538","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":62,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"7a2a957d-c9b7-4fdf-be40-35d0cb4bb690","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":62,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"c495ef15-bdac-43bf-afd3-7c06be30f2c6","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":62,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"3129a847-66e3-49c0-a6d4-2ded2d0f6b13","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":62,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"bda98e2c-52a5-4930-a5c0-1089f092df7d","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":62,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"bd8e3748-88c9-495b-9228-02052f42ad3c","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":62,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"eed66812-258f-41cf-ae8b-0dd56c91054c","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":62,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"ff38fcb5-3e9f-4ebf-9a27-96c6819f87ff","block_type":"box","text":"may be disadvantageous to do so.","page_number":62,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"ead5ab68-a1b9-47a6-b2ce-a7b6ee8ff261","block_type":"box","text":"Index Risk","page_number":62,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"5c49ff16-ebcd-450c-b33c-d87b7b67ebc5","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":62,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"6ae69d00-be17-4e32-9c11-3d6d4864d6c0","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":62,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"c9d0e874-7180-4795-ae37-44fd60edf81b","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":62,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"045b81f4-9d1c-47c2-980f-4687fe013597","block_type":"box","text":"Legal Risk","page_number":62,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"08606dce-1a02-4132-84f2-a61162d41f68","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":62,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"3989122b-74a2-44da-93ff-e885afa95cc3","block_type":"box","text":"or enforceability of a contract.","page_number":62,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"a96656ef-6949-4dce-bc28-864292de2d6d","block_type":"box","text":"Leverage Risk","page_number":62,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"d9849898-b0ab-46e2-8d64-af9025b50ff6","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":62,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"e0d08ed1-c0c7-4541-a51e-bc044e3d5bef","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":62,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"965c25bf-0507-44cf-a61c-33f99cf99f78","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":62,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"46580052-3af8-4f2b-9dbe-a578d127d9a2","block_type":"box","text":"Market Risk","page_number":62,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"35cacfce-ea29-48b2-9c19-e0fd87a2982b","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":62,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"0cbfb02b-3f72-4981-a416-930a3fe5f783","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":62,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"7b665d38-5d3c-4902-97c9-adc80a8b0659","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":62,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"6deb3319-172a-40f8-a257-0d9c8eaa8f0d","block_type":"box","text":"affected.","page_number":62,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"0221f8ee-2f87-47e3-a1a4-f7ea1c6cee2b","block_type":"box","text":"Operational Risk","page_number":62,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"87a1e474-76f2-4b66-b725-bede82c00ea7","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":62,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"9f2cc29b-39fc-4f65-9626-b672de2a1ef7","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":62,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"ae4e0be4-4120-46b5-bc28-3e2451a05346","block_type":"box","text":"Valuation Risk","page_number":62,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"6c49e48c-2e93-4977-babc-b95492cadf26","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":62,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"73ae88ea-6248-4f33-a547-634558a34639","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":62,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"fa5a26e8-c9b1-4ee2-b205-6a35ae0030f0","block_type":"box","text":"complex instruments or quote prices for them.","page_number":62,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"cec33e86-70ce-43a4-84d1-8710cd4e786b","block_type":"box","text":"Volatility Risk","page_number":62,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"ae853121-7596-4750-b3ca-a308f9969428","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":62,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"56cb14c7-7e7d-4c2a-9e73-5425de7c7e1d","block_type":"box","text":"Types of Derivatives Transactions.","page_number":62,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"7ce3d052-6416-411a-8c68-7e1a7186cf70","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":62,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"eebd5696-9ca9-4229-893b-17a3bfb604eb","block_type":"box","text":"including the following:","page_number":62,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"f4b30979-ad53-4b13-b9fa-fb49be1a4b19","block_type":"box","text":"Futures.","page_number":62,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"5546ae2f-1c81-412d-9f95-fa1ef7adc848","block_type":"box","text":"II-16","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7566c893-da98-42de-885f-5507f6137bcc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9402ce1-c4c3-419f-b63d-13f04651981d","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":63,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"84ab9eb3-bd27-48d4-b62f-e3b6dd1706c5","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":63,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"09b5888b-6604-4456-9ff7-0dd8d3e3878b","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":63,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"a8819787-8e25-4b85-bbd9-29c6e13ba92b","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":63,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"7eb0be31-2e9e-46cb-a18e-6b34f1ffdcc7","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":63,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"662de84f-dc63-4f0f-8ee4-2dd4cb8d072b","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":63,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"8c617591-588c-46d4-b051-fc582d3184e7","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":63,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"2e8080e5-e059-49a6-b16f-fe4c440449c7","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":63,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"7ce71330-c6a4-413c-beb7-6b81569f6b73","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":63,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"2a2399bc-a20b-4512-8db2-5b6cb7f17548","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":63,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"b99942a4-2011-4557-837f-f61ba7633b52","block_type":"box","text":"of the futures contract.","page_number":63,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"7b4183f9-d90f-4fc4-991c-07debbba5f0b","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":63,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"910e8993-9268-4d38-b7d5-118cd6926d5e","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":63,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"50b14d04-5642-4d91-b28b-d7e555ada112","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":63,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"ed4800a2-7a7a-434b-94cd-a1eac6185cf1","block_type":"box","text":"relating to the futures position.","page_number":63,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"fdf096f8-c8ea-41f9-b713-df26c955a385","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":63,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"42bbcf0f-503c-4890-81c6-bd4c655a3be3","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":63,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"27f1f397-4ec0-49c2-bedf-ce9885d1482a","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":63,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"a1182a6b-31f4-427d-bbd2-9a0ce4a21c09","block_type":"box","text":"Regulations” above.","page_number":63,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"20c2fd12-a5c9-4125-8975-b8505ec2affa","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":63,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"bb08a8c9-bfdb-45dc-84b1-ed4ddef73437","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":63,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"2158709f-b911-4165-a456-cea993851992","block_type":"box","text":"(","page_number":63,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"d67ddbe6-cb27-4358-aa96-a02d88ef5deb","block_type":"box","text":"i.e.","page_number":63,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"e77653f4-b83e-4f0a-90a2-66019b29ea9b","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":63,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"45cb6972-592d-40ea-ace3-b7bbbaf4d5ca","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":63,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"d5aaa8df-df6e-4514-9613-7990d303a860","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":63,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"7a714771-7293-456f-b112-fab822b6b49d","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":63,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"08de2cee-79fa-4420-903a-0a2021d532ba","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":63,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"b0d99132-01b6-4107-8cb5-9fee72a96ceb","block_type":"box","text":"Fund intends to purchase.","page_number":63,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"2e800ef9-d769-461b-8d97-6e13b0c9deca","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":63,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"caac9f45-16dc-4bc4-b6cb-50000cf44146","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":63,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"aa940ebd-c733-4e81-9f2b-d57c3625ab82","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":63,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"4ab5c122-4dc2-4b72-9f66-218f2736586e","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":63,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"75072b6e-f40f-4923-b373-4d3b5812df90","block_type":"box","text":"illiquidity.","page_number":63,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"e64a7502-c9c7-472c-a518-6bc4fc163897","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":63,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"978b0ada-3414-47f9-9e88-a8b79529e33f","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":63,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"0d0d48a6-c045-4a25-a91c-64e031e4798d","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"096c9bbd-20db-4b86-aed7-5bd2e801e292","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":63,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"28c8ad21-d7a9-4ce2-ab02-96ebd26a6158","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":63,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"c9269b26-a120-471d-ae1b-c59f5cba489a","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":63,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"db4e6178-6624-47ce-8b08-15062b869153","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":63,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"10d3b797-2922-4c2e-9dc7-2f0688d66f59","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":63,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"fb10f91d-702b-4519-ad33-0f8d327e51f3","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":63,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"9dcfa5b9-2a1f-440c-8fba-d7f2c0b999a1","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":63,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"f4dfe2cf-30d8-4820-aefb-e1a8c0c22ed7","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":63,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"3505bcd9-5689-4898-af78-7ff5f3b4c399","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":63,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"eae8b607-8bee-4820-bfd5-8f23fc4dd2eb","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":63,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"7e6bacc7-c9ea-4f48-81da-4347faba7210","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":63,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"571a5d86-ff26-493c-b4b4-980976eae49a","block_type":"box","text":"Swap Agreements.","page_number":63,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"0460264a-726c-4b5a-bd74-52a5e442f8a0","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":63,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"32e70b80-b81a-4845-9140-ec71364da448","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":63,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"1009c41e-325f-4c84-a134-0960d47cc835","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":63,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"c80642be-3f62-4ff4-ad67-db3ef64cc580","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":63,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"f38b8aec-9634-4776-b873-625ffc8f6384","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":63,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"c17a2335-2789-4dab-b76d-d33b1f0aebf6","block_type":"box","text":"a “notional amount,”","page_number":63,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"dfe40c2a-a552-46b9-a67f-0ac16d84bd24","block_type":"box","text":"e.g.","page_number":63,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"aa9c402d-5923-47a8-beb5-fd69661b6c21","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":63,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"47030675-ff0f-42cd-b8bb-34b9e6437353","block_type":"box","text":"II-17","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cb8bd94e-f874-430b-ad3e-21d450693524","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd8f1601-75ef-41dc-9577-b04b3aac6ead","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":64,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"406f0456-e3a0-4501-8bcc-1e9354058f9d","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":64,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"582e9a6d-2593-4d8c-b967-2c24acb88474","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":64,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"ee6616ea-d518-4c24-b100-ffda59ec7ade","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":64,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"303e7998-c6b0-460f-9ab4-fe2f47e648e7","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":64,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"f2db20f0-ff7f-42cc-9f9d-a79483d633d2","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":64,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"1ccee6d6-4772-48b7-ba84-835439081485","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":64,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"ce8dfca5-d700-4e6b-b211-76c2283380fa","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":64,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"12bde24f-785a-4395-8ade-e43b4a6790ab","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":64,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"4abed1b3-a364-4a63-83de-4b32b34971c5","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":64,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"de434eba-670b-4a8e-a21b-4b24963dee0f","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":64,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"63702301-9030-4ed2-a925-399d7cf82494","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":64,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"3da83f18-27df-40b5-830c-f6de26ab5ca8","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":64,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"1b852b4d-3bc5-488b-a3a9-fe4a310dad97","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":64,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"ace3e400-746d-4bba-8e47-631ac1f5a254","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":64,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"5485f893-f8a9-421d-b545-11e0de43506d","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":64,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"5c6bb618-a866-4278-8dfd-eacef7150cca","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":64,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"b5f36f2d-ce94-4188-ad42-62696e7b208e","block_type":"box","text":"index CDS.","page_number":64,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"885e16dc-c8cb-44d2-a923-d80620793d70","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":64,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"8f4459c3-f792-41e1-8e22-66aa1b22e359","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":64,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"2a68b9a2-c037-4ca2-aadd-1adefda574aa","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":64,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"22bc5842-681c-4187-b751-26e9529dbc41","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":64,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"6eaa79b4-7eba-4706-a4e6-a61abbebb1b7","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":64,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"5bf4f4f9-a744-4c13-95de-2841f65c14e7","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":64,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"ad05fd3d-df3a-4cbb-a11b-3936eaf9060c","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":64,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"f74ca772-df35-4404-afd8-35ee8408df41","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":64,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"5e4cbb6e-a668-4fe3-adac-57aac8cffd6b","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":64,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"a249e24b-6d73-4384-8161-bb6087ff3a84","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":64,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"2555bed3-92ab-4fa3-8c53-3c09aa6f1e0e","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":64,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"7fb28600-e81a-4706-9904-db81203ab9d2","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":64,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"4f3ec1d2-2bcf-4a2b-800e-b4c1ad5cb3cb","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":64,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"4b2f499c-d743-47e4-be54-4c057187a3ee","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":64,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"6c90ecd5-c0b0-4f0e-91f2-b5e0bfb7b013","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":64,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"ce8abb48-5f2b-40a5-b5c5-837604377f98","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":64,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"2dfb9273-381a-4093-b724-6464fd843c6e","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":64,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"8c7573c2-9695-420a-a9fe-0590a4ae82a0","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":64,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"92c1ceae-3c56-4035-9d9a-8d2b86ae38db","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":64,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"e3201b90-ee09-483d-bc32-094f604e6bed","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":64,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"222b5398-8ead-403f-aaa4-bde3d36d5d76","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":64,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"a0b756a9-173f-43f5-a2e5-697ad1d106dd","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":64,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"c71b47d1-4ad3-443c-b1a9-55e48d1ecb60","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":64,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"b4add058-0aac-4f0c-a831-3cf52c1bbc9e","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":64,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"6a9b798c-e4c6-4b39-899e-9a43312e1047","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":64,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"08491ddb-ce95-479c-8213-ebb3d574217c","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":64,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"0759327e-d497-49f0-bf54-829ad64add5d","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":64,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"b839b40b-cb34-4809-a304-315ac40ae802","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":64,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"d5448913-f7d0-400d-b023-b364f57d3574","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":64,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"aeda431a-f732-4170-ba18-8f6023e2a958","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":64,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"0f5e0b55-be2d-4429-a521-185e87b5900f","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":64,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"2ffbee3b-adf2-4ae3-9fd2-e5d4f6698542","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":64,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"29e8b421-7328-4ce8-aafb-fb980a9d78ec","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":64,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"13d71d41-f3d1-483d-a064-628291ee096a","block_type":"box","text":"conditions.","page_number":64,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"3b5abae1-5f1d-477a-9606-98ce47a75387","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":64,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"9f89e273-fb7b-4450-9a3f-7ca368693b1c","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":64,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"b5336733-560c-4db5-a20a-b9f0fbd1736a","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":64,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"aa81d550-011c-4d03-89f4-f5613a387f2c","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":64,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"d4653243-9ae0-4a07-aff0-8f0d509f15ed","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":64,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"2c6aaa94-1a68-4758-a570-1a2e17786155","block_type":"box","text":"II-18","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0079607c-9cdd-4f74-96ce-f7e4bfab58fc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f48b3f93-6071-4762-87f7-5a48684d14fe","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":65,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"fd3f2187-e103-4fb1-8f12-467e7c720bb4","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":65,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"473f5c0a-11f6-4249-ac44-bdf48cdfecf1","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":65,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"9e5272f8-9ce2-4f6e-80ab-025e875c0cef","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":65,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"dc22fd7e-e23d-4524-af27-d6623b918a04","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":65,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"c833ed38-999f-49c5-beb8-bf8d98bf9979","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":65,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"6fcd42c4-d944-4ead-b19b-a6c686940260","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":65,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"723f7bc2-898c-400f-bb03-862fbf29cda1","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":65,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"859b8535-0a10-4e4b-9e00-bb0b0c12e9a8","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":65,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"1d2aeded-85aa-4558-99d7-b684e9aa4506","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":65,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"00170012-76ed-4ba9-82ff-685ff95af5b4","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":65,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"f36c4013-a193-4451-a2c8-4108c93876d5","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":65,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"992cf975-0a55-419b-8afe-9799181e7992","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":65,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"6e29324c-b328-44aa-8e35-8fd5304a7d1b","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":65,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"16e9cfde-8a07-4a70-846c-8923048f5a4b","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":65,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"3d1293e1-20e3-419e-96f8-0c32ebd90a53","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":65,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"d752f8e9-cad7-4f1e-9ec3-679a2eaafbf8","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":65,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"92cd5218-06db-4d62-a5a9-12fd635c3dbc","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":65,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"3c0c47a4-b931-4260-a1e7-dfa2dbaed753","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":65,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"8b63db94-4815-4bd9-a1b9-66ca38350fee","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":65,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"3ae44aef-b935-4f04-bff0-99806ab2789a","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":65,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"11e736de-5aa0-4fd5-a315-43fdc816c6a9","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":65,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"5b0cef8f-b989-4633-86b7-32edfd094606","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":65,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"bd6a4248-f2e6-4318-927f-d4c689bc03af","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":65,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"738605d2-224f-4d75-83fc-409f4b06a773","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":65,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"dbb4196f-f91b-4b59-b58b-9487f575b35a","block_type":"box","text":"cleared interest rate swaps.","page_number":65,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"dff1cda7-853b-4c40-ac35-b385e2d30839","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":65,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"f301b39a-4122-4188-850c-6f70f459fc1b","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":65,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"f4eb8140-929f-4589-b047-4e817d44e347","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":65,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"34bfefd3-9d0c-4379-82d3-669ab8b992e3","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":65,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"85d87c51-58ae-462a-bdde-cad48c6630b2","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":65,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"4756b57e-9066-4cff-8dc6-af76e41236ba","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":65,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"247157fe-b02a-4807-b49c-6477f8efc1c1","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":65,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"2fc6a4aa-2681-4eba-babe-ab4c6474d555","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":65,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"7ce589df-4507-4b62-82a8-601c0cba61cc","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":65,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"d845c9f1-1529-4209-810e-dbe26252e44f","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":65,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"7d222061-610e-4a71-9e20-2daa2cdfcaf6","block_type":"box","text":"or variable interest rate, index or asset.","page_number":65,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"99e5576b-cbca-426b-ae10-9abe5f431652","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":65,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"b9f56ea5-35fd-4c53-a54e-f00a968cde2b","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":65,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"cbab7aba-550e-4b95-84a6-7739f18c9759","block_type":"box","text":"such interest rate floor.","page_number":65,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"66000bcf-8423-4970-99b0-cbd1edcc99a2","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":65,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"48708baa-ea9a-4b53-ace2-755dc04f3fd6","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":65,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"7e7ed28a-52eb-48b0-ba15-a4b80a38b6d0","block_type":"box","text":"such interest rate cap.","page_number":65,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"5a7ac41a-d4f3-4291-9f04-39648ac20d72","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":65,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"11c98389-c578-4987-8b87-8a4cde2a63cb","block_type":"box","text":"commitments to pay or receive interest,","page_number":65,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"49718457-0529-4fee-860d-795e476ef6e9","block_type":"box","text":"e.g.","page_number":65,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"e76b37c7-7e95-4126-9a7b-3b7366acaaa0","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":65,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"c006317c-5e57-4967-a50f-83e6f526b8d0","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":65,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"883c2192-dddd-444b-9e47-56b068d9c61f","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":65,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"be669cd0-a102-4ce5-b85d-cc2913e6cd4c","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":65,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"b2691317-6588-4ccd-bca4-d18a47471c02","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":65,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"4f2331db-66f3-4fb9-8885-890b6f39bb27","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":65,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"146eb3db-06c5-4f17-b58f-e762f9e5cebc","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":65,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"ffbb96b9-88e1-49fc-8bfb-4d297eaaf6bb","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":65,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"aa8b3b1f-1f65-474b-8db5-2d8afff8eca5","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":65,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"d6a4610c-508e-4030-bbcd-026e0306889e","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":65,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"8044b8fc-05d6-4f51-bec7-a5d78ee9237e","block_type":"box","text":"II-19","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31016995-0667-4960-9f3e-248e6735ba84","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6dd1f7df-a78d-4a13-aca8-c4bdde682df2","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":66,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"8839aa97-4744-4c32-b75f-a43144aeb928","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":66,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"8f850aaa-e020-4a0f-8c80-65f776b28946","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":66,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"3a9c3b3e-cb7f-46ff-8981-d6773cf5c826","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":66,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"9b036fb7-6652-4f78-997f-be02bc87239f","block_type":"box","text":"Total Return Swaps.","page_number":66,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"6b4070cf-c852-4f89-bd0e-e826b366e29a","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":66,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"f2a45cd9-3f68-4b21-b357-c059c505d915","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":66,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"659014e9-7fbf-4f96-91c7-984bfa3e445d","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":66,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"0e1203d8-753c-4f0a-be5b-3f952d4510bc","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":66,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"997ca864-5424-4665-96c2-9a6b1a8d787f","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":66,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"7131512d-8882-472b-a3a0-c3f097804819","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":66,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"c39dccfa-6d19-4138-aac7-57b48560341f","block_type":"box","text":"“contracts for difference.”","page_number":66,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"107833d4-7dfe-4e46-bd53-d90f00ee5331","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":66,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"231dcbda-8dab-4616-a720-59cf2d3b039c","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":66,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"89b40992-5eae-49ed-b02d-2894d1c27457","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":66,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"468ff516-5aab-403d-8c47-9752f5abf7d5","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":66,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"88af72ea-f914-4c80-9af2-64d64562faff","block_type":"box","text":"the notional amount of the swap.","page_number":66,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"9d0195de-cf5e-4650-aa43-c6d813128bef","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":66,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"f8f5e0a4-11ec-4e18-b97c-383e72fd2aa7","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":66,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"b373caae-cb7f-4c6e-a5cc-9fc84cc851e5","block_type":"box","text":"Options.","page_number":66,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"7ebf5ebc-e99d-4e57-80ea-406cd4af565b","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":66,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"8d8eba7d-f6b9-4eba-8933-6d1c91ea29c3","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":66,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"ec63fbaa-4bc5-45b1-b485-7e52941b29c0","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":66,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"1a70536a-a266-4cf4-be1c-9952a20e4ce6","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":66,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"73aa4c27-a6f0-4e51-8407-1b6616827acd","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":66,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"34675734-defd-4cbc-9a67-fe7400183722","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":66,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"1905c6f6-ce95-41eb-abc9-2b7f91b9aeff","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":66,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"2ee17403-3f26-4979-bec5-6f2dd7ec760c","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":66,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"87a79c83-dee0-4f91-87a2-02b3094cde8d","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":66,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"c84e7011-9147-4a52-aa76-0814fae66b88","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":66,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"ce0097de-14b3-4be8-ac2a-68f49903e996","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":66,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"15380b83-cf78-4617-a732-be21fc291ca5","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":66,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"0201dfb7-431e-4981-aac4-b517ab63e544","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":66,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"71df7100-7081-4489-b29e-966de2457da7","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":66,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"b4cf7a73-3167-4da6-99b0-b1c57c1d331e","block_type":"box","text":"OTC markets.","page_number":66,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"9eed7630-a62d-45b4-bfa9-d1b65b0b3328","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":66,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"f0ac9ae4-a487-4c3c-9ecd-646038d6805d","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":66,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"f9f76727-6a90-4b8a-8799-ddf05e58e205","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":66,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"30fbba21-c222-4166-994c-3cf1d4837bcf","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":66,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"e3016925-1123-443e-8a30-3bdfd5e2df44","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":66,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"bfb29038-40c3-427d-9951-0ff355d9dfe4","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":66,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"2e9c949a-9de4-4801-aeb8-7cf428fc5ef5","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":66,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"abf621f8-52b6-48e9-8eb0-651e21d5d29d","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":66,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"e16d0ddc-636a-477a-b6ac-03b8985f9fa5","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":66,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"691340fc-3d2f-4272-9b76-b942e8139a0b","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":66,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"1447655b-9d46-4769-bfb9-e17ce9b9a38c","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":66,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"8b009292-3706-4caf-8856-4621032439eb","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":66,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"945a6d20-61d8-44f5-a0b8-403f9bb9f694","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":66,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"a7332316-8a13-49bd-ae1c-24cd030845e8","block_type":"box","text":"terms.","page_number":66,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"8c271cbe-cf69-4cbd-b77f-acc2b4a2a230","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":66,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"cff5be67-68b9-4b09-b3bd-99386ebe379c","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":66,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"df8f0db0-3966-413b-89d9-9c50674b06ca","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":66,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"3d0d6c67-0602-4ca6-b4ef-575a8ac5bb60","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":66,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"9d436378-3c20-4dd4-be23-f597fe61af75","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":66,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"7653d401-3e5c-4464-b277-088488708448","block_type":"box","text":"II-20","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d6d13dd-ccb2-438f-8b24-937a272bcc0a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8aabd51d-005f-4dff-9ccb-320e6f94a556","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":67,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"2b5730b5-12f4-470a-aaab-957c094ced12","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":67,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"a3c014e1-ed13-428e-868f-1c3b6163fc80","block_type":"box","text":"Call Options.","page_number":67,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"88677686-85c3-4061-ae6a-69b4459b421d","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":67,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"a6c5881f-9d46-4937-a5d0-d9fd87124b22","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":67,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"3e6aeaf6-8a61-46da-8142-ee97be2e771b","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":67,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"2358c6f3-2c49-48ac-a3ae-95505558a05c","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":67,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"e80e0827-3cc5-42fc-b46e-7678a2874046","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":67,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"821fc35c-a6dd-4fac-9e01-72a80898e8fb","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":67,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"f9a958be-80e7-4e23-9a40-36a28d78d736","block_type":"box","text":"of the option.","page_number":67,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"0c2ade6a-7ac4-4104-8aa1-10a0d0f1488b","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":67,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"d3b64ec7-366e-43f5-8c7f-345e64bce8ed","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":67,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"d202be5c-a658-4edb-aaa8-14e1754f83d2","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":67,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"ad8092e5-422c-4f14-9466-0fedffc9796f","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":67,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"31d661d4-ae9b-4c55-8015-135015bea73a","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":67,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"5acb1a94-e3ba-40e5-b6e7-42aa911d21ed","block_type":"box","text":"A Fund may write (","page_number":67,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"81d13f4e-0b1c-47ea-9d53-729e6dacf081","block_type":"box","text":"i.e.","page_number":67,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"54f850be-075e-4d0e-b565-ed73ce56e296","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":67,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"15f18e85-a30b-4817-aac8-2d0dad5cc873","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":67,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"b4a6fb11-4b0a-4349-9dd7-35253ab10c48","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":67,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"17bd0b76-1e89-4f16-abe3-0903609cd4e1","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":67,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"d02fb5a9-76f5-41e0-8959-dc2e8f7dc02c","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":67,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"96bc0ea6-0706-46ff-b89a-89c096dbc11b","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":67,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"12e76ce4-3e36-4d66-a69d-6308ad97840a","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":67,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"8295d3ef-00f2-4df3-9b8a-6645daafd7ea","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":67,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"5333dc0d-040d-4695-a00e-d32a8dd4dcec","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":67,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"fad1464d-6926-476a-b021-db1c08913ef0","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":67,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"8b394a1e-bb00-4d03-9cdb-a89293e9ce72","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":67,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"1a66ef69-5a7d-45ff-bd3f-0f67b223363c","block_type":"box","text":"A Fund may write","page_number":67,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"5476f2d0-b890-4eaa-97f3-5784f463a77c","block_type":"box","text":"(i.e.","page_number":67,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"d57e6c47-8bae-471b-be6a-c3a539b49bf5","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":67,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"f54c8470-5f84-42b8-bfea-b0af71e9a190","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":67,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"5240679b-2229-4ef2-a688-f80cdd49a29e","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":67,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"ae5e56ef-03c1-444f-81ea-07a4a671c3fb","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":67,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"96e6e57d-036c-4b75-a4be-a71dadf0592c","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":67,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"71ad33ca-53e3-4022-96ba-65f976752553","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":67,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"14586880-f0d4-420a-845a-c598c03c2b36","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":67,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"8142faae-4534-4723-95c1-7f73928a59d9","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":67,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"0ef7bf24-2b27-4536-a792-fc22a0b048b9","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":67,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"ae90373f-21d3-42c0-b31e-9e68ae0cf789","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":67,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"3ecdbbe6-abd2-4988-9c4f-2aaf14771736","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":67,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"8d7c2d81-151f-495e-af8a-5586b5f59425","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":67,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"1c29fef3-4d51-4485-aa36-660308c7ead8","block_type":"box","text":"Put Options.","page_number":67,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"2b32dd48-6493-4ffb-a23e-0f7404e69638","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":67,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"e060fe3d-dea8-436c-868d-2915472eb9be","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":67,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"b1b2f2c4-3fe8-487b-8d44-a23aeef6c9c2","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":67,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"e1a1a681-392c-425e-9f23-823ca9e815ec","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":67,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"8bdc2f43-16ee-4e84-ad96-76993b284139","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":67,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"a190d431-09f5-4613-9e52-77ae770b57e3","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":67,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"c6850889-bc6d-4886-bebb-9c693f06730f","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":67,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"188612b0-e331-4fe4-bb3d-ac5cc82f569f","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":67,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"cb58780f-04d7-48a7-9a9d-dcbf72670726","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":67,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"7e8bf347-914c-452f-9e25-cc47a9c4aee9","block_type":"box","text":"purchase uncovered put options.","page_number":67,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"3476f9fa-b824-4fc4-9a28-d750d9f08599","block_type":"box","text":"A Fund also may write (","page_number":67,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"93b9439c-1f1c-43c5-b9a6-9df6d5698831","block_type":"box","text":"i.e.","page_number":67,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"43d1bbd0-33da-4499-8eba-d4da2c527439","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":67,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"b5727bfb-c5a1-41c6-8ce5-619216af4006","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":67,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"4efc0f0f-4d4f-4ef9-ac07-f07497e0154e","block_type":"box","text":"A Fund also may write (","page_number":67,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"078f5a39-c573-4c62-a621-4de2fc39f1fe","block_type":"box","text":"i.e.","page_number":67,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"947e359e-6fb3-40fc-8082-819f03b6d5b3","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":67,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"468edff4-f6fa-417b-89bc-1dd7cb5c19b7","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":67,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"674635af-658a-4843-8804-466c1b1c0aa1","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":67,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"815d79ef-2bed-4ee9-bbec-d0bd30bf7e92","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":67,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"8a973eac-8d7a-4d6a-a304-24cfc35f14f9","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":67,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"3834d8f3-2f0a-4c97-8d79-ba3846a11806","block_type":"box","text":"II-21","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82349e97-2fb3-4e25-abad-4f115dbc8715","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e525254-235f-47f2-a372-2deb995acf17","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":68,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"ef2c1525-704c-42c5-82df-bfd3e5b16260","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":68,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"2300f5cd-a236-418d-95de-7c2d8d4d4eb7","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":68,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"2c6e550d-0369-45b5-ad7c-d4e170dfa550","block_type":"box","text":"the exercise price.","page_number":68,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"78702440-1bfb-47fd-a9d6-3cbee4da41f1","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":68,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"a55a8b7e-09b9-426b-ae93-1a2b56449fe0","block_type":"box","text":"The following information relates","page_number":68,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"15957ea3-8a95-4e63-b5cf-de2b2c7084e3","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":68,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"6d3dfe4b-869c-4624-90dc-059c9af26a68","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":68,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"1238922c-0e81-4868-b442-9385310da471","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":68,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"17838eff-4336-4e49-a387-a674083fe935","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":68,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"05059d17-9fe1-42f5-88b4-83ef84bad47b","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":68,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"49579b90-21f8-468c-b5dc-85dcfd3040a5","block_type":"box","text":"market in order to maintain its “cover.”","page_number":68,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"12702e72-bfa0-4664-a491-7c77d90d0f27","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":68,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"6dd9b2b2-a6dc-4a04-a52e-7ab424f72c96","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":68,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"7ea5026d-d1ff-4d4d-b1c7-5098e9e99e8b","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":68,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"427035a1-2b43-4103-8e6c-b31efdd6a814","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":68,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"8503369a-d1c0-44ed-86f1-060f9b950b6c","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":68,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"1d324660-98c3-40fa-8a7f-c44315c20b7a","block_type":"box","text":"and incur transaction costs.","page_number":68,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"a70f40b0-6842-4748-9baf-4bfeef9ab403","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":68,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"47840bd6-0049-456b-993a-16ec2b9b4a61","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":68,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"383d28a2-e7ef-4a9b-9222-a07a2d007c20","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":68,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"c71b738e-44e3-42e8-8614-8f6668355324","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":68,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"794c65d7-bb22-485c-99fd-a94c092ead5e","block_type":"box","text":"i.e.","page_number":68,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"5cbf395d-6606-435b-bbd9-a9895e541adf","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":68,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"88703cab-a029-4bcd-af97-163744f9861f","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":68,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"7781b432-f049-4d5d-8157-b60af6d8ad04","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":68,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"d9310801-0489-4d8a-9e63-d319c40e290f","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":68,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"6e7e2f87-aa85-4099-91f6-573daa371273","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":68,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"caf6e112-7011-4eee-bcd6-e46cc2687ff5","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":68,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"e830e85d-9e51-4db6-94e5-f514454f2a67","block_type":"box","text":"required, to be cleared.","page_number":68,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"d8db9c39-a3f5-4e18-9f8a-d4f8816f4ee8","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":68,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"939ef8ca-5006-49f2-8770-73a4b179d22d","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":68,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"e5f4c300-810d-47fc-8de4-d1d935d49679","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":68,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"61467238-0409-48fb-b54c-18a0ae833cb5","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":68,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"c0de56b8-9439-42d1-8f53-354d1da90a56","block_type":"box","text":"Derivatives” above.","page_number":68,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"bfff5b3b-16ca-419d-82fa-04769b359a85","block_type":"box","text":"FLEX Options.","page_number":68,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"6f0bf35e-af5d-4a6f-bd5f-9a8ef9c299f6","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":68,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"c716d9cb-ab9c-45eb-a9b5-f1bf0fd368d7","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":68,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"ea5cb9c5-1377-4783-81af-573dc43adcce","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":68,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"cb67b055-2842-40cc-a03a-f0c650985e52","block_type":"box","text":"exercise prices, exercise styles (","page_number":68,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"d2b6949a-0984-4a14-ba14-c05ca007230c","block_type":"box","text":"i.e.","page_number":68,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"16758c1e-c45a-4c4f-a26c-5ecc5eb3429b","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":68,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"431306ec-fc9a-45d5-aa49-773cf63f4437","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":68,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"94494395-b033-4070-b29e-deae612d008e","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":68,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"2bce07a9-22c4-499f-bc50-081af5114294","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":68,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"1000ac08-8a7e-426a-bfe1-7c2c8e5f86bf","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":68,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"f1a3bb6e-b959-4048-be89-0a9ed9d1d166","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":68,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"05de4e4b-309c-479d-ba66-a932e2f4b4a0","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":68,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"8fc979c7-30d7-4177-b9b7-1d534dbd0b3d","block_type":"box","text":"FLEX Option’s expiration date.","page_number":68,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"73944dbc-522f-4954-9745-927a0e50d9fd","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":68,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"e770753d-5392-4889-81c5-915f61461414","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":68,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"ebea3e1e-cf21-42e1-a3d7-4d53fa60587f","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":68,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"fcaf59a8-1b38-4bcb-9997-bfb4c7ad4b51","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":68,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"5020563f-54f9-4fc6-b18e-2b07a3832f9f","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":68,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"af356727-d246-4920-b476-7b238b5ee95b","block_type":"box","text":"FLEX Options contracts.","page_number":68,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"9d144b24-6323-4159-96a3-f3dd34a47f6e","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":68,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"c5a5fdd0-a213-48cb-be44-600310c95120","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":68,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"6f66bb7e-98d0-4009-9158-203025f3dede","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":68,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"04e5814d-889c-4c16-a70d-899cc74b9eb2","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":68,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"8d1a4392-a262-4453-ace9-5f01bd9abe8e","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":68,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"279a505a-5ced-4345-82b0-0ce30e3257b3","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":68,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"c0276444-4fa1-45d8-b22d-749fd3d2ca23","block_type":"box","text":"II-22","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"94475359-4be3-4ce2-ae4b-1a3ef426a409","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac8d6452-9985-49f1-86f7-d9d4e4ea7bd9","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":69,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"6c2f355f-83b7-45e7-ba71-062e9adb316f","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":69,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"61a164d2-625c-41a2-af6b-110afad53947","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":69,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"1afd451f-48a3-4273-abb1-cd6291775462","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":69,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"2883f106-4f64-4150-993a-86f58a958f62","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":69,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"08458010-cf73-418a-bfc5-b87bf27d5376","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":69,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"5e2c90dc-1d6d-4517-80a3-6cad54852ed8","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":69,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"9b72413a-e8cb-44d1-b2a5-12ff02fb93e8","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":69,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"e93c9b18-5bf0-49cb-8522-2e1a6f5a5ba5","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":69,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"7bed9d4b-e8fd-4d1c-8bfd-03d224f7a624","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":69,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"b3f7fe19-e7dd-4281-941d-21a0c71fe5eb","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":69,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"4acc8653-1b58-4863-aa7d-a8157983cc61","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":69,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"614fa7b1-8690-4064-9263-bce7e18daf80","block_type":"box","text":"expire unexercised have no value.","page_number":69,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"7978bcc5-23f0-415c-b473-ea9028deb92d","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":69,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"83e2e30f-e14d-4fc9-b1b0-0c38ffce9091","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":69,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"a68072c9-9c9d-4401-89ed-340a72b8ed87","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":69,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"1ab79765-c572-45a8-94e0-c45a40426c94","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":69,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"60f6ffe9-0267-4aea-973f-2e9eb152f62b","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":69,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"f09e68e5-9bfb-4976-9990-ffd80bb2b954","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":69,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"5cf8d78b-0068-4cab-999d-93e69771385b","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":69,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"5855e9e0-42f4-41ca-bfc8-34692df05fb3","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":69,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"41b23c5b-1ef0-4904-938a-514275039c4f","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":69,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"2c5e5875-0aef-4b05-83f1-1cbeb2b62ca5","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":69,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"fd53e67d-7aa7-4119-8328-fed250d3779a","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":69,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"07ee3f37-fee5-4659-aa15-19417b00f12c","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":69,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"9d119b8d-761e-4f1f-af13-04d53c12ca8c","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":69,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"92f434cd-9804-4820-be07-93800c39e18d","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":69,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"8a4bb230-131b-4eba-b888-654746772c7d","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":69,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"1e254c7c-8df6-4988-986c-0da827fce787","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":69,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"c70ab613-9c69-43e0-8e8c-7cf485317ee0","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":69,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"967c2acd-f0cc-49a5-a092-f3d780f9f111","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":69,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"dbc30424-a76f-43e2-be4f-64d9c58ab4e7","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":69,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"1a510794-31f1-4f19-9bfe-a1150f02ccd3","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":69,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"e4f72974-ed6d-4a6c-b64d-68440b9fad3c","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":69,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"80c23a9c-f889-48f3-bd95-c9262821d855","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":69,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"611ba0d3-9194-4f9d-b80f-1d553ff7c0c7","block_type":"box","text":"Foreign Exchange Transactions.","page_number":69,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"f5773f0d-89bc-4b26-952e-e943dd519176","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":69,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"80224ff2-f819-44d4-a209-7b25347aa21c","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":69,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"e1a9aead-b055-47d8-be90-12539b394818","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":69,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"199cdc3c-f227-4c14-9e68-827a7fe26e46","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":69,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"7d76caac-9163-4fe7-ad75-ae1b28948911","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":69,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"450eb72d-99bb-4715-bdfe-b9af14873b71","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":69,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"5322e043-c538-490e-9ee5-b7a756be63d6","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":69,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"b217899b-be00-4f95-96f3-bae015bfd549","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":69,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"5ce96f12-08d1-4182-8469-e0865bcc9623","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":69,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"a14bf723-3aef-41d0-ae4b-7e806bf2ebfd","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":69,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"c4f1ab60-7372-422a-92a9-6e2af2af5cd0","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":69,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"1baf9cb4-24f3-4ef1-945f-41d56b95d54a","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":69,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"43781a59-da1d-43b5-95e3-c11763839472","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":69,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"63d481e3-d0b0-4dc4-9368-6220fc11f79e","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":69,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"eae8d80a-d736-4731-b085-f80087567154","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":69,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"5816622d-3b94-4123-8161-28ab8eac6fab","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":69,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"e0fa204d-765a-4fec-8986-0ea29a58ddd9","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":69,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"28438778-235f-4f28-90f2-2997d9fccefb","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":69,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"650cb3f1-9b64-4292-bd53-968a5646ea31","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":69,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"ee8dc117-8aab-4905-b58c-b032011d159a","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":69,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"c5887f74-f6a6-4729-a3b5-6584726bcd49","block_type":"box","text":"II-23","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6afd0ffc-4d3a-481f-8af4-76818f4cbce5","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6f65a9a-0dd7-486a-a208-b0f72ab42b9d","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":70,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"1ad21634-7893-4dda-a0f1-ee00ae59e023","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":70,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"7715a6c1-bbfa-4f66-a45c-9d0ad9ec8fdd","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":70,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"3854e4fc-22b7-4846-87d7-7c3e2876af5a","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":70,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"0ba5e2cc-4b0b-4dd1-9067-4c1686763bb8","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":70,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"2844f7b2-a0e1-4079-8a8f-912c5afe9863","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":70,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"433dd506-11e1-4261-a280-26c0639ab83e","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":70,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"e9c8a093-23ef-478f-a9b3-0e2d2a8fc3cf","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":70,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"dd4977b1-6c59-47cc-b790-6a984ac8527a","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":70,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"fcae0d85-8b71-4ba4-bd16-58603c5a265e","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":70,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"8ec2ac8c-a0a5-4536-a90d-269294d8f255","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":70,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"a218964a-85f3-410d-a4cc-4622d2ff06a9","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":70,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"1605ee50-e443-4169-8856-3c4020842980","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":70,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"c3034c99-38b0-4881-84d0-c85ae6218a86","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":70,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"4bbc102e-2468-4bfd-bcb3-a3d0ce296715","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":70,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"cdcae66c-d35e-40ce-bb49-84cbee6011c6","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":70,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"201dc19d-f33c-49a4-96b7-494d51382ab1","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":70,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"44f156ad-cb0c-4c0a-9cee-d4c1ae0989ac","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":70,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"dbdcf4ea-57df-4a95-a40b-4cd98dfd4209","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":70,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"09ac3e1f-e52b-4b29-8831-18eb7558b5a9","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":70,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"9bbeffae-2e77-4016-8ed0-9fd2ea17a80a","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":70,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"ea461348-b25c-4885-8704-e6b5a18ac88a","block_type":"box","text":"involved.","page_number":70,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"cd2a8fc5-8b18-4060-977b-74cbeb8cb6aa","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":70,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"d93a1aaf-c387-457e-9a35-a17cf2a992d6","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":70,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"24ddf1aa-f8cb-4196-8d3b-4f828a523112","block_type":"box","text":"denominated in such currency.","page_number":70,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"a49b0e16-8c53-4601-ab6b-5951f17e46ee","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":70,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"c8db084e-bd50-4365-a4fe-b4ead752d14f","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":70,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"0e15ea9c-5786-4baf-982d-42226c523119","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":70,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"90197ad1-3b30-4122-939c-d5c8b765b25c","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":70,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"2d97c558-651e-48a1-b03d-e3e6429adaf0","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":70,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"7d81b79d-77ee-490d-ba8a-0841c95ba4b0","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":70,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"ab31d693-2ffa-44b6-b9d7-e9676bf40998","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":70,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"b41ab3ad-1517-4d34-a041-c2486b937841","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":70,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"ee2dc8bc-c043-48a5-9161-4206b74cd0a3","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":70,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"2cf22b70-ee48-404e-99ef-b7c5e54551a0","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":70,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"32ec4b0a-e2de-49bb-a0d0-c1ca238cd607","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":70,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"e3ff26e1-20f0-4cee-9aa0-94bcdd02f0d9","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":70,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"39cfdd24-b984-4f80-bc68-e4dd37da75ad","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":70,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"06530258-1fdf-4e1f-a4fd-d6e39a41ba29","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":70,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"ee780f0c-2b7f-469c-82d2-f246c8e3b596","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":70,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"8fbea549-eb3d-4291-a06b-d88dc0fbbbae","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":70,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"9d821ffd-1e7c-45ab-8288-2e48a03911e9","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":70,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"64f26b42-2d06-42d4-9e25-8e478f51137a","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":70,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"2a77d416-96be-4f73-9aaf-a35261c93365","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":70,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"30ffeab2-15d1-4624-b4f2-bce0ce70b5bd","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":70,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"7a9352be-2b1f-42be-8087-0f6bd7a33de6","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":70,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"c1e094c5-e776-4944-aa87-eb87d9cab815","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":70,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"8490eeee-4def-452a-8ff2-911f3bd9134e","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":70,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"b087924a-1d2a-4586-a04f-6d9e937382d7","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":70,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"6fcf90f0-d0ed-4e87-a969-8820dc9b1449","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":70,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"ffcaf913-f623-47fd-9f73-23bac13ca0d8","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":70,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"78f4b6ad-fe50-4bc2-ba9b-78b1f18a7b6a","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":70,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"61ef5726-2292-4596-a6ea-2a8813e9aa6e","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":70,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"1f5fe66b-bd1c-4884-8e8f-3370a412b6de","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":70,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"2b7906b2-3b79-40f2-b188-a07fc293d10a","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":70,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"9269b875-78b7-4b0d-9ac2-5c4059772ea9","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":70,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"38e043a4-54fa-4478-b3d2-98a14c5c9132","block_type":"box","text":"II-24","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"258858f4-04a3-4380-8aa3-bff99b967e17","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f191e20-a5cb-45c1-9a88-e9ad6469a662","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":71,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"ce6d5089-124e-4866-bc3f-4dae3e96013e","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":71,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"52804938-be8a-4bd3-a40f-596d8c30ebe4","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":71,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"c475d734-beec-4572-9924-361f40adf570","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":71,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"0c6b3000-e4de-4b12-b567-616213b7a3e4","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":71,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"adb0753a-9c3d-48ae-af97-a9cd47b1575f","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":71,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"2fb91898-c3c0-447d-8277-ac491ddb761a","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":71,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"9773b4f5-d0eb-48c4-8850-c7f1a539b312","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":71,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"92212862-3a92-4200-bafa-a478d67c04ef","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":71,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"0649f9b5-fb34-46d6-bcb7-ca735c057668","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":71,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"a16e5e34-d678-487c-85c2-c64fc80a6a9d","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":71,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"dd5bec82-da0f-41ea-bb15-0d40a2049be4","block_type":"box","text":"traded.","page_number":71,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"00eda181-f854-4db3-a995-996a8e79d140","block_type":"box","text":"Currency Futures.","page_number":71,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"813d52de-cfc9-4310-93b3-8a9a10e11ac1","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":71,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"f87f3b03-09ef-48c6-8f31-e2392a559cf1","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":71,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"69c5cfda-9177-4535-84af-d68d58ee9995","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":71,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"b0b02cc7-a6da-4fdf-a0ab-0f0373f1abf3","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":71,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"feade543-71a5-41cb-9263-a98f69c044f7","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":71,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"16e00fe6-869c-43df-a1be-f3dc5974dc67","block_type":"box","text":"Currency Options.","page_number":71,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"5bf4d3dd-59ce-4900-a8f7-97ee5e7ac921","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":71,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"01db598c-2939-4196-bc57-1ae943aa6fcd","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":71,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"86f9a987-8692-4025-8ca5-94c88e194bd5","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":71,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"d63df838-50c5-42ac-9e2c-5c7f4621774c","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":71,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"ad40953c-efd0-408a-85c7-1ce1a0f4c6df","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":71,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"84fa3431-32c9-4eea-af04-9802e1467ef4","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":71,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"67bd30b0-1b08-4426-86d4-ab0fc812761b","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":71,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"8cb60204-1587-4a87-9ad6-b06e41bfb9a5","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":71,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"cb1ae20e-50fa-41cf-9dd5-db38c4e135cf","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":71,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"a3aa7d01-bb82-4a5f-ad5c-80cddbea6abf","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":71,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"a242f3ce-6431-439e-8d13-3dd9c8060223","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":71,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"ae81c165-8e30-446b-b34c-dd7f650d05a2","block_type":"box","text":"Currency Swaps.","page_number":71,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"13c3ddc0-09c4-4862-8efd-f7730d89bea5","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":71,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"46212e33-1862-471b-a04d-00b53470978a","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":71,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"f88ca70c-04bd-4da9-86f9-53b433618750","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":71,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"d1e975b8-3b8c-4e27-9c62-563d272acba8","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":71,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"3ad4a736-a599-4f60-842e-cabae494464d","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":71,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"c1b62949-8345-486f-97f5-8ce0ac02e2a9","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":71,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"a21186bd-b0ca-43d7-8b94-a5ca15be7643","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":71,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"c1ab1b1e-b9b8-4199-8e7d-9829789ba3d3","block_type":"box","text":"Distressed Securities.","page_number":71,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"8d31feb0-1efa-4d81-a245-aa0f8a1bd027","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":71,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"e035d7fa-7089-4217-a6b8-d4d41920bfa3","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":71,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"d0f5246c-ddae-4544-8938-ac234ffaf316","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":71,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"43fba387-e20d-4e68-b404-5a8c7b7a18ca","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":71,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"ee6399a2-9978-4af6-acae-56e3b2df5cc8","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":71,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"58c271c4-68e9-4ba5-9149-f53890eb3a94","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":71,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"d3ce6b60-d856-4a32-b82e-7e318c36abe7","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":71,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"aad20a97-05b7-49a9-9332-afb9cd7a94ea","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":71,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"2bd87cb2-625f-490a-b6b1-c8084f421164","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":71,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"587eb5ef-bab6-4c84-8a82-3bf0e0abdf91","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":71,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"1c7d4ec0-54ca-46f5-8d2b-ac8cc486c3b9","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":71,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"468039bb-5e48-4ea7-a93a-73dc8d7cc2cb","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":71,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"8549b3ee-082a-4689-9845-d1a4a03806f7","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":71,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"58b348e7-5027-41e5-a277-2026ed4f2535","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":71,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"19b3c42e-354f-4d40-b2a3-e0e3c29b4e55","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":71,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"ecd7a130-31f3-4fde-a125-c8d4afa8031d","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":71,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"8b5de56b-e46b-41d1-acc6-3264c8169f43","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":71,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"808eabe7-8636-4e6e-bcf0-84fd3eeb2855","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":71,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"b0eb0c2d-5fce-4437-bd51-c30a1ae826fb","block_type":"box","text":"satisfied (","page_number":71,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"171e0068-d73c-458f-8bd0-4da97120d4fb","block_type":"box","text":"e.g.","page_number":71,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"9c29446c-25a2-464b-9ac1-f1870f39bb46","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":71,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"7134a977-35ba-4f1a-8f28-24a461a69322","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":71,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"31301d3f-9e59-4031-9509-0a6e08344933","block_type":"box","text":"II-25","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76c78279-442a-494f-9cab-7aa277ae925a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad979332-bc81-4ba2-b25a-1f02b00977e4","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":72,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"0b8c624d-9923-4fd6-a37e-963c49edea36","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":72,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"f23f6a6a-f18e-43e2-8027-d4f78cc19d4f","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":72,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"ab131e46-9a35-4a9b-857d-77e565a2fce7","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":72,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"1a922ee9-41b5-4523-ae82-012de7ae4250","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":72,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"6a0926b9-0a15-483e-955e-65b7728486a3","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":72,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"1c8ee951-aad1-49a1-b169-584adc5f56b4","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":72,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"63940459-0e68-4e29-9992-dd0ecc66206d","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":72,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"b9411556-9146-4690-9c5c-9dd0e52df0dd","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":72,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"e8f837ca-43db-41b8-a8c1-4a18f878cabe","block_type":"box","text":"affairs.","page_number":72,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"c0a605bd-9d98-4fd0-9c17-e3546057cc3d","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":72,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"727ca42c-1cc1-4141-9179-62436e73d362","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":72,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"e2dedbe3-0791-44cd-83a8-5870e33b8159","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":72,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"2156be86-b9f9-41c8-9bd6-e9a101d21f1c","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":72,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"91f28759-17f4-4bf0-838a-cc50eddaa9d0","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":72,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"87231c96-3045-4261-99f8-08acbe8291bc","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":72,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"18833e20-da9c-4c98-83bf-c824c91a7aeb","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":72,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"43a65465-197e-4b61-b7e5-deeb2938183e","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":72,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"421a896f-6b92-4e42-a577-1ee7d0aa9751","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":72,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"44548f4d-e643-484e-a86d-c9861840d490","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":72,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"70d1e465-8fc0-420d-8382-0adf9fce53be","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":72,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"628ee43b-a1c0-404a-a13f-16c5379c6ff5","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":72,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"80b9c3d6-19a8-4e2b-ad68-8398b344554a","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":72,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"d9b1c33d-bff0-44e1-bf50-3263f080d47d","block_type":"box","text":"Equity Securities.","page_number":72,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"caef6425-fbb2-48f4-b81a-2798363a296c","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":72,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"6a80748e-e100-4af2-8677-1bcd7ebce5bb","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":72,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"e71a17f2-ab4a-403f-a8f4-2a67dcf3b2af","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":72,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"70e440c9-ebbf-4370-b78d-193aec63b684","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":72,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"44f79161-002c-484e-925d-774139973948","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":72,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"58c86694-c0b0-4540-a8ac-1fe5be9458f3","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":72,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"42fd6295-0627-4a83-92f3-70f5638a4038","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":72,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"53db246f-a183-4fba-9756-9f89beb0c1f4","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":72,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"b4eb415b-12ea-4fa8-8ebd-c984ce3e58fb","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":72,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"d351a295-db7b-480d-91c9-257c36d6f73b","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":72,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"b9581d44-7fe1-41f6-92ec-9c64dc1ea17c","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":72,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"d03755a5-dd61-47ec-ab4f-00da0779f7bc","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":72,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"6ed2b27a-e952-4135-980d-508498435836","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":72,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"1daf81ab-2d2f-4d2d-a377-ef30be75f1c9","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":72,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"bdf647d0-c68a-41ca-acd6-0e22a4f90c61","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":72,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"3ce3e543-ee65-48d7-8258-3c70c80b18ab","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":72,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"41aca353-e16a-4aa0-97c1-925f76d20a4c","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":72,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"5bbeee88-4c90-42dd-975e-4b0520710368","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":72,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"31c71cdb-eae8-480d-b0d8-dbb60c8679bc","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":72,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"2fe1910b-8507-4d08-a7a8-6fa9fe747a07","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":72,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"7a8e31d5-df0c-4539-838c-57c05bc4e76d","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":72,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"9359cff6-bef2-468b-9028-014416152cb5","block_type":"box","text":"initial public offering.","page_number":72,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"a1517838-80ec-4ebb-9d2b-6b684b611625","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":72,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"f870cda7-3f36-4b4d-ae06-dd3954abc486","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":72,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"c5056611-3843-4e57-985e-50d0cec10e17","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":72,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"35a0cd6e-84c1-47b1-a349-b54b90d502a7","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":72,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"060ae2b4-55c8-44df-a4e1-e622f02b5c48","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":72,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"10a005fd-14d5-44bc-a581-90b44dba0dbc","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":72,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"7bc7c9d4-de13-4539-b4ee-4f9e4bec77bd","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":72,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"b804b8cb-718c-4cc6-83d2-300c1c9b152e","block_type":"box","text":"more established companies.","page_number":72,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"1fb9a8d4-86c5-4e5d-b59a-0a033b4cfdad","block_type":"box","text":"II-26","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ec7b70e0-6d43-45df-8f55-8f3dd43c8f1e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e9e283ec-4e60-4db1-bf96-96374b10004b","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":73,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"3d2f262e-822b-4ad3-8cd3-8ef2b523472e","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":73,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"93efc635-0636-4a52-804b-c67aebe19275","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":73,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"994d7743-5ce1-4e3d-8b5f-67e543464d57","block_type":"box","text":"below.","page_number":73,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"87556506-c96a-4ac7-99fb-010bf89047bc","block_type":"box","text":"Real Estate-Related Securities.","page_number":73,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"c668e5ab-8b48-4979-9445-375de7d6234a","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":73,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"6bda60ec-9647-4e81-82d0-a39d85dd689c","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":73,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"6127529c-c573-4592-87bc-ab027aa69d10","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":73,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"fba7a5af-f854-4daf-9b00-0d5359da9be2","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":73,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"02aa2e07-d5e0-4250-9809-d6e3eb02f753","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":73,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"6b99ad40-c3d3-4606-91fe-08127666098d","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":73,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"dc7dfa73-e7e5-4df0-b169-eb31f68b5544","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":73,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"8cec2acd-c8f4-452f-aa01-52a00bb133e0","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":73,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"80a6456a-7ebf-48b5-b41a-65fa8490275c","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":73,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"18764834-a8c7-4631-a8e8-973d06c47b95","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":73,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"42db17ab-743e-4cb2-ac5a-ee1c394be43e","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":73,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"c1b25761-fa41-4b47-b246-e309aecf3b05","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":73,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"8fc4cdb2-5818-4d77-a032-2013ca1869a8","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":73,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"abf4ac40-298c-4381-83f5-ed9ce4e44169","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":73,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"84625ba7-344a-4471-940b-9b2909cff5e9","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":73,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"57b3537b-32af-4ad0-b46b-fe9b5a3f69eb","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":73,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"d7ad76d3-7d6c-4bb4-93a5-ae09c27677f3","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":73,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"af4678cc-9eca-4e9b-bcd6-341c9b38a78a","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":73,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"5a608304-49d3-42b7-b92e-92817aa8912d","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":73,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"d7e27f8c-ab49-4390-8c14-2dda65f6d1d0","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":73,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"b636fb3f-67de-4d0d-ab9e-0b6ef6de094a","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":73,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"9624f9be-7a52-4f70-8550-eec38d352e90","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":73,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"ccdb78b1-aa64-4d07-89dc-243754ab8d43","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":73,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"6d2d3cc7-479e-4802-ba63-e118e5cdf92b","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":73,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"fcdc35b0-35e4-4418-885f-f27789d1bb85","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":73,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"bc6fdfee-7b15-40dc-8be4-0698891389b6","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":73,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"c182b93d-90ba-41a6-b73c-ae319d70d849","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":73,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"1f9d0cd4-3757-4cb7-a8c9-25090d5ad420","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":73,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"a8747fcc-b334-4c0d-a2a4-d46bd8bb1830","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":73,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"2f8ebce9-8483-425c-8bed-77399b60765c","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":73,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"6c00299a-30a1-44a4-98d4-300137fb7e80","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":73,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"c974c040-672c-4053-be80-be6b969dd135","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":73,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"63e7eeb5-3d50-4b9d-adf9-fbf2ee296f8c","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":73,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"cc538375-61ed-433d-8db7-c62857b030f3","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":73,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"34e7da5f-2ee0-4bcb-88d2-b704912c8a7d","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":73,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"eb741d0c-137b-43e5-b4e3-f2eab1c73a26","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":73,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"7df1843e-a57a-477b-8e19-a0383a4751da","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":73,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"1cf3c54d-42e9-4ba7-91dc-8185cf93ad9f","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":73,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"d3b6b0af-b899-4511-aa12-cb82bec864d6","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":73,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"1deb366b-15e4-45c1-a281-8cf04fcf9d4e","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":73,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"aa609292-1c62-4451-ae9e-e1d02046940c","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":73,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"73a8a270-cc03-41ca-a9ec-298496f1ff2e","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":73,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"519055ac-f1e0-4735-b502-05ad2959712b","block_type":"box","text":"cycles.","page_number":73,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"82b735ba-1451-4d6e-8b94-d4bb04c1a42b","block_type":"box","text":"Tracking Stocks","page_number":73,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"99b246e2-2b31-461b-aa7a-f689103ce429","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":73,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"d405d2bc-448b-44d1-8347-7168a2f1f762","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":73,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"0ace019f-1ec0-451f-9e88-2bc618353f94","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":73,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"9afdbb40-3fa5-4431-912d-6f9f796fc042","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":73,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"2aa0806f-d02d-4fdd-ad10-66a2b3803b94","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":73,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"8f02ae42-c945-4718-aeae-0958daa41881","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":73,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"2316316d-7883-4a99-8c6a-5accf1472c27","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":73,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"63c73fb1-032e-400b-b7e8-5e1514c49693","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":73,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"78380afa-d94a-421a-b6af-9bc94a7568f2","block_type":"box","text":"II-27","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"11eb937b-e4af-4d48-83d6-ff145210d8a2","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"96db7652-390a-4dc8-b95b-9bb8c67a3ae4","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":74,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"4ee1e1fc-3914-4461-a2a5-2ae8ddcce66f","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":74,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"a91ec29e-44cb-481c-8584-87fa727831c9","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":74,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"198942c8-4598-43ba-b47c-df9a2d4b65b3","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":74,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"fc4ca28a-4410-44a9-839e-07c9ee085360","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":74,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"fa5b8611-b661-43bb-b3e9-b88aa210e63e","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":74,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"dd8bf7f6-153a-4141-86ae-e66e688f7f19","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":74,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"aa653ea2-57fd-4a04-8cba-314b23eca866","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":74,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"f8943e61-2a29-44b3-b92d-cd4b1537d95b","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":74,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"b42fddae-d877-435c-b7c8-0bd46d3340ce","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":74,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"5198fefd-0d2b-47f1-b2d1-4c9859f9a569","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":74,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"fbda49ff-317c-4aa9-b291-1da9799aa8d1","block_type":"box","text":"ETN.","page_number":74,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"bdc298cc-f147-4b8c-8cfc-618a206520a1","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":74,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"924b1b6e-6e78-47fb-94d9-be3cb9f7a382","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":74,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"0365e90a-6fc8-4e44-b4f7-143f606f37aa","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":74,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"6e6abad4-85f3-4f04-bf3a-27778d0d04df","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":74,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"329261b4-21b3-4c3d-a422-28249259a86a","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":74,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"985c2f3d-7c65-47b9-a663-c86da61d9b03","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":74,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"487422b8-ca53-4101-84dc-cd746bf78adf","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":74,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"29bbfd3c-b3f5-41da-89b3-3e0c010dbbd7","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":74,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"3141d8b1-7587-4fd2-aa01-f4bdd15abc71","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":74,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"e8c60a68-98ef-4478-94af-7e763e479f43","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":74,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"e935938c-5a09-4f80-85bf-308738a34f4d","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":74,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"dfec7bcb-2c93-482b-aca5-40cb12e45c1c","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":74,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"94d33fff-f664-4cd7-95f8-e68fb52c7559","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":74,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"a1255c29-0597-46ea-bfc4-93b5cac32431","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":74,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"fd5a5a59-3798-42b7-88e8-1d4b5f8a00be","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":74,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"94b52f1a-f147-4603-9410-b11341c6da22","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":74,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"030328d4-1237-45a0-82a1-7e9fade463db","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":74,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"ceb8ec8a-aa94-489c-9806-bb39f99f7fe5","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":74,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"7b7b3c69-a87a-442b-808a-8e1b2e0367ba","block_type":"box","text":"Foreign Investments.","page_number":74,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"8a04a7a0-1bff-49a0-bcac-36650b4a0590","block_type":"box","text":"Foreign Investment Risks.","page_number":74,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"5c560b8d-365b-41e1-b2e2-609cf025f1fe","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":74,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"bca56644-5636-4f9d-bc6c-5e82e9262e4e","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":74,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"acb98ab8-9269-4b2a-9657-8de7c17d5bfb","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":74,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"ae7d4aff-24f8-42dd-aaab-574fee6d823d","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":74,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"1e91ea0a-3cbb-49c1-91df-0f138b7f7f24","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":74,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"75d27c14-1837-44f2-bf45-ad50e3d61d95","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":74,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"abcd6fb6-8c0d-4179-8bc5-cd0fb905831a","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":74,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"551862be-a394-4efa-ba67-7747771ea0ed","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":74,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"35205cde-def5-4736-8203-4443b9bc967c","block_type":"box","text":"benchmark index.","page_number":74,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"e05cfaef-4ca8-4d0f-a4e4-d0989cf115cf","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":74,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"32dac554-6bfb-4b56-8bc0-68cebd844856","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":74,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"c8ed3be5-030b-4442-b837-2015f08e1530","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":74,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"f732e7aa-7c5e-476f-a963-86a3f1bf336c","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":74,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"a5dcca19-5767-40be-b379-12a77788839d","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":74,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"e8a88712-d30c-421e-85ed-5f2240f0542c","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":74,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"b13538c7-f5c7-43f0-8f99-736770e6fc7c","block_type":"box","text":"securities and zero-coupon securities.","page_number":74,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"53239eb9-8d4d-4e61-87a8-aa657f51597a","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":74,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"958ef786-7921-403b-9a1e-c5cb68b072b0","block_type":"box","text":"taxes.","page_number":74,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"8b5681c6-3156-42d1-81fb-e61a349da31a","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":74,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"93c5b2d2-ce77-4c1b-a3cb-05f882d8b4b1","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":74,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"abf1df96-76cc-4cde-a369-f3ffafeac7b1","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":74,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"036da4d4-1339-4ac0-be80-bb65b0d2e6bc","block_type":"box","text":"II-28","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"baaf5873-abac-484d-8d53-11b210cc3ade","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fdc666af-b72e-451a-87c4-988c801b0f2a","block_type":"box","text":"underlying security (","page_number":75,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"5edfe260-e6b0-4461-b058-8ef08c099f2a","block_type":"box","text":"i.e.","page_number":75,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"8c143860-402c-42a0-bfa2-556bf870e33c","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":75,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"f2d36edc-16cf-462f-b054-3c7859e4af20","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":75,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"92902a91-4c6a-4f77-98ef-f115d7b799a7","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":75,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"1a74deb6-0af5-4ec4-b14b-6bfc6ee66c68","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":75,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"007264c9-cde6-4837-bc32-8b3ed3405123","block_type":"box","text":"Foreign Market Risk.","page_number":75,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"e44f835c-3f5d-46e0-90c3-2dd51c8765d5","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":75,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"bd522f6b-2d8b-48f7-bd94-ac9303384f68","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":75,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"0f2b899f-98a7-454d-bb11-9f05d962b15f","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":75,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"ff0513f8-3156-4113-8818-9ebfbaacf642","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":75,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"e6dbb67b-bdc4-415a-9428-32bb47515022","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":75,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"d89e0bfe-2163-4060-978c-22be45211596","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":75,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"8b850860-fc14-4b40-aea8-0289a365b655","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":75,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"441439ce-f4c3-40e4-a7f7-b7c718b2e6c4","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":75,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"dae6f3bc-137e-4074-89be-5564fb82d726","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":75,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"7cb01dc5-9b4b-4f59-8d22-4736431d14d1","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":75,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"2d22ef2e-d263-4bfa-9a88-683fadc2f027","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":75,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"7f3458e9-fbdb-4ba8-ad7a-fcc192e63afa","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":75,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"1eaac9ca-b0b3-44b2-a1c3-68f19959cc82","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":75,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"91852daf-9ec0-4854-a9bf-d88ecc6b938d","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":75,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"7283a421-f7b6-4e2f-b715-45beb45e62ea","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":75,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"5e7ad624-d840-49e8-be11-f0260a743303","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":75,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"1254cff3-3e40-452c-ab6c-f067687f0fb4","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":75,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"7e37561b-f357-4687-a86d-b5bf6b574476","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":75,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"051b4124-9654-4f07-bec4-767cf0c45a95","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":75,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"a68d3ad8-9387-47e5-aa29-f993df739791","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":75,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"63343139-c35e-4241-a7b4-7eaa79ee15a1","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":75,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"0e6ccbec-763e-4239-b5db-6afe8b2e2866","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":75,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"ae712f79-a657-44e9-9f00-a871e1705160","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":75,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"edff381d-cfc8-481d-8c27-7cb214e062d0","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":75,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"03205d02-7853-48a8-8ec5-bd0e2e18380b","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":75,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"f7de7d7c-360d-4837-97f8-808224fb2d91","block_type":"box","text":"Fund’s operations.","page_number":75,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"ea929171-3f34-4a9b-82cc-7f4a31c38737","block_type":"box","text":"Foreign Economy Risk.","page_number":75,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"b6c30b02-d06f-4cb7-899d-f33944d07265","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":75,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"7ae80e20-5f3c-4149-b77b-cf3dce2086f7","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":75,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"21245de5-5c4a-4286-ac51-ee8d7febe7ae","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":75,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"634bda8d-607c-4099-bb6c-8544959d7db2","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":75,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"b3868f1a-435b-4b82-958f-d3f03a128554","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":75,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"566d69c9-517e-4cf0-9c87-e69603a0c3e3","block_type":"box","text":"measures.","page_number":75,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"de48c386-d171-4494-90f4-63c9692ce8b6","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":75,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"a076b34d-4735-4b9c-add2-98b1e97028c1","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":75,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"e26d96f7-0254-4428-9700-8f642debd1a7","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":75,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"68808f1d-16f5-4116-b890-b8c3de476972","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":75,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"12014f62-f39a-4cdb-b2b0-e635388c3e1e","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":75,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"ec12adc3-4191-4c19-94c7-bc5a402c5d62","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":75,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"10647880-4f5c-42c6-a361-0e8928c45d61","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":75,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"af161eea-4c17-4f1d-a80b-26c296f93941","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":75,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"9bb69c3f-f601-44f4-bdef-332b4d1e0a5c","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":75,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"7a02caee-9c0b-422e-84d4-a2afc2f00540","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":75,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"dbdeace5-6599-44a0-a2e6-e13278d86f20","block_type":"box","text":"United States or abroad.","page_number":75,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"ecbb414f-d113-419a-92b9-e8dfcedb8549","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":75,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"dc06307c-d48b-425b-ae93-c4a4ed15facf","block_type":"box","text":"Many foreign governments supervise and","page_number":75,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"abd811d7-9214-4f20-965b-63cacc2ad7a8","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":75,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"68e31205-193f-44f5-8f49-49f12b60a3ad","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":75,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"6d3c13ef-be30-4d05-82a4-51f7746af759","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":75,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"b6756784-be8d-4a4c-aa13-c69042d8d888","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":75,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"9af90176-79c6-4f04-9659-6a8847d03919","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":75,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"0cfb5154-b069-4989-8fc1-620657c0ccec","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":75,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"e6270d8d-0ff9-426b-a330-5d925250e93b","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":75,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"0d34f25b-324f-4881-bd1a-16493129670d","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":75,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"f208be49-f0b2-4ba6-af1f-fcc4f71e2b05","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":75,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"3bb02683-1a88-4baf-9f8c-98b177094cea","block_type":"box","text":"II-29","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80c1cf26-694c-45d0-b0ec-89754e2178bd","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b7b27e87-5917-42d5-a542-045da9e18f9c","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":76,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"48cf13c5-8e46-4af7-b4b3-2e6cb03dd673","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":76,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"4383eb5b-a119-4df6-b57a-a5c76d94d65e","block_type":"box","text":"investments.","page_number":76,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"b9d1c766-01b4-4272-974a-58ae24e571c0","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":76,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"3f20b14f-b03b-462b-838c-f200480e9498","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":76,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"a4fa0433-e7c1-45f6-ad24-cbfbde97ef64","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":76,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"95083840-740e-4652-a914-fe8dd56f261c","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":76,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"41400775-516b-4f06-8fa0-d8661a2f7685","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":76,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"0b8ee7ae-2d97-469b-a77a-6a28ce9c80c3","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":76,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"1af490c9-ecee-4100-93a0-16bca709b0bb","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":76,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"c7c45ad8-6957-4217-aa49-7c12477e3ab9","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":76,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"95bfae2e-6a6f-4e1b-bbfc-183c9d3941a2","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":76,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"97d942b4-5444-4e2b-b729-c8fb2a5daf9d","block_type":"box","text":"States.","page_number":76,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"619095f6-4868-4f66-9724-102a75067888","block_type":"box","text":"Publicly Available Information.","page_number":76,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"8264a019-0916-419e-bbbc-e7456eb4d4d5","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":76,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"dba7e093-f84f-4fdd-92fe-f76ead01b655","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":76,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"c9dc54bb-04d8-4a6d-98bd-0b82745b699c","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":76,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"6cc0a24f-11b3-4d68-b3ae-f74a830245c8","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":76,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"f7af1649-c477-4e22-b55f-f3dabb3efded","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":76,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"c5fe81cc-c274-43c9-a1f8-02104345c2fe","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":76,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"878b0fe3-c599-4ebe-95c6-dc468b07e41e","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":76,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"67473ad3-8414-4c52-be87-823794b25496","block_type":"box","text":"United States.","page_number":76,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"b185ecd5-21ba-4ed5-88f3-723c4736cbfa","block_type":"box","text":"Settlement Risk.","page_number":76,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"7cf9fb1f-c4c1-481c-a481-8ae325bdef5a","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":76,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"c475857a-df14-4b4f-8564-0cba7891c713","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":76,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"bcec19fd-a0ba-4fd4-8ebe-f2dd1c08b883","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":76,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"edf07e51-3dd0-4492-be51-5bf40d08a42b","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":76,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"5a58353f-e11a-4753-936c-bf2ea44fa5c6","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":76,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"6310993c-c0cd-4f2f-a4ed-f72627450a90","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":76,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"0cb07b91-2807-4a94-a66a-ab2d762438d8","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":76,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"09429902-315a-40ba-8660-1d97e3f745aa","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":76,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"372dfc9c-c5fd-46c1-81bc-8ba15cd20aa5","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":76,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"ff9b2bf2-6d7c-4974-9f9f-7eea353845ed","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":76,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"77d751fb-28f6-47bf-921f-f801a2c89c45","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":76,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"21603215-9313-4b45-af46-f5ad6db20fb3","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":76,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"8389856e-1ed2-43db-954f-7f1b58b084fc","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":76,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"3d590a57-face-487f-bb07-e17b0d061d1c","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":76,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"2faa3cd8-69ea-4b9c-a0ed-394c037e2fa6","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":76,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"7bbaf002-3508-411b-a805-88b4d1981c89","block_type":"box","text":"Sovereign Debt.","page_number":76,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"5ad1511e-884f-4148-b650-6342b150ceb0","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":76,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"2ebf7850-4e0c-4fd3-8e48-7c6d4fc8828a","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":76,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"7824b01c-f0da-428f-9e3c-77a73fdadf14","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":76,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"7ca2bc18-db12-4545-ae45-908b376e023f","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":76,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"cdd5f71b-874f-446c-8ea4-9b7e52f94113","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":76,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"4808f2d0-4d8d-4784-8202-ed576be82a8b","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":76,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"2c29503a-305f-4def-b6fe-2aaa5f1167e6","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":76,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"33e20382-7937-4f96-9788-82f0ae858570","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":76,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"3b1c6c06-3f18-46de-8e92-c35c15d33d5d","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":76,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"6e8cc13d-7d7f-4e53-b9bd-e2b2eb73b323","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":76,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"6bb597c9-b05c-4fd8-ab22-b8bb6d10cd9c","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":76,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"c90b4020-ef76-4a1d-9806-ad227a29dbef","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":76,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"da05238c-ba08-4f3e-ad2e-b4833ff98096","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":76,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"f2438f00-c6cc-4c86-b2b4-6beb20375603","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":76,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"6bbee436-af10-47e6-ac37-e785e13efad3","block_type":"box","text":"debt.","page_number":76,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"9d0187d2-8dc4-4ab4-a6d0-2c84658fce9e","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":76,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"d9042ac7-b367-4f8d-8840-106cc21bbbf8","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":76,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"1691f148-b55e-4bc4-8d01-9a57302c2f64","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":76,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"e8ed8f13-fe24-4bd5-8718-3d8fb793b40e","block_type":"box","text":"II-30","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1ca2b818-3ee9-4e54-9d37-b1a7fa617865","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e9be8e9e-fe56-46bc-a681-f8e49609377d","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":77,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"85d62122-6796-47c2-b9a1-d932119f10c9","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":77,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"0c3af7aa-0c16-4b58-869e-bff3bb143815","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":77,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"88f5432f-509d-4412-bd52-4bba09b1e5eb","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":77,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"2a2bae2e-96d5-46bc-ac95-f37446f0e579","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":77,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"d1067b07-793f-45ff-9d1e-a6f0f431eed6","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":77,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"45691385-c062-4315-8dab-bace78048f73","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":77,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"0d0e4ceb-f895-4e01-b75b-8ace92272343","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":77,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"0183e7da-69f9-4f52-bb47-47029d0b0f94","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":77,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"869047dd-bbbc-40e5-9400-9da311a4356e","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":77,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"f67d7749-3bbc-40ef-92d7-4ba148746261","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":77,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"c1c816c6-7af1-43c9-a680-5816d2d5238c","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":77,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"7129bd36-913c-4bde-a721-328b381e4155","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":77,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"e453aed2-d272-482e-a326-c2c855b73739","block_type":"box","text":"in the Fund’s net asset value.","page_number":77,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"06d230fa-5b22-44fd-bc1e-7c67fc26acff","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":77,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"36da9ea0-a0a2-4580-b6f8-7bd287ff3453","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":77,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"38ef6234-e390-4f61-bf06-875132c42552","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":77,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"225338b7-706a-43fe-9cb9-a961cb713691","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":77,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"8ebe91ef-0b70-48cb-8514-06e268585f1d","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":77,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"657dc9cf-9aca-44ec-9388-b01b36ccf563","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":77,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"fb9a8232-f44f-48ff-a98f-c0de7d57caa5","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":77,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"d5c0a07f-35c7-479a-8274-f9e85f2a7d7c","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":77,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"0de9b7f3-d20a-46ed-8b74-fbb16499be5f","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":77,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"5670ed54-71ba-4f5c-b6cf-dfca048d55f8","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":77,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"48664353-aa13-44b9-a666-77ee55da5c79","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":77,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"47471935-fd11-4747-b5fd-63176947f321","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":77,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"4e9e48f9-6fa4-434c-814e-7dc0f4d8a98f","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":77,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"7f4c28cb-d905-4d8c-a819-7f85496ee5a9","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":77,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"503e052d-b4c0-474d-a62c-04f86067dcfd","block_type":"box","text":"Fund may invest.","page_number":77,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"ba1ec81e-c4ef-4d3b-bc4c-82464facc4f8","block_type":"box","text":"Funding Agreements.","page_number":77,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"3d60e8b6-27cf-4e09-acdf-3a8aee29cce2","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":77,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"4ba19c58-3846-45c4-b26b-e8fcfb0403d5","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":77,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"67fcd197-07e8-498d-9214-c926d4b41484","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":77,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"51688a7f-4998-469b-8167-db56545858fc","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":77,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"5e22a133-6756-4c6c-9ee8-860d79e195ac","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":77,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"2ffa2dfd-4a45-4d38-9250-840fa9fbe52b","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":77,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"6bfd68f3-2c41-4d85-b7ce-28640a1fbd31","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":77,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"e893ef3a-5d79-4667-bc5e-704edda4daf4","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":77,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"501a55da-fd3d-4771-9cf3-be8655f78252","block_type":"box","text":"Guarantees.","page_number":77,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"5962165e-fc9a-4e9f-b18e-5be701ab5871","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":77,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"9fa35014-0695-4b21-8cd2-2860c293d0fe","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":77,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"ead2cd84-1828-407a-9061-c263836702d6","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":77,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"0de95221-9f9e-4947-bcda-6e91de7f77ad","block_type":"box","text":"Illiquid Investments.","page_number":77,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"108f2d3a-9cd7-4e42-a57b-be300b8c491a","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":77,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"0939b5ee-5355-4256-a65b-ec440da866f9","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":77,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"63b442ed-16da-4bad-8756-1ae5b33e6f18","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":77,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"5898a83b-c4a8-4bf5-844e-75b95e7e2707","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":77,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"036dbb5b-268e-4e02-95b5-4594d86901c1","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":77,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"e28d741a-55b4-49b9-8942-8d22ab4d5d01","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":77,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"e6f65728-a674-4151-93b2-5a7285cb1a5a","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":77,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"c0b17867-0631-4ce1-b7f4-a7ea4e536c06","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":77,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"223faddf-27ad-4cb9-9f02-4bd4e430f26a","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":77,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"0e331711-5545-4d3e-aeb8-db501b17ac6c","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":77,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"38cfe438-4f67-412c-9e97-3f4cf196ae69","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":77,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"fdff00ce-e12a-4bc2-b0e9-9c3cfa363467","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":77,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"56c2c63f-93d9-4c0e-be32-c53873db71e4","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":77,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"5354eac0-2ecd-4443-8885-9b0521140c7b","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":77,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"136ada47-4a2e-4c7f-adc8-50234be20d9d","block_type":"box","text":"comparable liquid investments. 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The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":77,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"9ea6234d-4b9d-4338-92d9-50adcf59451c","block_type":"box","text":"II-31","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b078483-a112-4347-a753-75abea7a7496","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d57b5024-d597-44d3-9070-e2668e2a546a","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":78,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"9e1b1128-dfa9-4f9c-bd49-7ba1c14d910e","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":78,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"e750ee88-2f0a-49a2-9dda-5328bbcbd7b0","block_type":"box","text":"Index Funds.","page_number":78,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"eb3bb95f-1f45-4f45-b0b9-cfa119f8d7a9","block_type":"box","text":"Cash Flows; Expenses.","page_number":78,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"355a049c-94cf-424c-98f8-9472b79c7e02","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":78,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"fbedd10c-dab0-45ed-ae8c-460568b9680f","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":78,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"664ba9cf-b5ae-4024-940c-1c5b726ca82e","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":78,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"aee46d00-1de7-463a-9a4f-e542ac6bffcd","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":78,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"a3c6662e-9488-435d-a9c6-ec7d8491d356","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":78,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"2b52f143-4f27-4549-b694-fa6def36799a","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":78,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"39d8a570-32eb-4382-997d-ba6ed36e397e","block_type":"box","text":"(","page_number":78,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"1174063f-e05e-4073-9350-7593bb08db5c","block_type":"box","text":"e.g.","page_number":78,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"177b285f-7324-4471-a94a-ac30fbfbc732","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":78,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"83724955-e26c-411d-a4cf-32f157b3d97d","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":78,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"09206cd4-bcdb-42fd-a820-f0641b9d2f93","block_type":"box","text":"par ticular security as an investment.","page_number":78,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"feba63b1-964e-4ec4-9ecc-ee6f81f6fa24","block_type":"box","text":"Tracking Error Risk","page_number":78,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"3ade2a66-161e-40c3-834b-5d4510295751","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":78,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"306f4d62-566f-48fd-ab2b-403dacf19e71","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":78,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"54a73205-487c-4efd-b35d-e2e34dd14982","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":78,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"7599bab6-71d0-4041-8528-4932ba3708c4","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":78,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"05b77713-47f0-41bf-8994-025404c4647d","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":78,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"118aabc0-0dec-413b-985f-ef14581bd541","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":78,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"72b59c3f-3e1d-495c-8276-0f40c23a6600","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":78,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"bd85d9c4-14b2-4779-9a5c-55b7f78d9c03","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":78,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"82b33097-61f4-4cca-9bd5-37586941b22a","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":78,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"dc94ae46-9f3a-477d-95ea-c177977f1134","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":78,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"b381d860-8614-41ce-876f-43af28d26d67","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":78,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"42e310f8-5c60-4952-a876-2c97493d84fc","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":78,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"f51b9f62-c6e1-4499-bf42-79529eef56b8","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":78,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"5a921d2f-9bf0-4b16-91d7-1a9af07ea4f2","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":78,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"74516e88-a1f5-4f61-a158-ff6804ffa46a","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":78,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"3dd8530f-bec4-4110-af85-e2eaf4384492","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). 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If the securities continue to be included in the index, the Manager may underweight or","page_number":78,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"14a94b8e-b731-4367-9435-7ad160fb6d0b","block_type":"box","text":"exclude such securities from a Fund’s por tfolio and, if it does so, such Fund will be subject to increased tracking","page_number":78,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"86e85caa-c207-4366-b3ca-f93446675c72","block_type":"box","text":"error due to the divergence in the securities included in its por tfolio from its underlying index. The application of the","page_number":78,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"8e15b37b-f73f-4b81-b20a-0f0975d4f6b7","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":78,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"f6553523-3202-43a8-9d8c-3669bd762830","block_type":"box","text":"and its affiliates (without any guarantees). The analysis and screening may not exclude any or all high risk securities","page_number":78,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"a3c3fe2f-69db-4291-aa18-b68613fa7160","block_type":"box","text":"from an Underlying Index or a Fund’s por tfolio, and the inclusion of such securities will result in an adverse impact to","page_number":78,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"a686ccd7-dfb5-4988-86e9-2facf3402b4e","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":78,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"f1566299-8db5-408a-9e53-28a6c497999d","block_type":"box","text":"S&P 500®","page_number":78,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"01b70bea-6d3d-4589-af39-17434e7e4a5f","block_type":"box","text":"0®","page_number":78,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"19d2275b-26ad-49bd-9f25-2d839d07d4ae","block_type":"box","text":"Index (“S&P 500”).","page_number":78,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"8123af5b-6f1d-4c42-86c6-813d2412811b","block_type":"box","text":"“Standard & Poor’s","page_number":78,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"f3d1b582-0f1d-4b38-97c8-5e9463439c56","block_type":"box","text":"®","page_number":78,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"f9085c72-77f7-4b14-8d28-df81ddd7dbdc","block_type":"box","text":",” “S&P","page_number":78,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"f796176e-b673-4700-b73b-4342372c529d","block_type":"box","text":"®","page_number":78,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"47d7ca1a-187a-4a19-b313-e2fe182b99aa","block_type":"box","text":",” “S&P 500","page_number":78,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"74f0fa9e-384d-42c4-a39b-d33e291ee7ae","block_type":"box","text":"®","page_number":78,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"bf5114b5-4c0f-40f4-b6de-60aa8c8118ff","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":78,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"fd3591a9-0790-40fa-90f7-f45e43c8e1f4","block_type":"box","text":"are trademarks of S&P Global Inc. and have been licensed for use by cer tain mutual funds sponsored and advised by","page_number":78,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"b645a216-29a0-479c-91b4-0124dd60766a","block_type":"box","text":"BlackRock or its affiliates (“BlackRock Funds”). 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S&P makes no","page_number":78,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"3d2e4018-7fca-46c3-80e6-e0887e607e03","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":78,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"009d2b58-42b2-425d-ad43-51341ace9590","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund par ticularly or the ability of the S&P 500 to","page_number":78,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"417abf2e-500f-41c0-8543-f9e436a1bfe8","block_type":"box","text":"track general stock market per formance. S&P’s only relationship to cer tain Funds is the licensing of cer tain","page_number":78,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"3148d996-d3df-4167-9984-317a34bd0f14","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":78,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"2197c0e6-bdf8-4bb5-b227-a8dda517675f","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":78,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"12d3d80a-f19b-41b3-b7bd-6b02b6e85582","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. 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A Fund may also invest in so-called “inverse floating obligations”","page_number":80,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"f4d0cf99-8365-4636-9cf7-35aaa152fda1","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":80,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"bcba0757-bea6-4bf3-bd16-f558f9343f80","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":80,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"99c4657f-6ab7-42e9-872e-41bed795f7b5","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":80,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"a9d7b5be-a86e-4950-bfd7-358f5a86ada7","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":80,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"d770417b-23b6-4d9e-a9ba-0cab3edefe98","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":80,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"84ea0870-1236-4562-a605-1b733e81b2ec","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":80,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"e9072df7-0764-486f-9e9d-9ee254e13851","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":80,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"8dfa8bb3-2229-49b1-b160-37fcb48cf069","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":80,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"ec60d831-af3c-4372-b243-b6d0a9e68afe","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":80,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"485ea56c-bffa-4269-8aa1-9e5433c59051","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":80,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"c24ebc16-8fcd-403e-9dd4-ba2702c45451","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":80,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"4e60662b-9075-45b3-9db1-85a29aac5c4c","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":80,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"5e3ad2ea-fd8d-4277-8c03-5b1f6c7b4ec4","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":80,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"1e855526-20ff-4464-9f59-d7a4e35601a1","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":80,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"f07101b5-391e-4210-a0f8-4f8152381131","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":80,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"99128309-043a-46ac-a535-a5c2ca7432c6","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":80,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"e96efea1-0af7-4d79-9d40-a1014c3550bb","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":80,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"6e462a3d-6e85-4fe7-a111-e5368e2e1199","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":80,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"a3213eb6-595d-4f40-a30a-ec5efa610da1","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":80,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"84e4305e-29af-43fd-8317-89ca591bf04c","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":80,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"47e29e91-5b29-41aa-ae1a-a440ee65a601","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":80,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"21a27321-d363-4145-9a92-a96841cc2e92","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":80,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"cd0f2c1a-c3e4-453a-8d79-83ae3ce0bb6e","block_type":"box","text":"Inflation Risk.","page_number":80,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"1efbce51-7fa5-4f46-91bc-6fc4071318fd","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":80,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"5f678065-089b-467d-9615-b29c8b8ab1d3","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":80,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"03475d23-1829-4f3d-94e0-16965e4ba065","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":80,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"25e9aa3f-9e38-4a50-b08f-41351d7bb99c","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":80,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"c9db30c7-e263-4bbd-94fa-08894c3cd3e0","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":80,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"bdb3fd82-2bea-4d60-803f-22e8bd5e710c","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":80,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"3ffe2f35-b727-4b62-ab33-d19c9a441ec9","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":80,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"9010829e-5dad-4fa9-b23d-c39924dc472c","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":80,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"520603f7-5028-4401-bd02-a8597d669130","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":80,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"0c3431e0-e762-4dce-8961-71df115a00bd","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":80,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"18ccf47f-af99-4b1c-b97b-93651a68986f","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":80,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"01778daa-4a8b-4deb-8e8f-b1a5dde71cf0","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":80,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"ddee7e29-d2e9-40c4-a293-bff40190a8b6","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":80,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"82b190bb-d018-49ce-be50-7ac611e79979","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":80,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"770b9606-78ee-47e2-8395-8e80323ba339","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":80,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"3112d2d0-ffe3-42d7-9690-d695809a5877","block_type":"box","text":"II-34","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6891a592-a51a-47b0-be6b-7e5843796369","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"727bde48-a833-4d37-bb9f-6532aa27f81b","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":81,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"f9904ee4-2235-4e9b-88e5-2522dfcc8c07","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":81,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"8bd895eb-43f8-4a54-999f-e94c300e0c6b","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":81,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"3c1225d1-f142-4357-98c8-eacbce518eda","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":81,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"1918b04d-9ede-417b-ac05-ac381f8a31fd","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":81,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"1a0f1ab5-c7da-45ca-b63b-e79b2e1fbbf0","block_type":"box","text":"be available for very limited periods.","page_number":81,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"21c9e3c8-d16d-4a99-a08d-40c51c14c5b4","block_type":"box","text":"Investment in Emerging Markets.","page_number":81,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"8cd546ef-7629-4f86-8f1b-beac16747904","block_type":"box","text":"General.","page_number":81,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"a0099d3f-0370-4bd2-8e83-cbba03010ccc","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":81,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"496b7a3f-4f8a-4d55-97ab-e0dd384b7db4","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":81,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"3212ba87-30e9-4acd-afbe-fd9fec51286e","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":81,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"5604f89d-7020-40a7-8d91-22cca2e6ee7c","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":81,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"eb1f9a8a-83db-4e0d-a3b1-20f73335338e","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":81,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"2e2af0cb-844b-48cd-b021-376d54c5a76d","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":81,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"a829ace6-0573-4731-97b6-a53bc2a47a37","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":81,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"f48e0975-d842-426f-a2ff-a6a8844de8a5","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":81,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"62e2857c-571d-42b3-a067-ffb88a6661c6","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":81,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"7556f512-9c6c-4434-a8ba-015592af5026","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":81,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"195a422b-3fda-46c6-8403-7d79ade416d8","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":81,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"50a6ff63-975c-465a-8d16-635d67baf632","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":81,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"07658e81-bc57-4482-9ca6-8ac1740ac71b","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":81,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"66c6f383-7692-466d-9363-2f6dd1bd2518","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":81,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"4e1d868a-4cba-40ee-849b-530163b6f35a","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":81,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"141f0000-65ef-402e-8715-3adba7881bc2","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":81,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"cb5c8630-f3b8-4f13-a7c6-0213dd77305c","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":81,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"ee3fca65-32d2-4b26-9398-b4d90d9b678b","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":81,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"e78c71cc-d59e-404b-bd35-88a7ed9f0a5b","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":81,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"97aa8a05-ac9d-4499-9a25-e01093e6b661","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":81,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"a2451f8b-9225-4ff0-8926-6115ca406539","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":81,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"730d199c-d8f0-487d-95ee-0fab0108d820","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":81,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"b8665b20-bfe9-434d-b8d9-a944968f2070","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":81,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"ad081ec8-5923-445a-8f88-58ba39e3a8b0","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":81,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"4e48c313-7f67-4e99-a323-cd30354bbdee","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":81,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"f782a1f9-ab69-4233-a694-769430107cea","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":81,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"5d14b7cb-1e33-4fbd-b81d-f93f2ac5b5ce","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":81,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"94d13c66-56ae-473a-a5f2-de1953fbba03","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":81,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"539ff460-7f7c-466e-8e9a-a249cab03733","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":81,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9d9eb30e-da60-41f0-a128-bb55a52992bb","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":81,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"8f62fc56-38c4-4d2e-a3bd-3c6649fe7474","block_type":"box","text":"volatile than investments in more established markets.","page_number":81,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"615ca579-4ae2-43cb-bca8-af209d57c286","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":81,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"5186e369-e05a-498c-ad0d-331487d76e05","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":81,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"246c11b4-de7d-4014-b4ba-849e608b385f","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":81,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"ea9ad873-c546-40d0-a5c2-bec396833c15","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":81,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"9f6858fc-21b9-4574-b8ed-f2ad55329bab","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":81,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"a7f8fe7c-a5af-4127-a94a-ceabde0fed2b","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":81,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"d58e8d79-cfac-4a43-a299-644064ae2570","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":81,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"76a864fb-5541-4b2c-8b79-ee6be5d0b89b","block_type":"box","text":"acquisition or disposal of securities.","page_number":81,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"8da46fb1-eb9c-4c7d-b7f6-e3695f648755","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":81,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"809414ab-0c23-4047-a19b-40edd3995757","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":81,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"62efc406-6348-4e3b-800c-8ef54dd1b158","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":81,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"77d0a883-5a38-4e99-8008-62cd66bbd1ab","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":81,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"355016f2-f9f5-44f9-842a-62022661708e","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":81,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"dc262589-1cbc-465d-805c-c73891c09437","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":81,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"2e8fcd9d-1fe3-4775-9b0d-721902ce8d05","block_type":"box","text":"II-35","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a90c99f0-4447-45eb-8942-276fcfec8795","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a4bb034-663b-49e4-91a5-3d1505ba98c6","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":82,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"07ebf8dc-e0b2-4c55-a85b-e1e9b769b6e5","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":82,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"59a6e16c-094e-481f-92ba-646ca3cdb57e","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":82,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"e2d23709-e0dd-45aa-927b-51eb7eeffa63","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":82,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b2182d0c-4207-435d-a0bb-d7aa17e7d757","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":82,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"19ffb11f-b695-4bf9-902e-e378f3df3cd9","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":82,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"f9792b9c-f533-4f9d-af25-8a48f77ba646","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":82,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"dcc45384-a677-4152-8e49-f153e93f8381","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":82,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"efb779a4-4caa-463b-a87f-012541b0d0f8","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":82,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"e0439566-6965-4954-af8e-261ee95d43f5","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":82,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"efa66b17-979e-4482-a673-f25317fbc7c6","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":82,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"534e657e-dee5-4414-9894-e61351cedeb7","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":82,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"86e1cd3b-a92d-4990-8777-32547096adb8","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":82,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"dde42009-8dd8-4653-b31c-b95ba4d5440e","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":82,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"f6662aa0-243e-49ed-adad-a14a8c0e73bf","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":82,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"a2d7c01b-aaa5-4458-898c-1e9e32d15e89","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":82,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"c2032af9-835f-4012-8d6c-26420ca34c8d","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":82,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"14728226-5d28-409e-987c-dc05468f2b75","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":82,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"cc14187c-37e4-4461-a860-d35821a11589","block_type":"box","text":"per formance of the Fund.","page_number":82,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"262e2391-7105-494c-bc2d-8e3f54bdad41","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":82,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"25a1ac95-993c-44c1-826c-0c5a89003728","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":82,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"1fe63ab9-ce35-4993-8b8a-1205ece09df6","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":82,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"5d501a9a-0527-4125-9baa-597601a73395","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":82,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"01785eb8-8bf7-4c70-9b88-501fc35f0694","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":82,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"20fd08f3-da2e-4adf-9416-aa100cb7d6b9","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":82,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"a2713eb5-f845-4ac4-b85a-4b3379173838","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":82,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"55e0bfce-16df-4a86-804d-8f45b80e8028","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":82,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"639c3747-725a-400f-9cb6-1fa4d4c7a0b8","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":82,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"7d27ba4c-2468-4c65-a56f-e3b295546d5c","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":82,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"a8e01a4f-75a4-4227-a97b-239581e9ceac","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":82,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"ec24767c-8302-4166-809f-1b46ee6e8f97","block_type":"box","text":"affected by a variety of factors.","page_number":82,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"12741a4d-ed64-4948-a2d8-46b30620c013","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":82,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"e404376d-572d-4209-981c-aa925fd1ccf0","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":82,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"6a32af97-1bba-49d3-a6c4-6bee5b16a884","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":82,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"44232d1b-b92c-4763-b16d-c7adff069126","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":82,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"a8b98f3d-cbba-4c7f-861a-6b84bf25f57f","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":82,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"985421b9-cebe-4a3a-a250-24fedfe53830","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":82,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"ed1fa482-8718-4253-87bb-b67435973bd1","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":82,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"b9c37e2a-542c-4b71-864c-c5640f0713c5","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":82,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"65d86064-fc1f-4d76-9e99-a7ea0ff4ad8a","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"7f43af5a-09f6-4f8f-b5c6-70c20da21be4","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":82,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"8daa1db7-421c-43c0-b30a-88beee00e1e9","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":82,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"c27ce358-d586-4124-b37b-c45f85f6786e","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":82,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"e9ed4998-00e9-4768-94e8-ad7c19044d71","block_type":"box","text":"nations.","page_number":82,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"b5974b6c-efd9-4784-878e-19e30e08b4c3","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":82,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"44775ced-e639-4e42-9977-a5e6eec7f187","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":82,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"7b32f03f-0246-41e9-8b22-e6c7fbfac02d","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":82,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"bfb68dbf-fe9f-44e9-abc7-8f353c80dddf","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":82,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"8aee803e-c469-487d-b8a9-8a103e8a10a0","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":82,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"80859664-3547-4634-9862-ece4abf15e18","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":82,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"65aaee83-90cb-4a19-a4ac-7ff285c53ffd","block_type":"box","text":"market Asia-Pacific companies.","page_number":82,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"db35cd8b-2c54-45fa-a97e-1da45380403d","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":82,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"98c85b61-c1a0-4937-b2df-8d8e5749f479","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":82,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"c0ef68a5-b3f5-46e9-9c6b-70f72e8d55b5","block_type":"box","text":"services for such securities outside such countries.","page_number":82,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"74e7508e-ea6e-4949-ac3c-5aa548b8150d","block_type":"box","text":"II-36","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb754574-bac2-4e2c-b687-ac89129e5c0a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5714f96-b3f4-4533-8393-88155096aa60","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":83,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"3af17255-7b09-4dbb-98e4-0d40bbec44a9","block_type":"box","text":"to commercial banks and foreign governments.","page_number":83,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"546720cc-b261-40be-b53a-64bae148735c","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":83,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"3c369b1e-89f9-4a8a-a902-f8fabc81b792","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":83,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"79515941-41ab-406d-97fd-b27a15055d97","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":83,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"e98a66c3-7a10-4a47-a26b-00c3fe416ff8","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":83,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"bec6f440-38ff-4a2b-b87a-82850d831c18","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":83,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"0599fbfa-9c41-4009-99d1-09510952ef58","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":83,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"e123f024-7ef9-4171-8898-87d6c1dcac90","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":83,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"0f4551f4-2b56-434d-8374-17e57ce8e4aa","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":83,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"3392db76-af10-4112-a5eb-9178f7f59ff8","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":83,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"7ce87c3a-b150-43d0-ae05-87825effff63","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":83,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"64681d67-bff0-4126-bc7c-b9079311a03e","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":83,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"f734d923-6e44-479d-92f2-ff62be71b489","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":83,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"4fe2bf33-49be-4393-ad35-aa7e571444bb","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":83,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"31ef9a15-0653-4b3f-98b9-24bd560fddfe","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":83,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"a64e5c82-cfc8-454f-ae4d-7369bd02f0d3","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":83,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"dc65c184-930a-4807-b355-7c53139dfb16","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":83,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"5c4d8895-f173-465f-b15a-baed9335b010","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":83,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"2f1f64f7-86d1-4542-abd3-819f64d19170","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":83,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"ecbfe288-dccf-49f6-a8f7-ca5f21904a2d","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":83,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"fedd138c-d714-457c-a01a-5b30174a7f31","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":83,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"5ee3ad69-5750-42cd-b645-ed5841ff8974","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":83,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"4e1e17c7-2761-4f74-be37-484310c0253d","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":83,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"9563704c-9607-4f0c-b523-e777cc348088","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":83,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"6088d488-0835-4357-ab0b-2ec9b3c4a92b","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":83,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"a1728aab-53c4-4acc-8d15-9889cffd6fa3","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":83,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"af872a28-5e4f-44ff-bde5-71d75c78eccd","block_type":"box","text":"investment at that time.","page_number":83,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"92c84433-95e2-4bc8-a43e-a8d0ab1dced5","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":83,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"9cb708eb-2811-493a-a5f5-56e18b2dcaf0","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":83,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"65694be3-cde0-41f1-ba61-2c545528551b","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":83,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"ef22c7dd-439f-4cd0-ad6e-48d6d7b12cdb","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":83,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"02a12f24-af24-4c9d-9bed-65368a558ca1","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":83,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"61936216-6db3-4bea-90a9-5a0c05eb793b","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":83,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"ad8d98ca-7582-417a-9826-5da2ce44ed6b","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":83,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"095e1b64-1ea7-4867-b072-8205e110ce64","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":83,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"87eaf9fa-3ad6-4241-bf3a-4deda45b44d5","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":83,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"45843217-126b-48f7-9bd1-de6a970d5d8c","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":83,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"ca5dacea-74d2-46e4-abfc-9c6fddfb63cc","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":83,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"917985e6-262e-4e49-ac4e-e7fe586abca6","block_type":"box","text":"government).","page_number":83,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"239b8c81-db34-4a5d-8c3b-25c4c8669e48","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":83,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"26dc3dab-a69d-46aa-a630-501d3f1dbafe","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":83,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"c1dbcd64-e3fc-42ec-8b73-453a6ad8b6be","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":83,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"2a058d3c-258f-4139-8db8-9b456981087c","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":83,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"398508b7-1cab-4ce6-bdd3-fa8711acf738","block_type":"box","text":"foreign banks and other financial institutions.","page_number":83,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"5aba8968-8850-4edc-9903-d321b436cc20","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":83,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"9bfeb07f-f2f8-4136-bd36-9c88b68b4a3f","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":83,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"2e31e9a2-49c1-4570-a532-91f03033b3fb","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":83,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"c5a0072d-af42-419e-a602-6c983fe33481","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":83,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"ef07618f-2684-44ff-9504-ede9e4cc62bf","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":83,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"5ae054ce-f54f-46c6-ba13-570f4f4411a7","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":83,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"ee4ad7c9-5618-4058-8bd0-a6e23818bad9","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":83,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"347e9579-f574-4561-8fe5-e1f0a07b0724","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":83,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"efcb84b1-b27d-435b-b1a0-414ec74de70a","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":83,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"d88be820-9528-4ae8-ab9c-1358ba637630","block_type":"box","text":"II-37","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"42c83c38-e02f-4265-9763-f84a3161343e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3cdfdf77-3c36-4a65-bd03-9a91bd2c5fdb","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":84,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"1f018c4b-b87f-46aa-8770-6f4918b5da03","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":84,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"e2389569-c4b8-4d0f-8826-090e719f3ec3","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":84,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"02584e09-b4e1-458e-ba1c-1d1b106ee323","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":84,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"efe1143b-ac9b-4715-9f8e-8d824433b661","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":84,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"d9a5d3dd-a1f5-49ce-8f2a-8930040f6712","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":84,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"160c6dbd-e0b1-4d96-9428-2043ed82c06d","block_type":"box","text":"foreign securities.","page_number":84,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"cf035252-b109-4f90-b469-3fcf750df8ff","block_type":"box","text":"Risks of Investments in Russia.","page_number":84,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"137a18d5-6e16-4617-824a-9e257afbc17e","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":84,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"e840b42c-d421-40cf-a311-b97ae0eec6d0","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":84,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"fd0e1d02-181e-4a3b-8720-a6d0c7514b7f","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":84,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"bd23ff13-b365-40e5-b975-dafc60097988","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":84,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"838c3d16-deea-4f86-b5bf-9235b09227d5","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":84,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"a63bc44b-c20c-4aac-ae98-8628e8cd1c87","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":84,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"a067b7f4-7522-4aac-87f0-8bd7bedc0a27","block_type":"box","text":"developed markets.","page_number":84,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"a10a4433-0035-4de5-ab68-4228e997e0b0","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":84,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"6683299f-4476-4649-88ee-1b48677698d3","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":84,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"0f162702-e669-4df8-8f4b-2cba3a4c8bcf","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":84,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"5a46a4ab-ea49-4b6a-8e6b-d3a4a27b8173","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":84,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"233457e8-e5d6-4840-b683-26299786e44b","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":84,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"052ebf62-a1cd-4c70-90c3-e7bbcf472072","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":84,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"7922117e-badf-4dbf-8a25-ec620ac9325b","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":84,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"70340f60-c944-4ccd-95b2-dbf5fafb8803","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":84,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"f144de13-88b1-45f5-8ce4-5d2c050bd367","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":84,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"a0c8ac5c-046a-4d77-88fa-cb1d294bc613","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":84,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"87c8db85-2e70-49b6-b308-13da35e8b057","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":84,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"63a9427b-79f8-4cb3-9b68-eb6c93d4123a","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":84,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"dcc140a7-0392-4b82-9b44-23a9142afdad","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":84,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"5496d9e1-1dfb-465c-89e5-76ddd1aaf963","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":84,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"093eaf2b-8cde-4e19-8c00-aa40e5971d3e","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":84,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"161f39f0-729a-49ad-8412-90515d17ecda","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":84,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"3946f357-bcad-44e7-9dc0-37b4cf0ec1c2","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":84,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"7ba6386b-d85c-4f72-9fcf-5ae55c54cc52","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":84,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"832bf921-bf6c-4c38-ad37-d733817ac779","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":84,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"b5bc7211-eddb-4994-97e2-1411c70456f4","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":84,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"79222227-351a-4922-b9ed-801caf5fad17","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":84,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"7a30def5-24c1-4525-894e-c7c18d02c85a","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":84,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"b8fb80ad-b617-4afb-b75f-29a2ca6142b0","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":84,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"830e99f8-6b8f-4538-bea1-0c3df3e2b875","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":84,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"f054ae55-8a5e-4531-8d43-765a1028136a","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":84,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"ab9456f4-056e-4fd5-a8d2-aba5c6fb3c27","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":84,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"3a79d6ad-5aa8-4cf0-a8c1-9c2c84407563","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":84,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"02261666-2c9f-40e1-b8c6-196ad0083fd0","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":84,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"26522853-eaf9-4e31-9167-d162899db945","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":84,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"4e8e4d4a-e375-48a4-a2ce-d05ed4d8f602","block_type":"box","text":"sectors globally.","page_number":84,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"b0c3bafd-9245-4418-b751-983712a73271","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":84,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"79d6fb6e-51cc-4dd9-94fc-d4e0e4b082c8","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":84,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"054a7394-c157-4a7f-bdc6-4d87149044ec","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":84,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"9b320f32-2c70-4b52-819e-c9e6757612ad","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":84,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"4c70ead4-f18c-46cd-a73b-5e004197e150","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":84,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"62ccbf8d-a01b-485d-a67e-b1f3e0342310","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":84,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"6c7daf03-5694-4f4b-a2c9-14e32125a7db","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":84,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"96ac1f2b-037d-4f91-8a63-d3e53efc8201","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":84,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"5f1452d1-a575-4035-a0ea-ed5eea96be06","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":84,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"67232b6b-b392-46ee-a7a9-27df21d55ac7","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":84,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"fc4fcaa7-8258-4aaa-b06e-bd6c27ead2dc","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":84,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"ef5d1aaf-b87f-4440-b386-950ce930c0c2","block_type":"box","text":"II-38","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63864ee3-b396-4bd8-a1d8-4f3938dd5d9e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0189fee-bb74-4521-bf4e-737560e37332","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":85,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"e681645a-2ed4-4e0b-9745-554da298db8a","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":85,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"bebe9135-2e17-4b6d-aa11-2388caffa98a","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":85,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"239d4e92-fb14-4098-a734-ee779cb53016","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":85,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"1ac2993d-628d-47f9-81d4-232affbaa16d","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":85,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"4f5cc457-9e81-43e5-91c1-41e920da3f94","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":85,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"cb0eebd3-4199-4b17-8df9-e3baf23448a7","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":85,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"893e6b5a-250b-432f-a38e-7873cdb1985d","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":85,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"95e30464-d873-4a36-a071-c0c59c94fb2c","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":85,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"979f0b46-3ad1-4823-8192-23f2b06dad0d","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":85,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"5d8710bf-ee79-443f-9f99-55d81fa9c4dd","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":85,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"a8b0e457-aead-49fc-8a23-5e210a3aab58","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":85,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"77ceb3b8-057a-4321-b076-a9ce7a22fa22","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":85,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"c646b74c-55fc-4e08-aa2e-d1ef0abf1692","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":85,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"f4949ca4-0e4c-4adb-8585-9b32f04ca84d","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":85,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"cdcdd42e-7530-4f87-9332-5244294afae0","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":85,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"f62a1a56-6f5d-40ca-9ef6-b0339dcc733f","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":85,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"19194eaa-9fb4-4808-bf73-b192ac7ff68c","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":85,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"37e86ff5-1ea9-4fc6-8671-687874466de4","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":85,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"c3a1944f-38f8-4b80-9d7f-5db4a7dd4d7a","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":85,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"1eb20212-fb74-492e-be43-36c8df381c11","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":85,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"fb3a4368-ae6c-4582-b52e-582b227d41a9","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":85,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"5ac5509a-ab53-46ce-8361-818fa033f3da","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":85,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"4eb393b5-165e-48a1-8020-355c1a25146c","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":85,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"0c505075-d6d2-47e1-9b06-625ee1780f8d","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":85,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"db933451-e32f-405f-bb1b-9ddc334f72ff","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":85,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"4e135883-4e05-4fb2-b04e-30d0836dbcf2","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":85,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"ded1759e-46ce-48b9-9012-0bcf2898cc2b","block_type":"box","text":"impacted.","page_number":85,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"d7810649-7719-41f3-93de-bb9492f8c91c","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":85,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"ebe671bf-b975-4ac7-b7f7-e925c96c2171","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":85,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"78bbf7b5-dea7-45a7-a089-50080db86f51","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":85,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"83e23e86-985c-4540-a7b6-2f7f936ee00c","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":85,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"fabedbf3-cfc5-455b-baee-2ceee28c5fbd","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":85,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"b66f0659-0c64-43f8-bf30-742139d0e1ed","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":85,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"07c4952e-c9fc-47b9-910c-527f825c9c91","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":85,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"62282b5b-1d08-4867-b56e-26cc646854a0","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":85,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"1634f434-8482-4f0c-80bd-4982fa34242b","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":85,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"cde09304-cb9a-4e78-85f2-b469d79a08d7","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":85,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"6bef2e45-2663-4386-8b66-f2b97c7b3b16","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":85,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"ea4ce30c-4301-4ca7-b2d1-906a1345da6f","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":85,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"12307685-6094-4bf3-95b6-0a9e0209e769","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":85,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"221630ce-da83-4d61-b3c5-a56f5632dfc9","block_type":"box","text":"economy.","page_number":85,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"d24584ee-161a-4c2b-8cfd-20e8d0f873ac","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":85,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"1c9a36ea-2295-49f4-beec-bb2658ce6568","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":85,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"0b2d8b5b-ee3a-401f-a130-bd1e8cab86b5","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":85,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"1920f35a-8f0e-4341-a7a2-19ad8aa66b88","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":85,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"3cc7031b-c2f8-41e5-bf92-09ff3df2f1a8","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":85,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"1b5e18e1-13eb-4f52-9faa-28a96e5ad0c2","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":85,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"f29cec3b-81f8-480f-a135-2c3b5faef2de","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":85,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"07c6ba49-1db6-4eb5-ae00-d63f07a1bcc8","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":85,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"eadfcd81-6ccb-4a99-b56f-611ba163c52b","block_type":"box","text":"typically the case for investment managers.","page_number":85,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"3af3e43e-65e5-4c23-93f6-e1ae15e9b201","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":85,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"7f4f7f60-f9fd-4194-888e-171a9ced0c6f","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":85,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"a4be14b5-d006-4698-ad2e-d00d5072a2bc","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":85,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"70f02828-89e3-49e6-9be1-13ab748aecd8","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":85,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"6b392592-b7d9-43b3-b6b2-740c5ef8282f","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":85,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"48ace71c-e258-4d18-a6dd-2e0ca6ffafc9","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":85,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"5b1af985-4625-457f-80c8-06f3b1889384","block_type":"box","text":"II-39","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9287e9fc-0a9d-4935-9fb7-bbddeb02776e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f583ec36-191a-48e9-92cb-db7b3c3aa3fc","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":86,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"72ca42a3-69e1-48dc-ad02-b6f6b1a4cd7e","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":86,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"f1ec5ae1-7bcd-4bed-bf68-692794362cea","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":86,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"e984ba54-eac7-4b21-849e-07ced2ebb173","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":86,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"ce2c2d21-4783-4066-855c-78b4c4c62b2e","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":86,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"d4ac9bc1-67ed-416a-b856-bf9902d3490f","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":86,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"01010ad1-64b3-49a5-ad45-fe49222ed310","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":86,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"4700d582-589a-471b-871c-6778fa04ae71","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":86,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"ecd31b4e-6145-4506-8ffa-e1a25b2255a4","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":86,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"e470be2e-b2ea-41b9-b518-b2faea46c24a","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":86,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"b77d93a8-79ab-4747-a297-f81307d74cab","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":86,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"4261d8a6-c27f-4137-ba21-bbd3cdb04e5d","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":86,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"630d5224-1042-453f-92a1-1097e093d994","block_type":"box","text":"will be indirectly subject to those risks.","page_number":86,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"65ac0fa7-4b40-44bf-96b7-616f4e89bdbc","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":86,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"aa3f368f-64ef-49fc-89bc-a8eee1d8efac","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":86,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"509e0988-a58b-4cf8-982d-1a13942372e0","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":86,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"39dceb30-8c74-4d83-b4c3-ace71f8a7a2d","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":86,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"a84c6950-c38b-4750-8733-bb14e54c8876","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":86,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"34e2f4b5-cb41-4730-8d22-48f513442eaa","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":86,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"f3b39118-8f8d-4cc2-a714-287f92aaba9b","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":86,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"bbbcbab7-213a-48b8-90f7-cd1d02683037","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":86,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"e5abf47e-41f7-4ab1-968c-a2d15598b5ad","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":86,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"3079ebe3-d5c6-436d-97fb-6e0bc24a52a3","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":86,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"be2562a4-f79b-46f8-b501-5f5aca4579b0","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":86,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"73802b92-b79a-4e80-8144-95942c143dac","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":86,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"415cf05b-8afb-4b6f-8982-21e7f4c7d83b","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":86,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"94791e06-300f-41ba-bc8f-b878b0d93bc3","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":86,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"e73cafbd-c0e9-4bfe-aef7-fe218817aaf7","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":86,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"c8fa710e-8f9a-481e-8d68-74de692380d5","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":86,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"6074af75-ac65-43d2-af78-d9d348ae9b3a","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":86,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"034113f6-b1fa-4dab-908a-7e650d326cce","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":86,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"2d318ed7-a07b-47a4-ae86-2982c83384b1","block_type":"box","text":"impact on a Fund’s investments.","page_number":86,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"0ff983c6-dc9d-4b2d-acac-be7a802ca66f","block_type":"box","text":"Brady Bonds.","page_number":86,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"89731647-cf83-410a-aee7-e4727ebf6502","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":86,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"32360e8b-2349-41ce-b210-549fd602b7a6","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":86,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"3294e672-0364-4630-addb-31cc62dbfd93","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":86,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"695130bc-dda0-4aa4-bd53-b22fc225ebfc","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":86,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"110c1f44-da76-4da8-985e-eaafce4aa342","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":86,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"e3073871-7805-4b6d-9ec4-08bc104cdc7b","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":86,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"4c2b308f-33dc-4415-9644-2e7b014d0913","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":86,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"38157db5-6f55-4d5b-a487-5adf7d8cb1cf","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":86,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"2998c580-5b28-469d-b91e-43181bfbe3da","block_type":"box","text":"Venezuela.","page_number":86,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"b09f3599-ec36-4afb-9145-8ac8dac1a680","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":86,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"aed7e02b-45fa-4296-8b40-46854ea6d926","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":86,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"6ee369b8-655e-4bff-8210-16380fc11ce8","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":86,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"8e425054-fd5c-4671-8c22-c0d613a03fc0","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":86,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"e84eeb95-eb52-4e00-8d4b-3a8a6232a9c6","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":86,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"710293b6-19e3-4577-abfb-8850d497c4e0","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":86,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"697ec329-b452-460d-aee3-faff5c28fc7a","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":86,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"d9b45336-754e-43f9-874c-6f582fd7c6dc","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":86,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"0bb6f6bd-25de-49f8-a2cf-26982f4f90fb","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":86,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"52eb24cc-d62d-44e2-ab23-eda9a5b71e78","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":86,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"a58e45ac-c61b-4224-84cc-929d837ad022","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":86,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"8cb2949a-28fb-4fa7-8538-f22e63e5d5a0","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":86,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"1cca8bfe-ca9b-418c-aac8-1d6cc7114f64","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":86,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"5de32fa3-c876-4450-8893-d778e2b1b2b4","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":86,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"2b0cba16-2890-4dff-8901-ef46f4647036","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":86,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"9af0b21a-eba9-4b26-b76d-36ef23de7616","block_type":"box","text":"II-40","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a900b1a2-e4e8-4303-b130-dd0445ef8e22","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f54cfc10-6a78-4d6e-9795-26f2a5cbd892","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":87,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"13cdb7bd-921a-43f9-bb6d-5dd96c1792f4","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":87,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"8605e806-766f-433a-b029-04b03a6f3b36","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":87,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"47084a35-2863-4046-a1ba-07f36f258485","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":87,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"2c0750f0-bd55-4a1a-a7e3-b7a1d43a34b6","block_type":"box","text":"China Investments Risk.","page_number":87,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"82f87806-3327-4b00-94c3-14d0ae222d11","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":87,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"69e68a8c-ed8a-4932-8b1c-bb0fe2dae28b","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":87,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"9f30921e-ded1-4b5c-b9e4-dbe908876517","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":87,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"a4a9d958-9edb-4d91-a86c-2708c3835fd6","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":87,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"877af89a-07bc-4065-babe-02aa29b6e10b","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":87,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"be5952bf-a593-451b-83e7-f31753f32380","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":87,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"79817f17-a6e6-47b4-8078-78a7e71d3473","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":87,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"efe9c30e-01ed-469e-bb3a-8d6d9c9fc1da","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":87,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"4817d6ac-90a8-46f1-9f47-8d5782acac12","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":87,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"5be48002-bcca-4c0f-919b-888ef8bd48e2","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":87,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"ace48602-df36-4267-b431-9b26fbd123fb","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":87,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"2dd4fd69-0a5d-4dd1-9452-6dd08bb753a6","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":87,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"63c1047a-e39d-43bb-a5ff-7e885ae2abcd","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":87,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"f78945e1-5fa4-4aa0-9ae4-5843afd61eb0","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":87,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"42ab24fb-f7ea-4e67-885f-26fbb48c1cef","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":87,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"7021345f-2ef0-4b62-843c-42a1c9e83cb1","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":87,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"070140bc-60fd-4c45-a65a-864631efaca2","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":87,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"65f01470-2230-4e7a-b668-9f7014ea0a65","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":87,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"770c509c-5098-488e-9cf5-ebccac365d60","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":87,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"6f0ae7e1-d7e5-41d2-85b0-1c5745cbea6e","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":87,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"042e4bc8-d2b6-4e1f-89dc-6cbba3eff466","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":87,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"0608369e-42ac-4fef-9b01-3b5b9303c9c0","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":87,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"d479a815-fb71-4a79-bbe2-e4ddcf8de913","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":87,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"c019430c-6d8c-4ccd-9539-aae180d3eb5c","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":87,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"c94918c0-5a8e-426f-be1f-bd03eeca3154","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":87,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"09e28c84-5ddc-4208-83bf-d2bf6be05465","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":87,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"4c936703-f0c1-4446-a143-ab4be7d3fb26","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":87,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"0f4e6908-c965-4a2d-97f2-ac671c7cdea4","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":87,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"90bf4587-8911-44c6-a6ce-bf7c9f0d56ab","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":87,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"206725ae-e56a-4e34-ae04-b3a5acf3e0b6","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":87,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"3275e425-2c9e-4fa7-9520-7207c86337f3","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":87,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"e73f8132-7a74-49d7-a5e9-c40a35328df6","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":87,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"588b5ff3-8e18-4be4-8f43-149a85773645","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":87,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"51eb5e95-4602-41bc-82a2-c97ddf68e44b","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":87,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"dc369acd-969a-4c7e-afa4-ddd14446b5b3","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":87,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"552938cb-0362-4a24-b673-62b122dce08f","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":87,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"70c5b7fd-e66a-413a-a4c5-e7143be03dff","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":87,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"69049dc2-e187-4cdc-a4d6-6cba2762fa2a","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":87,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"626700f9-b08c-4f68-a06f-455357cf0a42","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":87,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"bef47379-8295-4fe5-ac5a-d11edf4d5918","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":87,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"7ecc6e97-62e4-4e15-a5b5-5f2ec5920090","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":87,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"d6d9c5df-5472-4269-8d40-3e683aa2c52d","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":87,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"69dd25e6-e159-45e3-a0a9-16851f296fb6","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":87,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"bcb7eca0-0bdc-468e-9d65-71a0be35001d","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":87,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"40aa6fbe-7e00-4f34-9e2c-181d82afea11","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":87,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"2c02ed92-b430-4b63-8660-09e34c0a53b7","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":87,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"7bc1ee08-21ce-4c92-8050-3d71ae9d552d","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":87,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"11237f1b-145d-4358-84ae-12d72f4a2601","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":87,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"2d0c0ef0-c27f-415b-81a9-8d90dd2c2b10","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":87,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"50b78d91-f5dd-4dda-ad5c-198932be96f0","block_type":"box","text":"sub-custodian.","page_number":87,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"219e1412-6452-422e-acb4-0256c025fc08","block_type":"box","text":"II-41","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8cce1be9-278c-44b5-9463-f6413e384164","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"63ff71fa-1e3f-423a-8062-2b1a19d7f3b6","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":88,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"8853bc02-9d58-4b46-827b-74a081781b9a","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":88,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"65b25b8f-dfca-468c-87af-6e085a18b3f3","block_type":"box","text":"on investor protection considerations.","page_number":88,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"055bd016-8a69-4b5a-90f7-4235318030f2","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":88,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"d9d1f039-05c6-4b7b-bc94-2df4ff4d7c19","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":88,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"368f2490-ce7d-4eb9-850e-8a710205382b","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":88,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"ce741cef-cf94-41a9-a223-7941d15103f3","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":88,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"c7a2109a-0b62-4790-9ea4-e828b469b8f1","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":88,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"9d29c5d0-fb09-45a5-b4e3-e94a8ecae3a0","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":88,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"d2d23249-876a-4abc-96c2-262df8b5a863","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":88,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"22590049-9f74-446b-b704-56fc99ae8618","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":88,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"0e66ec65-b8c3-4e98-be34-02c2ac9111fa","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":88,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"1dea5fd8-a8a2-4f00-9949-788d70d12839","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":88,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"d21dd452-67be-4375-af85-abd984748e3f","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":88,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"36abc145-6364-4308-8518-e9811f86a621","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":88,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"8dc33fca-7b20-43df-81fb-9d8414015c70","block_type":"box","text":"accounting firm.","page_number":88,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"a30351b7-7f08-4cd8-998d-ba8f2fea3390","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":88,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"a9a400c9-ca12-433f-9018-8280bcc36988","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":88,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"8f99f20d-9f93-45f8-bbfa-e6da4065164c","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":88,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"c34afe64-e31e-4a64-b8bf-c0e90e79b336","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":88,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"07291f4b-12f5-4936-8150-19bc5bf82eb7","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":88,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"8e6e6c74-6afd-4287-a500-da30a2d3343a","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":88,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"c94b1f60-6858-4d2f-9bdf-45208030e90d","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":88,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"6fca5298-e2be-4c1e-9869-fe0b9256819b","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":88,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"ed06a680-d627-4589-9137-b996d843f3a2","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":88,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"c295fb45-a49c-49df-9cc2-f639140c7de5","block_type":"box","text":"RMB (“CNH”).","page_number":88,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"7f6000aa-1340-4708-ab83-229e87cf9176","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":88,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"a4a590ee-8abe-4bc9-a9f3-93c69759d292","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":88,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"5dd9cd5e-3737-4a2c-84e5-74a4839291f9","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":88,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"5615c3a8-e7cc-4aac-8eee-7e8a22e9553e","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":88,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"0e2d51bb-0cb1-4228-87e7-026631d8777f","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":88,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"607bd594-813b-4ccd-a6cc-c17f788fc4d0","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":88,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"aed70b18-db07-462d-9909-abee0311e59b","block_type":"box","text":"represent equity ownership in the operating company.","page_number":88,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"b11ac0df-c1d4-498e-b7af-0c77117b63d7","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":88,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"6326e107-e37b-4d40-845a-0f9c35bd37d9","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":88,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"74f45942-46c9-4219-a4eb-6644ddc3e142","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":88,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"686713a1-a2cb-40d9-8f67-ac5006d74cb6","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":88,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"21eb7fe3-ce6c-486b-8b6c-bc63fabbd775","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":88,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"9d1a3b61-a754-4d6d-a931-4eaf5d5ad340","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":88,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"f71b8d57-2fc6-42ae-94e4-26e5a4598553","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":88,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"659d1cc1-e1b4-4a52-b981-5f439add3d55","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":88,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"b4c45058-797f-4c6d-95ce-1640f7c956ff","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":88,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"4476571c-13c4-4bec-aea1-eb4954f72294","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":88,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"9293a200-8e13-47d4-bf60-079373d8abbb","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":88,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"a6c35a40-5ce9-49a5-861e-233bc3495d82","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":88,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"90ab4961-239e-4918-843d-a1300f24aa78","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":88,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"7872a579-19a4-421a-8380-1786fa363b96","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":88,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"f46ecfbc-1703-400c-8ab1-155c22b10592","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":88,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"80e0b257-b3c9-4909-8213-a3a0ff060ad3","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":88,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"dadfa561-9362-40d6-a371-1c6d00203daf","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":88,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"87c1fc3b-f66b-412e-be93-34e7d1df4c27","block_type":"box","text":"losses to a Fund.","page_number":88,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"bbd6e754-1761-4c7f-84a2-9533a13e7d7a","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":88,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"66181166-698a-4feb-b7f4-9161e96d53ce","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":88,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"8ea2fc84-ac9b-4eb3-9732-a087e2ad5820","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":88,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"70ef2243-3c89-44bb-964f-8b167164b45c","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":88,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"7b19056d-e358-420f-8ea1-7c6dbd067d82","block_type":"box","text":"II-42","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eb8a2be8-63f3-4dd1-8f3b-10449269c91c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6e38cd0-3ada-476a-8e93-f0019ce500cf","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":89,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"6701261a-1f16-4368-98b9-d078ccd10246","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":89,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"8e21e823-a5cc-4bfc-9383-24edafb7d28a","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":89,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"dffb1fb1-f9ed-4700-8f60-cc994bb97605","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":89,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"b4321801-4717-43cd-8d13-de170c89b4a7","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":89,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"bcc8d020-b221-44e0-8bcb-1510ef7275b3","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":89,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"dab153fc-57f0-4266-8788-28d332987e8d","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":89,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"e8534be6-a8c4-4d5e-bb59-3eb452dfb96e","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":89,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"a6972545-34a3-49e8-ab54-bcb0fe88ed5f","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":89,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"c8c22aab-ead1-4961-9dde-adc72b3cce0e","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":89,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"3c054f87-1a21-4268-b4d3-99b1ba2fd82f","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":89,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"b837b48c-53a8-4713-a6cf-a2ae569a9136","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":89,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"f7220667-5239-4f1e-9956-c10ad6623e5c","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":89,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"feb00151-540b-40ef-b7aa-df07616f1287","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":89,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"b82540ce-593b-4732-b220-a4b622246a66","block_type":"box","text":"such companies.","page_number":89,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"daf66731-561c-469a-9856-4f48b33221eb","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":89,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"2da15ce6-91c0-4621-be1f-c043ffd846af","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":89,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"459bb80a-378a-4d3a-bbd5-be2198a229e0","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":89,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"dc9af4ef-e98f-4073-a11b-7e879b56c0a6","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":89,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"1e1d3478-0acc-4b85-a7bb-8f3cfbefade1","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":89,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"43c2547b-b150-4bb1-a874-c859c55fcf29","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":89,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"a11ad745-2e46-48f3-840d-a48c32eb503b","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":89,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"6829dac6-06d0-4832-b84a-08354e34a148","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":89,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"f5792d7b-303d-4f05-983b-513c5196ed91","block_type":"box","text":"standards.","page_number":89,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"5f0aeefb-0fb7-4c35-a90e-ec14aa209c56","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":89,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"1d7b9c3d-6088-4027-ae38-3032861273fe","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":89,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"e9d3d4ef-5021-4dc1-a4d0-ed0bc1bb50a8","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":89,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"38b40dc1-6d01-43a2-92c1-17bcb732c7b1","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":89,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"c9dedb47-8a34-4460-9fd5-4c7c5718fb7d","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":89,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"d4a8e280-e5b6-4d03-bf8f-5a8be47cabb5","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":89,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"79c55010-633b-41fd-a274-b57e6a5c0e8d","block_type":"box","text":"General","page_number":89,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"1e39f7d9-bdd0-4089-910d-134280f8ada0","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":89,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"77ff813d-a2ce-4a7e-9b0e-50ef22e4f0e7","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":89,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"0bdfcab4-944d-481c-8864-e2346433921c","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":89,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"d3eb719a-c35f-4817-8f71-98c309b01472","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":89,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"86e18e4f-9649-4b4d-acf3-2922c8692bd9","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":89,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"9800980d-c66b-49cc-b4c5-5221652d063f","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":89,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"12c00944-6d33-4372-8013-36111899551a","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":89,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"e58a06c1-2c22-451d-93a4-827dcfe12dfd","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":89,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"58d8def4-fd3f-4910-a5ab-c4607ce9dd93","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":89,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"a2113823-fc13-4d1c-833e-bff8d2d35766","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":89,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"e74ad037-b6ef-4dd0-842c-de69439367a5","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":89,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"7d5b7359-a789-4c3c-a274-2acbd1cb1b28","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":89,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"639b5321-155b-4b43-b386-e20c27523848","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":89,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"fe26a685-0c3a-4f18-8049-2df67c86a2d9","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":89,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"54ae8d8a-e347-4c2e-948e-c070e51ac488","block_type":"box","text":"company established by SEHK.","page_number":89,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"1fc832fc-d198-4400-a0de-753bf8e74020","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":89,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"244aea65-0d67-4284-a026-03c51213683f","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":89,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"5fad0344-49b9-4049-96b5-cbf4d6cfd563","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":89,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"968ab660-18b3-44c6-a57c-fe34a7f96be5","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":89,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"699906e4-16d0-425e-8774-eb32317c70ad","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":89,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"ec0554b4-45bc-4261-9e8c-08e6ae4db017","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":89,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"a76390ab-38a9-468c-8f4b-25ed74287f09","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":89,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"55196afe-a716-4707-a64a-2b67cc9e2ab7","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":89,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"248de87f-b632-4aa7-9068-d06a8f40ccfe","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":89,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"a1e07e6c-0d7d-41ca-98a9-8722008244b0","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":89,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"a52edf7c-dc73-4bb8-b72d-c2547f54efb8","block_type":"box","text":"II-43","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db554f14-db27-4c40-a52c-f3486fdad4e4","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d209ae30-2323-4fce-ad95-8ad566228ce8","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":90,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"7be365c4-0784-45b2-9d0e-190487937a51","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":90,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"81cf7217-48bd-445e-8b49-70a73277dae6","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":90,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"075b1d6a-589c-46da-ab8c-6e8bc4404242","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":90,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"f16d9c84-1e81-4cdf-a648-e92df91dc7b6","block_type":"box","text":"i.e.","page_number":90,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"1e04d6c3-8900-4163-b120-eb0aefe958e6","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":90,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"2e09aef6-7663-4ca1-95fa-df2ed19337cd","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":90,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"58c791c5-41d3-4723-b60b-3e71f90dea1f","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":90,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"d4c2b3d1-1ff3-4ed3-ada6-d1099b083ae6","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":90,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"266d8c32-a82b-4fc2-bf20-e638d4f058ca","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":90,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"d113c1ed-286e-4bdc-9d6c-06fe4d6c4cc1","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":90,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"cddcc09e-3d0a-440c-8699-03cc27e49410","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":90,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"e7126fff-b9c5-43cf-a666-779437e19ff6","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":90,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"10b2ab68-a43e-4a8d-88dc-9e53acb7b80e","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":90,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"62007759-52d7-43e7-8e15-4e46555ca206","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":90,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"2b26f4ae-e20c-4c34-a2df-b890d3a3926f","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":90,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"820d8999-578f-41e0-897c-dc3732e9ac9a","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":90,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"e008e330-c950-4c8e-80dc-7820ae67073f","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":90,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"79cc1c2e-b66d-40de-9f92-f40fc8ef95dd","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":90,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"6016d400-033c-48ef-92dd-a7b45281e974","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":90,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"9eb709df-e0b0-409e-ab15-7a24ffbbcdd7","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":90,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"81525759-d921-435f-b11b-b28930a365a9","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":90,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"df812e99-cc85-408e-be14-394eefe848df","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":90,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"90ac7d18-600c-4c5c-beae-ade815a0202a","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":90,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"e3bce10b-f103-47e0-9281-ca3a66ca1d57","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":90,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"3e8b5368-0155-4ecf-9354-9500904729bf","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":90,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"0671fcb4-8b17-4183-a15e-8a2ca7b1aa5e","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":90,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"5f05398d-4401-4cb5-8c10-def235c7efbb","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":90,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"7e39e897-b21a-40eb-9691-9a81f942f5dc","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":90,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"b2212187-56f2-4feb-828a-be7f0ef98b4d","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":90,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"b9757f3e-3d0b-4c73-a8c1-a27f8532016f","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":90,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"39177fc9-b8d2-459d-a272-3028563284d5","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":90,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"f71d9a8a-4f59-4304-9b67-fc1c7b6fdaa6","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":90,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"1ac66537-6cbb-4e67-8ec4-39938108007d","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":90,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"04976358-2a2a-47b1-ac69-d6e735b38636","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":90,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"f4e9f6b5-d1e7-42ba-bcf5-463cf5b1bd3c","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":90,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"de4880ba-34d3-4e2d-9c8b-0c6fb7057c65","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":90,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"b555dc8d-0f00-468f-85a5-8666aa2024e0","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":90,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"1ce9f2ef-9945-41f4-9b74-b680a6d2146a","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":90,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"95c65950-af2e-40aa-bd7d-67447bfd6ade","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":90,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"49754188-0fa6-465a-a3d1-dbb6ae9a7a97","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":90,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"41394901-fa15-4de9-a43c-badaf0ab2d9d","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":90,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"96ff561e-481e-4e3a-8b87-52b7919049f9","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":90,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"b1ad05dc-0e58-4366-885a-428f96ec1fa3","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":90,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"f3b984bb-a346-475d-a5d9-b49aad1c5103","block_type":"box","text":"PRC.","page_number":90,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"c64b1474-be27-4433-b32e-a54f31af3566","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":90,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"0f340f34-5299-4896-9325-1b26dc581d4d","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":90,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"48253a80-d225-467c-af47-3b79b13e80a9","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":90,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"f13e36c6-ca10-4380-a53e-479c276cab72","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":90,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"764aec2e-99c4-4e65-8a55-9c5cbeec333e","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":90,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"7f4d9fe2-ae93-484a-acd3-889499c8fd12","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":90,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"f61e47b7-34a1-492f-aa21-459e2576f294","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":90,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"ab3bb308-ee1e-4505-a195-d5d4178b9d47","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":90,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"9229eec7-b3bc-4e58-b11b-e8fa2bb6e42e","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":90,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"31d45e14-57da-41bb-9292-bf6cdbd25e40","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":90,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"55bc737c-37b9-453c-944b-49c53b64db9a","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":90,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"443b58fe-cf14-4f15-9576-fd63144214d4","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":90,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"1190f8ed-0cee-43d4-bdd4-9aae0d6b3869","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":90,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"7d6c879d-f734-4d7e-9677-7a9d0fec00ce","block_type":"box","text":"II-44","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e17d743-4066-49e4-a19a-7e725c13d289","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"516fe19d-affe-4fcc-84be-57a5868d4ab0","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":91,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"99467885-ce39-47cc-b9f1-41930b0aa4ac","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":91,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"e855698c-9552-4673-9593-e13337693d98","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":91,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"0c9b0405-2de7-40ce-a864-2f1117adfea1","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":91,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"03746674-8689-4219-b4d9-bff9bada627d","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":91,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"10729d94-9d0d-4e99-98fe-0a8d21fa8399","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":91,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"fd0315ac-2be6-4f8e-91f8-d4692a9c21c8","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":91,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"fcecad83-66b0-4ec1-870b-96510c6ebb82","block_type":"box","text":"Suspension Risk.","page_number":91,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"fe991c9c-1d9b-41e6-96e2-59413e6fe5ef","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":91,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"fd969dd8-7b75-4ca6-8757-92b5963b4d15","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":91,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"02d1d1df-f047-485d-af36-68db2df96123","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":91,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"01dbd135-5339-483d-94ca-86b8e2ac94c4","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":91,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"08f11bbf-7c82-43db-9539-544a91eb06dc","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":91,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"f5675858-fe33-4aee-b27a-a741be30614a","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":91,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"4da00e9c-e38f-4ef3-81dd-4947a197c480","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":91,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"7f09bff2-dc81-4bc6-aad3-f231e0903357","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":91,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"ebb1b239-95d7-4775-a5e6-a76fae2bf6b4","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":91,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"2f5a01d6-d810-4cef-b5f4-5f3239223be0","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":91,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"e994a3f6-b048-414b-a7e1-6ef5d6aad1b3","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":91,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"18cfe4fb-c4e9-4e04-924e-4107b4af3cf9","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":91,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"fd959584-343c-4b69-9705-34fbb2008a94","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":91,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"b490fe0b-0042-4e26-950c-140e37660158","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":91,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"95a55504-b082-4844-be3b-1f91a92293a4","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":91,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"e40e8bf3-4e41-4fbd-b692-e04fec722a12","block_type":"box","text":"A Fund may invest directly in the","page_number":91,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"5d879051-531f-4d9b-9a70-46a7cb652d96","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":91,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"24bd7863-8fe0-4bd3-be3f-9188de44ad16","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":91,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"6f484ebd-5212-446a-b906-f22e12cfa87f","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":91,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"38c66ed9-9fc5-4c2c-90f8-cdf7bcc51caf","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":91,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"6e8a4751-13ef-4d00-bfa2-6d140f0644c9","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":91,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"a5d71dce-3088-4b59-ae4d-d9f4f89f2a25","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":91,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"f1d4ef3c-06ed-4904-9db8-f96a6bd7d015","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":91,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"19a69d9c-52d4-41d8-b9ac-f3eebf45971e","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":91,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"664c35cb-6ba5-456e-9b4d-8ec5c27c724d","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":91,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"52b1245d-e5f1-45aa-bbff-1ddbd250e85b","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":91,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"179527d8-ef68-468a-b3e9-1270356f9a01","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":91,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"d576a1e2-14c7-4c6e-9fcd-4be5ebeab2d7","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":91,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"e4dc9457-8438-419f-885a-b6b0e659179d","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":91,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"84bc9781-9ba0-41cb-989e-a2c9ebc51493","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":91,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"d1dd0bd1-6909-4487-9241-6f7419812f7b","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":91,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"7f588b83-7514-4447-af5f-c80e65b29de4","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":91,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"d92223a1-7cde-4e06-a0e7-626dccbaf538","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":91,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"05269a5e-9ce2-4107-ad55-593988b3b5da","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":91,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"64fc116f-f86e-4c22-b5ae-023143ed2526","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":91,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"f2e8d131-2eb2-45e4-b527-093ea679448d","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":91,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"f549d2d0-c522-424b-ba8c-f093873f0c7e","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":91,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"37fae9fe-b992-4c5a-b6ab-6fbc2ca0bc9a","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":91,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"5bbe6297-167f-4769-8304-5d3a208ffe1d","block_type":"box","text":"i.e.","page_number":91,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"e5ce6823-32f1-4ef4-abd5-06fe80644613","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":91,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"40d1d9c2-0399-4d8c-a284-740c59f6f6a5","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":91,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"5d4d6997-dc24-449e-b903-1353a2a999d8","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":91,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"000d9d58-358e-4936-919a-0fd71280a66e","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":91,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"99a54707-1dfd-4f7d-a62e-0133b40ba370","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":91,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"194ab1ad-6d42-4a8a-910a-2fc76f609bde","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":91,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"c0bb245f-1dfa-4d79-84bc-bfa4deac7eb7","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":91,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"16922fed-f5df-430f-b560-3796cae13f68","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":91,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"3cff1af8-c217-49a8-be61-d1ad6b1e4f50","block_type":"box","text":"par ties.","page_number":91,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"1eeb29c2-8a19-4ff1-9281-b871fddfde96","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":91,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"0ea3c4ab-21b4-431a-8261-5751aebded49","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":91,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"a615a0cb-94d3-4dfb-9223-2181a46ff0c4","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":91,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"a5e1cb0b-10a3-4059-ad16-a0cf9feed864","block_type":"box","text":"II-45","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8e7cf59-4836-4c33-b246-23eb2308a6d0","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78f9d5d9-5fe9-4dd4-8d70-37d055832197","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":92,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"85c8d6fa-ca1e-40d3-98d3-f037b6658400","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":92,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"8c98924c-5ae5-4dcf-a111-84d0387cd6c9","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":92,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"4da0bb43-8bb7-444e-884b-b9f2e3f3f15b","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":92,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"70a2c415-3cbe-462c-8be6-5c4368fe8101","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":92,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"c93cb5af-2b08-416c-b100-701748326baf","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":92,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"4706ec3b-3f5c-41e3-b56f-9af8df709076","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":92,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"f6a06069-1dde-449b-87f0-805b18219905","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":92,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"1c29f51d-9447-4a47-813a-5ab63a9029fd","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":92,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"0841b488-0f0c-4794-bca7-315a00e95bc4","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":92,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"94e55c00-40fc-44d1-8c8d-b8d0dbedd622","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":92,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"8990f1f5-7a7f-43b9-be32-d67a8ae1c2e9","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":92,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"14168825-eb54-4773-ae4e-bab89eadc310","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":92,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"666ac7e2-2c13-44af-96dc-2546e8d560d4","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":92,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"bc11671a-03e9-4367-8017-62fa3e0948ee","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":92,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"9f004d46-d672-4e92-9fb7-a21bba902387","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":92,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"9beea139-f3f8-4bf4-a46b-eea452abccaa","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":92,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"91f52796-0e29-458a-bc5a-a7ab4d2371d6","block_type":"box","text":"per formance.","page_number":92,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"6b5500cd-6ac8-4888-8c2e-8a65a1ed2921","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":92,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"6c13e968-bc35-42af-b319-6c5cb103b292","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":92,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"0464deb8-9a8a-4b60-b71f-2d498e45af76","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":92,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"ef6c8565-78b2-4d15-a828-516df6a449c5","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":92,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"38515ddd-7193-477e-85d1-8a24e330a694","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":92,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"1ab1549e-6577-4091-9aaf-558ce141d91a","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":92,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"35ebfe35-996c-420e-932d-5241c3d540fb","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":92,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"206b008d-231d-4f4f-9cb7-fe04ef5797e5","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":92,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"0587182e-460b-4ce7-8ac4-049c5e279681","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":92,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"3ae8fd66-5a56-42d7-a71a-e5ebde24d647","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":92,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"6573e99e-087d-4bff-9793-30d1e51fb4b2","block_type":"box","text":".","page_number":92,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"c1235c7c-1bce-4a69-ae21-17ab833db369","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":92,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"aa0ed0b8-7c68-4f1e-af36-117bc4d1b54b","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":92,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"6aa0d7ef-02ca-4a13-bd8a-d3d1175c7981","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":92,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"7b062c59-307e-40d6-a828-adc2e9b8c820","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":92,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"05098dba-984a-4abf-9999-c4692dab6bf5","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":92,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"ed1bd7d3-0e3c-42b6-8e02-406b3ae8b9d7","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":92,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"fb6d9cd4-18d2-466d-b06e-c65a71f38b71","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":92,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"1d6f5e75-d33a-4374-89e6-576c0809386d","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":92,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"f6940830-1f12-4496-8288-d4f327b7efac","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":92,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"92177c58-1528-4da1-bc23-bd30424c8bd6","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":92,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"4d9b7bdc-6a27-44dd-8e47-2876c221f0e3","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":92,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"cc424092-3600-435c-aaff-c739d5551e00","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":92,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"0b1e8b1b-e001-40e4-94c6-c44f780f7615","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":92,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"a9474312-14ca-46d6-96e2-75a00dcea7f8","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":92,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"954cba4d-4117-4fe9-9045-c9517de123d0","block_type":"box","text":"without notice.","page_number":92,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"b9bbdf3a-d4e0-4a91-bc44-2aff8dd7c6c2","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":92,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"2942ef17-1343-4e86-b9e1-7e5f00c69e66","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":92,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"84e2bc97-5c9b-4ac3-a4b8-9be09e9e8086","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":92,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"8212c5ef-26f8-4053-92a4-26d934e91466","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":92,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"d306e35a-c72f-49e8-890d-4a39a6010007","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":92,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"70259796-ee87-4497-ae9b-b8a4b5963661","block_type":"box","text":"December 31, 2027.","page_number":92,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"2e3ba3b1-d238-4956-bb61-443a0ce90119","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":92,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"ecd4b43d-0d4b-4427-8535-cc7497265740","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":92,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"7d895022-f4ff-40ba-ac9c-76f2a9ed941b","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":92,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"c87dcaa1-9af0-4668-b83a-28b1a0814c4f","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":92,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"9f5491e5-7fb6-4d37-9ff9-8a28728f9ba7","block_type":"box","text":"II-46","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4c757307-9e27-4dec-b7d1-9a986e4b86c9","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66551e66-c927-4584-adb5-6cc1801dd74b","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":93,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"d5d7d666-2e5a-42e5-8206-2d07f49ead71","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":93,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"0ada7505-c3b3-4b23-bafd-9bb7776ebf97","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":93,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"ad4202a8-7922-4ad6-9403-75390c72bbca","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":93,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"1e0f4430-ace8-4e27-9b19-38b9382a0ffa","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":93,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"6a5eb42c-712e-4e01-a596-3f8e83382864","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":93,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"d575925e-8ae6-4f1a-9b36-99bedf74b813","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":93,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"b93b1133-a71b-4391-bcf2-e266c84a348a","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":93,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"212f55ea-4b1f-4879-9050-47fef72674ba","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":93,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"d1499e70-be5e-41a4-92f8-6e1eb6c717b8","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":93,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"594c38db-b91c-4d49-be86-e9be5c7c7f75","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":93,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"13d3a46d-4c41-451d-a33d-2a5485cd11f9","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":93,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"c59d1e66-437f-410b-9403-3bfbca66879b","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":93,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"2781c0de-7baa-47e4-b81c-d61eae6d9f4b","block_type":"box","text":"PCR sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":93,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"1b3aacb0-b4f7-45d1-ba75-aab772aa8b87","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":93,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"585099e6-eb73-49a3-8321-b62e90a06dbc","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":93,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"facdea6f-51b7-4fd9-95e5-1e75ecddc3cd","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":93,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"503f9464-6457-4ff6-99ef-a5cfb459e7b1","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":93,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"eb2113b4-463f-4545-aca7-c9466086efcb","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":93,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"a3c63789-b43a-4938-9569-16e1272bda9a","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":93,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"27a5f237-eef7-4d1f-bb58-b16443074444","block_type":"box","text":"the PRC in notifications.","page_number":93,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"e0e934dc-9637-4791-9824-c20d2867bd72","block_type":"box","text":"Investment in Other Investment Companies.","page_number":93,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"a9323d71-303d-40bb-9b65-1615ddd3dee3","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":93,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"8eb53766-6442-4d43-a349-a49d54ee5a9b","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":93,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"ed95be4f-ba79-43f3-9f81-1a23c65846b5","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":93,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"d82316d6-7e6a-401d-b961-97f5df34b55b","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":93,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"c314e8c1-c453-4ff7-b9a9-866f430aae5b","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":93,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"00f213aa-08dd-4c87-9673-cdff9fd18e2d","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":93,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"d2af0f7f-c6da-42df-9ebf-c22ed8085580","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":93,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"b61d995f-7c63-497f-9814-57cf859f876f","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":93,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"67c8428e-f9e7-449b-a8a8-0b8ba67572d8","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":93,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"7a4c04a1-8799-462e-95bb-341102321cfe","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":93,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"4642ece3-c1a1-48a0-9183-1c0c0b6bcea3","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":93,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"d88a6ff5-d7e9-4341-ab39-a33b922bf21e","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":93,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"3b4b4065-dbef-4134-be1e-41e6bd63cc40","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":93,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"4e2f6000-49fe-4d64-8320-04d15b0bcfc1","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":93,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"760d3947-f4b8-449f-bc00-962e81d65b76","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":93,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"4a418489-162e-4a2a-84dd-5611d814ca5f","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":93,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"24b98db6-5928-4229-9f86-bda70af438f4","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":93,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"8a0dabb7-3f7f-439e-aed7-7ff7ba53ea0d","block_type":"box","text":"subject to cer tain conditions.","page_number":93,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"e3ba0bb1-a0c3-4ca7-a5de-5f8bf80b3deb","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":93,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"50756b68-addf-4434-a81b-0e3b9f2463b8","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":93,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"80cf9b37-e89e-4ee8-aa90-abcc04e08256","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":93,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"61539957-a7d5-4085-8a6a-2adc12caaab5","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":93,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"c290eec6-18ab-451d-a867-006ec6bd293f","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":93,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"6f1a8665-3663-4710-a938-6c703bd6da2b","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":93,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"a3a2ccbd-ea15-4cd7-ab1f-52fb3a83e3e1","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":93,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"6b686408-6ba1-4bfc-bea1-02f1744effab","block_type":"box","text":"loss.","page_number":93,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"95e071b1-9dd6-461c-b0cd-f992bd0a682d","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":93,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"f969d5f0-027b-47dc-b108-7065081a1ac0","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":93,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"f9f61bfb-e4af-4a4e-abb5-ace68dc3e96d","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":93,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"ceed29a0-fa97-4544-af27-e554e26ad2e9","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":93,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"f2ca1f8e-22d1-4d1e-b5e1-5663b8e831f4","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":93,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"13db092c-b6b8-4dec-ad8a-071459f0ffe3","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":93,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"af56dbc6-99e5-4ae2-a597-657613e759d7","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":93,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"0a1d4baa-5e07-45d3-a351-09334c393b63","block_type":"box","text":"II-47","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe03f20d-99a4-419a-a713-6e5211dff85f","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0f1e8e5-55aa-4d3a-aab6-714b5045301c","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":94,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"1f3b7deb-f08d-43ec-9fef-c8400bc58ca0","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":94,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"0f051bb4-4b0d-486c-9544-03a7daaefa36","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":94,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"0df46a6b-98fc-478b-aa88-b04910a911a6","block_type":"box","text":"assets.","page_number":94,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"76d132a7-21df-4355-8a9d-e53200d19837","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":94,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"e785fa59-2d9a-4a87-9d9f-e400cd92a180","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":94,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"39dac75b-4bdb-491c-a9ff-745a8855d9a1","block_type":"box","text":"e.g.","page_number":94,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"ec8bd4bd-75ea-46c1-a0db-f08bec6378ea","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":94,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"6b21862d-600b-43f7-8d90-ff1b9ed734bb","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":94,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"885d3e96-c1ae-42d7-8176-1389be93e099","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":94,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"35645397-15c5-4908-a3fd-fc69830e7adb","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":94,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"7c6d5258-7141-4934-a657-f2526871a908","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":94,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"075192bb-2707-4710-8d9e-79e5f902aee0","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":94,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"557d0a23-e870-4f24-bd13-262809eca469","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":94,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"f499d62d-e579-49db-9780-7a693c4fc4d3","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":94,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"02da0b88-77e5-45b2-bd04-a88cf10a6b79","block_type":"box","text":"countries.","page_number":94,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"faab4b2e-f638-4861-a661-86d2ae65c380","block_type":"box","text":"Issuer Insolvency Risk.","page_number":94,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"4449a199-8fd2-406b-9607-7b0d7cb598b4","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":94,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"02d8eb67-ac69-4c26-bf0f-f2e74fe2381e","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":94,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"9cafffb5-a0fd-49a9-9524-e9f9087e8790","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":94,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"c5b95ec2-8ddb-484a-b606-2581d93bd292","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":94,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"583677fd-434e-4dc0-99a0-6b276e2ff217","block_type":"box","text":"issuer uncer tain.","page_number":94,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"ba716bba-8c4f-4d2d-8e41-410fd509bfde","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":94,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"ab736d0d-92ee-42de-b482-e124f498fee8","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":94,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"073fb3c9-e1ce-459b-ab49-d625a1d4ab34","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":94,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"eb18c95c-b42f-4b17-bbf4-54744349a31d","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":94,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"9020a88a-3a36-4b25-b3f1-2b2dfaf41332","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":94,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"4f7b583f-77e1-4631-b221-11294f059920","block_type":"box","text":"eventually be satisfied.","page_number":94,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"8ae7b77f-14ad-4aba-a55f-5b9705e13345","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":94,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"e1010799-4595-4430-83fe-e2561403754b","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":94,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"09fa793a-bde2-4a6e-9e37-c040831b90cb","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":94,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"24a71b78-cbd4-447f-a130-bd90c06f5ed6","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":94,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"e2ff50c3-1cb5-48ca-a14a-e9ad47107f8c","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":94,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"278325f3-5a6a-4e00-a4e7-08605cfeb2c7","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":94,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"4460e759-69e5-41ec-88cf-fd7087d93a6d","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":94,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"34406afc-809a-4d5b-afcd-5ed0dee6e65f","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":94,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"08ec8a48-7bb7-446b-92e5-f4fd4662f380","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":94,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"134c57fe-89e5-4288-b038-673913d190cb","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":94,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"db8aec1d-b222-4b0c-a522-cf48927c4cae","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":94,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"4ddb8a21-1aca-4840-8c65-ddfc6d4894a7","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":94,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"59e7d516-9634-451a-b029-455dd365ef2c","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":94,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"e6cc5aa7-f0da-40f7-b208-a83d71fe04a0","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":94,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"47948a93-1672-436a-811b-7f200a474825","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":94,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"f9c51f59-0665-46aa-8013-ea7309cc0fb9","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":94,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"1e1f5cc0-5fa8-48ca-977b-50a6af313dcf","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":94,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"7b631b9b-bbaa-4584-853c-34b42b14f193","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":94,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"f9077254-6aa0-4a32-b476-8747eb9e67bd","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":94,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"8f5fc0c2-0430-406e-8966-5e4215a2775e","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":94,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"9b278a13-e066-40c0-a997-80bd54c9ab78","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":94,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"00bd9d04-2677-402f-93e6-03f0a7ac0528","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":94,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"c952d5c0-6206-4213-b0cb-794b249ab885","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":94,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"817f81e8-fbe7-49cb-9d9f-a908877674ff","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":94,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"35cc27a3-f182-489c-9773-903f11792560","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":94,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"d24a7ca8-c676-4d4e-8ef8-d27a55f47c36","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":94,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"0126ef29-4385-46cd-9208-272a226a6c93","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":94,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"e6003586-1d75-4591-bc0b-ed0e10fc4736","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":94,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"906fec7e-dfd3-4bf5-ac73-c38440fee143","block_type":"box","text":"that assumed generally by an investor.","page_number":94,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"8c0848c5-cab5-4f26-bd51-e9955ef7888a","block_type":"box","text":"II-48","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a8ff041-d114-42b4-9816-85488d094fdc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec957958-0d86-4641-89f0-993e2cbda383","block_type":"box","text":"Lease Obligations.","page_number":95,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"ca42914b-c571-4fc3-a683-4cae05b1ee80","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":95,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"be861337-33f8-42ed-ac04-4c55a05aa25e","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":95,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"30b75d6c-f60c-4065-8661-f688972c064a","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":95,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"2fec7fd7-0338-46ea-9204-b12fb6e3f827","block_type":"box","text":"Life Settlement Investments.","page_number":95,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"d11e8f72-b4d3-4946-9331-05e86f62e4ca","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":95,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"66cf6a43-02af-4439-87b4-24f4c908741c","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":95,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"4386911a-6a3e-44a5-aa3b-4f1b89438614","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":95,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"041c31f5-edd4-43f9-a8e8-ea3e554c424e","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":95,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"1eca36d9-e09e-40d8-b82f-45b7252a36ed","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":95,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"66df8f31-013f-45ea-9a63-7b77cb9fc71b","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":95,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"8e103c89-5d76-4d68-b28e-953ba75cc8fe","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":95,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"1067302e-5c4d-4133-a101-8c891dea71ec","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":95,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"df55c1b1-acb7-42cd-81f8-6284b1776998","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":95,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"5d3683b1-db7a-47cd-a6cb-a04c9dba0afb","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":95,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"b29d88f1-91aa-4ee0-9131-5ba923e6fca8","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":95,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"617ee3f6-c188-48c6-86c3-97f46bfa68d2","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":95,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"87aa8b8b-e3dc-40f4-a546-a8b586caf1ca","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":95,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"2eebce3b-6976-4dc9-8ffd-fdeec6b3c7be","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":95,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"08b24e3c-5fe9-4542-978a-b9a91beb8205","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":95,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"db19b7f4-a790-4fee-b629-819477d6047e","block_type":"box","text":"Liquidity Risk Management.","page_number":95,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"b4554dc9-fd4b-437b-8158-532fa7e12f43","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":95,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"67a3ef04-4bd6-4262-9d8c-895a35ece60d","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":95,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"f6784150-fece-4496-9402-6bc33f37e088","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":95,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"2886634f-6de0-491d-beb2-0cafe88f417d","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":95,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"163a2440-0a2e-4072-94ff-164d797efdaa","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":95,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"92979537-590b-44d5-b6c2-5a730feb2971","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":95,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"dd7ebc7f-3816-4649-a897-af2b28decf30","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":95,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"cf38fd6e-b12a-4edf-9d74-4b990ffddb42","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":95,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"58b61500-5932-4cb6-aa96-e2e17ed51856","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":95,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"47c3197b-67a5-40c4-a8f5-d7e8797f2dfd","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":95,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"7f2e46f5-2726-4de6-be55-b39587da0df6","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":95,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"df5de892-f98d-4915-9cc2-ac4a5de3aca7","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":95,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"f7118f8a-2ee7-47bb-8849-f68495f6bc0a","block_type":"box","text":"Master Limited Partnerships.","page_number":95,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"f02dc67c-ec3f-406b-ab97-41b454c91395","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":95,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"407a72cc-2685-4b0f-b1e7-11b7a2ad7b38","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":95,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"927eb053-e897-41a4-8c61-9e57df14b4f0","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":95,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"723a7d13-107e-4f94-a564-2f84e65f0823","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":95,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"67d5bea4-04f0-45c1-a06a-9a86e9b80cd3","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":95,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"965bdb44-3dbe-45c9-9323-be5b79162fb1","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":95,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"c174f42a-555d-4ee9-8d7b-4cf450825fd0","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":95,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"cef07419-0805-4e61-8a34-f9104bc7be28","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":95,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"8d579085-53c4-4c4c-af63-693e2e635b06","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":95,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"ccc64f94-8589-4edc-94c6-f6002a3555bc","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":95,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"c995493c-c3fe-4326-bdb5-3e0d1de00880","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":95,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"179b1f4c-5dcb-4aa3-b6f0-1710f336a070","block_type":"box","text":"in the par tnership’s operations and management.","page_number":95,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"6d961e5f-c79b-4286-a744-dd60e8c273fa","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":95,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"4278e6e0-5860-428f-b762-4c14cf77862d","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":95,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"a0392563-efa7-439c-9942-7792ddcca797","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":95,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"f8241d40-ad47-4fba-ba73-715c3a11e502","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":95,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"cbbd5a31-fb50-4fe4-ade7-e0bc1d49d1b9","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":95,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"47989d93-29ef-4f20-b61b-d6a0be8d1914","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":95,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"68fd2593-7d55-4a50-8859-20dc27dd1d2e","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":95,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"0ec20425-65fb-4cf6-bb47-f2afcc4dba38","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":95,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"0ddb3d0e-909e-47b3-a1e7-c5fac5190961","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":95,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"f554fd80-1371-482c-a545-c4cfcdfdea4d","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":95,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"ae9e8c46-56e3-46d3-b158-1cda9be4589b","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":95,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"46594eba-7341-45cb-b12f-d63e7be8afab","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":95,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"86abd1ef-f373-4cf6-a707-74c6e2fcb461","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":95,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"3095fa62-3f5f-43a8-b041-1332219d1bcc","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":95,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"d2267b17-840a-4e05-ad53-5c7703be27de","block_type":"box","text":"II-49","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84feee0f-b132-4b83-8477-2082b99ad07e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ddb9c7ba-9f19-4656-a0af-678699df4657","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":96,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"2546fbca-ca61-42fb-b148-640547ca1cc4","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":96,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"57955a46-beab-47fe-a102-9ebc97e3a93d","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":96,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"7ffceef9-c535-421d-ad71-003b2e5bfdd5","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":96,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"108decff-2a4a-4c4b-869b-b1e2787a7698","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":96,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"a0e3fcbf-3957-4f37-bd4d-7bee8e450f03","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":96,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"e448948e-fbd3-4845-9df7-45bc0edf25e0","block_type":"box","text":"Merger Transaction Risk.","page_number":96,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"9c8cbd8c-fe57-4dec-bbf6-706de8d43fc9","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":96,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"89676dde-049a-47c8-bf3d-dd174ba0493b","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":96,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"26406555-baf2-484a-abad-87c063e06e0d","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":96,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"4b0fb1f5-0928-45c8-80c5-bd4ba8ca1a63","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":96,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"016f5770-13b1-4235-921b-e828fdc11751","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":96,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"1d01f394-94aa-4bc9-8306-b1676c04e8da","block_type":"box","text":"the Fund and may lose significant value.","page_number":96,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"9591e364-730c-4180-96c2-33407ed7c5a6","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":96,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"f9896ddd-55df-46fc-9db3-040f61136174","block_type":"box","text":"Cer tain","page_number":96,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"64174a71-4224-4336-85d0-2bb059f0d9fb","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":96,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"26a56e03-9b11-4ac7-aeac-60b9a5998c46","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":96,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"83d8c52b-24a9-49ab-9c68-ea7b5bde2f52","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":96,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"9f650138-374c-480b-b024-90387269a479","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":96,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"7d3fb3d8-364b-42d8-a751-e1f05999e145","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":96,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"d09fc268-b3ea-44df-ac08-6971ee598b4f","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":96,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"96abeeec-87ae-4154-a9b5-cdc903fd5d81","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":96,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"0bd886dc-c0f4-4a8e-8bae-fed993802151","block_type":"box","text":"branches of domestic banks.","page_number":96,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"239296a7-b112-446f-815f-f862941454df","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":96,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"efbc4ca8-82e0-4af0-91b2-031fe61a411d","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":96,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"1a0a019f-280d-4950-bcee-72eb0431f366","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":96,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"65081f2e-94d2-4eeb-bf4c-5b3461d27172","block_type":"box","text":"paper of a foreign issuer.","page_number":96,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"b58927cf-b5e8-443a-abbf-ad607288723f","block_type":"box","text":"Money Market Securities.","page_number":96,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"3c10db4c-3997-45a7-b11b-7216f497becc","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":96,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"4bf2fe55-fea6-4061-a148-a5e9332decc4","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":96,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"6024d503-ebfe-44c6-a3a8-d5fbd7e206a1","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":96,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"cbb1ce0e-2052-4c3b-b914-c57263a1cd3f","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":96,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"796c7f25-78f1-4807-84a9-d4f5b897787d","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":96,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"1701baf6-7145-44d2-a03d-5e1775ae692a","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":96,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"fe23c802-024e-4f13-9ba3-acbbfd019559","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":96,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"78c48b44-0e0b-4ac7-94a1-a1c0aa159b56","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":96,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"028dfb52-d377-4a20-aa5d-992ed3602a7a","block_type":"box","text":"agencies;","page_number":96,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"a2a56939-9857-4412-be92-221688340523","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":96,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"216caa01-349d-4376-86d0-7a1d57e0ef31","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":96,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"7baea346-1f7e-4562-87ae-fd089eba8e0f","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":96,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"592863d5-042f-450b-b509-b4ff34d0fe0a","block_type":"box","text":"obligations and credit card receivables);","page_number":96,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"c6ea609f-0689-4629-ad87-d9cf452d54ef","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":96,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"b80d64e8-43e4-4c38-9488-4fad2bfd917e","block_type":"box","text":"authorities and related custodial receipts;","page_number":96,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"19be10a0-2364-48d8-9ebd-9c447059bbdf","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":96,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"4b9e1b7b-211f-47a3-8363-e2a8cb57efd8","block_type":"box","text":"agencies or authorities;","page_number":96,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"8cf996ae-0021-468f-8491-c82a1796dfc3","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":96,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"ab1a444b-ce3a-42d6-8b66-1eab0c693d4d","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":96,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"08af5ab7-63c8-4c45-af97-e940c6d6f53f","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":96,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"71876020-2f51-40a0-9e31-59daffe601ca","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":96,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"b9e71914-47af-4ca5-8f75-d59043cbc209","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":96,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"42d4a0d3-cde8-4d31-a789-cc62e0b32019","block_type":"box","text":"States;","page_number":96,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"f1951b09-ae25-49dd-b26e-beafb3f414fc","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":96,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"a32b09af-8110-4d01-8518-9267080ddc46","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":96,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"e7343d0b-ddea-4ce0-8348-6e62dab2a252","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":96,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"7d15a4c8-dc1a-489c-ae1f-7dc83e67fe32","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":96,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"44fead15-c715-4d64-b255-48d07ef52724","block_type":"box","text":"II-50","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d3c4b785-3847-4118-b9e1-7bcc5b8103f0","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"acad8675-3c35-466a-ae61-21a2453a1fb4","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":97,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"fa1d9f93-bc04-4fa8-93e9-6bcecf666e9c","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":97,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"19d1aa88-d18f-40ca-9760-0254ed3e42a9","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":97,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"74add44f-a79a-45d3-b3ad-eed2fa3af200","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":97,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"bcb50451-6458-4251-95d5-308faddea28a","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":97,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"e574a31c-49c6-4258-8874-14bea5c16ae6","block_type":"box","text":"States.","page_number":97,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"0082ae8e-e8f9-4885-bb53-d5c49937b570","block_type":"box","text":"Mortgage-Related Securities.","page_number":97,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"2ead1a33-42cf-4023-be3b-ea50b20dceed","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":97,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"71c5827a-5ad5-4bc2-a8cb-4bc9fb7cf412","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":97,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"443946db-f036-4527-8fd4-48e6067f134a","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":97,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"358d8bf7-8644-439f-bd69-7cfad47bcc48","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":97,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"972124b7-997a-4658-a6c9-4032a91cb5ea","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":97,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"d8d3e798-9771-4e3d-b20d-5d4b311eafec","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":97,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"5852842e-2acb-4f19-b6eb-5347646e4941","block_type":"box","text":"maturity or specified call dates.","page_number":97,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"ed2183a2-0250-4944-adce-70f4202f522c","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":97,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"365f335d-4360-4ab3-adc5-06a5ce348d05","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":97,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"076fdd52-0f18-400c-ae7e-7f47ef7d56ad","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":97,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"be8ee3b6-dc1b-4447-a804-18096988f72d","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":97,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"c80db132-ab28-453c-825c-ade173b0d850","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":97,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"9978256d-92f5-4cfb-8098-b94bc78abb8d","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":97,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"1d86a0dc-a76a-4ae2-9043-eb5a4fd4e6b9","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":97,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"6a589b79-1ea5-459c-adea-cfcc4d21ea51","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":97,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"dbd2e283-7c54-4cd0-83ea-56334f760333","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":97,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"73922460-fa8e-431b-815e-8e79764cfd4a","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":97,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"2f3d7cbc-500d-41ad-b086-5f5f2d52d61e","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":97,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"d79c0dea-7b18-43a0-976e-43443e348b73","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":97,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"e7f68985-e182-4d49-927b-7d9505d38690","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":97,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"e1121862-0ee5-445f-9e51-d3ecf06fb6f1","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":97,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"fd21ec1c-3778-4bc2-ab63-1f367484a88c","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":97,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"ef2d0705-e9d7-4365-9c96-4efc5387dba7","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":97,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"943ee11e-b88d-497d-ae6a-4b3a6c039ae1","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":97,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"0a0241eb-c95e-4f18-9cbd-0093dbe459d4","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":97,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"6c8c7ff4-2ce0-4673-9577-ccbd009a9694","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":97,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"d73798c1-d2b6-455e-9edd-81627d9f5382","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":97,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"68a4e4a2-19b0-440e-9ae7-be7f640c2564","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":97,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"6b51939c-f0ce-4652-9e8a-527eb7ce79f5","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":97,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"ed2c6821-0eac-45ca-9525-bea0819f4a11","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":97,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"8f742791-ab72-461b-b2bc-9a33595a512f","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":97,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"28974e6d-7994-4257-b269-c67196d7340b","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":97,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"c9f91db2-fc76-4e8d-a796-9b19e3a62ebc","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":97,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"8ba90a9a-f086-4e6a-b138-9d61e6d21c1a","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":97,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"e83d5ba0-d008-48a2-9f63-2137624a9635","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":97,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"4d11dbe7-05ba-40f5-a11a-acdfeae679e4","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":97,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"b218de29-3e3d-4fc4-869b-962fb165cbc6","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":97,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"2198c60b-e5fb-4ae3-a1ea-2a118c91a478","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":97,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"3fb620b3-6d1c-480e-8eac-82d7a1b281e3","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":97,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"881fff1c-69e4-4802-bdc7-f5fbc048d360","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":97,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"3b345934-c1b5-417a-abce-6e371f06e41f","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":97,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"81bcd813-a983-4591-85d7-3e575e97f93b","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":97,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"d4d12f87-7119-4515-875f-3899387c1c43","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":97,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"422f18b8-9cb8-4bd0-94b7-364f0ac6d4a5","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":97,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"f7a23cb6-f689-4c86-ab4f-ca86484dabd2","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":97,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"e10328f4-9a10-4b83-9b42-ab2ad3950ec8","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":97,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"39d6e3f3-9b09-4627-af4d-dacb0a494eb3","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":97,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"51968275-dfcd-4b43-8e35-b90a9bc8772d","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":97,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"32a7142a-13ce-4b5d-9332-3e8e5f86d233","block_type":"box","text":"II-51","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d2306773-f56a-4027-a13e-12c90ce4eebd","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"271cb8e8-3c81-421a-b181-fc8bb094ff9c","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":98,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"73360ea7-e0be-4760-9289-31e0ab1eb893","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":98,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"4f1e7a02-4200-40af-958b-2f0daf4bd1c2","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":98,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"8cd1d4c8-b34a-4253-8adc-2a035bbcce98","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":98,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"42c61515-aa9f-4261-b1b6-abfb32370032","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":98,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"883a7f47-6cbf-4932-a95f-5907bb300a10","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":98,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"2198d16e-17fc-4e82-8256-58bfd8b68b5e","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":98,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"0f2c7518-375a-4d40-a982-60317b867a32","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":98,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"ba1477f1-134c-4928-96a0-1e18f507f684","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":98,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"c0307517-a910-467b-aca4-fddf93d4d29c","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":98,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"89a590f8-da82-492f-931b-68c24c1c18a2","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":98,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"0b389613-588b-45eb-9ed3-0255b2fcbc1c","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":98,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"7ff92312-39f5-496d-afe0-8c85bb43d336","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":98,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"99a77833-23fd-45b2-ad88-34ecba408a7f","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":98,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"92f7b707-e2e0-4936-883c-bbb76c22fbde","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":98,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"5d976fd9-8cc2-452e-842b-785d3f7d31a2","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":98,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"17b615cd-a0d3-41bd-a3a7-4761bff449de","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":98,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"5aedd4a3-2891-4137-bcf8-6dc101be36f8","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":98,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"c3200f62-adea-48ef-a8f5-49ebb1916300","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":98,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"73a87fa6-b6b7-4741-b535-4ae53ae92d92","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":98,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"43d59f38-ba1b-43bc-aefd-14b7b13fde59","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":98,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"5de9fb2e-4039-43d6-addb-a7cdad334d92","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":98,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"b2921886-1a24-4c73-89f6-51c38f9d70b0","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":98,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"9c67ca06-3768-446e-a46d-412bb12884e0","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":98,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"1d46fa5c-9f8c-45f0-8ef8-4b2a38f5c85c","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":98,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"23d7c40c-1c10-40ff-94ba-498350004b30","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":98,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"bd1c96da-a745-4be0-bea0-0aec9c9e11c0","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":98,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"c6a1e84e-7540-4d39-b095-eb9f5b4a2f4a","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":98,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"baac3d55-4e89-4df7-bfb2-e72fb887d56b","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":98,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"2f44b516-f96f-489c-a1e3-6437c193d7e0","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":98,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"8c71ee6e-d413-4d9d-ab43-8101678a91fc","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":98,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"c30e3840-9189-46df-b509-9bfc9d5c7a1b","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":98,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"4e735112-aee0-4067-bb12-223532e3b5ab","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":98,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"d578bf80-476f-4397-a3c9-e2a0740a43e9","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":98,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"966e8e1e-d025-4741-9864-f9152a51fa6b","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":98,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"61458a9f-d8ea-4755-a7fb-9552881bb2da","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":98,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"a2602271-0430-417b-9906-de50b8b86d64","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":98,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"0952ea96-c795-4abb-83d4-fa11751c520b","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":98,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"c393f68f-e369-4a87-be22-d7ffd4a14b7d","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":98,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"57fdf2a9-89d3-4575-92b5-de1aac47edc9","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":98,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"34518b84-aeb2-4818-be3c-fc39694c846e","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":98,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"c2e98102-5f9d-4b60-b43d-5d48865cb943","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":98,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"82d7871a-3b15-43a9-ad1b-9bed4fd6223b","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":98,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"70be4c4d-9a5d-4292-8b78-329118f95b55","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":98,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"26335312-f3fa-4534-9a11-95bc7c724f3f","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":98,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"7e6ce344-aae2-431f-8cf0-fd1fdb41ce03","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":98,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"a94c74e7-2141-43c8-8983-80ef3b452be7","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":98,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"952d4056-35b8-405f-8af5-6f57bfcc7576","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":98,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"ba709698-d20d-425d-af9d-8e4172670a9d","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":98,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"e22af1ad-8bda-4ca2-a313-4b4dd48f5780","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":98,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"a27958f7-c859-4776-acee-ba42f3cc69e1","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":98,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"67df6b7b-0580-490a-b5c9-050f32cb3063","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":98,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"3d5ce818-7a25-4120-9829-bfbdbad41779","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":98,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"0899a125-9e9c-49d4-b2d7-89664c178dd3","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":98,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"b61f1a7e-68f2-4d0b-9703-bfe89bee7805","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":98,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"67d21219-aabe-49fb-8852-eda6dc7bc1a0","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":98,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"1fba520b-fbd4-4f52-b46e-2ee7140472b3","block_type":"box","text":"II-52","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"537e8955-e59e-4994-8725-7616e2b9613c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9de9a1f7-cbee-4102-ad00-d9956bedbb4d","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":99,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"a1e1236c-7a51-40e0-bb28-7f4247e5dcfc","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":99,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"94360371-6013-49c0-b616-68f686479652","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":99,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"c8e1cbd5-f349-4a0d-ac50-93c0b8d9faf1","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":99,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"c20394e0-704b-42ff-a31a-0412952c6f45","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":99,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"65181125-8e6b-49ed-b59b-58690b6d3b10","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":99,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"3441dec8-ca11-481b-a689-667e5aa45289","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":99,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"4bee97de-a874-4bf8-961e-3dc669767bcc","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":99,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"5fb67d0b-5da5-4192-91aa-ecb4dd34df34","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":99,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"d4d27df1-b6a1-433d-a8ec-682cc5bedf02","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":99,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"2d3b84e9-7a46-41f9-a9ef-3d1e4b9adb78","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":99,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"bb096507-440d-4c0a-9c0a-9d6bea10807d","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":99,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"e1e47a84-c563-4a2b-b87a-ac9278ab5204","block_type":"box","text":"of principal because of the sequential payments.","page_number":99,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"eb4f9d7a-eba9-4e15-b90b-e5621b65788c","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":99,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"fd3ce9e5-e06b-46c9-8809-32d7920927b4","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":99,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"2cae0548-d44c-4f1a-b2c8-1bfddfae4869","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":99,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"cb95c110-2fb2-4393-bd0c-cc468783d401","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":99,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"b36b3fd4-92c1-4774-ab37-08b3198632f4","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":99,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"2eb3a48a-90f4-4f24-abac-a38f8ea031f5","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":99,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"a1dae01c-d747-491b-baef-4aa7907e5956","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":99,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"254bfa2e-b423-401f-ae8c-b607f326fad5","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":99,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"f54b2135-9bbc-4b60-8a08-e27a2580e687","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":99,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"2688b2db-2ff2-4d78-b4de-505841616bd0","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":99,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"609f59e0-ca7a-4fa9-8722-57e591bf5f61","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":99,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"e6fa0ff8-532d-468c-87fd-01705fecdd28","block_type":"box","text":"securities of any single such entity.","page_number":99,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"f3574fc1-d331-4c3d-ae3c-6ece8ffa65b2","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":99,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"7f108d41-a86e-4e73-9c75-5daabaed8fcb","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":99,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"bba4e464-c1a0-4312-b750-334030a9a353","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":99,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"7f8d09ce-7eab-47d7-87fc-1e414c4ffaf4","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":99,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"fbb42e10-2b53-4128-b938-d9e521d282dd","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":99,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"cf51fd65-e1e8-42ec-b827-0d5edfa2d24f","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":99,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"fb3b09fe-4944-400c-bce5-e3102dcadfd1","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":99,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"12b95d0b-7f59-402f-baab-60c5979bd8c3","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":99,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"9c9951ff-6f11-4efb-93db-e8eaba8e25dc","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":99,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"9196b5bb-4084-4f41-856e-489bece5070a","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":99,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"0b8e1d89-bd9c-43ae-b298-5ce024fdb922","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":99,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"ea3a6694-888a-4c19-8fe8-b18479d5093e","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":99,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"f8bbf306-67ad-4a27-8cb7-1cba4fd454f8","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":99,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"20ffcc2b-bd45-4375-aa4e-ed3860a6c570","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":99,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"10a76841-dcc3-43a5-a9a5-2e4cdc88a970","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":99,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"265a09b8-755c-4d02-a6ab-e1e90f8c0295","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":99,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"1e646290-7464-4db9-a48c-1ccd7984f755","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":99,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"e7424ac8-87d1-4b85-8593-c11e4a9b4167","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":99,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"60d614d2-de0c-4402-84d7-059c8ee0c000","block_type":"box","text":"classes.","page_number":99,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"a214bc45-fdea-4af2-8964-732eb8212244","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":99,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"2b6e6822-09b4-44f7-9edf-9678870eaab6","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":99,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"96022a88-4028-44a8-adc5-7cc514dbc337","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":99,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"fa883435-5535-49e9-a8b7-f87f075cb858","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":99,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"f2e90cfb-990e-4577-939a-069e0a3d566e","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":99,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"e4cd5f22-4e9c-4adf-9150-ec4409b69dcb","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":99,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"8649a501-6efb-45ca-83cd-52a531f1ef9d","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":99,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"e7458615-3a42-4569-ae7a-22935e17490e","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":99,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"ed446bbc-cb39-4a04-94b5-9740dfa0d22d","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":99,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"53114a93-fd60-432d-9b35-af01419a9766","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":99,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"ecb7c088-c86f-4abc-93ef-5921d9f1eb11","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":99,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"0af4796b-827a-453e-a450-81d4f72ecdbc","block_type":"box","text":"to a designated benchmark index.","page_number":99,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"68dd2e21-c94f-4795-80a5-4580bcdb01e2","block_type":"box","text":"II-53","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"702535a9-82cf-4fd9-ac23-b3de40b578bc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19194b12-7832-4d34-9c7d-8fbf10ee0d69","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":100,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"bfb3ede4-4c89-4f0a-bfbe-59ee7b4b4968","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":100,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"55fc5956-201c-4080-ad1e-5464ee2a7275","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":100,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"c0f6e1b4-9ef2-401c-b635-813524fceee4","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":100,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"5e672bde-2d8d-4bd1-95d0-fe747bc8e0db","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":100,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"b7dcb6f4-42e2-4336-873f-b42a4cf31987","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":100,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"661f3737-8789-41a3-b4c1-56c6c93968fe","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":100,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"2ebafb95-fff4-47c6-97ea-c5561501b547","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":100,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"e8c701fc-5460-4893-96b9-8019a8baadc4","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":100,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"cad67dce-c6c8-4efe-a0f1-bb238dd5f08a","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":100,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"15e2db7a-8a02-4ae9-8971-980ab78e205c","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":100,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"b86d75f6-56c5-459e-9fe8-85a954dfb3d7","block_type":"box","text":"CMO Residuals.","page_number":100,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"3c23d033-bcb8-4e54-891c-44f19265a22a","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":100,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"0505294f-2378-4cd6-83f2-24b03e62a0d3","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":100,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"9ccb6d08-4bd4-44f3-8105-ce73e50898f0","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":100,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"66a72802-3b05-4e36-b4a6-a43d30017f7e","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":100,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"f3cd109c-f7de-425f-bc67-40456b0abe25","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":100,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"f7be0ec3-d89b-4842-8912-d650f80b2bd6","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":100,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"b4e1399e-fc07-4f1a-9144-92a5eb4aeae7","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":100,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"1663e746-2c87-4ade-a1fa-b0d6aaefb2d6","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":100,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"4ec1ac99-b6da-41a4-8145-1aba47481972","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":100,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"ed6b295d-e343-4363-a3a2-c2c41666e759","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":100,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"bffd17d2-a21f-47c8-a3ad-e2261a7f4bff","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":100,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"4ea422fe-f293-4ebc-99d4-166a0cc351fe","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":100,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"e6c69009-3856-455a-8c48-d01c596bda9c","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":100,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"fc20d1c9-2c4f-425a-959e-e10938456d56","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":100,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"5b65ed17-35d6-4cf6-9c01-52360af45e85","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":100,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"7ea2e27e-7e19-46b5-80cc-2528b353ed7e","block_type":"box","text":"a CMO residual.","page_number":100,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"2e054f20-17d3-43f5-88a7-6f60fcaefe8a","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":100,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"65e3cf55-7206-40f2-95d0-584bb5aea432","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":100,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"f2930df9-37a9-4e5f-9335-cc32b518894d","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":100,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"430806f6-3fb7-40ee-9e86-6bcabc4183f8","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":100,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"8df49770-85ee-430b-b15d-bdd74801fe8f","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":100,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"7f2693af-d433-4e41-a25a-00c418f8065a","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":100,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"0f68c40e-8b05-4122-9f99-d53a9aa200f4","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":100,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"dd253ac1-71f5-4e42-95a0-6a9dab09f065","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":100,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"ad5b019f-627f-48ad-a4f1-b5712181eea1","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":100,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"42a2e497-acb5-4abd-a12d-010f82b1deea","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":100,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"aaa94d5b-2173-44ea-a88c-325594047af4","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":100,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"9585f509-0398-4e0e-8ffd-f9563ecc5282","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":100,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"2feced19-334a-4477-9c0d-fb38c10a418d","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":100,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"448aa7eb-9dfb-492e-ac12-de8da659f6e1","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":100,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"342ac1d4-858f-4501-9285-9728d6296b84","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":100,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"8a709d78-e547-4c12-b1af-ed91c663ba0b","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":100,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"eac840ea-2952-47f7-bf92-2224bb653e5a","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":100,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"e8b7fd3d-ab96-4159-9899-cbbdb5ead697","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":100,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"f180c1a9-25a3-4ea4-bf34-e944da5bd98b","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":100,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"f2cf82a2-46e8-4473-82e1-99da43bdcfa2","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":100,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"5de8dfd8-cd92-4e6e-b375-3d7c11922f33","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":100,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"868cd69f-87e2-4db9-a8aa-ed5d8535e7d5","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":100,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"1a6b1043-6d52-40f4-980a-c9445888f7a6","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":100,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"4cfaa267-7a4c-4ef9-b54a-5ad871da26e0","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":100,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"f1c8153f-1c5b-4b7c-9c37-ff757f67d3a7","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":100,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"65a0b841-0be9-4be5-9d91-b978e5afe8c1","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":100,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"681f6de7-da8d-4f23-8efd-748f9c93ff3a","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":100,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"78a6d407-8e9d-42df-8a19-dac64ab8e31a","block_type":"box","text":"Tiered Index Bonds.","page_number":100,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"d11cb26f-15e2-439d-a757-ab36c2fa39a1","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":100,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"c6700c2a-6e8a-4923-9035-4d2e55467067","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":100,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"08427b82-3dc6-43d0-90b0-926e59c41848","block_type":"box","text":"II-54","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"544e9da9-9ce3-478c-a29d-a101a53e4ac3","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3bc41cee-b7c8-464f-ae9b-5833dda5f456","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":101,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"7d577623-c87b-4944-a5df-46c5e444b7d7","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":101,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"5864e016-7796-4b55-b1f5-fce0f2744150","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":101,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"87bcd927-438b-4548-9d63-6f55597af0fb","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":101,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"e8ff3158-6ed7-4966-ac7a-39ff570b7300","block_type":"box","text":"that of a fixed-rate bond.","page_number":101,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"01b51d22-0ddc-4db3-b7a1-10546d5886a6","block_type":"box","text":"TBA Commitments.","page_number":101,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"dceb649b-8152-4033-87e9-78607930de86","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":101,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"b3790800-1749-4007-bd83-f8302681e73a","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":101,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"35a04672-3ea9-4228-b56e-a680647883bf","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":101,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"f72feb14-c43b-4f36-9c80-b106f6c1a915","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":101,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"bd4cb43d-5a44-4441-b2b3-f56852dd5957","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":101,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"0a6ac4bc-6e26-4e74-9816-f7b0138511ee","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":101,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"bfbe678a-e8b7-42b3-b7e4-43dc6159ebb7","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":101,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"48bc58e4-bd35-458b-8538-0818c7f88885","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":101,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"b904015e-d89b-422b-a225-14c86bf68f02","block_type":"box","text":"below.","page_number":101,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"7e2823a8-ce62-4508-ab4b-210bce270698","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":101,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"f273adbd-4602-4d8c-8980-ade5a6505d36","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":101,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"5e49199e-2d32-42d3-b931-e8cce183a3d3","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":101,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"f2ebd7fb-680d-4a39-a67f-0fe27a09bc70","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":101,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"17a59099-b734-428d-bec2-73a54defdb59","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":101,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"1fad6c21-5e9d-43a9-bd1d-69343e19711d","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":101,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"01185dcd-1d5b-48e4-893c-6d1ba6dab860","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":101,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"8ca93c79-97bb-4c70-8f82-0d7fd9121d17","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":101,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"a3e4a29f-cb47-459a-a22a-d82ef1928bf6","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":101,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"0facd16f-9438-440d-8bdf-e34f4d54a3f4","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":101,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"01b5615f-8e80-4526-a021-da92c3e252e1","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":101,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"7b49a76a-fc61-4c51-8d7a-9709f5db9747","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":101,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"b678fd17-e787-44ae-bb2d-134ae33ea78f","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":101,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"f21a74ec-80ec-45c9-865a-d4ebf88472f3","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":101,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"465b7244-104e-4f95-962d-ae19fe6deb04","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":101,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"fb50d4a6-0af3-4231-9582-479c41f409e7","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":101,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"6e08adec-9c87-4a35-a4f7-4cd3bcf1766b","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":101,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"de4e31d3-e210-45ff-b8ff-a9516b169fba","block_type":"box","text":"securities in the forward transaction.","page_number":101,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"bf8f682b-8054-45ad-ab67-9721bd88841f","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":101,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"124e158d-aab3-493c-b90c-0ab213de7d8b","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":101,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"a629b7cd-6194-4a42-8e60-f8b098facd03","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":101,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"9a823dd4-8f97-4d83-8f52-006267bc802b","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":101,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"03754500-60a1-4967-9733-0daca9e5a9b1","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":101,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"8e70e7f4-cb59-44d4-9e31-127bb0c9bfa8","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":101,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"55d1ea1f-6094-4406-9403-c745b42199bb","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":101,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"c6a2b7fa-e9c3-43f1-9591-21934411f97f","block_type":"box","text":"securities (","page_number":101,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"b09a4322-91f9-46ea-bb1e-bba433053191","block_type":"box","text":"e.g.","page_number":101,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"5f00d80d-3439-4c20-9daa-a4d2e219558f","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":101,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"a8e40e13-4ed6-4dcf-ac12-ca64a60b8e47","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":101,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"91f4d394-81ad-4ad6-9759-145ad139998c","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":101,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"3c72727a-d4e9-454c-939d-b504f999fe3b","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":101,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"6ad031d7-eee3-41b0-bc6c-b9b03ec54d2a","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":101,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"b1477f1f-2999-4202-877f-72a5cfd7ee7f","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":101,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"758bd7c1-8fb2-4435-aa1d-5199f8ba9e7e","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":101,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"b6d0aec5-2aeb-43c4-876d-e6474f58a72e","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":101,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"54308f76-fe43-4dac-8a72-8910d18b167c","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":101,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"d5da2610-63c2-443a-a597-90df216efc1e","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":101,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"3e8b998e-222b-4614-849d-e48e92446f57","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":101,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"206255c1-cd98-4e2d-ad3d-83dc63b8947c","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":101,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"590a8625-0769-4d49-bbfb-0bea79380e1e","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":101,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"a32d082c-2477-4e63-8683-df1e492e0f05","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":101,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"686e49b9-cf2c-468d-8ff4-874a86e45fdd","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":101,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"5309b1b0-0187-4bfb-8f32-3d016f60a586","block_type":"box","text":"Municipal Investments.","page_number":101,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"adbf910b-2767-48ac-abf7-4feed3c16d4b","block_type":"box","text":"II-55","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"df622e32-0a6e-4921-a70d-8c86202bd2a6","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0675f3f4-474b-4ea5-a32b-60b84ba0e375","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":102,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"c90fbc88-f952-45c2-a092-9cec45abbcb3","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":102,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"44471694-66d1-4776-ac15-9cb3c23b91f0","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":102,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"14d70a8d-662f-410f-84e2-db5a527cfa33","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":102,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"7310a454-c345-437b-bd48-57a6f877c77d","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":102,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"5196004b-ed54-460e-bc0b-011674b28c30","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":102,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"bc8d1dcb-9e16-4e9f-bed0-808152137aba","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":102,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"d6eddf8b-744c-4ece-8c51-b8f66edba21e","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":102,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"63775506-8877-4d18-bc0c-961164a9a9f1","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":102,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"64ec7b9e-c404-443a-a61a-807d89fb9b44","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":102,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"50d9289f-51fa-45d1-9019-ff9865b03cf8","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":102,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"632bd271-1507-4f6d-8418-7a05edeff749","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":102,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"4843921b-90f7-4756-a8ff-c9c22975b7f5","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":102,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"f42c586a-8a63-47f1-a5bb-422b70767a13","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":102,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"f5a855ff-1ea3-4c8b-be2f-666dbf7f1ec0","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":102,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"88e7899d-7637-466e-b8cc-eedea8513c59","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":102,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"41959540-705f-49ef-914e-09624b281855","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":102,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"20d02ddf-3549-493c-b2c6-4bd389d4f2d0","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":102,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"d0e4f2a1-d02d-4d2b-ad81-2398bba9485c","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":102,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"7bfbdb21-4825-410d-a5a1-d761ea2141f2","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":102,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"d05b3771-0330-4cad-bd54-48092dca1e1b","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":102,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"0fcbac1e-ea13-49e6-ba42-a258312d70e5","block_type":"box","text":"The risks and special considerations","page_number":102,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"4990c041-394e-44d1-8973-fbbc55b460dc","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":102,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"550780e5-cc4f-4fa3-b104-32e8ba854ce2","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":102,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"369f7d49-2c09-498b-8918-8133913006b3","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":102,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"96641cf5-835b-4289-972a-0f7a0537532e","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":102,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"543412a7-791e-4e40-9092-1408b02e5a38","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":102,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"746df765-277c-44da-a784-b01b29f5a2e1","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":102,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"918186c4-3bc5-4b5a-9244-34dd6add3995","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":102,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"a8d4d953-edc4-4a25-b31b-5966b97e8908","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":102,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"63ed5ea9-432c-40c4-8eb7-178678c5dc94","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":102,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"b6a12224-1e11-48a3-b2e8-b8d69f47db76","block_type":"box","text":"II-56","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a1c80687-7065-4ce0-b0fb-e40def6ebbfa","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97b3c66d-5bd5-48ee-b688-f063a3f182ad","block_type":"box","text":"Description of Municipal Bonds.","page_number":103,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"1cdfa250-7489-4a08-80e6-47307b3223fc","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":103,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"9eb0c3d3-b18f-4e25-b390-0a4405b8f2df","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":103,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"3199d09a-eb01-4734-9d31-69c4c8c2bc8b","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":103,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"7f15e448-f0fe-49ac-9266-2e19cddad3f2","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":103,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"ae5f6482-520d-4578-afd4-adf078af2259","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":103,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"cd3c3303-2e49-44cf-b61e-b2ec3753ece2","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":103,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"4c1b162a-344b-4bb6-8e23-5081f23335ec","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":103,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"b3e68ccf-b465-4236-a65b-d8d806230133","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":103,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"549d9302-38ec-43f5-9604-85a5ccbe78ce","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":103,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"cdfd7127-f6d4-46ab-8559-35ee56cfe676","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":103,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"ce937e21-682b-4ee7-b784-82c0c0e050e3","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":103,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"31438e76-7f3e-4b42-9641-0ded73436689","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":103,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"d5fb9a8e-559d-4809-a7f1-cdf75544f800","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":103,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"08c3e282-ab40-47f1-a5a8-6bbfd87a5370","block_type":"box","text":"General Obligation Bonds.","page_number":103,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"4706525c-3772-401f-a573-3cac5c2e8879","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":103,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"2529d1a4-b365-41b8-9fb6-90bdc58441b0","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":103,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"662ab2ac-f117-4678-9d82-068670673b62","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":103,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"11d600d8-4024-4f74-944d-6c10f7409929","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":103,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"27d18f3c-f2d0-410a-b02e-d1dd1deeb04d","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":103,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"5ecb602f-618b-4592-9976-d378e2992078","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":103,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"de7e96e8-dcbf-4a4a-8c79-43ed989efb1c","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":103,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"e4eac9e6-34bd-4f8e-a94f-bc6fbe6f8e1f","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":103,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"827ee1dd-8b0a-4cef-9c5d-bef7e95bdc65","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":103,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"e9aec416-54a6-4d12-8b17-5cc7c94b2eea","block_type":"box","text":"Revenue Bonds.","page_number":103,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"c49bd45a-70b8-48c8-a1e3-02a9f38bf2ad","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":103,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"fcaea3ca-072f-4067-887f-3602b651172b","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":103,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"59158597-2540-4c45-ae98-4af5c4111a85","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":103,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"eb5e429c-5e59-40a5-8cf7-5f10e8d4f574","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":103,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"7fdda924-083e-4cd9-9a11-e7544378a8fc","block_type":"box","text":"viability of such facility or such revenue source.","page_number":103,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"051588f6-9995-4b33-85b8-ce9bc06c5834","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":103,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"08e82403-2c6a-4fe5-8c6e-7ccdee490eaf","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":103,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"efe86d4f-6fbc-4572-8e57-f76a8270835d","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":103,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"b38eccb5-ffbd-412e-bfab-8951d36b9b58","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":103,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"d4726be0-1c84-4716-b0aa-d07c9473dd43","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":103,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"84c3d1f2-9c6a-40cc-9ecd-4adfacd0fbd9","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":103,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"f32927d0-49c1-40cc-a739-9b60f59c29ba","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":103,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"f0dbef85-f8c6-447c-8fc1-1abcb355478c","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":103,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"a5ca295e-480b-4782-8b92-e67b79c82ea4","block_type":"box","text":"PABs.","page_number":103,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"d3e44d47-ffe4-427c-a255-729735d188fc","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":103,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"a07b0e72-4809-44a2-89ab-b4afd2ba0a0e","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":103,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"f4f7ea5e-236d-4d72-ba2a-27e274facbc8","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":103,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"853ed826-87fe-4e34-8a9a-2d48bd97d122","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":103,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"ddc434fb-dbaf-4e54-bb53-af200c629919","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":103,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"202ee834-46f2-43ca-bb66-1204ca563990","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":103,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"6cf07452-3227-495a-99af-d65da92c2a2d","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":103,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"2903fca1-3e42-4969-a8d4-b750a1a46f92","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":103,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"718fd2bd-093f-4e32-98fb-df9a3d2adb99","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":103,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"2af36c96-16dc-4d8d-9554-d06d0b326b8e","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":103,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"ea267f4f-b310-4bd0-a579-935a8870d66a","block_type":"box","text":"the par ticular facility being financed.","page_number":103,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"ea9eeabf-8e73-49be-af7e-f21798321f29","block_type":"box","text":"Moral Obligation Bonds.","page_number":103,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"2b5a8fb7-f993-4b8d-960f-e522ceb0f60f","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":103,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"ecc42f59-2603-4faa-9541-62cc1dcffeab","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":103,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"5f057168-a33b-47f3-9586-791451a794f8","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":103,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"177ef4aa-6191-4943-8f18-7e5f5b691f9e","block_type":"box","text":"that issued the bonds.","page_number":103,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"70409ba9-f6d9-471a-b279-490e8bd86e20","block_type":"box","text":"Municipal Notes.","page_number":103,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"7258d80c-f0cd-4e19-973e-492f87d42200","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":103,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"d0060e9f-30eb-4d1e-915f-b919308a5225","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":103,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"96d16019-99d4-4f5d-a8fb-c8c4ac524a00","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":103,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"da694e23-ec0d-4691-b681-f5ba9bc5332c","block_type":"box","text":"II-57","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7bff18f5-6566-4647-8843-af63f0f8ca5f","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"314d8b9d-63c3-4b61-aaff-91fe92f7d805","block_type":"box","text":"Municipal Commercial Paper.","page_number":104,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"7440fab4-e11c-42b0-bcd9-6e2f067f8fa9","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":104,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"c5a8a0f4-cf64-486d-aed1-54391ca1e2d8","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":104,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"76b857f2-3738-4b51-a1fd-8bf5181abd0e","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":104,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"cf287796-093e-4571-bfec-734c7bbb7fca","block_type":"box","text":"Municipal Lease Obligations.","page_number":104,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"1a283e8f-c5c4-49ef-a8e5-aaad9c0e244b","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":104,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"52fe4094-e8cc-457f-bf56-3932d96a56dd","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":104,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"1ee569e7-de54-48f9-ad00-e9030772741a","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":104,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"be8fcf92-9019-4ca1-9bfb-ca677b4d605b","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":104,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"88495802-b740-4f66-b210-da7a1c62e7e4","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":104,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"869d3d32-e606-4b11-8c57-1a7d505b6e18","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":104,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"c69c2faa-4015-4419-bdc9-a41408aa9515","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":104,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"3f0b2738-a692-47e9-a4a5-cb03ecf41d78","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":104,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"0a4e14bf-164b-4f8d-9421-9520b102a195","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":104,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"1100e3f9-1001-411d-b79c-eb2a7042e2b6","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":104,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"39b5d60d-9fab-46c3-86c6-894573bf9b92","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":104,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"e8f74fd0-3cc0-4a08-8a57-7254455f67e4","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":104,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"bc5fcf97-a539-4920-a279-4505bc974dbb","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":104,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"aec08429-b183-4f26-8983-caec1af8b161","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":104,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"9dc7c127-c79a-4ee5-8f11-9f84dfd96dfe","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":104,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"46ba486f-b742-4c80-8232-e518fb6d2178","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":104,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"3b2d2d93-3701-43cd-84cf-3c943c8f9268","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":104,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"b8879094-b93b-474a-8abb-89a4172b5179","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":104,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"0dc39bd3-6e18-4a52-8cb4-8c453b699be3","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":104,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"52bdf7ef-ac89-4814-a57a-3ad314c73e2c","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":104,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"beb3b664-db3e-4021-a8a0-d35b2069cb6c","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":104,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"76a8cc8d-f586-4fbc-9b81-2965747e01c0","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":104,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"a19c63f8-6a5f-4d4e-977d-41a0c1eb78bf","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":104,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"fd8156c2-12bd-4b7e-a8ae-151ae3356f94","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":104,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"662b55c8-cbf4-4256-8456-21832662c6a3","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":104,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"5210eeaf-ef51-4a05-b5a1-22fbe5fcac6d","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":104,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"84cf9777-3822-4ee0-a632-8a21d360d21b","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":104,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"950b04ba-c176-435e-94c3-f6e3be9b3cdc","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":104,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"72fdb3eb-73c2-4896-9193-5082fc8bb598","block_type":"box","text":"Tender Option Bonds.","page_number":104,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"70598e00-4403-4afe-9e78-bbe588fb2453","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":104,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"4344dddf-f547-4f7f-81a8-1e2edf8ab1d7","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":104,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"e8044a11-ffbe-4d0d-b273-8e4af0a6a8f6","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":104,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"305e4c3a-917f-46e1-a40d-04b13b6c242f","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":104,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"cb3f64df-0340-495a-be40-c1f86c97233a","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":104,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"30ed2e04-6b53-4922-8313-ce4e6b7b9959","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":104,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"90133aec-71f3-456d-b0d4-418fd89760a1","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":104,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"5694430d-ed5c-4ce9-be47-f39104e99ef8","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":104,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"84c2ee56-7b1a-4b70-bda0-2ca393016905","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":104,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"179169f3-07af-457c-94df-bb6129799c03","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":104,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"7904e7f8-286e-4932-a5b1-6ef6863a9849","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":104,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"627a8730-bff8-4ccb-9abc-2ce482027b10","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":104,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"a064fc36-537a-49f7-9baa-60bd7a2bd975","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":104,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"40d21949-c5c7-4026-863c-f9e5a16fcaf6","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":104,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"f4e30b99-ef0e-46ca-baca-103e5c0744b7","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":104,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"a25a2b86-5941-4db5-ad9a-75913e96c140","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":104,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"13baae5a-0092-45dc-932a-10a5b12436bf","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":104,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"4c564114-5d51-4b39-9289-46e3a1cb1c51","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":104,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"96080f06-512b-41dc-876b-378d857dcfab","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":104,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"08743903-41bb-4f91-8188-f274db13bfdf","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":104,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"6ad9cd69-01f4-46b0-92de-2bd3cbce3b48","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":104,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"6b56fec4-42fe-4d06-b216-3d9de931cb32","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":104,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"1274dafc-3310-49df-ad73-05fb9c9e4452","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":104,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"54e1b8f8-d1ef-47fe-a909-1940ffe822f6","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":104,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"6117a00f-6332-48e1-938e-d2b9fe47f74d","block_type":"box","text":"II-58","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d9938c82-165e-44aa-98e0-d79ca7ebfb82","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eda0bb90-5dc2-4145-b2e0-a1de29240506","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":105,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"47a8422d-079e-4eb3-90f9-4786e0484998","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":105,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"48f45e34-fe95-4412-8bd8-2e8c8ab4cdad","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":105,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"1a7cf7c0-a86e-473e-8bcb-f257ca86f50d","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":105,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"4a1ded11-2b75-466d-8f83-460cb59e6fb9","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":105,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"57432259-01f3-4f82-b4e6-8f5d533edc22","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":105,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"4f0c2650-aef1-49ff-8094-18a0b65fa912","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":105,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"29c15e1b-3312-4b62-aeaa-03d35f24e708","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":105,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"f6b26257-96ea-415e-a9d2-dba2efd22372","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":105,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"1a2df460-c895-4625-adbc-eef419ee4792","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":105,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"b3ce39e9-bfa2-4e39-a15f-3397cab6a312","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":105,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"efc5b35b-bd7b-418a-a468-18246cd69544","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":105,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"11aa99b0-0d7e-41b2-ae90-a0b4a5fdcb12","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":105,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"633e39e5-0884-4ea7-a127-4a3b62f753d2","block_type":"box","text":"issues.","page_number":105,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"6e0a5514-e5b5-4802-a69e-413e51095b54","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":105,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"a3dcb274-c856-4e68-8e26-1f449c1ce00f","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":105,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"829fbf36-cf88-439a-ada7-625abfac50c4","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":105,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"c0211e40-4c0d-4797-83c2-73202e9d6eee","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":105,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"d6f10298-7735-4c6c-b036-2062d7d5eb24","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":105,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"0d7d3432-8098-4a7f-be11-9359b1c9413f","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":105,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"6bb7f83e-6e8d-47eb-a969-9b542344d43a","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":105,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"8632573a-9ed9-4cd9-b602-43e78d1438b5","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":105,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"921e119a-faf2-43fb-b5be-a2eab82c3a81","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":105,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"f69e46ba-9c72-4b93-8591-71942aba80fc","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":105,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"caf8a17e-9820-4639-9d35-a57326371061","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":105,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"6bb8e863-f5ec-4fe0-83ec-8defd1671efa","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":105,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"830b8179-0def-497a-aeb0-d9605ee6d65d","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":105,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"c504088d-6269-4fb9-87de-43749e1a3589","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":105,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"4f406145-9b85-4a50-9262-92e3c6231d5f","block_type":"box","text":"i.e.","page_number":105,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"5cdf53d1-214e-4c9b-9be9-b44d19e74028","block_type":"box","text":", the Fund). In contrast, in the","page_number":105,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"6d6ff5c1-09ea-4421-8b4d-62f73d1287a5","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":105,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"3fb1dbe0-bb63-4c5b-8a7b-9b8583e6253e","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":105,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"a04817b4-ab92-4745-b53a-bc20c03c8e70","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":105,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"4ff8806c-ef17-49bd-a272-70095d046567","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":105,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"0a1dc20b-faf9-4669-ac29-9c1b5cc635a9","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":105,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"367d93fe-fdf8-43fa-981e-970907962dfd","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":105,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"5350f83a-b1c0-415d-88eb-d7214c249ed7","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":105,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"10d36e7a-1cc6-4b31-98c9-189efb815dfe","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":105,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"2c90b4b0-bc07-4c23-b6d1-9c97cf2fa39f","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":105,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"63b24a68-07d5-414f-aa80-45244e8a292b","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":105,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"bd817fc4-c7e4-47f4-84f7-0586e46cb2e6","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":105,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"7b230866-76e7-4413-9ff2-0455e496bc79","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":105,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"4e0ddcd4-86fa-4d04-93bd-be0694560c38","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":105,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"e71ffcbb-3e1f-4dda-b72f-0b9b224c22c8","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":105,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"719b61f4-971f-43b8-8831-5f75f0013fa3","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":105,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"42b01111-f270-4fe8-b0c0-7b95704e6e71","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":105,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"0936edf9-1270-4a7f-9ecd-fc164023fff9","block_type":"box","text":"Trust.","page_number":105,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"f74895d6-16e7-45e3-b5dd-88878b4784bf","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":105,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"93cddacc-822c-47dc-af93-c3c524e95349","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":105,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"3474b8f0-0d87-4d77-927d-4720f2c5813c","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":105,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"078a0b94-a140-4158-8193-aa7e765720b2","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":105,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"e78904ca-43f7-4473-8734-bd5a0280311e","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":105,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"26db6a01-693c-4c1a-90a9-92c957093dd6","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":105,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"b3c51993-ce3b-4aeb-b746-1f0f59a90b30","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":105,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"9cd4acf9-c28c-4a4b-a1fb-d6b737f1de23","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":105,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"cc3f69a9-69f8-40b6-8ed7-8411ebd81bb4","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":105,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"54eee352-a1ec-4262-8c9c-cd8781597525","block_type":"box","text":"II-59","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb310943-6743-461e-8679-8304b21c357d","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"231cb989-b925-4a1c-8ace-83d23dda9ad9","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":106,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"2c7ffc41-1e79-4a6b-b1b0-085aba5a1e36","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":106,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"dee53aaf-7e8c-4522-bb53-90e486efd8b6","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":106,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"dcac20a8-dc07-4fb5-b35c-a366c7cc3a44","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":106,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3e099319-199c-481e-b089-1ffccaf888ed","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":106,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"fd510f74-0397-4cc3-9575-247adece6183","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":106,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"bedb50a1-137a-4c03-9d71-83114c4657b0","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":106,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"f3c1f73a-4155-458b-896a-6e1475e5d719","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":106,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"2d41bfaf-4ca2-4d24-a76f-37f89a4783d4","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":106,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"f5802319-32da-4cc4-bc68-64e64eb630c7","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":106,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"79358704-0fac-4a2d-ab91-9f1446b3d40e","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":106,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"ea90d446-4436-410b-b597-96ba5d40f562","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":106,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"298633ac-acc6-446e-b951-24bf5413cd9c","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":106,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"ea2fa0dc-9006-42f6-9e99-370236386f4d","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":106,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"c5405668-2ae2-447d-b622-372aaf2bdab8","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":106,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"995a7a44-c451-4449-9f45-22bc0cd3d03e","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":106,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"e4dbec45-c4de-4a3f-a452-7e114887dbcc","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":106,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"6595e501-bce5-4f66-a668-7517f3df147b","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":106,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"ef98093a-e7e2-49e2-a592-16336af05053","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":106,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"07167834-458c-4351-a1e3-9a4f2e7ede29","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":106,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"e61c4a2b-7abf-42f1-9759-8c6b06541d7b","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":106,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"f9123758-46ab-4e81-be6a-947cb3d9c950","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":106,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"ce7fbca6-152a-4537-8ecb-c7bdf93307d0","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":106,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"bbcb7dc9-dad1-4827-a9f2-9bdd325f9fcc","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":106,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"a8143b3a-d5af-4f5d-97f1-38fcde85d4d4","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":106,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"6b72bf56-bc60-4df2-ad3d-f3c5e8780434","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":106,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"92bf1d45-a8a6-4c8c-bbf8-673366dc0942","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":106,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"6ec551e5-e1e1-413b-915f-5a5a18d0e0b0","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":106,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"f8b345c2-459d-4eb4-8cc2-e399114332f6","block_type":"box","text":"i.e.","page_number":106,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"37582a97-7a06-436e-ad87-afebc41fa9c4","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":106,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"840ca2ff-ea99-41a5-8d3e-128c00250149","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":106,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"a2158540-1cad-4102-a6e1-516a9a56b104","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":106,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"7e8ffff7-c24a-47f0-8650-39f8dbb76cd3","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":106,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"990ce42c-fe8d-4b0e-a781-73b96cebd9ca","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":106,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"de1b0bfb-1c2c-4677-bded-0518e3ef9855","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":106,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"0d7a1db0-2e1d-42bc-82e1-a7397183964d","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":106,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"0bd6dc28-8a16-42e0-aae2-36e8c3ef67a5","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":106,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"0b7428ff-baf5-42b4-927a-f9a1b10a5006","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":106,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"6efd9070-4c8f-4989-b50c-c4cba4ec219a","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":106,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"343bc174-bd77-45f8-a24d-a15f2ad35fd5","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":106,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"e4b113c8-5849-4e1e-91e3-5eef5da8f437","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":106,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"82c1a05f-9376-4be4-bf36-137e9202322d","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":106,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"5b08a87c-ca66-4e42-b4cb-211edf967708","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":106,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"51d0cdf4-fd41-4621-b800-f65e7bfadb67","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":106,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"f081c428-4b1a-4597-998e-66c6a7f50d4a","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":106,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"09ffe501-c64d-4de0-95ad-f5f1ae2c17aa","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":106,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"dc208d14-1e95-4cff-9fc5-ebdf49075766","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":106,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"71993df6-707a-411c-aea8-75bd8dfd5fe0","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":106,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"f179b3c3-a23c-4968-8ea7-2fde3e25c33f","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":106,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"4a4a1c48-1cc4-42b6-8dd6-d09523effc37","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":106,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"cf07e03f-8fc6-4907-9427-06a362927c35","block_type":"box","text":"market is not yet cer tain.","page_number":106,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"25aa4142-fed2-4fdf-b1c2-be3e2eaf3fa6","block_type":"box","text":"Yields.","page_number":106,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"3bdb0b0c-f804-4b20-a6c9-ef198735d0af","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":106,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"f955486d-f98c-4d69-afc9-80e4f450beaf","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":106,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"fe6ae547-70db-4df6-828a-cbe974088290","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":106,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"a2d95656-d958-4818-b356-953fbca8c456","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":106,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"50ddbed2-2a26-474e-a4c5-6d1e86c68551","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":106,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"b42be8d3-c833-4b7b-9738-cf371308544b","block_type":"box","text":"II-60","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e1b58ba5-1dd6-42fd-837a-211845eace0e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1cc9f358-2845-41fa-a4c7-a0675ff6a705","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":107,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"ff470fd1-a203-465b-b470-97fe8729dfce","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":107,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"02fc21d1-7ec9-4f2e-9921-c826bbe5b191","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":107,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"24fc2cde-fbe5-466d-b7b7-bca7e8cdd102","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":107,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"e6a4cef7-424b-4914-b031-54bb2e3c2013","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":107,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"a03f04a7-e78c-4833-a760-0c9fa2b314d4","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":107,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"a7372db9-1895-444d-8edd-97db365db602","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":107,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"2496bf7d-e3b0-41b9-9bd9-1cf86db5da02","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":107,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"f91075b2-90a2-4d1b-9bb9-868dc58b75ee","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":107,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"6b2cf065-ebdd-48cd-a6a0-b150a3a18918","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":107,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"507e0501-4667-4d94-8c58-1a5da3b8c1c5","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":107,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"3029c51e-5ddb-4eee-adf2-d2d9ba4a7074","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":107,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"ed98744a-67a1-4bb7-b93d-d56ca194bfcb","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":107,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"4250c8af-e9d3-458d-a6a0-e8277f15aa8d","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":107,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"f0e9e554-27f1-4c64-aa13-7c76b3bbfd27","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":107,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"6f4e2e8b-2fae-4549-aa68-2021606b0bda","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":107,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"4062d46e-9d9e-48f9-9b58-549a4574547e","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":107,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"2c98e5eb-b0b5-445f-9d24-12fc6917f9dc","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":107,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"5a931b93-aa99-4e5e-93ed-bfe24fe168d7","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":107,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"b7cd8aec-3894-4587-8843-01b7c9b9568a","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":107,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"4f3641d6-f41a-4cdd-82fe-ef49ef7eb6b5","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":107,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"ff527ece-60e5-40b8-b7c9-31950ad63fa3","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":107,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"b7b42a78-a423-40cf-aa46-fcf875e85162","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":107,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"f22b3c13-1f5d-4043-ad40-50fffe563856","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":107,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"c8f1c11d-21fd-4fe1-8fc6-16d1467a4b3a","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":107,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"66601233-77f7-4e41-8d8d-de602793b297","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":107,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"58689f76-f9ec-4e32-92dc-2350db4db46f","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":107,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"094cdb36-4e6f-4a1b-a7a0-0e9696fa5b8b","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":107,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"4e026fb3-5af0-448a-a104-914752120be4","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":107,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"a266dae1-633a-4c0f-aa04-48b69f3d6da3","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":107,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"3cad22df-6386-4e40-9fc7-b53f78c55ab2","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":107,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"2087117d-29bf-44e0-af6d-9f7e799b6853","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":107,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"75f4798f-bc4a-4f86-90e6-35a0ef9607fe","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":107,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"64afe073-5856-4774-a256-9b7927bdbd7e","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":107,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"b3698714-9328-474e-b92b-8d1e8b2440d9","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":107,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"24f1d3c7-2339-446f-9afb-03b3cc0bb23f","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":107,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"070fce86-6f3b-4b81-ab1d-174cf2403970","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":107,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"636f018a-64ac-41cd-8c25-6dfcc9e4bd4e","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":107,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"46b6c7c0-0fc7-44ad-8f8b-86dd8ca13ba8","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":107,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"2258f442-271b-4324-a3e8-9cb0a662ff87","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":107,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"acd91a7e-0801-496e-9c5c-9fcc33736ee6","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":107,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"139706b1-316d-46af-aa2d-10d2d2022797","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":107,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"0eeda267-c03a-473b-8edd-a71520d70433","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":107,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"d945af59-145d-4326-a984-0b96ff9f8a2a","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":107,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"cf2f7445-8933-40e4-b2e5-dc40c4325f18","block_type":"box","text":"Call Rights.","page_number":107,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"ee980656-2d28-4439-bd31-a765c0e94c6e","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":107,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"13ff1c79-5493-43d1-bb87-fae1db88e957","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":107,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"555dfc35-9115-4fea-8581-a6aa8f6a2310","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":107,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"21ca2d84-3966-42bf-8d96-03907ef59075","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":107,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"9680324b-8fe5-4301-8ec1-ba1e104082c5","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":107,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"c214aa71-f2cf-444d-8526-86a67e4402e4","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":107,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"278a288e-8889-41ad-941e-089eec460fc0","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":107,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"d5e138de-805e-445f-9ad5-75c39b3a278f","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":107,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"01ad266f-0b06-4f81-a7d0-d83064d46793","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":107,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"93e5f263-5a1c-4787-b19a-f4433224542d","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":107,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"a3888165-4d0c-49fa-b9d4-61b1e3ca521b","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":107,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"1ede6d4c-a4a3-4774-9f3a-10fe2a05371c","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":107,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"85a277f7-08dd-41e1-874e-d69e9d549cba","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":107,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"2bfb2318-d440-4044-9995-854a7166aeae","block_type":"box","text":"II-61","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5138b0eb-2442-45eb-b039-c39dc6f8723a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5042329d-97a8-4531-a0ce-5b9870a90a3f","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":108,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"33a4eb1f-87a2-421c-b51b-a996c1b0d12f","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":108,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"61968879-ac38-4542-b46c-c1d0dceae8bd","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":108,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"0689e19a-2766-416f-928f-135ce7e95575","block_type":"box","text":"i.e.","page_number":108,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"08aecff9-4a12-48bd-9f3f-862d86eae06e","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":108,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"a2aac724-5259-41d3-912e-bef8fdaafe03","block_type":"box","text":"rates).","page_number":108,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"015484be-aea1-46b3-862e-2cef194cb717","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":108,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"e877cbd7-f801-4965-8c2c-5c078dde1066","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":108,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"73a8f30c-6926-4308-a5e4-aa2556095c7a","block_type":"box","text":"e.g.","page_number":108,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"735bb3d0-f9aa-4b73-9850-539534b096e2","block_type":"box","text":", an exchange of fixed rate payments for","page_number":108,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"1965f7d2-5c53-4e92-a161-a220c5778760","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":108,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"b0d1317b-8ec8-4dc3-ad05-28e9bd2e4d22","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":108,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"8d1d7584-fd1d-46dd-bd47-267c360014a5","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":108,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"faf45e67-7d6b-4ac7-b756-bc3e0d945d33","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":108,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"ae8f6241-a27e-4679-83da-eab7386810e5","block_type":"box","text":"with the same attributes as the swap (","page_number":108,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"e8e03667-c668-441b-b4e1-323c0b05059b","block_type":"box","text":"e.g.","page_number":108,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"1cfe6e28-de4d-414a-b080-366e8d87a041","block_type":"box","text":", coupon, maturity, call feature).","page_number":108,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"5e7ce697-48c7-44b3-b7ab-d7d7f7d96d14","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":108,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"27a5da19-af8e-4bb1-90a7-b555a3cb4e31","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":108,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"fb5744f5-1478-4494-9bd1-b5a65560d680","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":108,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"3f0df7ba-f9cb-4ace-b2c1-a4802783fe09","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":108,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"c132cb2c-a775-473b-b7f5-0a18bc172ed1","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":108,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"7e9852cc-4d10-459a-b8bd-9581a7db2fc7","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":108,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"99871ced-879c-430e-b814-d6a74109c1f7","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":108,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"f2d9be47-867a-444c-8aa3-edc4f3d44f3b","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":108,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"c72cc308-7b2b-4eb8-96b7-877ea607a9da","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":108,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"c79ad61b-7268-4183-b7e8-52d6381753de","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":108,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"6f58bd93-3088-4cfa-89be-dd3e4368188f","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":108,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"0e578398-8ef6-465d-9a9c-7942e086bbba","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":108,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"d59ba3ee-5842-4ea4-a004-80e452b097d1","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":108,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"dbb15fdf-a276-46b4-9778-a58448980fa7","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":108,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"8d8e757a-e59d-473b-bd2c-8694e61230fe","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":108,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"3e8fcf68-2361-4b2f-8c4f-57277e819a84","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":108,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"2e0b075a-2c38-412b-b0d0-ae866767756d","block_type":"box","text":"Insured Municipal Bonds.","page_number":108,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"a70f368d-9f1a-4fe7-899d-c54751cebf1a","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":108,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"f657cc1a-e0ad-431c-adea-9e3510aaa536","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":108,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"09385ea5-f172-4808-a1a0-99a38f205809","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":108,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"add7fd12-53e6-45ba-af18-3b3852eb732b","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":108,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"c04bd5ee-9e4e-4794-868f-dcab18445562","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":108,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"2f8c8eef-5e3e-4748-b12e-caf731367f66","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":108,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"c16e9d98-c3b3-4e0c-882b-3dd3fcf5da28","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":108,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"b43a132c-a880-4f3c-86fc-dd726b032c0a","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":108,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"ebabecf9-4f85-4166-810e-ff3b08ab7fc7","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":108,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"ed58872e-7a52-4e3d-a87d-705e88e3a11a","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":108,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"88fafdfd-5cda-4f53-9c30-8cb1b6019ee0","block_type":"box","text":"bond could drop.","page_number":108,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"51cbf758-2cbb-4e2e-9b60-ea6180e9ca6e","block_type":"box","text":"Build America Bonds.","page_number":108,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"b7b8ea2c-1273-43c2-9492-dff6357308a1","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":108,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"c7c4f237-1353-4e3d-895c-c3b86dc57c1a","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":108,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"f74d6e51-af20-4930-85ef-81c51d00fc5c","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":108,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"87140447-b326-4d94-8e00-185479890839","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":108,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"9b1e01ea-0fcc-4105-9eac-3e5185e586ba","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":108,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"fba16928-73c6-41a5-a5e1-70cdc8be1d00","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":108,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"f94695d2-56a7-4e86-9089-2d465fceecbe","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":108,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"9e5ff0d2-af65-4d0c-aab3-ef9342eae707","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":108,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"1f1dc687-6b52-4378-9a45-e3e4bbf63bad","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":108,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"c32ea125-9a13-4428-bdd5-16419cc0e4d9","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":108,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"cff691b7-bb1e-4498-b569-e244939d3993","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":108,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"68001db2-a8a0-4e4d-b01a-cc07b6b73201","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":108,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"c1b183db-244f-4d02-8db7-694a2e7614df","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":108,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"4ad79778-8c62-475b-b8bb-73d02c01957d","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":108,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"6357fca8-9576-4f89-886d-5304c418ec83","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":108,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"ddadab42-475f-462e-868b-0577a2e20560","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":108,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"20767832-3555-4c8d-a43d-09f03ebf3633","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":108,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"79321a3c-049d-4b0b-ade9-13fcb00cacb9","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":108,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"2c24b589-ad06-431c-9dd4-2388d722ece5","block_type":"box","text":"II-62","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d0e4996d-f942-440a-bfe7-ef476b64eabf","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72161906-cf3d-4ecc-86e5-066bd4316175","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":109,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"40ecb96b-ac37-481f-998e-bfda0661152c","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":109,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"6d0d406a-2818-4928-8b38-d71cb3c5bdaa","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":109,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"ae5c7d01-4042-4d33-a574-160d95392f18","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":109,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"532a268e-4b81-402e-9bf3-781bae59dd83","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":109,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"8662f6db-a4a6-4779-bdd5-89875675489b","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":109,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"ccdb8a0d-f676-4ebe-87b9-c426507464ae","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":109,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"a8bb198b-96a7-4b3c-ab49-8179ef9adc65","block_type":"box","text":"their face value to the sponsor (","page_number":109,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"5d4b2a1d-0525-4058-9c5b-512b353810bf","block_type":"box","text":"e.g.","page_number":109,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"d7e9a306-8f6f-42f8-9974-7b1ee8c3c27c","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":109,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"d7916b3b-8994-40c1-9c37-0639eab42d48","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":109,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"5f70777f-6c4b-4efc-98ac-2a4dfc9d1bad","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":109,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"d5ef42a1-e175-4b62-8301-7a617a0b76d8","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":109,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"6dd34154-565e-4337-bf56-724f3d4a0a92","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":109,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"fb65870b-f97a-462d-b060-f9ef58438b17","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":109,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"181289c9-758c-459f-a900-f1584df1da16","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":109,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"d0a86fe8-835b-480f-8609-8d887c5cf3d2","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":109,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"6d806121-738f-4b6b-b4c1-b95dc0858389","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":109,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"01fd2e71-ca9e-4d7c-941e-71f0bb092625","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":109,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"32273c34-cb15-4acd-b5d3-d6073d99eb66","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":109,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"bc6a9e36-6bd0-4021-b6e6-66efb70a36db","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":109,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"516774a2-8c53-49de-aa3f-b91c70b7adec","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":109,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"7f4036b0-990e-4849-ae78-b4cc03d33f74","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":109,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"0c01c4c0-8c31-46fb-a196-a9d31cdac44b","block_type":"box","text":"such opinions.","page_number":109,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"513851b1-8192-47d8-8c3a-875155870765","block_type":"box","text":"Operational and Technology Risks.","page_number":109,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"dba5aeed-9cf3-4418-8d7e-809dca350f53","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":109,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"40d69bb7-fe58-407a-b034-da4c62d2de87","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":109,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"0381c979-0344-4616-8632-84e471e67121","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":109,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"5eb627c6-92c1-4419-a8f2-c2ffb8b17459","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":109,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"3fec5147-58bc-4f31-a3a0-ae049a8b4594","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":109,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"5946e3da-8422-42b0-8deb-cc6b38cd76ec","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":109,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"b4f0cecd-3440-489c-ae74-be86649e4da6","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":109,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"71e74e6f-df8a-44af-acb4-4b3bb730e1ed","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":109,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"61b78978-5b49-4a09-8ab3-30c8c4d00d35","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":109,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"4b19cc3a-c3f5-411b-a8f7-8eb56ecbcc97","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":109,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"83a2ba46-6898-4df0-898b-b5a397da8087","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":109,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"c5edaaec-3030-4046-89d6-4c4a8b3066cf","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":109,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"f4a78624-497f-4cd9-8eff-568f005089d3","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":109,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"6d1e2c79-85d3-4963-859a-c8aa09e41e7b","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":109,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"fdcfde74-4565-4653-b4e4-5d94a9125728","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":109,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"55f68817-fbda-4a61-b51a-b362fe7dfad0","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":109,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"74a67ac0-349e-41d5-8283-eb3de35f3059","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":109,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"d2bda3f6-68ba-42ae-acf6-9932ea856a88","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":109,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"6530c652-078f-44e3-b854-af471cbd530b","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":109,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"221869f4-13ff-47a5-9024-3288d8fc0921","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":109,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"00843c6b-10cb-4dad-be7d-ad35d0b9d60b","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":109,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"f3be8bfa-ac7c-44fe-87bd-a8a5bfaaf84a","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":109,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"f9ea1fb0-b291-4858-a3ec-58888f0a5fd3","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":109,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"f59e54f2-715d-41ed-87ac-316242da4384","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":109,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"ac1eaa39-9306-4571-8ce9-5b06fbd1d6f1","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":109,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"6d4b9470-986c-4a09-b6ff-a07133a2b312","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":109,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"45c1dcd4-2597-43b4-88d0-6266c7df73a7","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":109,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"b5813884-9e39-4c60-ada5-909c674908bc","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":109,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"d189e493-5a2a-4d38-8343-57cc0d76a100","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":109,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"4da21d6d-c72e-4699-a586-8c5416bef676","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":109,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"6d83dbc3-020d-4163-a496-13f9b2f821f3","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":109,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"63171a92-8545-43f9-b91d-5272865404c8","block_type":"box","text":"infrastructure assets.","page_number":109,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"9ba36164-e07e-43f7-a6b1-c60378a27c83","block_type":"box","text":"II-63","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"457fafad-9854-48b2-a8fd-d7367b70bfde","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca3c4665-086a-4f2c-9fea-fe1870584d4f","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":110,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"c5083ce7-ba61-463f-89f9-e6d6e3004171","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":110,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"9288ee1b-13a6-4735-9e5d-3217bc70ac16","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":110,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"4aba8f9e-03a8-41d2-a8cd-763d2626591d","block_type":"box","text":"or services.","page_number":110,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"1a0dea66-f896-49de-816e-a8972146affe","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":110,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"3222d806-d411-4667-9ae7-920c35bbee8b","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":110,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"70a7beae-3638-454f-9735-8d51e5b3bc46","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":110,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"7bfce694-64e5-4182-a58d-5729ff1bb899","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":110,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"5fbd6351-8566-43ae-9b2b-314da22176b3","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":110,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"bc42c6e9-675d-484f-a85d-ff8d090d33a6","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":110,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"0acfa3af-5f4d-4141-ab44-403a01612ad9","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":110,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"8f7010a4-db8a-4ed3-8336-8b2162e4f7ef","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":110,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"2c011ef4-4155-4342-90f0-d126eedc5b41","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":110,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"8cf2f0a6-d9bc-451a-a804-bc543e411e0a","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":110,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"e4f68324-5b33-45f1-bae5-5fb9cd0bfd37","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":110,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"918fe21c-04af-41ca-af6e-129ec52502bb","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":110,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"62035207-7216-478e-8b3b-91ae01250beb","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":110,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"e9b86c56-74e3-4b11-9e9e-2c957daf3691","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":110,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"24af101a-0b2d-4166-93c0-ab67040221bc","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":110,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"ccb8ad24-552e-409a-86b4-2d20657e5eea","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":110,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"e4744a50-0f72-47ba-af7d-9499dbc4a208","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":110,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"843a9237-0f65-49c6-b70b-13984633f27b","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":110,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"a41bd0da-36a0-4a92-a045-c5806868b228","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":110,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"06bdc19d-b0c7-4293-9691-678229bd3f7d","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":110,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"df2cf45a-eaf0-439f-964a-1b5b455dcc53","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":110,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"33e23bdd-81a7-4254-827b-c16cb01a2681","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":110,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"7e4bb773-9f15-4859-a99c-f8cb362deddf","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":110,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"7ce5a952-e8ba-4f54-bae2-619c8c8f8e2c","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":110,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"78c0a8a9-4a54-455a-a918-66ff2080a2d7","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":110,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"f421015f-fc2d-4dfa-bf5d-1003099aaab2","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":110,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"e05ca5cc-dd76-4869-bbe4-20d00fbee4d3","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":110,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"55210816-30c7-481f-a2c0-f973caca2b9f","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":110,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"f023902c-0a7d-474b-900b-715e377d4116","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":110,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"9788b5bc-a6e2-4c95-bf03-af7b8b97c15c","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":110,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"a5d37a64-b324-478c-9dea-cd2cff372992","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":110,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"2202ece6-02f1-47a2-969c-86c7f561edbb","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":110,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"fdcf33f9-d946-4a22-b5ac-b501752f8c30","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":110,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"379f50b7-9098-4d0e-b75a-a163c15914fc","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":110,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"3b2e5577-6a44-4e32-baf2-cd95743154a2","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":110,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"71bc633d-0cee-45d4-924f-05850c617f92","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":110,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"9fdc5e02-0162-4ff7-860e-0008770c7439","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":110,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"a290966b-ae20-4d41-82e3-7f51bb6e4525","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":110,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"6cee9167-1320-4a44-8b76-39224d99c3c3","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":110,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"276b746f-0e1f-43f1-b732-c52d51783f02","block_type":"box","text":"resources to monitor and implement required changes.","page_number":110,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"9d8cd2e3-f009-430f-b6c6-303973a5f824","block_type":"box","text":"Participation Notes.","page_number":110,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"0687ea51-8ced-4627-9bb1-60e4942a0c6b","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":110,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"9bb21d41-a606-4b79-814a-a8b57af0707f","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":110,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"e00e0b69-c52c-46aa-8269-e736c62fee0a","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":110,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"33a34301-23cb-4de4-a769-8f4a29547254","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":110,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"f94e060b-8b95-45e0-973c-d263b0d2cca3","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":110,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"2e6bb25b-6130-4412-b583-3a51c3dcceda","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":110,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"7eb0b7d8-75dd-4c16-8c60-eae9e1ed6862","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":110,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"d2d1a4a4-9cf9-427e-915d-a923a5419ba9","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":110,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"52a305f5-06f1-4f17-93e8-5e36526cab84","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":110,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"39888f8c-5233-443e-853d-de8362d0b1b8","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":110,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"0ae16db3-9238-4031-8148-480eafc46544","block_type":"box","text":"II-64","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"242f1d9c-152c-4ec4-b276-1c6629ca3036","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec570db4-493e-4427-bfd0-395c87b1a146","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":111,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"d00d954a-8f56-4050-a2a3-a1d14c7a4e19","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":111,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"fcbaab60-5deb-4ec6-8b6b-8101196f5a1e","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":111,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"765f16ec-7aec-461b-8094-641379e23973","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":111,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"321e26d4-d958-49e1-97a5-b7db0f70eaef","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":111,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"f7ee2b11-6dc3-465d-8eb6-3681ce57d96e","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":111,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"1e072086-e710-425e-adb6-43870f1a2b1d","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":111,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"dff6274c-274e-4143-a4d2-fa16d31b22a8","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":111,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"6f3dbe0e-8a85-437e-aea2-c09ee31f9e03","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":111,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"a955a626-d001-4b70-8080-cd7e0d6a5d5f","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":111,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"5be3cf38-087d-4091-a1a2-25f2f1658d52","block_type":"box","text":"Portfolio Turnover Rates.","page_number":111,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"3fa58788-3a27-4490-a48f-cf2bee23567c","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":111,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"7d69bdc2-fe75-4ff4-befb-2f132986c1f6","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":111,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"535a5f61-8e8c-42aa-928b-0d9834883467","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":111,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"e95ff4c7-8592-4400-b746-68bba2ae8cbe","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":111,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"89af8e76-aabf-47c5-b157-f90f6047685a","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":111,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"22726c58-4e55-4b3c-80be-076bc1deafa1","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":111,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"6c82b0f2-a917-4f42-b478-c9b0652ca992","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":111,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"25a9f316-a1be-422a-9cc5-5d7a1e3a5588","block_type":"box","text":"i.e.","page_number":111,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"5f0140af-cc13-4ec6-ab9d-82da3e485204","block_type":"box","text":", 100% or more) may result in","page_number":111,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"177128a5-bac1-4872-b15d-afb593c9ad50","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":111,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"792a7094-21df-437a-bc87-d0fc6093c4fb","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":111,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"3736d565-93c4-4d0e-b424-5181afb6963a","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":111,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"22ee8258-1cf0-4636-9b98-fcb63e3c8024","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":111,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"5f9b30ce-cf65-4311-b1d4-dcaacfdea58f","block_type":"box","text":"Preferred Stock.","page_number":111,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"5edce95f-a3ce-4ed1-a73b-0b5b1d2c60b6","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":111,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"93b5167d-d402-4202-9356-0e31879b35ef","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":111,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"a64c6baf-97fd-4e19-b9c0-8f7cb45a54c3","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":111,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"b582a7a1-97fd-4b7b-81e4-04fcd9212ff3","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":111,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"5feb43a8-cb80-4033-b35b-dd0b73619f96","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":111,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"f4700cb1-da89-4c97-9f16-0d44389f1ce2","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":111,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"046aafb5-06bb-42a7-a013-10ef460bd4b1","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":111,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"5f676c77-267e-4457-bee9-03d735d5e30c","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":111,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"aa655aab-5c45-48fb-90f2-80bbe300f053","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":111,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"c9434c1d-5b8a-4ebe-9cea-2379522b1c16","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":111,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"cb0f25ea-47b6-42e9-a709-9a5dc18743d2","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":111,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"67f3d22f-a798-46ff-b357-8564b65788f7","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":111,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"5b40834e-e332-4e02-800d-e84f39c34cc0","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":111,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"2579fcac-3734-49c1-b9b0-a889dd9479e7","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":111,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"11205058-fac6-4388-a50a-010812c64ab1","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":111,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"80e9299f-4c3f-42e4-bb60-119d49d39dbd","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":111,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"f5cf71fc-8458-4ad6-8ccf-12c4253f3414","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":111,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"f5bcef0a-44d1-43c4-8585-b85c512695b4","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":111,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"351d1853-5bac-46b8-9b6a-30ba1ec10e60","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":111,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"16c6b2b7-ce3c-4ee4-aadd-97af74033575","block_type":"box","text":"Trust Preferred Securities.","page_number":111,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"5ab69829-f75a-4676-9aab-84b00446f455","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":111,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"37503b5e-d480-4ffc-ad64-eb8ac79aefd1","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":111,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"20de3ba3-bd1d-4fd8-97a5-825b9ec599eb","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":111,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"fc0701b0-b80d-4efc-b860-a0a339c40a8b","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":111,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"c8c797c4-5e5f-4117-9f97-a8ba5a0fa4b9","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":111,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"203e94d9-ad86-44df-9955-3819cb085497","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":111,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"f4a9be72-d046-4aa4-983d-4268353afad5","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":111,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"90616423-6dd2-4143-9320-cd837604862e","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":111,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"d8933f06-725a-4b8c-ab80-fe3e567dcd2f","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":111,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"e92435b3-a668-4722-add6-c16b46c536ef","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":111,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"4b6f70d6-4df5-472b-845b-558ccd276b33","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":111,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"12d2325e-0821-4b93-8a55-bfe8ec84015d","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":111,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"990319f4-db39-4be3-9fe2-4cd0aa0e2898","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":111,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"a1b77a25-0704-4caa-8021-33b33b4e1ba6","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":111,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"4d7247f4-39c6-4de8-9318-25fa345bb60d","block_type":"box","text":"®","page_number":111,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"713f9434-a539-4da9-bc38-afbfb1595301","block_type":"box","text":"”); monthly","page_number":111,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"2d278ba7-97f0-4fa2-8482-26c6a4ce9cef","block_type":"box","text":"income preferred securities (“MIPS","page_number":111,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"d02a9364-c4d0-415b-b943-fe918de49202","block_type":"box","text":"®","page_number":111,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"220aa2a2-509e-4230-bd06-42845d1066b4","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":111,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"ce1dec82-2090-4186-8799-e393be7a7770","block_type":"box","text":"®","page_number":111,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"5f7986fe-36ec-40f8-b6fc-0fe4e7520a75","block_type":"box","text":"” ); quar terly income debt securities","page_number":111,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"ba50f9bb-3689-42bd-8883-740656e240f8","block_type":"box","text":"II-65","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6ac779c-8153-4d20-a9e8-6baf87b88d2c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6915f813-d0d0-496d-ac39-49c29d9accc7","block_type":"box","text":"(“QUIDS","page_number":112,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"274017b3-f393-436e-8b56-b524947aac04","block_type":"box","text":"®","page_number":112,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"60815007-71b9-47bd-a0f0-0e469fbc7b34","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":112,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"a785d249-9d67-4bdf-afee-7b2e4a20de4e","block_type":"box","text":"SM","page_number":112,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"011bf97c-0c16-4f01-8037-7119504193ee","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":112,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"0d650f90-927b-4aa8-b9d8-f8cb8ff3ed7f","block_type":"box","text":"®","page_number":112,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"4eb64455-05f8-4e8b-9d07-48de510e9c25","block_type":"box","text":"”); public income","page_number":112,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"0fbb5cf1-9191-4ca0-94c1-2681bc7ddd20","block_type":"box","text":"notes (“PINES","page_number":112,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"e065abe5-d99e-4c3d-8c3e-d6e95b983641","block_type":"box","text":"®","page_number":112,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"83032475-063d-419b-804d-f4baa04573a6","block_type":"box","text":"”); and other trust preferred securities.","page_number":112,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"bd545b24-dba5-4caf-a1c6-87ec61087f5e","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":112,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"c262ab45-7847-40ea-b370-3f335e809983","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":112,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"2acf3148-c55a-45df-92f7-1df73b9ea73d","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":112,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"e0e0708a-33be-4157-8a9f-cbf2317527ef","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":112,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"cec59309-58f5-48e0-98c1-a2f2c9837386","block_type":"box","text":"regard to whether all payments have been paid.","page_number":112,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"aefbfeef-752f-4684-acd2-b180d8dc7c70","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":112,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"84df19e0-2d04-49ac-bad6-c23f3c41d03e","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":112,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"4fd360e6-7e2f-442d-98a8-89b240082218","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":112,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"4f49b34b-3f91-476c-9dbb-053a2d997ff4","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":112,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"7d55936b-ec50-4bc3-9af2-5ae64192f354","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":112,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"ca33f322-73c3-4f2e-b8f3-f65e37088a54","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":112,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"9accb7c7-5aa1-4973-9a10-3fe84494e2d3","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":112,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"83efb065-f825-4490-a1e5-0577ff119360","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":112,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"84e869a7-4f3a-411b-9d70-b0a9f5d65bd4","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":112,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"e6ef340b-8a6e-4b62-9c4d-d44ed2fb4061","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":112,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"2c10e020-24f1-42a6-b7c9-b6db72cafb3d","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":112,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"b1308e8c-537e-4525-9c68-d1ebd20767c3","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":112,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"58621391-cbe6-4e08-8e41-13fff1bece9e","block_type":"box","text":"debt securities.","page_number":112,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"7d90ee18-2ad8-4983-8898-fd312bbef388","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":112,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"83cff424-c5d2-47b9-b6db-ef59eaf77047","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":112,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"d1a0bb08-0844-4d6d-a959-544b8c89b88c","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":112,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"cf2605b8-c1ca-49ba-b379-3c81ee26e287","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":112,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"dd6f70e4-1a4f-4826-9709-9f199671efcb","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":112,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"db4d9648-ff3a-4e56-bd17-fc43b17ac217","block_type":"box","text":"i.e.","page_number":112,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"c5f01ee6-4172-4782-9e8c-5ca3fd8664ab","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":112,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"4e2986e9-e21f-4ba3-8b38-1a987d6131a4","block_type":"box","text":"buildings.","page_number":112,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"fe5e0a24-6f26-477b-aa05-98c705921982","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":112,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"efa312aa-a382-44e8-b089-84675ce47bd6","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":112,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"a9155cd0-b519-4d08-869c-c4c92a2fbdf0","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":112,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"87485289-0e40-40c3-b590-699488f44d56","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":112,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"8ad144b1-6726-4935-aec4-989f919ea558","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":112,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"fc4693aa-a547-4abd-a85b-63e34f0bf38a","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":112,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"1abd5161-6e3f-4d02-9d17-6bd5e62076ef","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":112,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"9ecf0ad1-e22c-4082-a320-ddb5172edb40","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":112,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"a27bf478-c94e-4ca4-b137-c3ec6af163ec","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":112,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"670c8824-a59b-4a73-aef6-46ae62f272e7","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":112,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"af9a73c9-a123-4dea-8940-2015f7173a9d","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":112,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"92216c9e-da82-407f-9eb8-c27e2972adf6","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":112,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"feef5bd5-d22b-4fcf-b3e5-db5a939ce3b0","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":112,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"98b78418-8a13-4409-a3af-1d0d19a75d1a","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":112,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"cbfdf218-c64e-462b-b5df-3a46595fc11c","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":112,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"118a1cb0-3947-4541-bab4-d56335d27e8e","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":112,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"6ec9d9a8-29a7-4744-9c87-d72e52a05644","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":112,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"0e92e63a-8636-4e8a-ad40-d5d542de3861","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":112,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"29579b8c-8407-4b67-b3ac-6a55fb6c00be","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":112,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"978a7df3-1540-40de-8efc-0664ce2fc9cc","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":112,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"609f8580-67cd-4ea3-ad10-4008b4ab84eb","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":112,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"671d0e43-c987-43a3-a27e-2f09cd5a4932","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":112,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"94bbc122-a1bf-4df4-818f-a93e1fc4c8d5","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":112,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"94096743-5f6c-479d-b807-ce3493c73759","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":112,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"59229d43-570a-4d98-a765-037ff2616329","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":112,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"e4e64a34-9917-4875-aaeb-93bae63e67ba","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":112,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"39abe27f-502c-45a2-a1d9-92267821f4ad","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":112,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"66a1ede1-3ff7-41fa-98c0-6f355d2261de","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":112,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"3d607f1a-ad2b-469a-94f9-1c323e7e795c","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":112,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"80d65354-e9f3-4617-9a65-166c3d89bca3","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":112,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"2b4827da-cd82-4f14-b9d6-fd1f4f6e27d8","block_type":"box","text":"II-66","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c687e020-2b8e-43fa-b38b-2be600237e13","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ad977c0-f5fb-4eaf-a22d-a143cecd71f3","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":113,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"b11701f9-c82b-4ee7-bf04-edf82d19a990","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":113,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"8e736d7f-62bf-48f9-924e-ae85e820d450","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":113,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"8b30472e-66c4-49b4-9b8f-bfa86bacbb25","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":113,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"b6e4d2c0-3261-42fb-aec7-1d49ad97b62f","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":113,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"41c2921c-c979-47fc-aa57-2d8679b1a428","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":113,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"82a608e8-601f-4d79-b161-bb5847a08e50","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":113,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"d2141d86-90de-4aa4-8252-8dbfd55b812d","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":113,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"edbd8798-99e9-483f-bcc2-7ccdad0b007d","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":113,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"11b00754-5946-418f-ad64-18549a1a8911","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":113,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"afbdd551-6edb-4aae-bbdf-f96e5fc66ab5","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":113,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"d0dfe9c9-4466-4d67-93d9-eb29180533ef","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":113,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"12770b6b-f059-4f5f-a884-8a88e7320a53","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":113,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"ff135000-447f-4781-9a8b-3fb6f3b65f43","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":113,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"796f8502-81ba-46a6-9252-0d2917029c0b","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":113,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"ef4c3760-03f7-4bce-b31d-bda00a47d3f4","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":113,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"2f399ad1-3429-4f46-9d0f-be5e00eff202","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":113,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"e6b30c94-ff0e-4ff1-91fb-a7662ba8bee2","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":113,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"6dd0d012-c582-4a18-8b37-4e9e007454cf","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":113,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"81deabeb-376b-4305-9cb2-232c1acf06e8","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":113,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"9a31ef5f-752e-47d3-a4be-b67c5e291020","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":113,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"462700bd-8ea3-4cee-ae61-a916da89588e","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":113,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"355c4ebd-aaf0-4fa3-ae5d-4365e63d66f9","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":113,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"b73d46f9-c8a5-4c12-b7d9-96835b39b36d","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":113,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"6564f376-a3aa-4aa3-8307-45015f374944","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":113,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"eb8cefcf-6b21-47d9-b230-69fb0ae8783d","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":113,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"ec829a6d-61b4-40e0-b185-a2272d641a44","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":113,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"d90ce030-0f6d-4966-a269-4c46711aed56","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":113,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"d4d8e60e-620f-46df-8435-1457b6473c5c","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":113,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"0a180db6-5260-40f4-88b2-6fe1b98e8255","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":113,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"3ea5a953-22ca-49ad-afd5-60ac7cb00a02","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":113,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"0adcc9df-6db3-4fa0-bfc7-20ce96b12464","block_type":"box","text":"conditions.","page_number":113,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"d82e9f76-d291-4555-abb4-2ec359012143","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":113,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"66dc037d-ccaa-4f59-acf8-627733e85f01","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":113,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"9d08cfc0-559d-437b-b124-bac315f20963","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":113,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"39d81d82-ba8e-40f9-a70e-bf1bcdf789f7","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":113,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"732f75b8-4ff4-4942-9a68-cb8be8fbc039","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":113,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"bc8c37a1-19f2-42c3-a027-9c6308540e86","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":113,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"3acef887-5700-4fa2-ae32-3d889c6e8000","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":113,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"30e5b923-09d3-4567-99a3-b5e5c978618b","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":113,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"0b888d2b-53ed-4a51-95c8-103f06f6a31c","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":113,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"078d63df-f56b-4a6d-848a-2b58d6abe65d","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":113,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"b1d4f293-d95c-4b37-a2d5-917328772e66","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":113,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"849a654d-572b-448b-a413-5f276471d0d4","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":113,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"dfe1d1e8-f6ae-4300-802c-c6b9780df9c8","block_type":"box","text":"affected by such events.","page_number":113,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"a10c1bb7-d6f1-499a-b70b-dc06421918b7","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":113,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"0625ed10-4610-42e1-94ab-22ceef8a2bb4","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":113,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"34c293ef-0131-4b66-a3f4-8c2347b01a46","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":113,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"649014b4-e8bc-4d92-9ea9-14143e2441ec","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":113,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"fdfb7f8e-bde9-42f2-a1a3-5b44e5d2279a","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":113,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"32dc727f-d0f3-485a-80df-1d3fb55539b4","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":113,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"dc850ecf-8b57-4a6d-a1b6-73a35f06ddba","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":113,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"881f63fa-2d1e-495d-972a-2125e26aa76b","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":113,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"3fbc0417-e45a-4781-ad4d-5b80e284ed00","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":113,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"47ddab81-df32-4893-85b4-e6c41089a603","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":113,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"1a3c6d40-a537-45c4-b8cc-be80ffe17a53","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":113,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"e23e2900-defc-482f-93e4-a71d18bf280e","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":113,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"75e2e8b0-aa27-4516-b563-3577c07054c8","block_type":"box","text":"II-67","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b20afc32-7991-4dc3-a743-b95c0df753d2","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77e4c10c-4725-4352-84b2-3615cc8b0166","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":114,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"8ee3bb1b-82a4-4896-a8ab-8d3204641dcf","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":114,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"a19ccff0-138e-4074-980e-d2a389576906","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":114,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"3db1fe47-1be2-43c0-8c33-52e8f127547d","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":114,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"efc104ce-1724-4d1c-b7a4-c0622c7fbef6","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":114,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"ba16552a-11a4-4bde-a4e7-6755d9424afb","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":114,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"a0ebd814-703f-4b1b-893d-8b18dc0b473f","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":114,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"f2b3b7fa-047e-4d24-8977-db8dace9d6f9","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":114,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"5898c32e-e521-45a7-8beb-4c0b969757c8","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":114,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"370b54a4-5632-46b3-8045-c57834caa508","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":114,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"59737300-6e3e-4a3d-96c6-976a9b5cf0ad","block_type":"box","text":"investments.","page_number":114,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"bfc9bf4e-39bd-4427-ac23-a2f5ff563745","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":114,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"b88f5235-f798-44c9-9959-87e864b2fb79","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":114,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"5e0fcf3c-9bfb-4cdb-b336-81c058a7356a","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":114,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"b3544641-8275-42f2-8686-0df9dd078d46","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":114,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"3c634036-9e28-4b82-997f-c152316d13dd","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":114,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"ac541fec-b0de-4de7-84f1-68d090ff9873","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":114,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"9179a9a4-e0ae-4316-a4ba-9f32b21f88e3","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":114,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"a596f81b-a7f1-47bb-8886-e32e3f622297","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":114,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"dc4d6284-97da-4e8a-8472-0c42871eade6","block_type":"box","text":"Legal and Regulatory Risks.","page_number":114,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"ff370878-a29a-425a-93fb-da7dacb6a8b8","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":114,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"b825169f-c267-4d0c-84fe-8564f20de29e","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":114,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"d2b59143-d677-4c0a-90e5-ea7bbbe4bd1c","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":114,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"a1cd1947-003d-49d8-8ee7-02c3193e7279","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":114,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"bfc5d43d-60a2-489f-a661-bfd18a37b7a0","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":114,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"577c652a-f646-4a0a-a679-3fdb7b9dd806","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":114,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"0a821e19-4ad5-464a-b04d-e0d83e31d5fe","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":114,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"5b9ad2cc-c12d-47a0-a64e-0e68701e5daa","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":114,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"1d32e0bd-7ac0-4768-800b-d9dab4f479c5","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":114,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"adcf2682-1a3c-468f-8ff6-6c679c760b93","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":114,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"62614e0e-bf96-4701-8373-a91f8af215e5","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":114,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"c3658166-4318-4276-8a1a-9c4da1368675","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":114,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"9d212ba0-3de7-43bb-8144-e621b24be76e","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":114,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"1c6e02db-22f8-402c-b87c-725498731bde","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":114,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"a8158fc4-bd82-4443-b0c1-65fe30235edf","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":114,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"e640db21-1cb1-4f85-8aca-a54ded59d70b","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":114,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"8a121ab3-b2b5-4b42-ae57-1caa06ada007","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":114,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"c19123cf-3485-4a61-839a-617bfc376f47","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":114,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"7ca93902-545a-4405-bc10-3170da8801d2","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":114,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"b3cf2d26-beef-4fab-a267-e959876cbf85","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":114,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"f8993a54-3a4a-44f0-9107-0cfcb01bee21","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":114,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"92d9ee31-139b-49fa-9193-d11b3f692ebc","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":114,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"d5bb296f-cdf0-4f1d-b981-982ba69209eb","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":114,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"c1a41282-8c61-4c84-acf5-18d26512f971","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":114,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"3ddb220d-6811-45c5-b676-74cfc55431fc","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":114,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"75304a18-b809-48be-8476-12dc4a0d4f43","block_type":"box","text":"Geographic Risks","page_number":114,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"d07a92f9-5e8c-43f5-975c-040601ffe04b","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":114,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"1119c990-45c0-4e28-8c53-b7870f9f9cf5","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":114,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"b84f60ea-a9e9-47bc-8810-1a092fcc1d4a","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":114,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"65d826c2-61fb-49a6-ba24-75f8b1a97858","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":114,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"03f0e1ba-9231-451a-a414-7d93f86e1684","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":114,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"6adb460f-e663-4316-87f4-21fd7d7fe51e","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":114,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"8d14c84b-2432-4702-a3ab-22c85aa541d0","block_type":"box","text":"Fund.","page_number":114,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"1d94bb0d-b306-4b61-9da5-4c4d113db638","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":114,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"805321f5-6ed8-47ed-b831-5863bbc8b96b","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically been used","page_number":114,"box":{"x":363,"y":846,"width":514,"height":11}},{"id":"4a406b3f-e472-400d-a73d-47ec24fad5b8","block_type":"box","text":"extensively in the U.S. and globally as a “benchmark” or “reference rate” for various commercial and financial","page_number":114,"box":{"x":69,"y":861,"width":782,"height":11}},{"id":"da6d6b0f-3c5e-41d4-a9c2-b8d8f1c7fdde","block_type":"box","text":"contracts, including corporate and municipal bonds, bank loans, asset-backed and mor tgage-related securities,","page_number":114,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"987a1d2e-2177-4907-bd91-c82dbd7497b6","block_type":"box","text":"interest rate swaps and other derivatives. Instruments in which a Fund may have historically paid interest at floating","page_number":114,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"f632bd8e-417e-4316-aa8d-44dd8c9ee678","block_type":"box","text":"rates based on LIBOR or may have been subject to interest caps or floors based on LIBOR. The Funds and issuers of","page_number":114,"box":{"x":69,"y":906,"width":834,"height":12}},{"id":"c80670cc-fa29-4b33-89d3-da8205d77402","block_type":"box","text":"II-68","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"44fd5946-cab2-46ce-bb8e-693ba174b436","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f449c98f-a5da-4f80-b736-a9a78c8073bc","block_type":"box","text":"instruments in which a Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":115,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"389e0cbd-4902-42bd-8e02-26e323227b83","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market par ticipants as a result of","page_number":115,"box":{"x":69,"y":60,"width":783,"height":11}},{"id":"033943c2-bc34-4cb0-a5dc-5082d69d98ac","block_type":"box","text":"benchmark reforms, LIBOR was last published on a representative basis at the end of June 2023. Alternative","page_number":115,"box":{"x":69,"y":75,"width":779,"height":11}},{"id":"e3a7cdab-a457-4ec9-9110-da43bc33ae55","block_type":"box","text":"reference rates to LIBOR have been established in most major currencies and markets in these alternative rates are","page_number":115,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"4be9e485-2344-4668-a02d-febeb64cc0da","block_type":"box","text":"continuing to develop (","page_number":115,"box":{"x":69,"y":105,"width":160,"height":11}},{"id":"fab592e7-b3db-4011-a25a-9cd55f984e78","block_type":"box","text":"e.g.","page_number":115,"box":{"x":231,"y":107,"width":25,"height":9}},{"id":"fc7f2ed6-0ee2-4aee-b274-0a67d2338464","block_type":"box","text":", the Secured Overnight Financing Rate (“SOFR”) for USD-LIBOR). While the transition from","page_number":115,"box":{"x":258,"y":105,"width":641,"height":11}},{"id":"5e2d13c8-d2c5-4ed5-9d07-5c40666d0de8","block_type":"box","text":"LIBOR has gone relatively smoothly, residual risks associated with the transition may remain that may impact","page_number":115,"box":{"x":70,"y":120,"width":777,"height":12}},{"id":"1efac492-f778-4335-9e15-a430434aada3","block_type":"box","text":"markets or par ticular investments and, as such, the full impact of the transition on the Funds or the financial","page_number":115,"box":{"x":69,"y":135,"width":776,"height":11}},{"id":"734fe2c8-f60d-4166-9c07-86a522e20354","block_type":"box","text":"instruments in which the Funds invest cannot yet be fully determined.","page_number":115,"box":{"x":70,"y":150,"width":493,"height":12}},{"id":"e7e0b62d-9016-46f1-8374-0ec189e33848","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":115,"box":{"x":102,"y":173,"width":750,"height":11}},{"id":"524b227c-4ef8-4274-a578-5a2ece18c53f","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":115,"box":{"x":69,"y":188,"width":803,"height":11}},{"id":"2f3b1c41-062b-4be5-be65-056b2809a2b2","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":115,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"e396c6fa-5aa2-45b1-894c-fd9de43f2ca4","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":115,"box":{"x":70,"y":218,"width":801,"height":12}},{"id":"dceb97d0-533c-49de-b152-ef5414e05667","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":115,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"ed53d262-5cfc-4ab4-96bd-aaf9640a30c0","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":115,"box":{"x":69,"y":249,"width":803,"height":11}},{"id":"cef3f30f-0892-49ed-b5dc-b4017f8ea29c","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":115,"box":{"x":68,"y":264,"width":825,"height":11}},{"id":"945e4b84-db89-4cb8-ae48-90c3f6dda7ed","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":115,"box":{"x":70,"y":279,"width":828,"height":11}},{"id":"1b6dc77d-d362-4102-8a95-5d18fc710bfc","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":115,"box":{"x":70,"y":294,"width":838,"height":11}},{"id":"eec12887-802d-471e-8498-39fd884d03ec","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":115,"box":{"x":69,"y":309,"width":796,"height":11}},{"id":"92590a9b-5e2f-4c6e-81ee-d10347e74047","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":115,"box":{"x":70,"y":324,"width":836,"height":12}},{"id":"25ab1545-7af3-4a65-abcd-289a30bb2c8b","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":115,"box":{"x":70,"y":339,"width":824,"height":12}},{"id":"dd34a3cd-9bbb-4d7e-b0fe-7391c7129c82","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":115,"box":{"x":69,"y":355,"width":830,"height":11}},{"id":"8acadb4b-a799-4b5a-9dfa-ebac0bc5c3dc","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s","page_number":115,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"106df41a-c0b9-4a75-bc52-0ececcbe87b0","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":115,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"a580335e-4bdc-4df5-8be2-18715d941b7a","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":115,"box":{"x":69,"y":400,"width":835,"height":11}},{"id":"3f68f395-8261-4840-8013-bc5e9521e3b7","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":115,"box":{"x":68,"y":415,"width":384,"height":11}},{"id":"7fd38cbf-9998-4d9d-a2d7-e4576c87c3de","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":115,"box":{"x":102,"y":438,"width":782,"height":11}},{"id":"ac7f90c9-b2a5-41f4-ab7c-053e57765d4d","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":115,"box":{"x":68,"y":453,"width":786,"height":11}},{"id":"87e3057a-7892-4cf9-87b4-51d53547bca6","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":115,"box":{"x":69,"y":468,"width":746,"height":11}},{"id":"83d2352e-095a-476d-885f-20a693d694b6","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":115,"box":{"x":70,"y":483,"width":822,"height":11}},{"id":"b65b6aab-220d-4fa8-85b7-84d61809fbcb","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":115,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"61b521f3-47b5-4552-b4f0-50dfedda659b","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":115,"box":{"x":68,"y":513,"width":799,"height":12}},{"id":"831eed6c-5e4e-40df-bfad-bc929b49453b","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":115,"box":{"x":70,"y":528,"width":830,"height":12}},{"id":"1cf3058c-01ed-4c64-a090-3c116f33fcef","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":115,"box":{"x":70,"y":543,"width":757,"height":12}},{"id":"7673a04a-f0d6-49a8-8b30-86cc2eb4fa17","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":115,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"c40f06cc-8c6f-49d7-8dbd-6079c74d165f","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":115,"box":{"x":69,"y":574,"width":840,"height":11}},{"id":"124c1af9-6cd5-44ab-ad21-0d4560e3233e","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":115,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"1f94ae68-470e-432c-a02a-6683e66cef6f","block_type":"box","text":"consequences which cannot be predicted.","page_number":115,"box":{"x":69,"y":604,"width":298,"height":11}},{"id":"23ad2d6a-a48a-4c9d-b6fc-865a783f1f63","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":115,"box":{"x":102,"y":627,"width":432,"height":11}},{"id":"3fef56a5-822c-48d6-9a84-5664050e998b","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":115,"box":{"x":541,"y":627,"width":347,"height":11}},{"id":"3fa93abd-458f-415d-9b2c-66e124e84683","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":115,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"f2aa328a-aade-4bcc-b3c8-8ac58049592c","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":115,"box":{"x":68,"y":657,"width":815,"height":11}},{"id":"8ec3649d-ac54-4a50-80d4-edcb9d9c5a16","block_type":"box","text":"term of the agreement.","page_number":115,"box":{"x":68,"y":672,"width":164,"height":11}},{"id":"508b10df-0072-4780-9abf-3542f9001671","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":115,"box":{"x":101,"y":695,"width":788,"height":11}},{"id":"e44da277-e30a-4498-bee4-69954c5a1b7c","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":115,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"34b329f3-51e8-45ec-9abe-76b0715d7b2d","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":115,"box":{"x":70,"y":725,"width":821,"height":11}},{"id":"b87078b3-3bad-43ad-b308-e8e21a2beebe","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":115,"box":{"x":69,"y":740,"width":790,"height":11}},{"id":"59ea091c-7a12-478c-99f8-6d3cef7a46f1","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":115,"box":{"x":69,"y":755,"width":827,"height":11}},{"id":"4de562f6-c8db-48b2-b8a2-aba3142f7d50","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":115,"box":{"x":69,"y":770,"width":788,"height":11}},{"id":"c237f2dc-d5dd-423f-8954-8f6b1d5cd28c","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":115,"box":{"x":68,"y":785,"width":522,"height":12}},{"id":"764f5104-5fa1-45d4-be7d-de1c2685319d","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":115,"box":{"x":102,"y":808,"width":792,"height":11}},{"id":"b064c13d-617e-4edb-b0c7-5689e6aabb2a","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":115,"box":{"x":70,"y":823,"width":784,"height":12}},{"id":"1c521899-1009-4135-8319-48b194bc662c","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":115,"box":{"x":69,"y":838,"width":837,"height":12}},{"id":"6a5a9454-e46a-4930-be85-3062f2fc4404","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":115,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"e51a3860-d164-4af2-b897-14e72cacaecb","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":115,"box":{"x":68,"y":869,"width":770,"height":11}},{"id":"22616f21-b0ba-478f-97d4-a25dfbb0c9d9","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":115,"box":{"x":69,"y":884,"width":802,"height":11}},{"id":"bef9e768-0edc-44c5-9ecb-ea4d21721a0b","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":115,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"9e95a5f1-fdfc-4a10-bc97-fb485fa2e304","block_type":"box","text":"II-69","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"985ea19a-375d-4eb1-aaf4-e382e5d1f68e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e5da736-0171-4a3a-bb52-1203147fb807","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":116,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"e3daa5f1-dadc-44b1-ba27-1cb3b84e97e8","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":116,"box":{"x":70,"y":60,"width":765,"height":11}},{"id":"a24ae6ce-b59b-41d8-9a5d-fe67c63281c5","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":116,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"1e9f602c-3f1c-42f5-a632-de2fb29da8bc","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":116,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"491e229c-e56f-41ad-bec5-7eb3c67aa819","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":116,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"cbeda8e2-11d4-4195-b539-f1317ccb77b6","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":116,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"8a184219-e9ec-4cce-a0e6-b3fa5ef8e34c","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":116,"box":{"x":70,"y":135,"width":831,"height":12}},{"id":"c3b70629-d524-4f25-8f29-285046927d2b","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":116,"box":{"x":69,"y":151,"width":810,"height":11}},{"id":"625feb07-3eb8-42f2-8ef1-e087f4c49f98","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":116,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"a8d7c87b-cb7d-4e86-bb1d-905c6f901518","block_type":"box","text":"or by another authorized securities depository.","page_number":116,"box":{"x":69,"y":181,"width":329,"height":11}},{"id":"0d58ad1c-0dbd-46af-91ec-d0aa44d04b3f","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":116,"box":{"x":102,"y":203,"width":770,"height":12}},{"id":"dee35104-4fc9-4696-b3d2-f3e373220cf5","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":116,"box":{"x":69,"y":218,"width":805,"height":12}},{"id":"4499a6cf-7bbd-4862-94c9-a817d8a40e65","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":116,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"c6b43ae5-4134-4b2c-aa77-a99d7b495a60","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":116,"box":{"x":69,"y":249,"width":778,"height":11}},{"id":"4458e783-7f82-4808-89a3-e15ae3538ec5","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":116,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"5c0fd53e-21f1-4ed2-b7ae-75b58d12226e","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":116,"box":{"x":70,"y":279,"width":810,"height":11}},{"id":"979d4458-3089-4d00-83ef-04db7766adeb","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":116,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"5a8148d6-0c83-4b15-a7aa-d6a4b8db61ad","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":116,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"ad6f386f-aa15-41b4-8ca4-6278a9423127","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":116,"box":{"x":69,"y":324,"width":817,"height":12}},{"id":"befd1107-8cfd-4047-8a4e-cacdc3485d17","block_type":"box","text":"the repurchase price.","page_number":116,"box":{"x":68,"y":340,"width":151,"height":10}},{"id":"e65b4b6b-a6eb-49b8-bd10-c4a9d8004161","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":116,"box":{"x":102,"y":362,"width":805,"height":11}},{"id":"08c81770-28a4-49eb-a0fc-17268a409c61","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":116,"box":{"x":70,"y":377,"width":837,"height":12}},{"id":"fe53b284-cf65-47c3-8b71-28c8b915d5a5","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":116,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"8bfd6ee9-552e-4cd1-86ab-c7b3afb8bd37","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":116,"box":{"x":69,"y":408,"width":767,"height":11}},{"id":"b70ab538-f522-4c5c-8adb-71dc82141301","block_type":"box","text":"strategies without the repurchase obligation.","page_number":116,"box":{"x":69,"y":423,"width":317,"height":11}},{"id":"1efa126a-3733-4ff0-a551-64dcda1161bd","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":116,"box":{"x":101,"y":445,"width":782,"height":12}},{"id":"b00a8df7-7eea-4376-a1c4-ce841d3f9571","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":116,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"6423edd6-1729-4bb2-afa3-00d0959f7661","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":116,"box":{"x":69,"y":475,"width":799,"height":12}},{"id":"b2884747-ac39-4c5b-86b6-10585146269f","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":116,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"78e418a7-f8ed-4afa-b935-106b71fb61ee","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":116,"box":{"x":68,"y":506,"width":825,"height":11}},{"id":"e8cd9110-de8b-44c2-8a44-78d85c4e20fa","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":116,"box":{"x":69,"y":521,"width":374,"height":11}},{"id":"46c7ef5a-ab85-40c1-9d3e-6fd37f4733cf","block_type":"box","text":"i.e.","page_number":116,"box":{"x":445,"y":521,"width":20,"height":9}},{"id":"60a0fd17-dd33-4c8d-b935-151dc9512d20","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":116,"box":{"x":468,"y":521,"width":434,"height":11}},{"id":"20b8c021-0da7-4b87-943d-6a2316bd6dfd","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":116,"box":{"x":70,"y":536,"width":813,"height":11}},{"id":"cfcd6aa3-8696-4f7b-9b02-0546f2b69baf","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":116,"box":{"x":68,"y":551,"width":816,"height":11}},{"id":"9cc48fee-584e-4d73-b3e2-e435fc147d6b","block_type":"box","text":"and income involved in the transaction.","page_number":116,"box":{"x":69,"y":566,"width":278,"height":9}},{"id":"e60a84cd-efe2-4cec-8c82-3c72d7181df6","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":116,"box":{"x":102,"y":589,"width":800,"height":11}},{"id":"183733c7-9921-4cfb-84a2-0e9035026168","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":116,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"b6f4fb3f-f4be-4621-b4e7-cd93b66bc74d","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":116,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"1704b0fa-dc70-4df2-afc4-55a250b4d037","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":116,"box":{"x":68,"y":634,"width":790,"height":12}},{"id":"1bfe07a2-8d19-4da2-bb50-55843c52af6f","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":116,"box":{"x":69,"y":649,"width":818,"height":12}},{"id":"4e865b6a-cac6-4adb-8d5b-1e0563d486df","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":116,"box":{"x":68,"y":665,"width":783,"height":11}},{"id":"2e19cbfd-4a05-46a0-b8f1-34e85480e972","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":116,"box":{"x":69,"y":680,"width":821,"height":11}},{"id":"121a5fa2-68d6-436f-b104-cdee9e47c534","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":116,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"5ed86f47-a92e-4912-828a-f0b8af74589d","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":116,"box":{"x":69,"y":710,"width":796,"height":11}},{"id":"852c4857-b380-4451-bcae-3fe1d20e6671","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":116,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"203e4665-2212-48df-99da-4394613a8c01","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":116,"box":{"x":68,"y":740,"width":824,"height":11}},{"id":"13a6dc0d-e215-46bd-92c6-c0f0b763d508","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":116,"box":{"x":69,"y":755,"width":279,"height":11}},{"id":"545e9ab9-fc92-4de8-9829-ea5ee3643e05","block_type":"box","text":"Restricted Securities.","page_number":116,"box":{"x":102,"y":778,"width":157,"height":9}},{"id":"eed9bbca-ad55-4af7-9e52-415b9f162b6a","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":116,"box":{"x":265,"y":778,"width":617,"height":11}},{"id":"99168f02-c7ef-4c4e-96a4-5e14d0c42d3a","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":116,"box":{"x":69,"y":793,"width":801,"height":11}},{"id":"d947d145-ac8e-410b-96f7-c2d880617981","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":116,"box":{"x":69,"y":808,"width":808,"height":11}},{"id":"9c1a503b-a2ff-4ab9-ae42-5cdf30027107","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":116,"box":{"x":70,"y":823,"width":802,"height":12}},{"id":"8675db66-0e79-400a-ab26-47e884b6a75d","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":116,"box":{"x":70,"y":839,"width":834,"height":11}},{"id":"492565d3-9abc-4b9b-8df5-d2d0a9e9d43b","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":116,"box":{"x":68,"y":853,"width":825,"height":12}},{"id":"735b4b6f-71da-4f40-95d2-f67e8db2178b","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":116,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"cd59a447-5384-42dc-ae1f-ec749bc133f0","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":116,"box":{"x":69,"y":884,"width":821,"height":11}},{"id":"5557ec03-2ccc-4802-82be-b49ab2f61f9e","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":116,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"fff05f4e-5736-4f37-a968-10af8e17b61d","block_type":"box","text":"II-70","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b299baa4-3b7c-4e30-9d78-4664931ba76c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41537112-0822-47b8-8225-041af9e699e0","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":117,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"7c8c6b14-a408-440c-9aad-8da9b98fd6ae","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":117,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"324c86dc-153b-4cb9-a40f-ec1fa9c771d0","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":117,"box":{"x":69,"y":75,"width":769,"height":11}},{"id":"a713667e-575c-4c78-a4e8-a16615e55cf3","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":117,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"7139bcaa-763e-40ae-b13f-f93b4138951c","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":117,"box":{"x":68,"y":105,"width":805,"height":11}},{"id":"16a3f3bb-cddf-41f7-8a2d-f2a9f4cff29b","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":117,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"06b74e39-91a7-4015-9db4-eb394822068e","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":117,"box":{"x":70,"y":135,"width":815,"height":12}},{"id":"ff3e847a-6ee0-4b9a-9b28-ac4d0aad6c05","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":117,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"5efb5088-e772-4f74-82e8-2bdbe1af380d","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":117,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"d90b87a5-d58b-4fed-aa62-b694e0644477","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":117,"box":{"x":70,"y":181,"width":830,"height":11}},{"id":"8f0c4501-c958-449d-92c9-dda6e99de4fa","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":117,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"811e834f-4136-40f5-93d3-ee944992a012","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":117,"box":{"x":68,"y":211,"width":825,"height":11}},{"id":"eeb7a918-c888-40a7-8544-07e5b1cf7326","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":117,"box":{"x":69,"y":226,"width":777,"height":11}},{"id":"452c227a-6832-48e8-be33-72b14fd41305","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":117,"box":{"x":69,"y":241,"width":828,"height":11}},{"id":"52f8c299-f079-44a0-9bec-004ad2615618","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":117,"box":{"x":69,"y":256,"width":834,"height":12}},{"id":"0ae9c770-0ac0-483b-ba33-bdf91fed8d67","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":117,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"042ef5a0-9282-459f-adc3-d7d3ebf09462","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":117,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"85863c3d-392b-4039-ab13-bdbbc8e4a924","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":117,"box":{"x":68,"y":302,"width":819,"height":11}},{"id":"31695c26-57f2-428e-be5d-a00e646e66eb","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":117,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"0a4290a8-b74b-4b62-a469-3551dd5ecdab","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":117,"box":{"x":69,"y":332,"width":798,"height":11}},{"id":"da9c7eb8-0ba5-45b7-90db-c0bdf3fcd9af","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":117,"box":{"x":70,"y":347,"width":780,"height":11}},{"id":"b981d8f5-5a7f-4ed6-b886-6be8196e7b68","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":117,"box":{"x":70,"y":362,"width":773,"height":11}},{"id":"299fa459-5a8f-43f6-a6ef-b2ebef53b812","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":117,"box":{"x":69,"y":377,"width":784,"height":12}},{"id":"2fee3ac0-0db8-41d4-b456-8080fe7cce7e","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":117,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"e2ad71ee-fe9c-4de5-8ca5-0ae29fae76c5","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":117,"box":{"x":69,"y":407,"width":828,"height":12}},{"id":"42cd9ea8-9f63-46f1-a1bd-22652f018d25","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":117,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"b955cd71-720e-4874-8edd-09459832967d","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":117,"box":{"x":68,"y":438,"width":804,"height":11}},{"id":"417e1832-13fb-4931-8ed0-73711ed3591f","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":117,"box":{"x":69,"y":453,"width":647,"height":11}},{"id":"7715fa66-c8ab-4b23-a51e-b1dbe1600dd8","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":117,"box":{"x":102,"y":476,"width":714,"height":11}},{"id":"27212e57-f314-4fe7-9d32-6a3204d848ca","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":117,"box":{"x":70,"y":491,"width":823,"height":11}},{"id":"c99b36a3-f391-4017-bcfa-e52fb7005575","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":117,"box":{"x":70,"y":506,"width":826,"height":11}},{"id":"38ae2822-0234-46d3-b068-052d6549ad26","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":117,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"4c21fc9e-e5fd-4461-bf5b-b8d163960f3d","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":117,"box":{"x":69,"y":536,"width":812,"height":11}},{"id":"642d0714-ffaa-4a4b-bda8-dcbb891fa906","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":117,"box":{"x":69,"y":551,"width":787,"height":11}},{"id":"09882f3e-49df-455a-a146-2a9b894b90bc","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":117,"box":{"x":69,"y":566,"width":833,"height":11}},{"id":"231aaa86-e24c-4b28-8028-050bf8d06aaf","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":117,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"7fad7b93-7d20-4a41-8844-35367288ef36","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":117,"box":{"x":70,"y":596,"width":833,"height":12}},{"id":"0e71751b-8c17-4f1b-8739-bbe7bb5ba8b3","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":117,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"e3e76171-6b26-419e-ba2c-7127ee3423cb","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":117,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"b27fe6c2-8f38-42f5-babe-a4ae50a5956e","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":117,"box":{"x":70,"y":642,"width":804,"height":11}},{"id":"0da63437-6e51-4a8a-b0eb-b2940188dbdd","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":117,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"12093f72-aa22-4c2c-ab88-966f3019f912","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":117,"box":{"x":70,"y":672,"width":835,"height":11}},{"id":"2e0332cc-2b62-4fdc-a494-2450e033f2ea","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":117,"box":{"x":69,"y":687,"width":768,"height":11}},{"id":"4bb17be9-bdbf-473e-b133-bc8c7c14e437","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":117,"box":{"x":70,"y":702,"width":815,"height":12}},{"id":"e387d8fe-f0ce-4608-932e-2dfbe396c7a2","block_type":"box","text":"especially as that Fund grows in size.","page_number":117,"box":{"x":69,"y":718,"width":264,"height":11}},{"id":"81e16d58-5174-4022-88be-4b9ed7dd1546","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":117,"box":{"x":101,"y":740,"width":762,"height":11}},{"id":"a3165bbd-05f4-4123-bcd5-f1043faff02d","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":117,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"eed16413-9764-4c31-a2ac-8a950ad3d930","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":117,"box":{"x":69,"y":771,"width":751,"height":11}},{"id":"28393867-e5a6-42e5-8d27-3cbffc5de441","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":117,"box":{"x":70,"y":785,"width":755,"height":12}},{"id":"e573d307-8398-44f1-8234-f01c6dccbc0a","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":117,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"12577e67-e0aa-48e6-a135-ea9469322568","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":117,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"42d0b8d7-b175-4aad-9c9a-25c85b5c5f73","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":117,"box":{"x":68,"y":831,"width":766,"height":11}},{"id":"5de07836-877d-45d8-9a8c-a32e5203cd3a","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":117,"box":{"x":69,"y":846,"width":792,"height":11}},{"id":"b3c5cad4-6bb6-4f8d-b2a6-bbb23596e7b8","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":117,"box":{"x":70,"y":861,"width":821,"height":11}},{"id":"b1cf154d-dca4-491f-b699-4d6c07292eeb","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":117,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"bf0b7e08-2c23-47d1-9e0c-aea1e64f6f79","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":117,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"294758e3-abce-4a4c-b7e4-103f8b5be04a","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":117,"box":{"x":69,"y":906,"width":790,"height":12}},{"id":"5107448e-2e35-40c1-a9b5-60a6e8abae7b","block_type":"box","text":"II-71","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"254d6912-9849-41bc-b8df-dcbf2a522a18","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0b026383-69cc-4a03-9123-2bc7778a4505","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":118,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"901fa739-0124-4430-b219-062340c57e5f","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":118,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"290b0d84-9d34-4bae-87dc-2028d190da11","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":118,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"05e518fd-1220-40c4-b899-b60a0dfd5549","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":118,"box":{"x":68,"y":90,"width":839,"height":11}},{"id":"0df7478e-8e80-46d7-853c-039e1be3ed04","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":118,"box":{"x":68,"y":105,"width":514,"height":11}},{"id":"a5a3ff90-1e65-4cd0-9279-0f068f5307b4","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":118,"box":{"x":102,"y":128,"width":385,"height":11}},{"id":"4344435d-33cb-4c09-808f-29a1b0af281b","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":118,"box":{"x":102,"y":151,"width":246,"height":11}},{"id":"64684836-2834-4ddd-9da3-a0edbde67e75","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":118,"box":{"x":354,"y":151,"width":548,"height":11}},{"id":"b999e8e9-fa66-4cda-b3af-b4525730dacb","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":118,"box":{"x":68,"y":166,"width":830,"height":11}},{"id":"115a62a2-dc59-4e91-927e-fe816bf9dee2","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":118,"box":{"x":68,"y":181,"width":793,"height":11}},{"id":"2c56cb1a-e61d-439b-9f45-737c653e5db4","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":118,"box":{"x":69,"y":196,"width":784,"height":11}},{"id":"5c248c9e-cc3b-4df0-acdc-dd8adbc10e0f","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":118,"box":{"x":70,"y":211,"width":591,"height":11}},{"id":"1443dc61-595b-441a-a49e-48dcd8ecaa44","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":118,"box":{"x":101,"y":234,"width":730,"height":11}},{"id":"cfce27ad-237f-4ad4-a3cc-8c62856a00f3","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":118,"box":{"x":70,"y":249,"width":822,"height":11}},{"id":"ec45a5bd-dd4f-4f5d-88f3-a8472c16ff3c","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":118,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"e50040e6-bcf8-4b2a-b219-5e89524d9ea6","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":118,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"06775def-5a05-467f-95eb-17cc7eb5794e","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":118,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"7ecabdd2-2b97-4777-aefe-cfc9b925db97","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":118,"box":{"x":69,"y":309,"width":354,"height":11}},{"id":"103ec002-0262-4104-a6ca-4aaadee50fe2","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":118,"box":{"x":102,"y":332,"width":769,"height":11}},{"id":"f254d52a-4541-4f95-a61d-b1feece900d3","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":118,"box":{"x":70,"y":347,"width":815,"height":11}},{"id":"15b392d4-c1d1-4d93-96ec-dac242432914","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":118,"box":{"x":70,"y":362,"width":782,"height":11}},{"id":"84d03c20-5da1-42d5-86ba-a233741e0261","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":118,"box":{"x":69,"y":377,"width":449,"height":12}},{"id":"2aebbe88-2808-426c-9769-3b642bd244f9","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":118,"box":{"x":102,"y":400,"width":794,"height":11}},{"id":"6260f093-935a-45f9-9c4b-0649596602d9","block_type":"box","text":"similar financing transactions (","page_number":118,"box":{"x":69,"y":415,"width":218,"height":11}},{"id":"4078eaed-6302-4eb5-991c-ad6f99a1dd2f","block_type":"box","text":"e.g.","page_number":118,"box":{"x":289,"y":417,"width":24,"height":9}},{"id":"621a4c6d-7990-4329-a003-eb386c911417","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":118,"box":{"x":316,"y":415,"width":594,"height":11}},{"id":"e37bae1d-6c84-445f-8868-406a6cfbbf59","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":118,"box":{"x":68,"y":430,"width":813,"height":11}},{"id":"21ec1913-211e-49d4-9a9e-1825719cbba2","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":118,"box":{"x":70,"y":445,"width":789,"height":12}},{"id":"60f8bdc5-9863-4095-816e-3de894f0d045","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":118,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"f1a4e796-58a8-43da-866c-d1bf64e651c1","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":118,"box":{"x":70,"y":475,"width":824,"height":12}},{"id":"ca644ffa-22cf-499c-9d6e-a034e584d7b0","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":118,"box":{"x":68,"y":491,"width":758,"height":11}},{"id":"2cb7f4db-4cba-4506-9927-544768a2c4d4","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":118,"box":{"x":69,"y":506,"width":822,"height":11}},{"id":"cb28ab83-cde9-4caa-a0e9-d03ee7b759e7","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":118,"box":{"x":68,"y":521,"width":838,"height":11}},{"id":"c8691161-5ce3-4c00-92ef-85abb98f2c68","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":118,"box":{"x":69,"y":536,"width":538,"height":11}},{"id":"592b0342-442b-4220-8be9-2736b84ec57b","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":118,"box":{"x":101,"y":559,"width":780,"height":11}},{"id":"e6d08921-723f-4f7d-a8f2-4f521e5bb22d","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":118,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"3397b11c-7c87-41a9-8c85-c3c1ad0e46d0","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":118,"box":{"x":68,"y":589,"width":775,"height":11}},{"id":"8b8df6b8-ab8c-4d80-a7c6-110ba2b73f27","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":118,"box":{"x":68,"y":604,"width":754,"height":11}},{"id":"7c24b4b2-a0d2-4a4d-9a88-f77e1e40db77","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":118,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"674b682d-3e1b-4b54-be3f-e5ced687d306","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":118,"box":{"x":68,"y":634,"width":783,"height":12}},{"id":"571abc2f-dc1c-4b36-8e3d-2ee9e64cff29","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":118,"box":{"x":69,"y":649,"width":800,"height":12}},{"id":"1eb770cb-64d2-42e0-acfd-e94aaa7d738a","block_type":"box","text":"amounts to be received under such agreements.","page_number":118,"box":{"x":69,"y":665,"width":345,"height":11}},{"id":"ae7d327b-ae8d-4dae-99f1-3a698808d8f3","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":118,"box":{"x":102,"y":687,"width":316,"height":11}},{"id":"779ad8a2-5d97-4cb1-8571-b7e7a2804c7e","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":118,"box":{"x":424,"y":687,"width":481,"height":11}},{"id":"93d958cc-55a5-4fc9-85cb-d52acafb2059","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":118,"box":{"x":68,"y":702,"width":822,"height":12}},{"id":"25c0cb20-0b02-4977-878c-1d22d6b67822","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":118,"box":{"x":69,"y":717,"width":776,"height":12}},{"id":"62fb3aa1-bad8-4dde-bfb8-827a7bd02458","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":118,"box":{"x":69,"y":732,"width":817,"height":12}},{"id":"099b0631-8913-407e-a5d8-1c75e028f2c1","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":118,"box":{"x":70,"y":748,"width":833,"height":11}},{"id":"b103decd-9365-43ad-9fe0-757f8e7eb7b4","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":118,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"ac294def-b1d7-48e5-ab5e-1ce46de8e488","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":118,"box":{"x":70,"y":778,"width":821,"height":11}},{"id":"ece6bdc0-1707-4323-a2a4-a6d0933fbd25","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":118,"box":{"x":69,"y":793,"width":830,"height":11}},{"id":"d0996850-cc46-4543-9c1c-f4efaed76d07","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":118,"box":{"x":69,"y":808,"width":777,"height":11}},{"id":"d8a32f81-20fd-4421-9fac-826ff05d53c8","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":118,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"0521a024-d727-41e6-9e8c-be3b6e39b495","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":118,"box":{"x":68,"y":839,"width":708,"height":10}},{"id":"d9f539aa-185e-443d-9c18-39000bd78ee8","block_type":"box","text":"Rule 144A Securities.","page_number":118,"box":{"x":102,"y":861,"width":159,"height":9}},{"id":"00924a26-77bc-4e3b-be37-e3a5d675fd19","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":118,"box":{"x":266,"y":861,"width":560,"height":11}},{"id":"95ca3553-6ae8-4dda-9f1e-5a2eb172884f","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":118,"box":{"x":70,"y":876,"width":741,"height":11}},{"id":"90bb90ab-dcb6-4b56-8a63-6d10053d1062","block_type":"box","text":"II-72","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b7c50d60-c29c-481e-88c3-ebd7604c4c59","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"337aa715-d89c-4c5e-8920-5635a81fb9df","block_type":"box","text":"Securities Lending.","page_number":119,"box":{"x":101,"y":45,"width":139,"height":11}},{"id":"84828791-d9b9-4ac9-94a9-7dd8520357fc","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":119,"box":{"x":247,"y":45,"width":645,"height":11}},{"id":"694bc6fd-1108-47a5-be71-e3bbb782ef56","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":119,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"56945bb2-4f0a-4e86-ae30-4136d1994034","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":119,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"0b9f8a83-defa-4a54-ab36-fa3b4e0208ea","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":119,"box":{"x":69,"y":90,"width":831,"height":11}},{"id":"66b10c6b-3d7a-4bbc-ba1e-e068931b4b3c","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":119,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"0f5f8066-ad7a-4ac1-86f3-e5296cb72be6","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":119,"box":{"x":69,"y":120,"width":829,"height":11}},{"id":"acaa250a-b2ae-4b90-a112-01b95243ead1","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":119,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"790e054e-42a3-4a81-9875-f2931dcb1c61","block_type":"box","text":"the securities were not on loan.","page_number":119,"box":{"x":68,"y":151,"width":225,"height":8}},{"id":"5bf13f03-da7a-4c2c-aa1c-f3f86885c5ef","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":119,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"e906ae0a-fedb-41cd-b52a-6c5f414272e1","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":119,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"a7b775a7-8deb-4753-89a1-d1ae5fe15d21","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":119,"box":{"x":69,"y":203,"width":824,"height":11}},{"id":"83ba1441-97b5-485b-a8a7-574689d99726","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":119,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"2093447a-f3b4-4179-9fff-667d50d91e4c","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":119,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"65eca5e3-b91b-470d-a8af-f4c3d0c90c60","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":119,"box":{"x":70,"y":249,"width":789,"height":11}},{"id":"893cb176-cfcc-497f-b1c7-4f061f626b0b","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":119,"box":{"x":70,"y":264,"width":643,"height":11}},{"id":"60d66796-8996-4177-bed3-47d4a3662aa9","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":119,"box":{"x":102,"y":287,"width":568,"height":11}},{"id":"16dd13dc-f4df-4d5e-bffc-583dffb68349","block_type":"box","text":"i.e.","page_number":119,"box":{"x":672,"y":287,"width":20,"height":9}},{"id":"a411a487-59c2-4458-9351-681d15c220e1","block_type":"box","text":", the risk of losses resulting","page_number":119,"box":{"x":695,"y":286,"width":198,"height":12}},{"id":"ff017549-541f-46b2-affe-ae9afc16f6e9","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":119,"box":{"x":68,"y":302,"width":501,"height":11}},{"id":"6c334e63-3808-4b94-84c6-b411b73d819f","block_type":"box","text":"i.e.","page_number":119,"box":{"x":571,"y":302,"width":20,"height":9}},{"id":"2f217de8-e3f9-4050-ae7f-95654504e990","block_type":"box","text":", the risk of a mismatch between the return","page_number":119,"box":{"x":594,"y":302,"width":307,"height":10}},{"id":"54f1ada3-aeb4-4596-8177-b1ccad4feb15","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":119,"box":{"x":69,"y":317,"width":794,"height":11}},{"id":"5e529544-1406-458b-bd95-12395ff54216","block_type":"box","text":"i.e.","page_number":119,"box":{"x":865,"y":317,"width":20,"height":9}},{"id":"00e8e405-2a2a-4591-b1e3-518071f8fbbc","block_type":"box","text":",","page_number":119,"box":{"x":888,"y":324,"width":2,"height":3}},{"id":"6cbe5460-7892-4581-a5ba-f76db0b500ad","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":119,"box":{"x":68,"y":332,"width":788,"height":11}},{"id":"d5569b99-1089-4780-a689-942afff038ef","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":119,"box":{"x":69,"y":347,"width":837,"height":11}},{"id":"c44df91e-c718-4f44-8d90-7ed6a373d76d","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":119,"box":{"x":69,"y":362,"width":822,"height":11}},{"id":"6e8c1996-71fd-439e-b242-38985b4ba7f1","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":119,"box":{"x":68,"y":377,"width":811,"height":12}},{"id":"ba1cb1fa-d6e9-4f3a-9d94-d6664fb8595d","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":119,"box":{"x":70,"y":392,"width":820,"height":12}},{"id":"9e9f225d-d6ea-4c02-b493-bf1493840be3","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":119,"box":{"x":69,"y":408,"width":790,"height":11}},{"id":"f2a3efef-e584-46d5-be9c-d7303cd713e7","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":119,"box":{"x":70,"y":423,"width":820,"height":11}},{"id":"0d7e2cbc-4898-43a4-a534-880622a9084e","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":119,"box":{"x":70,"y":438,"width":805,"height":11}},{"id":"61a8e3a7-ea3c-4ff0-9d37-6ed1b143ef74","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":119,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"62d7bc9a-a574-4c37-98b2-a4340182ce7d","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":119,"box":{"x":69,"y":468,"width":775,"height":11}},{"id":"257cb3f5-1041-4dab-ad89-37c9981cc213","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":119,"box":{"x":69,"y":483,"width":821,"height":11}},{"id":"da81f8d8-614d-4f7d-8b1c-5f9b8a958862","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":119,"box":{"x":69,"y":498,"width":838,"height":11}},{"id":"53ddee57-43f7-4adb-b2f1-830f4be1da60","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":119,"box":{"x":70,"y":513,"width":837,"height":11}},{"id":"4ce616d4-7339-4954-81c1-2911c1344062","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":119,"box":{"x":70,"y":528,"width":808,"height":12}},{"id":"c2ff2cac-d7e1-452b-9f13-a0695df6c8f0","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":119,"box":{"x":69,"y":543,"width":839,"height":12}},{"id":"cd650ca2-bbba-422c-bc3e-5e114261a9a6","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":119,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"cc990787-4c99-4add-91a0-09ebcf64dfd1","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":119,"box":{"x":69,"y":574,"width":801,"height":11}},{"id":"a1a50284-3e00-4dd9-b4c2-711b6d02efc9","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":119,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"747b5a81-59d7-4ad7-97bc-cb0c305b880f","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":119,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"bb64d273-c29a-4329-af92-8afcffbaf036","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":119,"box":{"x":69,"y":619,"width":812,"height":11}},{"id":"ca2dbe8c-c991-4b53-a3a6-8deac604c9c0","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":119,"box":{"x":70,"y":634,"width":814,"height":12}},{"id":"e20cddce-9f15-4b9f-902e-27e0c5e5c429","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":119,"box":{"x":68,"y":649,"width":787,"height":12}},{"id":"c7fdc4bb-68f5-4d80-aff3-bd1c12dc4399","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":119,"box":{"x":69,"y":665,"width":828,"height":11}},{"id":"9208cbb0-6047-4939-b26c-1cc746d70364","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":119,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"de95b160-c234-4d77-b6dc-d8b6608a5ac6","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":119,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"38348875-090e-4357-ade1-6c1467d77d81","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":119,"box":{"x":69,"y":710,"width":731,"height":11}},{"id":"678cbbbc-36c4-46c0-b46a-749e8b11bfcb","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":119,"box":{"x":102,"y":732,"width":800,"height":12}},{"id":"0973f76f-bb74-40aa-9d23-b03796356fe8","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":119,"box":{"x":68,"y":748,"width":802,"height":11}},{"id":"c55034c1-5d63-480e-8c17-a6ee619a018f","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":119,"box":{"x":69,"y":763,"width":783,"height":11}},{"id":"e92871e5-b168-43dd-8beb-2252fd0e5d81","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":119,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"35fc39ba-b25a-4383-b57f-48b70c111f16","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":119,"box":{"x":70,"y":793,"width":747,"height":11}},{"id":"fa886251-3313-4b38-ac58-c0b01c456187","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":119,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"2e451f23-6bed-4131-941c-b81626b00528","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":119,"box":{"x":69,"y":823,"width":808,"height":12}},{"id":"fbdf98a0-0a4c-4d19-a1e7-47c158846478","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":119,"box":{"x":69,"y":838,"width":839,"height":12}},{"id":"ccb082a2-0cc2-4b18-8e14-6afced6320fd","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":119,"box":{"x":69,"y":853,"width":827,"height":11}},{"id":"213a5b9f-ca52-4c8c-9ed0-eed549c3e031","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":119,"box":{"x":69,"y":869,"width":794,"height":11}},{"id":"8ca52ff0-0343-450e-a000-915be0a2a786","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":119,"box":{"x":69,"y":884,"width":371,"height":11}},{"id":"be138136-77af-4afa-956a-dfa0c1700a11","block_type":"box","text":"II-73","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c6e1a08-9193-4226-a547-8d42c817d9f7","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4c90fc1-2667-4277-bf6d-dc7002803ebb","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":120,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"cffa364e-139e-4bb8-800e-345906344902","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":120,"box":{"x":70,"y":60,"width":808,"height":11}},{"id":"24f1cc96-2e74-44d7-88e5-d6cc8d54053c","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":120,"box":{"x":69,"y":75,"width":784,"height":11}},{"id":"b883ae2f-38be-44b1-867d-06be66bd6e6d","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":120,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"ae517f0d-c348-4e2e-9c4d-9706c053163d","block_type":"box","text":"the current expected compliance date.","page_number":120,"box":{"x":68,"y":105,"width":273,"height":11}},{"id":"96930757-a68d-48c2-ad5a-fea1975c1099","block_type":"box","text":"Short Sales.","page_number":120,"box":{"x":101,"y":128,"width":89,"height":9}},{"id":"cbd1b66d-b197-493b-b391-304538043349","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":120,"box":{"x":196,"y":128,"width":696,"height":11}},{"id":"f29bea24-8ca0-4bff-887d-4dbd139f8aaa","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":120,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"8af9ff05-5d4d-48f3-be26-f41297ead092","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":120,"box":{"x":69,"y":158,"width":778,"height":11}},{"id":"b274473f-39d0-4437-b629-fe3af580d30a","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":120,"box":{"x":70,"y":173,"width":831,"height":11}},{"id":"1e87b1c9-c099-4358-b577-80c681454103","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":120,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"34d70e3e-d861-4711-ac80-46108b656f20","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":120,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"4df7761d-0330-41f8-8b2c-1f238525e430","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":120,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"b872eb64-c556-4fd9-9404-28d9c2389eba","block_type":"box","text":"securities to the lender of the securities.","page_number":120,"box":{"x":69,"y":234,"width":289,"height":9}},{"id":"99e9878e-286d-466b-b92a-adbe474b8f97","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":120,"box":{"x":101,"y":257,"width":772,"height":11}},{"id":"bd003d5b-fc74-48c9-be21-e06912ac8924","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":120,"box":{"x":69,"y":272,"width":795,"height":11}},{"id":"808e3114-f564-44ad-9458-342b1a5cdf6d","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":120,"box":{"x":69,"y":286,"width":801,"height":12}},{"id":"5ad16596-c5e5-466f-8037-3fceb66ea72a","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":120,"box":{"x":69,"y":302,"width":830,"height":11}},{"id":"03ca2488-7bd6-4895-9cfa-bf4e7dd8a319","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":120,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"f00da2bc-bda0-4d4b-b274-f4abb5926392","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":120,"box":{"x":69,"y":332,"width":770,"height":11}},{"id":"320c32af-1739-4233-aa04-0cfd55ea8bb7","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":120,"box":{"x":70,"y":347,"width":568,"height":11}},{"id":"21eb3bc9-7bf0-4aab-98a7-6bc19239fe18","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":120,"box":{"x":102,"y":370,"width":806,"height":11}},{"id":"aadea8e9-cb9c-4377-9bcb-928d70fd4aea","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":120,"box":{"x":69,"y":385,"width":817,"height":11}},{"id":"e53a3874-4e60-4a02-87cc-b0f7e9a9fa11","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":120,"box":{"x":68,"y":400,"width":819,"height":11}},{"id":"d91f5bae-8816-4a3b-a48e-2997351f2bf6","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":120,"box":{"x":69,"y":415,"width":758,"height":11}},{"id":"ad928a94-c769-4ecf-b9cc-64c17cf62060","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":120,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"368e6b12-fd04-461d-9de1-7aa723965224","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":120,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"d35dc892-294d-4797-ac7b-251227f60b9d","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":120,"box":{"x":69,"y":461,"width":818,"height":11}},{"id":"773c894f-439f-4e6b-aef7-d4058623cb53","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":120,"box":{"x":68,"y":475,"width":821,"height":12}},{"id":"7b38a4ab-e980-4170-a651-5f2eda85c849","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":120,"box":{"x":69,"y":491,"width":640,"height":11}},{"id":"1a4eeaa6-dc62-451d-a33e-22c2691cca80","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":120,"box":{"x":101,"y":514,"width":673,"height":11}},{"id":"3c397b4d-8f30-4717-8ee8-46ec97ab619e","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":120,"box":{"x":101,"y":536,"width":721,"height":11}},{"id":"ec35c204-b04b-44d8-9980-8f3fe7bbcc60","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":120,"box":{"x":69,"y":551,"width":791,"height":11}},{"id":"68ad5bbd-5ed0-47b9-ae3e-9a30dac84e81","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":120,"box":{"x":70,"y":566,"width":489,"height":11}},{"id":"8139eb25-bcb0-42bb-881e-c341018f04fc","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":120,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"77f15de2-613d-442b-bcd4-0d9aea34368c","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":120,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"2ed4a7fc-cd04-4545-acba-40602ffebbf5","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":120,"box":{"x":69,"y":619,"width":796,"height":11}},{"id":"ad0f3cf6-b480-40f0-a455-8072a954356c","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":120,"box":{"x":70,"y":634,"width":766,"height":12}},{"id":"bbde75cf-d25f-4669-9399-80bb51158318","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":120,"box":{"x":70,"y":649,"width":754,"height":12}},{"id":"269a026c-6331-4ba3-b83c-7f1da3c2aefe","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":120,"box":{"x":67,"y":664,"width":800,"height":12}},{"id":"2d80bcf4-20c4-4c3f-8acb-6cdf4fcd6900","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":120,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"11245ec5-4000-4bc9-8179-c63c386cb395","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":120,"box":{"x":69,"y":695,"width":782,"height":11}},{"id":"87051ec1-a7b9-49a1-b8d9-93d1743437a1","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":120,"box":{"x":69,"y":710,"width":460,"height":11}},{"id":"0051992d-9b85-4764-89f6-0131162f3fb1","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":120,"box":{"x":101,"y":733,"width":293,"height":11}},{"id":"3b6cca08-c39d-4ea2-8dfb-cbc263e17490","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":120,"box":{"x":400,"y":733,"width":504,"height":11}},{"id":"be9cf127-7986-43a7-baa7-6140a9a12309","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":120,"box":{"x":69,"y":748,"width":791,"height":11}},{"id":"343f3e98-0289-4d7b-946d-cc99e37012d8","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":120,"box":{"x":70,"y":763,"width":793,"height":11}},{"id":"f9c13eac-627c-43e2-b3a0-18a52b9ccaa3","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":120,"box":{"x":70,"y":778,"width":824,"height":11}},{"id":"ae8ec3ea-e85f-4f31-9cee-215d440159f5","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":120,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"c614c251-4983-4fd0-b557-019c719c3a1a","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":120,"box":{"x":69,"y":808,"width":768,"height":11}},{"id":"c3292e96-1525-4ff7-bb34-2056c2546cbe","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":120,"box":{"x":70,"y":823,"width":826,"height":12}},{"id":"08d8520a-2594-453d-b43f-ee4d87838bf9","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":120,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"6f5853d3-6e56-45ac-ae07-86cf7625bf8e","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":120,"box":{"x":70,"y":854,"width":797,"height":11}},{"id":"ef04ffe2-d456-4a99-af33-f62b92c3899a","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":120,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"c328585d-be91-48f5-b27b-3d9e60fe6b3a","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":120,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"94a84824-490c-4289-b808-6a7f6318a369","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":120,"box":{"x":68,"y":899,"width":794,"height":11}},{"id":"bae2ff39-9d9f-44f8-9c2d-36de05e30b43","block_type":"box","text":"II-74","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c86acc0-2d09-4aba-b2dc-1082531bfd24","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"45fb6327-1511-4075-827c-00927777539c","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":121,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"baf5decf-6e11-4d11-a127-4e10f590284f","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":121,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"7153acd1-9fd7-455f-b156-207a53ca6e1f","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":121,"box":{"x":70,"y":75,"width":802,"height":11}},{"id":"8b9ed988-e8db-4ad1-a1ee-c094d079c54f","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":121,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"8ccdf389-ae06-4c41-ad20-3c2e831fc303","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":121,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"73822067-4945-4de9-b28a-9b0803c3c6b1","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":121,"box":{"x":69,"y":120,"width":806,"height":12}},{"id":"a1c3e07d-6005-4fb2-8974-314a4ab34dbe","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":121,"box":{"x":69,"y":135,"width":828,"height":11}},{"id":"24793d86-083a-42f0-8fa0-926776a462ad","block_type":"box","text":"Standby Commitment Agreements.","page_number":121,"box":{"x":101,"y":158,"width":255,"height":11}},{"id":"eb2a9afb-65ab-43d3-9ac4-e3f9dfc7efa3","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":121,"box":{"x":362,"y":158,"width":511,"height":11}},{"id":"cd1dd31c-c291-4584-ab23-8ab20bc72e7a","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":121,"box":{"x":68,"y":173,"width":834,"height":11}},{"id":"e14bba2b-859c-411d-a7be-c3e5bfbe9d3b","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":121,"box":{"x":68,"y":188,"width":834,"height":12}},{"id":"28984c0e-6efb-40ab-a965-cf1550509b36","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":121,"box":{"x":70,"y":203,"width":802,"height":12}},{"id":"553d1f01-20ef-4dc1-9042-d57c9efae3ae","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":121,"box":{"x":69,"y":218,"width":793,"height":12}},{"id":"5e9b29c5-5fca-4b94-a708-60c4f86e2ce9","block_type":"box","text":"advantageous to the Fund.","page_number":121,"box":{"x":69,"y":234,"width":188,"height":11}},{"id":"e05e0ab1-f4de-40ac-9713-e6eb2fc8712f","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":121,"box":{"x":101,"y":256,"width":800,"height":11}},{"id":"4376de80-fa86-443f-925b-3bd0d68b9742","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":121,"box":{"x":68,"y":271,"width":816,"height":12}},{"id":"22073953-893c-429a-9233-e64861fb89dd","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":121,"box":{"x":69,"y":286,"width":835,"height":12}},{"id":"f9668720-d5a7-4f85-b197-f6415d4318e8","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":121,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"5b83f094-e8ff-4f15-b7ff-3402a19b4466","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":121,"box":{"x":101,"y":324,"width":785,"height":12}},{"id":"dcd8ef89-3ef8-4a34-abd3-0841005d1791","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":121,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"46466c19-4738-43ba-b1ee-d5838217bf01","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":121,"box":{"x":68,"y":355,"width":815,"height":11}},{"id":"25c510b1-5540-4eed-b4c0-0f0f9b30bed3","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":121,"box":{"x":69,"y":370,"width":792,"height":11}},{"id":"e0dd8434-2367-4e95-a98f-be03dfc34565","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":121,"box":{"x":70,"y":385,"width":415,"height":11}},{"id":"6eb6b88f-ce6e-4d6f-8275-f649dae59e28","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":121,"box":{"x":102,"y":408,"width":789,"height":11}},{"id":"ffbcab53-2a00-428c-97fd-210016675bdc","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":121,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"1f90ff02-f316-4778-857e-74127c9f2b46","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":121,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"36de3df4-e523-495d-b127-5cd00fcf9f40","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":121,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"b09181e1-5941-4cd4-87e2-5f49c7d2be59","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":121,"box":{"x":68,"y":468,"width":817,"height":11}},{"id":"40a9ffbb-c12b-4d80-965a-265c84643019","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":121,"box":{"x":69,"y":483,"width":578,"height":11}},{"id":"c365555d-ace1-4968-b71b-397d345b406e","block_type":"box","text":"Stripped Securities.","page_number":121,"box":{"x":101,"y":506,"width":143,"height":11}},{"id":"998e7df4-2e15-4a12-afc9-53df7395e58d","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":121,"box":{"x":251,"y":506,"width":596,"height":11}},{"id":"6dcc9539-c80d-4588-8b9e-22f7323b74cc","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":121,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"2e2b539c-9934-42fc-87ad-5bb6c6fb9268","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":121,"box":{"x":70,"y":536,"width":818,"height":11}},{"id":"6e195deb-5150-4b80-b4a0-d09879571d86","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":121,"box":{"x":70,"y":551,"width":813,"height":11}},{"id":"de10c8e9-4263-4163-bf04-1304caa7c9a0","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":121,"box":{"x":70,"y":566,"width":777,"height":11}},{"id":"59d2be08-706a-4e78-97cc-93e3ef2a67dc","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":121,"box":{"x":70,"y":582,"width":802,"height":11}},{"id":"3369627b-a6db-4a01-8c25-f484167cc8da","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":121,"box":{"x":69,"y":596,"width":794,"height":12}},{"id":"85b1eba4-ccaa-441b-b4d6-d2f88a017ec9","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":121,"box":{"x":70,"y":612,"width":837,"height":11}},{"id":"f8ffda7c-3a72-4712-a62b-6e21f3bf773c","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":121,"box":{"x":68,"y":627,"width":823,"height":11}},{"id":"3aa80579-cb62-476f-ad30-18abf8ae4855","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":121,"box":{"x":69,"y":642,"width":494,"height":11}},{"id":"f914aa36-7053-4a3a-830b-ce7e5dd88710","block_type":"box","text":"Structured Notes.","page_number":121,"box":{"x":101,"y":665,"width":130,"height":8}},{"id":"914ff74c-13f1-4040-83db-44bc6f9916d6","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":121,"box":{"x":237,"y":665,"width":650,"height":11}},{"id":"384bdd0a-c756-419b-b527-3f1c23f5cb52","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":121,"box":{"x":69,"y":680,"width":818,"height":11}},{"id":"cbcb6b43-0860-4dad-9d4b-c9271edb7c2d","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":121,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"d1d99c71-549d-4cfa-9e73-6309526cefa9","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":121,"box":{"x":70,"y":710,"width":821,"height":11}},{"id":"58b3cb7d-b79d-423f-9997-c274ac477b60","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":121,"box":{"x":70,"y":725,"width":839,"height":11}},{"id":"00f382d5-2f6d-406f-864b-183574146e55","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":121,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"43e44769-03bf-4388-8ce9-e966e44a7e08","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":121,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"fac14997-5720-4560-8eb0-9e651884aac7","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":121,"box":{"x":68,"y":770,"width":673,"height":12}},{"id":"62d928a8-e6b6-4c28-b45f-7cd9b75a9a1d","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":121,"box":{"x":102,"y":793,"width":768,"height":11}},{"id":"7faa2627-d5d9-4c0a-abfb-40740336a40d","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":121,"box":{"x":70,"y":808,"width":821,"height":11}},{"id":"c637cb0d-80e1-4de7-b8f9-50f04900b123","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":121,"box":{"x":69,"y":823,"width":787,"height":12}},{"id":"3bbf0d6d-fb11-4e43-9425-d03448f8d1db","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":121,"box":{"x":69,"y":838,"width":827,"height":12}},{"id":"45c59b34-d4f1-4de6-9fdf-b42ce259c181","block_type":"box","text":"the risk of loss.","page_number":121,"box":{"x":68,"y":853,"width":110,"height":9}},{"id":"c3102611-1b92-4ffe-93d4-240e25558abf","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":121,"box":{"x":101,"y":876,"width":759,"height":11}},{"id":"1fdf3f03-443d-4deb-8507-e0ff0f951043","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":121,"box":{"x":69,"y":891,"width":795,"height":11}},{"id":"fc9e7a9b-c0da-43d6-b1d6-eb1ea18dee2e","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":121,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"4a9e7e88-4ad8-456b-9918-8797e83d77a2","block_type":"box","text":"II-75","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b3a53cff-2929-4783-a142-6335c3625940","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d68869a-1b32-46b0-b5fa-d696cc8f6d83","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":122,"box":{"x":70,"y":45,"width":821,"height":11}},{"id":"2a170ab6-403f-4bc5-91d2-2bb7cb4d3425","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":122,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"418c803c-7ea3-4d73-b165-79f7f5a2d70d","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":122,"box":{"x":70,"y":75,"width":618,"height":11}},{"id":"cbc0bca5-3f56-49f7-a45b-0bcced5b6937","block_type":"box","text":"Taxability Risk.","page_number":122,"box":{"x":103,"y":98,"width":109,"height":11}},{"id":"e11d4f46-233b-44d7-91f9-cf5504e544d9","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":122,"box":{"x":218,"y":98,"width":644,"height":11}},{"id":"21d06339-11a4-45a1-a784-3c1359312267","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":122,"box":{"x":70,"y":113,"width":817,"height":11}},{"id":"92dadde3-21ca-4ba4-af68-a31ddf05477d","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":122,"box":{"x":68,"y":128,"width":827,"height":11}},{"id":"691ae482-c94f-425d-b9af-d770b129a366","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":122,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"a94914fc-49e6-4e9c-97df-850d3a5fbb34","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":122,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"d69ed98f-f3b6-4a8a-9ebc-00eb389ccc4f","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":122,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"296c8d70-26a2-4046-8ba8-dadf1b9cff00","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":122,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"c2f5cfe3-69b1-4a58-b8fd-4f9421468f23","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":122,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"960d1ab6-53b7-4bbe-983f-08b4a17b7664","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":122,"box":{"x":70,"y":218,"width":818,"height":12}},{"id":"2ff9af7c-eef2-4c9b-b91c-3596aed78f9f","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":122,"box":{"x":70,"y":234,"width":771,"height":11}},{"id":"b0469593-6ccf-4a60-87cb-a9135212422e","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":122,"box":{"x":70,"y":249,"width":765,"height":11}},{"id":"cab3987f-4ffd-492b-87eb-0ac86b2915ee","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":122,"box":{"x":69,"y":264,"width":834,"height":11}},{"id":"8885d2e9-d95c-482d-9feb-008097a81381","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":122,"box":{"x":68,"y":279,"width":807,"height":11}},{"id":"1eb7bfa6-61a6-469f-b0c4-50ad34fac39f","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":122,"box":{"x":70,"y":294,"width":830,"height":11}},{"id":"ce1a38bb-b3af-48e4-a082-a9edd8130724","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":122,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"f6802a92-af7d-4e07-823b-df3b7e22ca11","block_type":"box","text":"the value of an investment in the Fund.","page_number":122,"box":{"x":68,"y":324,"width":278,"height":9}},{"id":"0f35e3ac-fd28-4d85-b21e-b71a5d1ddb6d","block_type":"box","text":"Temporary Defensive Measures.","page_number":122,"box":{"x":103,"y":347,"width":230,"height":11}},{"id":"623e8c4f-2f37-48bb-b6ab-d978560cd5a0","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":122,"box":{"x":339,"y":347,"width":542,"height":11}},{"id":"3e65320f-83ae-4abd-a780-45fe8b1bf3d4","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":122,"box":{"x":69,"y":362,"width":811,"height":11}},{"id":"a22e9431-3b2e-4715-9f0f-a7d88365f5cd","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":122,"box":{"x":68,"y":377,"width":813,"height":12}},{"id":"28d7a211-f988-453b-acbb-9ee0fb05fe7f","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":122,"box":{"x":69,"y":393,"width":833,"height":11}},{"id":"f33b99a6-f3b4-4cbb-8342-be8ef029465e","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":122,"box":{"x":70,"y":408,"width":813,"height":11}},{"id":"def23f3f-52f0-4f1e-9640-bfb01dcde6c6","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":122,"box":{"x":69,"y":423,"width":795,"height":11}},{"id":"db273fa5-673c-4afc-a53a-f6ca09b6da5a","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":122,"box":{"x":68,"y":438,"width":806,"height":11}},{"id":"660909fa-51a8-4979-83f4-e577922e7f77","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":122,"box":{"x":69,"y":453,"width":808,"height":11}},{"id":"8c94390d-625a-4435-a33d-bf3089883b91","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":122,"box":{"x":68,"y":468,"width":820,"height":11}},{"id":"d02e21fa-d85a-4b1c-8f15-e2d5bf7d07f3","block_type":"box","text":"its investment objective.","page_number":122,"box":{"x":70,"y":483,"width":171,"height":11}},{"id":"565d9d90-38ad-41e9-b5df-6913f5af8f07","block_type":"box","text":"U.S. Government Obligations.","page_number":122,"box":{"x":102,"y":506,"width":213,"height":11}},{"id":"7f676f78-bf6d-4787-acad-a09708c016c9","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":122,"box":{"x":321,"y":506,"width":566,"height":11}},{"id":"cad2d62e-5f12-444b-8fa1-d93ec88a3557","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":122,"box":{"x":69,"y":521,"width":810,"height":11}},{"id":"c6cfea56-3084-4744-8b15-aea0bc3783b8","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":122,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"9b14965d-ef65-4c78-a827-11bdd5c14158","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":122,"box":{"x":68,"y":551,"width":779,"height":11}},{"id":"24774aad-dc94-497d-9d7a-623b9a79ba8d","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":122,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"1acf6c01-d59b-4c39-b833-aaf75c8e8af5","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":122,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"8d9332ea-0ec4-4091-a8b5-9f779003abf3","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":122,"box":{"x":69,"y":596,"width":809,"height":12}},{"id":"1c231964-6d74-4582-859e-6594fe90615f","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":122,"box":{"x":69,"y":612,"width":805,"height":11}},{"id":"79611063-4d11-4d1a-b80d-3944e64c2fdd","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":122,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"888947b4-c63d-4393-9aa3-aec40fddbff8","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":122,"box":{"x":70,"y":642,"width":832,"height":11}},{"id":"2f0cc553-edd2-47e6-bf3b-fe393e4efff6","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":122,"box":{"x":69,"y":657,"width":829,"height":11}},{"id":"e20fa00c-fa2b-438a-8290-2eb3578377b7","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":122,"box":{"x":69,"y":672,"width":716,"height":11}},{"id":"de36a28f-8619-4c13-95dc-bc5e59cb378b","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":122,"box":{"x":102,"y":695,"width":800,"height":11}},{"id":"a868743a-4753-4fe3-a5c7-1df5ca52b6d5","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":122,"box":{"x":68,"y":710,"width":785,"height":11}},{"id":"05ebb4bf-2eb1-44f6-91f7-9e7c3b0376c4","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":122,"box":{"x":68,"y":725,"width":813,"height":11}},{"id":"70d6ee5b-1fa4-4b3a-9406-d1d03b4697af","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":122,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"d23a92fb-10d7-4b0c-b77e-32c0a0b01bd8","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":122,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"6bdcc0c8-3d60-45a5-a999-7cbff624651f","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":122,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"893039c8-8a7a-414c-8c8d-43c57564eb3a","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":122,"box":{"x":70,"y":786,"width":777,"height":11}},{"id":"7b3b4e74-e960-4410-a5c1-5de19c55aa91","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":122,"box":{"x":70,"y":801,"width":749,"height":11}},{"id":"a5a2773c-ab71-4cb1-955a-7c9c8b8b138f","block_type":"box","text":"U.S. Treasury Obligations.","page_number":122,"box":{"x":103,"y":823,"width":183,"height":12}},{"id":"a5931375-95b1-4e92-ae49-10146c92eede","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":122,"box":{"x":292,"y":823,"width":593,"height":12}},{"id":"865cd453-4428-4c14-888c-ba0e3490f09f","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":122,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"90029994-431e-456e-bd86-f3e17bc822f1","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":122,"box":{"x":69,"y":853,"width":827,"height":12}},{"id":"d2a66da3-bc1a-438c-bc9d-6aa2f29dc285","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":122,"box":{"x":68,"y":869,"width":823,"height":11}},{"id":"11350776-ac22-4b03-8840-ab43f8e4b1ff","block_type":"box","text":"do so.","page_number":122,"box":{"x":69,"y":884,"width":42,"height":9}},{"id":"2ddd5656-7529-433b-8119-ae1eb9e6197a","block_type":"box","text":"II-76","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62864ce4-5d95-4851-ad51-ac54ba9950bf","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"16e72dc6-cbec-4952-a4d5-f061dfff0460","block_type":"box","text":"U.S. Treasury Rolls","page_number":123,"box":{"x":102,"y":45,"width":139,"height":11}},{"id":"704377b7-2371-4e0a-85ad-3c922b6c9c7d","block_type":"box","text":".","page_number":123,"box":{"x":241,"y":52,"width":3,"height":2}},{"id":"f45d80fc-8f01-44f7-bb9f-ede601a5cdd0","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":123,"box":{"x":250,"y":45,"width":656,"height":11}},{"id":"e34f4aed-034a-40c0-abf0-5aeb91585fc6","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":123,"box":{"x":69,"y":60,"width":804,"height":11}},{"id":"3601bcb6-8cb6-4429-b35f-83f46caa55e5","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":123,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"bd659983-fd19-4efe-912d-aa3b9dd2c989","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":123,"box":{"x":69,"y":90,"width":840,"height":11}},{"id":"3761778e-52d6-4a32-9b26-cada45bf87e7","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":123,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"57a80caf-447e-4a76-bd93-28b459470534","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":123,"box":{"x":69,"y":120,"width":775,"height":12}},{"id":"617e73d3-87ab-4808-95dc-2cca7eb114ea","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":123,"box":{"x":69,"y":135,"width":829,"height":12}},{"id":"e48861ed-27d8-4b60-a0e3-081671a09e67","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":123,"box":{"x":68,"y":150,"width":657,"height":12}},{"id":"9cb80526-c645-48a5-87c1-f608591d12bd","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":123,"box":{"x":101,"y":173,"width":756,"height":11}},{"id":"d27b4439-a47c-448d-8995-1121b25ef490","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":123,"box":{"x":70,"y":188,"width":800,"height":11}},{"id":"ac503de0-40c2-4fbb-8a8d-39cf6830837b","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":123,"box":{"x":70,"y":203,"width":617,"height":12}},{"id":"0683b9b0-bdd6-47a9-bc76-febda14979b2","block_type":"box","text":"Utility Industries.","page_number":123,"box":{"x":102,"y":226,"width":124,"height":11}},{"id":"3e197d85-b91e-4306-a66b-64489bf3e8c5","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":123,"box":{"x":233,"y":226,"width":674,"height":11}},{"id":"7face907-68e6-4676-a273-d937bfbd924f","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":123,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"02ac2615-2087-4f4b-8b84-9df7bf1d67aa","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":123,"box":{"x":69,"y":256,"width":812,"height":12}},{"id":"3ee26333-75b0-40c6-81c7-93cf5eefd197","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":123,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"a56bb38f-bd4d-4785-ab9e-bc7deaac2959","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":123,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"02dce512-f3f0-478d-8817-fc60488fedbb","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":123,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"b23c12fa-5327-4c33-86bc-d08648839465","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":123,"box":{"x":69,"y":317,"width":795,"height":11}},{"id":"8c85cecf-239c-4c65-b4f2-ee080877eb3b","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":123,"box":{"x":69,"y":332,"width":774,"height":11}},{"id":"a4d13acf-b5a6-4840-815c-f9fd5899e252","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":123,"box":{"x":69,"y":347,"width":817,"height":11}},{"id":"68f650f4-963c-4213-8123-6109ada7d55f","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":123,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"d94ef746-3ef3-49de-9489-63ed011c02cb","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":123,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"44ad4254-c4ef-46e2-a1b3-69a36b3ebf90","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":123,"box":{"x":69,"y":392,"width":761,"height":12}},{"id":"1447fb7c-251b-439c-ab92-b22aab7ad369","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":123,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"2e2f0d9f-3375-4962-bc54-4b291314667b","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":123,"box":{"x":69,"y":423,"width":777,"height":11}},{"id":"501f346d-0fbd-4560-8ce7-06b91cf63d97","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":123,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"4e1bfe17-f03f-4e96-a1a1-69eb42eda37c","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":123,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"90b777c7-ff9e-4ced-8121-1dd2f6f5a4fb","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":123,"box":{"x":68,"y":468,"width":778,"height":11}},{"id":"8c0f882e-edfb-4ca5-87bf-669765d0ae15","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":123,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"2dbde3a1-ffe7-406e-a202-30e43af766ac","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":123,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"bdd4e617-1e6d-41b6-8776-6a0c85e220dc","block_type":"box","text":"utility.","page_number":123,"box":{"x":69,"y":514,"width":39,"height":10}},{"id":"e690e6a5-7dc3-46c7-8279-e29c19d324fa","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":123,"box":{"x":102,"y":536,"width":744,"height":11}},{"id":"0aa87f67-52b6-4dce-a1ad-06e44fd4881b","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":123,"box":{"x":70,"y":551,"width":828,"height":11}},{"id":"e3bf08f2-ea32-433a-aad3-fbef7eea5ef4","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":123,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"0b10134b-cb2a-4e44-a6e0-40d84fa95582","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":123,"box":{"x":70,"y":581,"width":464,"height":11}},{"id":"13257c53-e1be-4e6a-9de4-8352ad0f4d74","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":123,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"d8827608-3a8f-4c78-8e66-fb9b01179485","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":123,"box":{"x":69,"y":619,"width":790,"height":11}},{"id":"447c3115-0a33-4fb9-85f0-8faaa554bb89","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":123,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"b6a74af0-2c09-4bc4-845d-972438f82d12","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":123,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"9d9b7f07-d812-4c13-a4e4-ba821d0f1da3","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":123,"box":{"x":68,"y":664,"width":781,"height":12}},{"id":"5cb8fa5b-0639-4fa6-860c-f55a9717d883","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":123,"box":{"x":69,"y":680,"width":826,"height":11}},{"id":"2d76b157-8387-4fe6-83d1-a547760a4a66","block_type":"box","text":"continue in the future.","page_number":123,"box":{"x":69,"y":695,"width":156,"height":9}},{"id":"bab48472-6a54-46fc-a3e0-c96117e4cf9b","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":123,"box":{"x":101,"y":717,"width":763,"height":12}},{"id":"667425d1-39b8-4d2b-8b83-e9bedd912a46","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":123,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"775cad3f-fde0-48e4-a487-7addadbbc717","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":123,"box":{"x":70,"y":748,"width":834,"height":11}},{"id":"bd3fc3e5-74a1-4103-8b18-cad3094ec5ce","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":123,"box":{"x":69,"y":763,"width":784,"height":11}},{"id":"578e520a-2830-4613-9423-569cce0bd5d8","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":123,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"e7df452f-6fd3-42a6-94e2-f6bfcedefa77","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":123,"box":{"x":68,"y":793,"width":809,"height":11}},{"id":"eb17d4f2-f7f4-4780-b49e-9c4f2bb7cbdd","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":123,"box":{"x":69,"y":808,"width":834,"height":11}},{"id":"5a4c1451-6d03-4fbe-bee4-96cd032fa169","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":123,"box":{"x":69,"y":823,"width":825,"height":12}},{"id":"b6e60b29-fe47-464c-b1e4-807ebd54ea44","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":123,"box":{"x":68,"y":838,"width":840,"height":11}},{"id":"532e10b3-ce88-4663-bcbe-e34ddbe90053","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":123,"box":{"x":69,"y":853,"width":796,"height":12}},{"id":"a719c407-7ed8-4230-b096-2b0dfd0b5eb9","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":123,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"f4ad03f9-3930-4362-b715-d0fec794466a","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":123,"box":{"x":68,"y":884,"width":831,"height":11}},{"id":"bfe2b008-7a58-4757-97c9-1a79bd0adf2e","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":123,"box":{"x":69,"y":899,"width":812,"height":11}},{"id":"e3cd8f03-1da0-4284-b048-a12902f7e8cd","block_type":"box","text":"II-77","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76cb668f-2ac3-4475-976c-248863769ce9","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf619d6a-461e-4af7-af90-f9e822201fb4","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":124,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"478e833c-9fac-4b25-adb7-f17378d2857d","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":124,"box":{"x":68,"y":60,"width":831,"height":11}},{"id":"7ae93c28-dc6d-46e0-9b0b-38e7167dc97b","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":124,"box":{"x":102,"y":83,"width":720,"height":11}},{"id":"d90cfcd7-c831-4b12-a16d-5b318a9075cf","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":124,"box":{"x":69,"y":98,"width":838,"height":11}},{"id":"0ff5d62f-2666-4be5-8b89-56adecb80ac8","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":124,"box":{"x":68,"y":113,"width":762,"height":11}},{"id":"1e0d98c8-a4ee-420b-a0f4-6c99fb7e0ed2","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":124,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"13a5a5e2-b8e2-4748-8ad6-1c7a305f2242","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":124,"box":{"x":68,"y":143,"width":801,"height":11}},{"id":"fd128305-4700-4cd0-b66e-ef764e54fd23","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":124,"box":{"x":69,"y":158,"width":828,"height":11}},{"id":"adcb8299-8ddf-481e-a741-6d890d139fa1","block_type":"box","text":"ways different from regulation in the United States.","page_number":124,"box":{"x":68,"y":173,"width":365,"height":11}},{"id":"2528c6cb-7bef-4df2-b0a1-d7a877d83e8a","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":124,"box":{"x":101,"y":196,"width":745,"height":11}},{"id":"6cf35019-da0b-4eea-9d81-19c5dc52efae","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":124,"box":{"x":68,"y":211,"width":790,"height":11}},{"id":"f7c31e21-1e26-494b-badb-649c438b6d69","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":124,"box":{"x":69,"y":226,"width":833,"height":11}},{"id":"8035d3f4-0585-4db8-bd7a-4796834d674b","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":124,"box":{"x":69,"y":241,"width":810,"height":11}},{"id":"52eea408-e585-41c2-af9f-e59a667d7152","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":124,"box":{"x":69,"y":256,"width":831,"height":12}},{"id":"2401cec2-d866-4a0e-adea-0455f66185e8","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":124,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"dbbd95c8-5f7c-42bf-ba99-b5a72d9909ae","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":124,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"2ba6edb4-b9b8-4ab6-afcd-05c00366f730","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":124,"box":{"x":69,"y":302,"width":786,"height":11}},{"id":"5c103846-41c9-4ac8-ba0c-e74620b27516","block_type":"box","text":"increase.","page_number":124,"box":{"x":70,"y":317,"width":63,"height":9}},{"id":"1cef1ab7-3e37-4dcf-98be-7bcbaa14e5e5","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":124,"box":{"x":101,"y":339,"width":793,"height":12}},{"id":"7391421b-e7a7-4450-9c96-225b09903a0e","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":124,"box":{"x":70,"y":355,"width":821,"height":11}},{"id":"1d8c80d7-d51d-459c-8a3e-d57443c44f91","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":124,"box":{"x":69,"y":370,"width":619,"height":11}},{"id":"ed7edfc4-3db1-482d-99ed-a784ec80ce37","block_type":"box","text":"Electric.","page_number":124,"box":{"x":102,"y":393,"width":54,"height":8}},{"id":"eecf8c84-8e85-4fce-9510-f69912e44dc3","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":124,"box":{"x":163,"y":392,"width":684,"height":12}},{"id":"32b994f8-4386-42df-ad4e-0883d7dc06fc","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":124,"box":{"x":68,"y":407,"width":793,"height":12}},{"id":"301d0bfa-0845-4557-bea7-50e160ccc6d4","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":124,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"2ea2fe96-ba12-48ec-b17c-9b9969e0f32d","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":124,"box":{"x":69,"y":438,"width":833,"height":11}},{"id":"5b9a528e-3d0b-461f-928a-14a23a8e8d0b","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":124,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"5e13e5bd-e061-4d15-9c96-b3adcdcc77ac","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":124,"box":{"x":69,"y":468,"width":823,"height":11}},{"id":"c8f2f49e-2841-4023-acc2-b22495d71337","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":124,"box":{"x":68,"y":483,"width":803,"height":11}},{"id":"adbabcec-4a79-4861-887a-59ee027b0814","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":124,"box":{"x":70,"y":498,"width":778,"height":11}},{"id":"17a90c13-712d-4224-add1-4d0f112526c7","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":124,"box":{"x":70,"y":513,"width":836,"height":12}},{"id":"09dc1845-4bea-4041-929e-b7cad6fe9c8d","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":124,"box":{"x":69,"y":528,"width":793,"height":12}},{"id":"b5428f3f-a9b6-4bdd-ae85-31a33afaea2e","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":124,"box":{"x":69,"y":543,"width":786,"height":12}},{"id":"c71a4eaa-84d5-455a-b5de-f73953a6e975","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":124,"box":{"x":69,"y":559,"width":819,"height":11}},{"id":"ee61e42a-6a68-4ae5-ad91-261673986dd4","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":124,"box":{"x":69,"y":574,"width":775,"height":11}},{"id":"64c3b738-862e-4679-a0dc-781177fba7fc","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":124,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"66e5a70a-cc21-40c2-b445-c295abd3d937","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":124,"box":{"x":70,"y":604,"width":826,"height":11}},{"id":"00dcdb9e-90c1-409c-9b6c-0ee8dc0cd38b","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":124,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"18ff08a8-a8b5-465e-a7e4-263639667a66","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":124,"box":{"x":69,"y":634,"width":836,"height":11}},{"id":"7d087669-6e4e-411e-8cf2-119470ab1970","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":124,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"dcaebf5c-a497-41e4-b643-2bad568923be","block_type":"box","text":"and for decommissioning such plants.","page_number":124,"box":{"x":69,"y":664,"width":270,"height":12}},{"id":"81924fd3-15a6-472e-8168-201c671342c6","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":124,"box":{"x":101,"y":687,"width":776,"height":11}},{"id":"9ccba30e-6ecf-4919-ae47-a5d861580ef3","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":124,"box":{"x":70,"y":702,"width":802,"height":12}},{"id":"79a85c3d-474a-4294-a7f6-6ecb5427fc23","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":124,"box":{"x":69,"y":717,"width":791,"height":12}},{"id":"c0dfac88-6f26-4d25-8bff-87ac4597f5ee","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":124,"box":{"x":69,"y":732,"width":839,"height":12}},{"id":"67adfc76-6b09-4146-a6a3-c3a6b469c02d","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":124,"box":{"x":70,"y":748,"width":838,"height":11}},{"id":"aba67039-91a5-4b8e-a4b5-e9dcdbc8261e","block_type":"box","text":"greater predictability of cash flow.","page_number":124,"box":{"x":68,"y":763,"width":239,"height":11}},{"id":"bb90a9a3-451e-48bf-a259-fcf0021fd586","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":124,"box":{"x":101,"y":785,"width":801,"height":12}},{"id":"1a29920f-fa53-4c59-a04c-abd68f10b39b","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":124,"box":{"x":68,"y":801,"width":821,"height":11}},{"id":"69090ff9-0a2f-4632-8779-8a1eeac883f8","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":124,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"2c098015-80a8-41ab-a9c7-4a670574b6bb","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":124,"box":{"x":68,"y":831,"width":815,"height":11}},{"id":"a2848de2-eba1-484e-b907-ffdafd4e8fbd","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":124,"box":{"x":68,"y":846,"width":803,"height":11}},{"id":"3ada3fb8-7e2a-4279-9c5e-70fdf9f4d324","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":124,"box":{"x":69,"y":861,"width":777,"height":11}},{"id":"f7b41458-76ef-4659-bde9-13f70fc3f4e9","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":124,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"3444b0b8-ac2d-477f-b439-dc0de516c545","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":124,"box":{"x":68,"y":891,"width":835,"height":12}},{"id":"2ae635c8-8a60-48f8-8fca-433781bee0e6","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":124,"box":{"x":69,"y":906,"width":700,"height":12}},{"id":"1841caa1-761f-4282-9b3e-5a514acc90be","block_type":"box","text":"II-78","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d8cfd74-dedf-445d-9880-bacafb2517c5","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c287505d-ff92-4717-94d2-146afbd7e840","block_type":"box","text":"Telecommunications.","page_number":125,"box":{"x":103,"y":45,"width":147,"height":9}},{"id":"0aab2948-53a6-4cef-928a-c02832588f45","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":125,"box":{"x":256,"y":45,"width":652,"height":11}},{"id":"32b0f681-7596-4d48-b328-4002d3717a3e","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":125,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"05727c48-9e9c-4cfb-84cd-43598fb16b3c","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":125,"box":{"x":70,"y":75,"width":782,"height":11}},{"id":"7035a665-a6a5-4d78-bb94-128471517f11","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":125,"box":{"x":69,"y":90,"width":786,"height":11}},{"id":"7a90ed4c-6750-4ae6-a059-4e40b0223c1c","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":125,"box":{"x":69,"y":105,"width":784,"height":11}},{"id":"657816a5-df86-4169-b930-38de2aa17dd6","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":125,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"86fe143b-8722-4f68-9336-780c7b1732fb","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":125,"box":{"x":69,"y":135,"width":790,"height":12}},{"id":"12c4e593-2c3f-4522-9b58-41fc6899860c","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":125,"box":{"x":70,"y":150,"width":788,"height":12}},{"id":"2043e8ac-d4a0-4ab1-a4af-541a484073d4","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":125,"box":{"x":68,"y":166,"width":825,"height":11}},{"id":"35af1e3b-755f-4450-9df1-8838adc22a0b","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":125,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"37337358-94bf-4492-b01b-f87c5ae48a03","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":125,"box":{"x":69,"y":196,"width":821,"height":11}},{"id":"499be12d-4df8-4ddc-977b-668e093cfd2b","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":125,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"b0b4640f-5214-427d-9f09-d8e0056e979c","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":125,"box":{"x":70,"y":226,"width":821,"height":11}},{"id":"773fd6f1-79c4-410c-97fe-29985d64fe76","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":125,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"cdc60693-f179-4a45-9337-55c827ff182d","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":125,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"7d472924-8e1f-46eb-b59e-e247c3651f34","block_type":"box","text":"residential, corporate and governmental customers.","page_number":125,"box":{"x":69,"y":272,"width":367,"height":11}},{"id":"df7a41fb-8157-496f-aaa9-6aa209146ade","block_type":"box","text":"Gas.","page_number":125,"box":{"x":102,"y":294,"width":31,"height":9}},{"id":"67518c28-383e-4e72-bb0e-57932a27e8e3","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":125,"box":{"x":139,"y":294,"width":740,"height":11}},{"id":"7f13d89e-a0e6-40c7-9811-924b51a3fe49","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":125,"box":{"x":70,"y":309,"width":834,"height":11}},{"id":"cd77dfde-a71e-425c-8747-d72c338f24d8","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":125,"box":{"x":70,"y":324,"width":756,"height":12}},{"id":"578e92f5-fde2-457f-8b8f-7d0cc6abd83c","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":125,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"289ad442-f07d-46a8-bc43-628952bfa422","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":125,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"2dfae1e0-562a-414b-b0a1-72e61c38994e","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":125,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"6b805743-dc2b-4a3d-af2f-47a6ed865e04","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":125,"box":{"x":69,"y":385,"width":782,"height":11}},{"id":"f71349a0-66e3-4dfe-a5de-011aa49c15f4","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":125,"box":{"x":70,"y":400,"width":829,"height":11}},{"id":"a79418a6-0e54-4127-be1c-11ecc07a4598","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":125,"box":{"x":70,"y":415,"width":691,"height":11}},{"id":"6e4d7484-cfb4-4879-8be7-fdbba99bf065","block_type":"box","text":"Water.","page_number":125,"box":{"x":103,"y":438,"width":42,"height":9}},{"id":"1b76a256-f121-4c05-b20d-a3943da7c5df","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":125,"box":{"x":151,"y":438,"width":754,"height":11}},{"id":"86db6cd0-09c3-4f0a-bc69-c2095482e202","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":125,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"c581fd3d-d11c-496f-a382-d2f797b8c6eb","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":125,"box":{"x":69,"y":468,"width":806,"height":11}},{"id":"518ec274-7ba2-4242-a0f6-62a1f7b4350e","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":125,"box":{"x":69,"y":483,"width":814,"height":11}},{"id":"65afa622-7788-4b29-a073-d2117c835033","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":125,"box":{"x":69,"y":498,"width":808,"height":11}},{"id":"bbbd452c-fd0d-4726-8fe4-1ce8ae43beb0","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":125,"box":{"x":69,"y":513,"width":832,"height":12}},{"id":"ffde46c2-6f2a-43b3-af87-5e67befaed27","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":125,"box":{"x":69,"y":528,"width":662,"height":12}},{"id":"e536cabf-625a-49b8-9af5-012b7c8cc16d","block_type":"box","text":"Utility Industries Generally.","page_number":125,"box":{"x":103,"y":551,"width":186,"height":11}},{"id":"3a79f270-ced2-4a81-aa0b-54005951b800","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":125,"box":{"x":296,"y":551,"width":584,"height":11}},{"id":"2f653ccc-93b3-4bf2-ad21-bdd868ddc4c8","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":125,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"cb7d18e1-ce87-4d52-b39a-cb7e21489462","block_type":"box","text":"not develop in the future.","page_number":125,"box":{"x":69,"y":581,"width":178,"height":11}},{"id":"813366c5-347e-4164-9bec-0520a9398245","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":125,"box":{"x":103,"y":604,"width":585,"height":11}},{"id":"b1c585d3-1bb0-4d3b-89fe-f043492e3a50","block_type":"box","text":"A Fund may purchase or sell","page_number":125,"box":{"x":694,"y":604,"width":200,"height":11}},{"id":"6af685f2-9235-4edd-b6b7-c31dcfad25e8","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":125,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"66c2d16c-9bb3-457f-b6e2-ed8e7338f010","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":125,"box":{"x":69,"y":634,"width":777,"height":12}},{"id":"f6bb6437-fcd1-4f72-9b7c-984c507ab752","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":125,"box":{"x":68,"y":649,"width":820,"height":12}},{"id":"c2bf267c-3cc7-466a-b66d-02f670d14340","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":125,"box":{"x":68,"y":664,"width":807,"height":12}},{"id":"c436c25a-dcdc-4255-ab74-9fbbf5bfb405","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":125,"box":{"x":70,"y":680,"width":430,"height":11}},{"id":"d7cadb7f-2438-4b8b-a018-1166381ff362","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":125,"box":{"x":102,"y":702,"width":750,"height":11}},{"id":"754bde07-0aad-4ac0-bbd0-787f28fce396","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":125,"box":{"x":70,"y":717,"width":823,"height":12}},{"id":"80100054-9121-4691-a901-17dcb9c65205","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":125,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"40fbdb1a-ffcc-413e-959b-7cf2f087ac40","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":125,"box":{"x":70,"y":748,"width":755,"height":11}},{"id":"6696f9af-bcb8-4eb7-8ce1-9d878cafd6c0","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":125,"box":{"x":69,"y":763,"width":799,"height":11}},{"id":"ebf0c362-c61f-4997-ad32-bafbfa45da8c","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":125,"box":{"x":69,"y":778,"width":614,"height":11}},{"id":"8c828b94-0587-48b4-bcf1-69d1dc0f1710","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":125,"box":{"x":101,"y":801,"width":780,"height":11}},{"id":"b4cc9579-d620-4b50-ad3f-bcac90e93a66","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":125,"box":{"x":70,"y":816,"width":823,"height":11}},{"id":"4fd87686-4853-4b74-9501-75932998d78e","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":125,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"77e24a08-3091-4e64-983b-2e1d390ede6a","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":125,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"2cab0d47-e594-48fd-a70d-5da7a63408e6","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":125,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"4eb5e8d9-7602-47a6-bf86-f5d06e038e39","block_type":"box","text":"II-79","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7beb3fed-71b1-49d0-8fa9-2638b9eea454","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"10f85a85-710c-441f-9a6c-00f4482c8ada","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":126,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"0f35ff0c-0928-4b1e-b58b-57a4ed5ae019","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":126,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"33fb83b5-4b85-46f6-9f88-b6c040166a8f","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":126,"box":{"x":69,"y":75,"width":799,"height":11}},{"id":"62f24ff6-9202-49af-852c-7a151df371b0","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":126,"box":{"x":101,"y":98,"width":784,"height":11}},{"id":"653e1b20-e598-401b-979a-f33388b4f345","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":126,"box":{"x":69,"y":113,"width":772,"height":11}},{"id":"55ba59cc-db44-4719-9fea-b6e338addf08","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":126,"box":{"x":69,"y":128,"width":434,"height":11}},{"id":"e1dd19e2-02b1-4ea3-9a78-41baec3162cb","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":126,"box":{"x":101,"y":150,"width":745,"height":12}},{"id":"a1c62bb4-ca15-45bf-8280-08452a50c3d8","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":126,"box":{"x":68,"y":166,"width":831,"height":11}},{"id":"568aaa0c-0c60-44de-9474-4475cfad7d77","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":126,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"da1e3160-1f6b-4806-bac1-10c2a6c26c8f","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":126,"box":{"x":68,"y":196,"width":514,"height":11}},{"id":"f2352b1b-0dfd-4a37-84d1-ed3dbf32159a","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":126,"box":{"x":102,"y":218,"width":759,"height":12}},{"id":"45c1c15b-9d3a-425a-999d-64a0f09d77cd","block_type":"box","text":"securities (","page_number":126,"box":{"x":69,"y":234,"width":78,"height":11}},{"id":"b2b60d44-9cd4-4602-ab77-9656ce4a4230","block_type":"box","text":"e.g.","page_number":126,"box":{"x":148,"y":235,"width":25,"height":10}},{"id":"286fa4b8-2ccb-4d7f-b90a-2131aa0df9c3","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":126,"box":{"x":176,"y":234,"width":686,"height":11}},{"id":"090dc750-5a77-4651-9704-330018134f52","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":126,"box":{"x":69,"y":249,"width":813,"height":11}},{"id":"0a41ef55-7ddb-43cf-be25-28b88ac18bec","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":126,"box":{"x":70,"y":264,"width":822,"height":11}},{"id":"ccdb4b39-36b8-491e-8e62-da2c2c987cd8","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":126,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"e273f932-e9df-4d46-8bed-5704653b6164","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":126,"box":{"x":69,"y":294,"width":826,"height":11}},{"id":"3e7b68e1-e69b-461c-9bd2-61be259d102b","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":126,"box":{"x":70,"y":309,"width":816,"height":11}},{"id":"3f33c206-0649-4f08-a1ca-2593aa132af0","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":126,"box":{"x":70,"y":324,"width":349,"height":11}},{"id":"2cef6e47-400c-4f88-b86f-2c7583ab3aee","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":126,"box":{"x":102,"y":347,"width":800,"height":11}},{"id":"56210243-8b16-4168-9dbc-9dee46d2d497","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":126,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"2fdd4fa2-8663-4318-8160-c17737801886","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":126,"box":{"x":69,"y":377,"width":814,"height":12}},{"id":"73c625f4-e635-427e-9ab4-7e8a5520ac26","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":126,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"567111f4-f1b4-40f4-8e0c-4260787954f2","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":126,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"b66c95b9-e9dd-4faf-8824-de1a85b30f2c","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":126,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"d2ad6c23-fc50-4db3-88c0-54143533e188","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":126,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"4af1711c-f947-49ea-8a8e-da185ae0cfe9","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":126,"box":{"x":68,"y":453,"width":573,"height":11}},{"id":"a5ed2f67-e408-4707-a568-228caa60c2b5","block_type":"box","text":"Yields and Ratings.","page_number":126,"box":{"x":103,"y":476,"width":139,"height":11}},{"id":"48fb13e8-eeae-4711-9a60-ea6818ba4092","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":126,"box":{"x":247,"y":475,"width":628,"height":12}},{"id":"21b2954d-d1e0-4c19-829e-1d8400adb33b","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":126,"box":{"x":69,"y":491,"width":834,"height":11}},{"id":"63fc4c2c-1edc-49ee-9cea-f66f2f0c42ee","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":126,"box":{"x":69,"y":506,"width":799,"height":11}},{"id":"ac78417a-4a13-4076-a46b-f6c33bb81580","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":126,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"e3934c3a-ba30-4964-a06e-7560064bf13e","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":126,"box":{"x":68,"y":536,"width":792,"height":11}},{"id":"c99181a5-5e4a-4729-adb5-43800cf5c19f","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":126,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"2d7c65e6-b428-471a-b74a-cd628f500b49","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":126,"box":{"x":69,"y":566,"width":786,"height":11}},{"id":"eae21c41-52a0-4143-b326-6575338107af","block_type":"box","text":"continue to hold the security.","page_number":126,"box":{"x":69,"y":582,"width":204,"height":10}},{"id":"c57c3961-1bf0-4ff7-bd47-5a33bb08d5bd","block_type":"box","text":"Zero Coupon Securities.","page_number":126,"box":{"x":102,"y":604,"width":175,"height":11}},{"id":"e68cdaba-2617-4f87-a038-bde2821ebb1d","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":126,"box":{"x":283,"y":604,"width":601,"height":11}},{"id":"3c203db7-0a61-49fd-937e-1d1fd6975787","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":126,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"3e4bed14-cb1f-4546-9098-8bf500473e76","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":126,"box":{"x":69,"y":634,"width":822,"height":12}},{"id":"277ac008-9d7d-43a0-9c91-c7a892112178","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":126,"box":{"x":68,"y":649,"width":814,"height":12}},{"id":"6ebd7003-fcfc-4da5-a9a1-5c513470e7bd","block_type":"box","text":"security.","page_number":126,"box":{"x":69,"y":665,"width":57,"height":11}},{"id":"0039c58d-8505-406a-a2fd-f5af59d1ad19","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":126,"box":{"x":101,"y":687,"width":749,"height":11}},{"id":"cac20948-2164-4084-9998-653d144fb6c0","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":126,"box":{"x":69,"y":702,"width":835,"height":12}},{"id":"de5e7131-d6f2-4f12-b160-a9f643563ac4","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":126,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"77c868cb-17b4-48c6-aaa0-4c592d7cc9c2","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":126,"box":{"x":70,"y":732,"width":836,"height":12}},{"id":"6123418d-52e7-47af-bce0-e9a7da0eff18","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":126,"box":{"x":69,"y":748,"width":804,"height":11}},{"id":"06c002eb-31cf-43f3-88bc-1d564c4e3c41","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":126,"box":{"x":68,"y":763,"width":824,"height":11}},{"id":"e8978b3f-e5c1-4eaf-a21d-2d22585b4734","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":126,"box":{"x":68,"y":778,"width":805,"height":11}},{"id":"9dfe3641-b23a-4897-ad13-29a008d15240","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":126,"box":{"x":70,"y":793,"width":837,"height":11}},{"id":"6ff6b377-b094-4f0d-99ce-33f82951f430","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":126,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"a5a664ff-91f4-4b8d-a71b-101305de3d39","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":126,"box":{"x":69,"y":823,"width":800,"height":12}},{"id":"4918882e-a692-4faa-8df7-564bdfa7babc","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":126,"box":{"x":69,"y":838,"width":400,"height":12}},{"id":"decb001e-1297-41d4-a249-e3b2e534b3da","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":126,"box":{"x":101,"y":861,"width":775,"height":11}},{"id":"66dce59a-e9be-44ef-a978-ad83bb62c435","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":126,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"9ebf0ad9-1b32-4c30-bcae-dfddab49469d","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":126,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"1075ec40-1df4-4ca3-99df-13d6c26eaf98","block_type":"box","text":"intervals.","page_number":126,"box":{"x":70,"y":907,"width":64,"height":8}},{"id":"230c74e7-0fc1-4902-bc27-21bae688dc03","block_type":"box","text":"II-80","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"627cf891-d105-4573-8c24-34fa268fa8a0","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"498f158a-c768-4545-bb26-1b4d4a89ca03","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":127,"box":{"x":102,"y":45,"width":749,"height":11}},{"id":"55c4ad15-65a7-429c-8689-586a9ff43ca8","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":127,"box":{"x":69,"y":60,"width":784,"height":11}},{"id":"79d9e9eb-08e2-4aae-a8e8-2523782cad4d","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":127,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"62724055-76e0-4337-b720-f2af7549914b","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":127,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"7579f672-82a7-42b1-b024-7da0c23e386b","block_type":"box","text":"exposure to zero coupon securities.","page_number":127,"box":{"x":69,"y":105,"width":253,"height":11}},{"id":"93658573-fae2-4c62-935a-f1c929af0d09","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":127,"box":{"x":102,"y":128,"width":740,"height":11}},{"id":"0f20343b-a465-4fd6-9ab5-0b37c8f95927","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":127,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"997ec429-770b-459e-8399-e075e8f02ba4","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":127,"box":{"x":70,"y":158,"width":829,"height":11}},{"id":"d44ea04c-d023-482d-a5e4-83660ccada53","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":127,"box":{"x":69,"y":173,"width":741,"height":11}},{"id":"ecd48878-d432-40f7-b9e1-9c1ccf5643b9","block_type":"box","text":"Suitability. (All Funds)","page_number":127,"box":{"x":101,"y":196,"width":161,"height":11}},{"id":"b0401917-a09b-49df-ac23-255ea7833e95","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":127,"box":{"x":101,"y":218,"width":793,"height":12}},{"id":"71e1c389-d6cf-46e8-959e-c2c8a3b7a774","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":127,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"7c8dcc2b-12fb-46df-b7e4-32e96f862abf","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":127,"box":{"x":70,"y":249,"width":810,"height":11}},{"id":"cce74f1c-226f-4cfa-8e71-49a74c113bbd","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":127,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"75a2d4ad-1918-4dae-accd-a1ed0717c197","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":127,"box":{"x":68,"y":279,"width":460,"height":11}},{"id":"85c9fd3b-2b88-4dde-8e0f-ef27c8692b39","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":127,"box":{"x":102,"y":302,"width":264,"height":11}},{"id":"66e3d1f2-bd38-41a9-90ad-5f2077596c90","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":127,"box":{"x":102,"y":324,"width":745,"height":11}},{"id":"01616c2c-0b32-407a-8040-b0c5c906b6d8","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":127,"box":{"x":68,"y":339,"width":807,"height":12}},{"id":"1462515d-5a6b-4efb-89c2-d4b3401ced27","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":127,"box":{"x":69,"y":355,"width":528,"height":11}},{"id":"4c47e185-06e2-48ef-9f7e-ab471700d8ec","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":127,"box":{"x":102,"y":377,"width":735,"height":12}},{"id":"12380285-97c8-4824-bd4a-f06654333a7c","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":127,"box":{"x":69,"y":392,"width":775,"height":12}},{"id":"e5ebb894-387a-455f-aad6-b44ec131c2d3","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":127,"box":{"x":69,"y":407,"width":837,"height":12}},{"id":"925604b4-7fef-453b-b90b-5194bd79dde8","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":127,"box":{"x":69,"y":423,"width":799,"height":11}},{"id":"17ce33be-8826-41b0-9d00-83c8a3b4795e","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":127,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"bc1a1561-1464-455e-b92f-949604f74cce","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":127,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"f6ea0d67-3dce-4ddb-88b2-1ea517791dab","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":127,"box":{"x":68,"y":468,"width":802,"height":11}},{"id":"f2d077de-5ab7-4e88-882d-8ec92338c30f","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":127,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"e0635444-bb5d-4d83-80fc-4fd4dd2feceb","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":127,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"0fd951e1-5ff0-4adc-9d0a-55a665bbc78a","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":127,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"b42f9e2a-1082-4df3-9e37-d8ad9fcc42e6","block_type":"box","text":"(","page_number":127,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"dfb4578f-4d0f-462c-9075-a82271994a0d","block_type":"box","text":"i.e.","page_number":127,"box":{"x":74,"y":529,"width":21,"height":8}},{"id":"4eebb676-637d-488f-b17e-78ea5b3c105a","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":127,"box":{"x":97,"y":529,"width":806,"height":11}},{"id":"8f796a51-fbfe-4f2b-9e4c-54f7f09802a6","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":127,"box":{"x":70,"y":543,"width":824,"height":12}},{"id":"d085c605-1745-43a5-9e1e-099475e7e77c","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":127,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"e36d20c8-1dd9-4353-8887-efcb9b3822bc","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":127,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"9915f061-7b09-413b-980f-7f8a267a3c33","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":127,"box":{"x":69,"y":589,"width":815,"height":11}},{"id":"cd06f527-90ed-4b6d-9dd1-a2e3197e8c55","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":127,"box":{"x":69,"y":604,"width":781,"height":11}},{"id":"2be5f4df-0bc4-482b-bd08-60de69abce85","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":127,"box":{"x":68,"y":619,"width":810,"height":11}},{"id":"92d8a0da-254f-4846-9032-255800f8058f","block_type":"box","text":"regarded as the sole issuer.","page_number":127,"box":{"x":69,"y":634,"width":198,"height":12}},{"id":"2dcd0f6a-aa6d-483d-b6d0-36b346c18d94","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":127,"box":{"x":102,"y":657,"width":784,"height":11}},{"id":"98a0501b-01bc-4b75-a3fe-59ee439a37fa","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":127,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"4a3ae923-ec1d-4e16-bf00-135ae386499f","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":127,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"17d3d28c-b261-4c6c-984d-d08720c61d13","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":127,"box":{"x":70,"y":702,"width":747,"height":12}},{"id":"e51a9ddc-4120-4675-a0fb-63e5eabbe9ff","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":127,"box":{"x":70,"y":717,"width":834,"height":12}},{"id":"a942b486-346a-4501-97ef-a763ff49e397","block_type":"box","text":"75% of its total assets.","page_number":127,"box":{"x":69,"y":732,"width":165,"height":10}},{"id":"a79764fe-f0cc-423f-8c70-4b9553af42cb","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":127,"box":{"x":268,"y":762,"width":442,"height":10}},{"id":"7f9d47f6-418d-46b8-a9f5-9f1512b3d848","block_type":"box","text":"Directors and Officers","page_number":127,"box":{"x":69,"y":792,"width":159,"height":9}},{"id":"6869f680-b13d-413e-9131-dc34915fc77e","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":127,"box":{"x":102,"y":815,"width":733,"height":11}},{"id":"fbce606c-1f04-447e-b484-ed4f020bfe05","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":127,"box":{"x":69,"y":830,"width":783,"height":11}},{"id":"754e71d1-1ffe-4c0a-967f-358a9d05ed5d","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":127,"box":{"x":69,"y":845,"width":795,"height":12}},{"id":"dc50ed9a-8f1a-4869-b6d1-f84ecc7f855e","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":127,"box":{"x":69,"y":860,"width":789,"height":12}},{"id":"e946b1e1-65a0-4dea-bf85-d22ca1ee61ee","block_type":"box","text":"II-81","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6a4b94e1-36a2-4ad0-ba3b-6579ba25e450","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c97ca234-138e-475a-ba6c-27126d00801f","block_type":"box","text":"Management Arrangements","page_number":128,"box":{"x":69,"y":45,"width":202,"height":11}},{"id":"04bd0e5a-961f-48e5-b4a0-6e40434d3fdb","block_type":"box","text":"Management Services.","page_number":128,"box":{"x":102,"y":67,"width":162,"height":12}},{"id":"b39062ca-11d3-4ce6-b6b4-410155e1a36c","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":128,"box":{"x":270,"y":68,"width":615,"height":11}},{"id":"69b63547-93ce-45f4-90fd-a3d9341b37f0","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":128,"box":{"x":69,"y":82,"width":836,"height":12}},{"id":"e8718fa9-f63f-4ef4-b5b7-7c948f766b67","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":128,"box":{"x":70,"y":98,"width":820,"height":11}},{"id":"dca403fa-e805-45eb-90c0-28e808145f55","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":128,"box":{"x":68,"y":113,"width":832,"height":11}},{"id":"99ef421c-954d-4dc6-87ab-014415de3313","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":128,"box":{"x":70,"y":128,"width":801,"height":11}},{"id":"7c26a958-0619-47a7-a289-47edf86d6622","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":128,"box":{"x":69,"y":143,"width":370,"height":11}},{"id":"22c91738-d2ae-4e8d-802b-727e09681dbf","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":128,"box":{"x":102,"y":166,"width":778,"height":11}},{"id":"d5875ccd-1c25-4b53-b9ef-d24a6f05e5a6","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":128,"box":{"x":70,"y":181,"width":800,"height":11}},{"id":"ea91e003-8293-48a9-9355-e813c09c4b0f","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":128,"box":{"x":69,"y":196,"width":810,"height":11}},{"id":"d27867ba-84b8-436c-957c-28eab57d5098","block_type":"box","text":"Management Fee.","page_number":128,"box":{"x":102,"y":219,"width":126,"height":11}},{"id":"a69429ca-9a49-4bab-92a6-e383e4d883c3","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":128,"box":{"x":235,"y":219,"width":646,"height":11}},{"id":"8b170a82-77fb-43be-aed8-8400899d2ffc","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":128,"box":{"x":68,"y":234,"width":841,"height":11}},{"id":"96eef2cd-b0c2-4e9e-9a17-25244606c1b3","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":128,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"2917e9ab-cfa7-4a02-9b6b-44cb2ee00fcb","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":128,"box":{"x":68,"y":264,"width":746,"height":11}},{"id":"fa8f7501-c595-44cb-84da-268b59950101","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":128,"box":{"x":70,"y":279,"width":825,"height":11}},{"id":"5a138af4-d7f6-448e-9e2e-30e5be60e065","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":128,"box":{"x":102,"y":302,"width":774,"height":11}},{"id":"a44a72f2-1941-46e6-b260-77039d1e3533","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":128,"box":{"x":69,"y":317,"width":826,"height":11}},{"id":"2bcfc6e1-3cd4-42dd-9de7-fae165ee13ec","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":128,"box":{"x":70,"y":332,"width":820,"height":11}},{"id":"7abf389e-e64c-48a5-b5a0-ef02580a9877","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":128,"box":{"x":68,"y":347,"width":797,"height":11}},{"id":"4b4a0cf9-a85e-4e22-ba7f-95a6ef49d8bc","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":128,"box":{"x":70,"y":362,"width":830,"height":11}},{"id":"8cb404e0-0539-4df8-94f8-399e5b7561d6","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":128,"box":{"x":69,"y":377,"width":802,"height":12}},{"id":"dd8885e8-366e-4f73-905a-db82d0cf1570","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":128,"box":{"x":70,"y":392,"width":809,"height":12}},{"id":"9ba33224-0374-4d33-9681-8a356e9fed39","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":128,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"ed109de2-27bb-4734-8c65-d33c876b894e","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":128,"box":{"x":69,"y":423,"width":830,"height":11}},{"id":"fb7480ef-ce31-4858-b970-7856c28950a8","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":128,"box":{"x":70,"y":438,"width":784,"height":11}},{"id":"c79c5a2f-2730-4261-842b-95d1c3cc740a","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":128,"box":{"x":69,"y":453,"width":767,"height":11}},{"id":"55af56fb-7d4d-438e-bf9b-633aa2c611da","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":128,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"6e78ad8f-57ca-463f-84c8-2b3a490a3fd0","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":128,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"b8fc30a6-2de2-4821-9e2d-87a0d8be605e","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":128,"box":{"x":69,"y":498,"width":794,"height":11}},{"id":"dce6cf6a-757b-4ba1-a0fd-32c8c5f4ad9d","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. In addition, the Manager provides cer tain","page_number":128,"box":{"x":69,"y":513,"width":786,"height":12}},{"id":"80b9e112-b4aa-4107-94f0-003ed0436a70","block_type":"box","text":"accounting services to each Fund and the Fund pays the Manager a fee for such services. The Distributor pays","page_number":128,"box":{"x":69,"y":528,"width":790,"height":12}},{"id":"7a779a8d-19e9-4ae4-a58e-c3f989fa38bb","block_type":"box","text":"cer tain promotional expenses of the Funds incurred in connection with the offering of shares of the Funds. Cer tain","page_number":128,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"8a647fd7-ee41-4de1-936d-6bc9da81dad0","block_type":"box","text":"expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":128,"box":{"x":69,"y":559,"width":767,"height":11}},{"id":"2ce5a638-d449-4dcb-bc21-b14bb61ede34","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":128,"box":{"x":70,"y":574,"width":743,"height":11}},{"id":"e87f7e9b-cfd7-40f7-905a-1e6b4cbb9175","block_type":"box","text":"Sub-Advisory Fee.","page_number":128,"box":{"x":102,"y":597,"width":124,"height":11}},{"id":"ca37af64-48af-4394-bae2-0f38561f0eae","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":128,"box":{"x":232,"y":596,"width":643,"height":12}},{"id":"c2979f41-306c-48e8-b4c9-5779ec574584","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":128,"box":{"x":70,"y":612,"width":839,"height":11}},{"id":"26ccc6ae-9f13-44d7-b4e0-888b78510d5e","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":128,"box":{"x":68,"y":627,"width":830,"height":11}},{"id":"f6dd521b-c552-4c05-9354-68b665963f48","block_type":"box","text":"Organization of the Manager.","page_number":128,"box":{"x":102,"y":649,"width":204,"height":12}},{"id":"e796c597-9958-44b2-af7a-8cb79a8f74f7","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":128,"box":{"x":313,"y":649,"width":560,"height":12}},{"id":"90a604fd-64f5-43f1-8a99-10691ab19662","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":128,"box":{"x":70,"y":664,"width":819,"height":12}},{"id":"1c118cc9-a885-44e9-b68d-a62461fef51c","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":128,"box":{"x":70,"y":680,"width":817,"height":11}},{"id":"b9d35993-0c26-4b28-ba76-c97a21dd5185","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":128,"box":{"x":69,"y":695,"width":768,"height":11}},{"id":"fbbedfb9-cc15-4c11-93a8-af6e7530a632","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":128,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"daa33139-aad4-465f-bed6-6a072a4d32fc","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":128,"box":{"x":69,"y":725,"width":517,"height":11}},{"id":"2cb87c50-f01b-4ffa-86a5-b11397f653fe","block_type":"box","text":"Duration and Termination.","page_number":128,"box":{"x":102,"y":748,"width":182,"height":9}},{"id":"f1ccaed7-0f39-4324-a738-99c3a3322980","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":128,"box":{"x":292,"y":748,"width":613,"height":11}},{"id":"59399c3b-2a83-4434-aa50-d3e970865008","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":128,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"1cbfaba6-da68-41bc-8321-0f605a5c12eb","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":128,"box":{"x":69,"y":778,"width":803,"height":11}},{"id":"f00e869b-4730-408e-ae1a-39ec8b12779e","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":128,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"e7efd726-4811-4bc3-9ffb-d69d9287009c","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":128,"box":{"x":70,"y":808,"width":778,"height":11}},{"id":"66b0e745-1c18-49e1-967b-ef3e3aac97e7","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":128,"box":{"x":69,"y":823,"width":832,"height":12}},{"id":"4190efd2-97af-46ff-866b-4f9fd547e255","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":128,"box":{"x":69,"y":838,"width":388,"height":11}},{"id":"91e6bda0-00d8-4608-b982-690ee89b4056","block_type":"box","text":"II-82","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"38464c9d-fda2-4063-ae7b-5193a7dd0419","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f09b077f-7895-4491-ad98-3ef42f268d98","block_type":"box","text":"Other Service Arrangements","page_number":129,"box":{"x":69,"y":45,"width":205,"height":11}},{"id":"8aa31556-08df-41f9-b068-ed1c9e34f00f","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":129,"box":{"x":101,"y":67,"width":338,"height":9}},{"id":"a70dc2f2-80cc-44b4-864b-4650f46b7ef5","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":129,"box":{"x":446,"y":67,"width":439,"height":12}},{"id":"1143ba48-c328-43b5-af45-70a07c6d3a70","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":129,"box":{"x":69,"y":82,"width":818,"height":12}},{"id":"cb0b600c-7288-4044-81bc-b19f346473b1","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":129,"box":{"x":69,"y":98,"width":808,"height":11}},{"id":"614dfc7e-333f-4345-b8b2-09e24c1e12ab","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":129,"box":{"x":69,"y":113,"width":833,"height":11}},{"id":"4ee6d8c6-c801-4f4a-acc2-ef4800f64efd","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":129,"box":{"x":68,"y":128,"width":738,"height":11}},{"id":"d33409f9-2218-4b98-bd22-1868e19fb0e7","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":129,"box":{"x":68,"y":143,"width":839,"height":11}},{"id":"2c2a3e99-b427-408f-ba81-89515ad0aaf4","block_type":"box","text":"that Fund’s SAI.","page_number":129,"box":{"x":68,"y":158,"width":113,"height":9}},{"id":"8cce82c5-94ac-48b4-acb7-9c918f6ec1fd","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":129,"box":{"x":102,"y":181,"width":755,"height":11}},{"id":"0189a82d-1df0-4af4-bcc8-004486b1fed7","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":129,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"bb4b4dd3-861c-4435-8aa5-8587ced1673d","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":129,"box":{"x":70,"y":211,"width":809,"height":11}},{"id":"e8788675-095c-47c5-8218-a4562f679cc3","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":129,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"28c0bb66-95ae-49d4-999d-774e027ec0e7","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":129,"box":{"x":70,"y":241,"width":362,"height":11}},{"id":"2137d3b4-1ccc-4667-8b92-6349fab64a67","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":129,"box":{"x":102,"y":264,"width":390,"height":11}},{"id":"abfb71bb-8d83-4b39-aeba-ac7455392d38","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":129,"box":{"x":499,"y":264,"width":364,"height":10}},{"id":"f744fa9d-f7bd-4d4c-9527-1cac72f6afc1","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":129,"box":{"x":68,"y":279,"width":832,"height":11}},{"id":"253d9bca-ab6e-4c8a-8f5a-f5ca5dcf184c","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":129,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"ff9f261c-2f12-4a05-81ca-a87eb359b4bd","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":129,"box":{"x":69,"y":309,"width":800,"height":11}},{"id":"a25313dc-22eb-4324-a466-6db66bf688ea","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":129,"box":{"x":70,"y":324,"width":810,"height":12}},{"id":"6f37894a-99f5-4733-a716-78c1dfc1ba19","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":129,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"525f4941-7d92-4c8f-88d0-b1edc5187080","block_type":"box","text":"shareholders of the Fund.","page_number":129,"box":{"x":69,"y":355,"width":181,"height":9}},{"id":"229ed1f1-e78e-4a09-81ae-fe4538e4d075","block_type":"box","text":"Transfer Agency Services.","page_number":129,"box":{"x":103,"y":377,"width":180,"height":12}},{"id":"0780b819-843e-46e4-9ec3-a6e2ba27a6b7","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":129,"box":{"x":291,"y":377,"width":595,"height":12}},{"id":"9bcde29c-c685-4a75-9809-967f0c7e5d8b","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":129,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"447e30d4-7608-4045-ba0d-a2cb84cca4db","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":129,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"ceee8784-7f5b-4667-b9d1-013f36158026","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":129,"box":{"x":68,"y":423,"width":792,"height":11}},{"id":"5dcafeb1-631c-403a-a3c6-f3f9e28fd8fb","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":129,"box":{"x":68,"y":438,"width":819,"height":11}},{"id":"be203614-b406-4f6d-ab10-190bd8f7612b","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":129,"box":{"x":68,"y":453,"width":839,"height":11}},{"id":"783c4ad8-4548-43c2-9c90-6ebdfb2a084f","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":129,"box":{"x":70,"y":468,"width":831,"height":11}},{"id":"a5917e7d-ecb0-4450-bd11-5b796e093f66","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":129,"box":{"x":68,"y":483,"width":813,"height":11}},{"id":"036c1882-bb22-47cf-b3c1-322e59532814","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":129,"box":{"x":70,"y":498,"width":836,"height":11}},{"id":"8409e638-9e4a-4326-909b-ec3c2071d2e1","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":129,"box":{"x":69,"y":513,"width":806,"height":12}},{"id":"716f6519-b7f8-4e56-b832-3790f6d71415","block_type":"box","text":"class on a recordkeeping system.","page_number":129,"box":{"x":69,"y":529,"width":238,"height":11}},{"id":"fe40c983-db74-49a2-a231-8ac831dc45a1","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":129,"box":{"x":102,"y":551,"width":338,"height":11}},{"id":"4771d0f9-ec51-4f55-b7d0-d511ef685253","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":129,"box":{"x":446,"y":551,"width":441,"height":11}},{"id":"f96f6b35-f7a7-49a8-93a0-28b8cff6fb14","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":129,"box":{"x":69,"y":566,"width":840,"height":11}},{"id":"243977cc-e241-42b1-850c-f861e10dd111","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":129,"box":{"x":69,"y":581,"width":823,"height":12}},{"id":"f443f449-6a99-4a56-b5f5-a44339156bcd","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":129,"box":{"x":69,"y":596,"width":627,"height":12}},{"id":"f2e8c8dd-b9e8-4eb9-8016-f8250f226933","block_type":"box","text":"Custodian Services.","page_number":129,"box":{"x":102,"y":619,"width":141,"height":9}},{"id":"6399c5f8-d8fe-4f28-9594-6c9ee5cbf745","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":129,"box":{"x":249,"y":619,"width":654,"height":11}},{"id":"73049067-9f8e-4dc1-b1c0-4ac3eae4709c","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":129,"box":{"x":70,"y":634,"width":820,"height":12}},{"id":"bc11e592-a017-4ed7-8918-9a5ddb747c3b","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":129,"box":{"x":70,"y":649,"width":814,"height":12}},{"id":"a493d0c1-88a5-4cc0-9063-f6796a0c5943","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":129,"box":{"x":68,"y":664,"width":802,"height":12}},{"id":"74193395-f818-4ecd-b9a6-badba52fffa8","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":129,"box":{"x":69,"y":680,"width":839,"height":11}},{"id":"21d7696e-f626-4467-a833-58848460771e","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":129,"box":{"x":69,"y":695,"width":792,"height":11}},{"id":"69e44e3a-1b19-409c-862c-7422171c3318","block_type":"box","text":"cer tain assets.","page_number":129,"box":{"x":69,"y":710,"width":106,"height":9}},{"id":"7a112308-21ae-4cce-bf09-9acdb5b79764","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":129,"box":{"x":102,"y":732,"width":716,"height":11}},{"id":"5e6e6677-1826-44df-b7bc-a9d5db41d3f0","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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BlackRock, its subsidiaries and their","page_number":135,"box":{"x":102,"y":775,"width":731,"height":12}},{"id":"a50b50dd-e289-4186-8714-e1b5e5669966","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":135,"box":{"x":69,"y":790,"width":799,"height":12}},{"id":"c94331c0-dde3-4824-8299-1343096871f7","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":135,"box":{"x":70,"y":806,"width":786,"height":11}},{"id":"ea209b24-d29f-450f-a2b8-3b022cff6f50","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":135,"box":{"x":70,"y":821,"width":829,"height":11}},{"id":"ffae2e40-4439-46f6-b5f1-3126f7e84e56","block_type":"box","text":"and have interests other than that of managing the Funds. These are considerations of which investors in a Fund","page_number":135,"box":{"x":69,"y":836,"width":804,"height":11}},{"id":"2af0deaf-b39a-4647-b24e-100378c545d0","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":135,"box":{"x":69,"y":851,"width":806,"height":11}},{"id":"378ac2b3-d843-4afc-960d-5eded4044361","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":135,"box":{"x":101,"y":874,"width":722,"height":11}},{"id":"0f6c09dd-9e6e-4326-ab22-705cc1ddff6d","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":135,"box":{"x":69,"y":889,"width":827,"height":11}},{"id":"cff46ca1-2b7e-40b2-beab-d28d1067faf9","block_type":"box","text":"or sold by a Fund.","page_number":135,"box":{"x":69,"y":904,"width":125,"height":11}},{"id":"530204e1-c6c8-4b36-8c97-f3fbb6dd1615","block_type":"box","text":"II-89","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56b0b6c7-2277-4b32-af00-b63867a7cc34","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32b72494-36b8-40e4-aadf-5bf443a109d8","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":136,"box":{"x":102,"y":45,"width":762,"height":11}},{"id":"ceebad7e-c65d-47e2-9d4c-093202b260ce","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":136,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"4b797d2c-356b-4f1a-b908-528d2c9b1802","block_type":"box","text":"identical or similar to those of a Fund and/or that engage in transactions in the same types of securities, currencies","page_number":136,"box":{"x":70,"y":75,"width":828,"height":11}},{"id":"3e8fafaa-423a-470d-b714-80eede9ac5f3","block_type":"box","text":"and instruments as the Fund. Such other funds or accounts may offer exposure to strategies that are identical or","page_number":136,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"ee498fa3-fdbf-47e5-8e87-56cd86fdb01c","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":136,"box":{"x":69,"y":105,"width":803,"height":11}},{"id":"87c88f5f-23a6-432f-b8ee-141c495f10fd","block_type":"box","text":"services provided by BlackRock","page_number":136,"box":{"x":69,"y":120,"width":224,"height":11}},{"id":"76acd8a5-31ab-43bb-9d6f-fddd6c3b6171","block_type":"box","text":".","page_number":136,"box":{"x":295,"y":128,"width":2,"height":1}},{"id":"dd52511b-bc21-4f31-8043-cb7e45b9025f","block_type":"box","text":"BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":136,"box":{"x":304,"y":120,"width":603,"height":12}},{"id":"a9a2acee-7011-42f4-85b4-93b1bcf1f2b8","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":136,"box":{"x":70,"y":135,"width":791,"height":11}},{"id":"8d5ad2d3-bb0d-47fb-9040-bb5ac2e0362f","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":136,"box":{"x":70,"y":151,"width":835,"height":11}},{"id":"aed9af97-b444-4d39-9d94-9dccd45cd784","block_type":"box","text":"a Fund invests.","page_number":136,"box":{"x":69,"y":166,"width":106,"height":9}},{"id":"b38d6078-6607-44d1-9d84-36e4d028fbb1","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":136,"box":{"x":102,"y":188,"width":785,"height":11}},{"id":"917ab699-ebc3-48a7-81cc-8a17e632b6c9","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s per formance. Such transactions, par ticularly in","page_number":136,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"9871251b-e08a-4398-ba97-30ae293a3485","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":136,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"9faa2feb-d7c6-43bf-8b08-b801c36eec53","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":136,"box":{"x":68,"y":234,"width":652,"height":11}},{"id":"0e2cfc34-ff49-453a-81d6-833daec34318","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":136,"box":{"x":102,"y":256,"width":787,"height":12}},{"id":"f2882e99-a957-4266-9a2c-dd339193bb6e","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":136,"box":{"x":69,"y":272,"width":832,"height":11}},{"id":"2532f190-a8d2-4f86-bb7e-6f71c2691598","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":136,"box":{"x":70,"y":286,"width":816,"height":12}},{"id":"6dc26b56-b90d-4470-9eb1-3a3cabbee48e","block_type":"box","text":"possible that a recipient of por tfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":136,"box":{"x":70,"y":302,"width":831,"height":11}},{"id":"b248c3a2-0e52-412e-85b9-f5599802ff44","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":136,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"19a870b1-863d-406e-b42b-7337883dd16f","block_type":"box","text":"based on the information received.","page_number":136,"box":{"x":69,"y":332,"width":247,"height":9}},{"id":"3c4e9c61-d4f9-4edc-859b-06d4a5346590","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":136,"box":{"x":101,"y":355,"width":777,"height":11}},{"id":"8eefd79f-5583-4d6f-b670-7900280eb2a6","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":136,"box":{"x":69,"y":370,"width":838,"height":11}},{"id":"07455843-cfa4-403a-988d-141c7d476ede","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":136,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"d8c4776f-7632-439a-807e-3d2a02b4423e","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":136,"box":{"x":70,"y":400,"width":817,"height":11}},{"id":"e974d601-f7f8-4aae-9cc1-7dccba755bf9","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":136,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"b76f3a73-6797-45c4-b911-47588163bb6f","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":136,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"c09219da-4717-44ff-896b-31a06f4f1c6f","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":136,"box":{"x":69,"y":446,"width":827,"height":11}},{"id":"d4171f3b-6a72-4a16-8c62-dd552d44f731","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":136,"box":{"x":70,"y":460,"width":785,"height":11}},{"id":"64581105-98e4-4d9a-b502-5980e7e6a482","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":136,"box":{"x":69,"y":475,"width":767,"height":12}},{"id":"bf4bfb15-0a67-4e47-826d-53f74c0a6627","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":136,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"042a9d99-0a84-4e36-adeb-bbb2af4a57e2","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":136,"box":{"x":68,"y":506,"width":827,"height":11}},{"id":"e0dfb293-42dd-49be-9453-51b88fe50a82","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":136,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"7f162d04-77c4-45df-bcae-9298b96865a6","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":136,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"6399c2f3-50ea-4f58-98f5-29dab8400cb0","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":136,"box":{"x":69,"y":551,"width":781,"height":11}},{"id":"ca28b3c4-958e-4c50-8c00-4ec496d30637","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":136,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"91f6c39d-c144-4261-92ec-0155388d60ab","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":136,"box":{"x":70,"y":581,"width":809,"height":12}},{"id":"271eed95-cc83-47f6-8160-48540d39f00f","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":136,"box":{"x":70,"y":596,"width":805,"height":12}},{"id":"9c10cb42-d3f7-4ede-8e30-6cf8d0f873a9","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":136,"box":{"x":70,"y":612,"width":797,"height":11}},{"id":"e87d7584-d201-47dd-a438-d04275d0b140","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":136,"box":{"x":69,"y":627,"width":573,"height":11}},{"id":"9fa0b2b2-f338-4278-9b28-0ed71eb73749","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":136,"box":{"x":102,"y":649,"width":797,"height":12}},{"id":"312e87e9-b125-42a8-a270-8fedfb9d42b9","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":136,"box":{"x":69,"y":664,"width":791,"height":12}},{"id":"29ec4795-e82d-4730-b1ba-07cb04d7d90e","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":136,"box":{"x":69,"y":680,"width":835,"height":11}},{"id":"c0adcf9d-5d76-4ea9-9fc5-89d64ecd1d8f","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":136,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"784c7553-f674-41f4-9da1-c11115011bf7","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":136,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"303d8719-9fb2-47b0-96f7-e29e791e2389","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":136,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"a4a4d92f-1cb0-443f-9bc7-949af0044c04","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":136,"box":{"x":69,"y":740,"width":818,"height":11}},{"id":"0ed06c6e-f0f8-4ec7-82a9-d531feb68ca4","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":136,"box":{"x":70,"y":755,"width":777,"height":11}},{"id":"50f0e943-b410-4b14-9e5b-34e008c86219","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":136,"box":{"x":70,"y":770,"width":780,"height":11}},{"id":"46fd053f-c0a2-4552-bf96-d016e2275cb5","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":136,"box":{"x":69,"y":785,"width":802,"height":12}},{"id":"d608f196-b075-4563-9c4e-df88dac9354d","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":136,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"e5c5265c-af41-4b75-a3c9-5e65c31f884e","block_type":"box","text":"Funds.","page_number":136,"box":{"x":70,"y":816,"width":44,"height":9}},{"id":"3e3f7a59-5433-4b8c-a86b-5a8a10e542ea","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":136,"box":{"x":102,"y":838,"width":755,"height":11}},{"id":"a2b47f21-f4af-4187-a8c4-26cfabe21aff","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":136,"box":{"x":69,"y":853,"width":836,"height":12}},{"id":"73f459d4-15ea-46ad-b343-0108eac1be88","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":136,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"2d3f3eef-7675-44e5-bee6-e69213af05e6","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":136,"box":{"x":69,"y":884,"width":679,"height":11}},{"id":"bf31db31-e7b5-4575-9e09-17f71ba8dff6","block_type":"box","text":"II-90","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a61dd47-49f8-411d-9a7c-876b763b188a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d515589a-aabe-4167-b1d9-48df1ec02730","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":137,"box":{"x":101,"y":45,"width":760,"height":11}},{"id":"60830979-975e-49fd-b7f7-11ec0e9878b7","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":137,"box":{"x":70,"y":60,"width":818,"height":11}},{"id":"d2c0d422-7b81-4aff-8bd0-b6363513b7a4","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":137,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"73944622-9a64-41a7-8dc8-1c22abac0566","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":137,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"2cec904e-2c7a-4ae9-be61-99088c64ba60","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":137,"box":{"x":68,"y":105,"width":421,"height":11}},{"id":"e691bcd6-c2d9-44c4-9fbb-a67a8fbbb041","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":137,"box":{"x":102,"y":128,"width":794,"height":11}},{"id":"79829d0d-a88e-44e5-8d7a-01f9929a10fc","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":137,"box":{"x":68,"y":143,"width":817,"height":11}},{"id":"f8c7fa83-512a-40f4-82bb-0c952d32daf4","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":137,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"a28d1363-1e1b-4971-9322-f28b6fc24e6c","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":137,"box":{"x":69,"y":173,"width":826,"height":11}},{"id":"9f23d112-5c21-4734-9d61-355e2bb941e3","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":137,"box":{"x":70,"y":188,"width":780,"height":12}},{"id":"dfdf8670-7176-427f-98ed-4c3048a59ab4","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":137,"box":{"x":69,"y":203,"width":791,"height":12}},{"id":"4234a542-2571-477f-953a-62fd2a0eff00","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":137,"box":{"x":70,"y":219,"width":457,"height":11}},{"id":"0ca8e345-f397-45f9-89e2-284c047c265a","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":137,"box":{"x":102,"y":241,"width":784,"height":11}},{"id":"01376673-f807-4b47-9489-6f507d94cf4f","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":137,"box":{"x":69,"y":256,"width":840,"height":11}},{"id":"a7953a59-ae2a-4448-9add-9fd0f3dad7b2","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":137,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"144eccc8-f37c-4305-a971-cc45b5d22541","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":137,"box":{"x":70,"y":286,"width":828,"height":12}},{"id":"66461bf3-e133-4f8d-8cc0-2766f6aec9f7","block_type":"box","text":"case.","page_number":137,"box":{"x":69,"y":304,"width":37,"height":7}},{"id":"7319a3cb-607b-4434-af57-5003fa02e393","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":137,"box":{"x":101,"y":324,"width":791,"height":12}},{"id":"6b08bfb9-e021-436c-8ac8-ab43403c6e6f","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":137,"box":{"x":70,"y":340,"width":824,"height":11}},{"id":"a035dc18-f151-44f0-9e1d-ee96469b1550","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":137,"box":{"x":69,"y":355,"width":798,"height":11}},{"id":"6481bcdb-43b3-4dd6-bdaa-dcbbdc5240dd","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":137,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"81d7856f-4e30-464a-b2a7-c17f859b5d32","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":137,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"bcbd48b2-cfa7-42f1-810a-2b70b2d70e84","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":137,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"fcb25ef2-6ed2-4d56-83b8-4f114e7de961","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":137,"box":{"x":102,"y":423,"width":766,"height":11}},{"id":"fc42d2d2-abdf-43b0-9115-3cf6a5be4d83","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":137,"box":{"x":70,"y":438,"width":786,"height":11}},{"id":"73e26ad8-ad3c-43e7-bd14-1252bb3bcec9","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":137,"box":{"x":69,"y":453,"width":828,"height":11}},{"id":"94b895c9-efdf-49b3-b391-795e09cadf51","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":137,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"3cbf2bb8-9149-4830-ae1d-4fd6926fd341","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":137,"box":{"x":68,"y":483,"width":825,"height":11}},{"id":"c28697ff-5316-4418-a2de-2a328e18fcea","block_type":"box","text":"when position limits have been reached. 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BlackRock will not be under any obligation, however, to effect","page_number":137,"box":{"x":70,"y":581,"width":826,"height":12}},{"id":"6b17f4f9-3694-44eb-a6e4-357c369f9817","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":137,"box":{"x":68,"y":596,"width":821,"height":12}},{"id":"023b33e2-7c1c-4c2d-820f-8f472da8da93","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":137,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"97709a83-0979-416c-86f4-f5241211636b","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":137,"box":{"x":69,"y":627,"width":793,"height":11}},{"id":"ae388614-d7f3-48b0-8b2c-4cd81d4acb47","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":137,"box":{"x":69,"y":642,"width":762,"height":11}},{"id":"2f6589f5-d31c-418e-b7b2-58d6f63d1fa7","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":137,"box":{"x":70,"y":657,"width":839,"height":11}},{"id":"a2632a15-a92e-406e-811c-e905b1ead04c","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":137,"box":{"x":70,"y":672,"width":795,"height":11}},{"id":"a5251291-079f-4f01-8342-913d0b70e834","block_type":"box","text":"managing a Fund.","page_number":137,"box":{"x":69,"y":687,"width":124,"height":11}},{"id":"0d103e2c-28ff-4286-acb9-1e46bd425883","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":137,"box":{"x":101,"y":710,"width":751,"height":11}},{"id":"48e821bc-89bc-4446-b1a2-5fc65e50e394","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":137,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"8d881f14-7778-4e35-be35-8667237ba408","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":137,"box":{"x":70,"y":740,"width":820,"height":11}},{"id":"4556f249-0df5-4e75-94c3-82598d595532","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":137,"box":{"x":68,"y":755,"width":785,"height":11}},{"id":"7abcd99c-2869-448a-8cba-7178c66bb98c","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":137,"box":{"x":70,"y":770,"width":481,"height":11}},{"id":"4fe76efb-3440-45be-a00f-dffa316349a7","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":137,"box":{"x":102,"y":793,"width":754,"height":11}},{"id":"9b0dad3b-111a-4516-b486-ffb195523997","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":137,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"90b5a171-74a1-47e0-87ec-b6ee2663723d","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":137,"box":{"x":69,"y":823,"width":831,"height":12}},{"id":"22c6138a-66e2-4151-9d0e-977ff6455a33","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":137,"box":{"x":69,"y":838,"width":680,"height":11}},{"id":"f432fdcb-c9e6-4439-98a9-d44fb9bc23ea","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":137,"box":{"x":102,"y":861,"width":791,"height":11}},{"id":"ce828f13-3c38-4309-8cf4-27e32d02929d","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":137,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"a18716fa-ff95-4540-86a0-9c719f8da64c","block_type":"box","text":"as the counterpar ty, principal or issuer. 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In addition, the purchase, holding and sale of such investments by a","page_number":138,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"1c2110f4-60f3-4267-b97e-588894eaddab","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":138,"box":{"x":70,"y":60,"width":344,"height":11}},{"id":"7af79599-f0f3-46fd-b9b8-9d545e3fe9a8","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":138,"box":{"x":102,"y":82,"width":741,"height":12}},{"id":"00ed75d7-e2db-4a5e-9c1a-7d706746e85b","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":138,"box":{"x":70,"y":98,"width":824,"height":11}},{"id":"4894f950-ee7f-4acb-b719-6456e1cc2c76","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":138,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"73d66154-24a0-4dfe-810e-977e1dc6cff7","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":138,"box":{"x":69,"y":128,"width":777,"height":11}},{"id":"cf21f5ce-3818-422c-9e3a-14862724587b","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":138,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"537e3770-c502-4c77-89ac-7138c6fc3d78","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":138,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"be5cf8a7-c42d-43ef-b407-3b145224da64","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":138,"box":{"x":70,"y":173,"width":798,"height":11}},{"id":"c89cd19a-5155-407b-8177-25f0dd813bb4","block_type":"box","text":"under management for BlackRock.","page_number":138,"box":{"x":69,"y":188,"width":243,"height":12}},{"id":"6864224c-cae0-4112-b299-a0a940b3f7ab","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":138,"box":{"x":101,"y":211,"width":773,"height":11}},{"id":"5070e851-3136-493c-a18a-65f615985dea","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":138,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"0a55e44c-0c77-4ff4-975f-b369cd4323c3","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":138,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"a35c882a-d048-4223-aff5-23bd79dd42d2","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":138,"box":{"x":68,"y":256,"width":837,"height":12}},{"id":"f41350d8-2868-4fd8-a4f0-5683c39baff4","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":138,"box":{"x":70,"y":272,"width":781,"height":11}},{"id":"4625d6a1-03f1-44f3-aae7-1c16cc833b77","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":138,"box":{"x":101,"y":294,"width":779,"height":11}},{"id":"258f051f-8bba-434b-ab98-841495162f9f","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":138,"box":{"x":69,"y":309,"width":795,"height":11}},{"id":"2423dfb3-e333-4ea2-b389-b62296c2a4d2","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":138,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"266cd49c-a079-4274-bd07-af08a34d6209","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":138,"box":{"x":68,"y":339,"width":802,"height":12}},{"id":"ed4c6214-b02c-4f72-ac2f-d11994984fe6","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":138,"box":{"x":69,"y":355,"width":792,"height":11}},{"id":"8c22c099-7f3d-435a-aad9-974d726af098","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":138,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"b89cc8a6-612e-48ad-8029-bba16708a943","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":138,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"6ac88ad3-5405-4642-a9c9-f65c3baa8115","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":138,"box":{"x":68,"y":400,"width":726,"height":11}},{"id":"67b6d559-ad12-4f13-a577-7428bb0adcbf","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":138,"box":{"x":102,"y":423,"width":796,"height":11}},{"id":"0de337d3-b667-4605-aea1-4dae0fc8041d","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":138,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"98c7e595-a3df-4b2c-9a5d-e4d9ca183eae","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":138,"box":{"x":69,"y":453,"width":823,"height":11}},{"id":"ee3bc036-14f1-418e-b3bb-6fa370a66208","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":138,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"4babd318-09af-4f46-9cbc-48ee4ad0b078","block_type":"box","text":"any such fees or other amounts.","page_number":138,"box":{"x":69,"y":483,"width":230,"height":11}},{"id":"a021abef-acc2-42ee-a86d-2a4a23e45622","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":138,"box":{"x":101,"y":506,"width":805,"height":11}},{"id":"bef7fc4e-987b-40cd-8a58-2835317fd2f7","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":138,"box":{"x":70,"y":521,"width":768,"height":11}},{"id":"fcb9a58a-deee-4341-9e46-0c367b541395","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":138,"box":{"x":101,"y":544,"width":766,"height":10}},{"id":"941696fd-1ce6-479b-be4c-5f1e04914689","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":138,"box":{"x":69,"y":559,"width":793,"height":11}},{"id":"2ca113c8-6619-4e42-8c85-ca74e6f685f2","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":138,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"2227eb2f-b9d5-4c26-baa8-a293c7e37461","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":138,"box":{"x":70,"y":589,"width":374,"height":11}},{"id":"6cbd9764-38e1-4c99-84f5-300881a71d54","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. 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As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":138,"box":{"x":70,"y":732,"width":814,"height":12}},{"id":"94528844-2828-40f0-b1c0-1dd99d91d457","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":138,"box":{"x":69,"y":748,"width":660,"height":11}},{"id":"95398758-9655-468b-b0e1-e27f9c2f0000","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":138,"box":{"x":101,"y":770,"width":767,"height":12}},{"id":"1a5c3fa6-e6e8-4ac3-a105-aeba663e3cbe","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":138,"box":{"x":68,"y":785,"width":820,"height":12}},{"id":"ac779d19-d9f9-43aa-9f2a-55b1c3c4b1e0","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":138,"box":{"x":70,"y":801,"width":806,"height":11}},{"id":"4701a1a7-825c-4ae9-93bb-122d9033332d","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":138,"box":{"x":70,"y":816,"width":816,"height":11}},{"id":"3364c4d1-ee57-4a9e-8456-0bb2c6c8df45","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":138,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"d7ce126c-d5fc-4ddd-870e-8a220e84a474","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":138,"box":{"x":70,"y":846,"width":727,"height":11}},{"id":"0020aee3-2eba-4f99-aa98-516a8702af67","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":138,"box":{"x":69,"y":861,"width":815,"height":11}},{"id":"c6e9c0e8-9d4a-4774-900b-82570d976634","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":138,"box":{"x":69,"y":876,"width":786,"height":11}},{"id":"6779b8c3-93d3-468a-852c-09d212c083cd","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":138,"box":{"x":70,"y":891,"width":796,"height":12}},{"id":"02d3e1a0-d248-4835-9a2e-be714caa6bca","block_type":"box","text":"II-92","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6101e4ff-a332-4bb5-b2fb-5af6ea6f5401","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27405bdd-9aa0-4328-99ca-e49de45a383e","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":139,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"984eeac5-9f31-4d6e-a8c9-35cd70eadb14","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":139,"box":{"x":69,"y":60,"width":356,"height":11}},{"id":"8698dbdd-1093-4a42-947b-62fd99bf59d0","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":139,"box":{"x":102,"y":82,"width":801,"height":12}},{"id":"b1bb1754-babb-4aa6-a24b-fbcb960a23be","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":139,"box":{"x":68,"y":98,"width":817,"height":11}},{"id":"f9d1cdb1-05bf-4e82-922c-32334c5c7243","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":139,"box":{"x":69,"y":113,"width":784,"height":11}},{"id":"6918c50f-b0ad-49a2-81fc-14ead84a969a","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":139,"box":{"x":69,"y":128,"width":789,"height":11}},{"id":"3c99b3f5-c35b-4484-8447-334b0c2c5a6b","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":139,"box":{"x":70,"y":143,"width":783,"height":11}},{"id":"a32e58a3-a556-4a88-a3b6-174da3d36c6f","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":139,"box":{"x":70,"y":158,"width":790,"height":11}},{"id":"c9030328-26f9-4322-a793-ec3c7542bc99","block_type":"box","text":"regulation.","page_number":139,"box":{"x":69,"y":173,"width":73,"height":11}},{"id":"21eb24d5-f7a3-4d51-a562-98e0df9f4da0","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":139,"box":{"x":102,"y":196,"width":777,"height":11}},{"id":"5b229953-596a-4322-8462-51deef3d59e0","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":139,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"3b7093b5-feb4-4ceb-a9a8-dc3f6132a4e4","block_type":"box","text":"various program limits (","page_number":139,"box":{"x":68,"y":226,"width":168,"height":11}},{"id":"fcd55584-38ab-493d-af2b-3b0a3094175a","block_type":"box","text":"i.e.","page_number":139,"box":{"x":238,"y":226,"width":20,"height":9}},{"id":"75b28496-2de2-49a2-9e5d-8bd768a5a0d7","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":139,"box":{"x":265,"y":226,"width":621,"height":11}},{"id":"a5a962a6-337a-46f2-a52d-ef8c7823cfbc","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":139,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"867098dc-a3f9-4905-974c-073d88f9a2ee","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":139,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"c79640a0-982e-4052-861e-32ca7ed5a2b7","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":139,"box":{"x":70,"y":271,"width":780,"height":12}},{"id":"0d6618cd-4d00-4387-89c2-ca4bf929df4b","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":139,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"0fb18fba-a549-4e6b-9bdd-b9c6669139c0","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":139,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"8dfb7bd0-698f-4fa6-9ed7-e8dd1ee4b09f","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":139,"box":{"x":69,"y":317,"width":444,"height":11}},{"id":"0b861e77-3839-42c3-95ac-d568f15aa5ae","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":139,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"c90b221f-26d7-43c9-9e03-82467d101b1c","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":139,"box":{"x":70,"y":355,"width":840,"height":11}},{"id":"fe8ca62e-9eb5-43e8-81a9-d3bda7ee8aa1","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":139,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"60d5611f-00eb-4c99-84ac-0b48fdefbf44","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":139,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"1a1b725f-b5ce-4451-87d7-809037feca24","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":139,"box":{"x":70,"y":400,"width":426,"height":11}},{"id":"0ac231c9-fa11-4c7f-91ae-fbe790d66109","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":139,"box":{"x":102,"y":423,"width":763,"height":11}},{"id":"846996fc-7f73-4e5e-b92a-64682b5e95e5","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":139,"box":{"x":69,"y":438,"width":828,"height":11}},{"id":"df10eaa9-488a-4c19-b927-8ff31160160e","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":139,"box":{"x":68,"y":453,"width":767,"height":11}},{"id":"d45e39f4-5632-4a70-b1c0-e9e76edca939","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":139,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"b6d6542d-9e82-4e63-a209-2f97c2454147","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":139,"box":{"x":68,"y":483,"width":672,"height":11}},{"id":"76701755-70d7-4932-9ea5-3832ea55b327","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":139,"box":{"x":101,"y":506,"width":767,"height":11}},{"id":"7d05c5b4-6259-4353-9953-25ea68233616","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":139,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"9bdb10da-afc6-479c-b214-2805d2178e25","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":139,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"30174ccc-fc35-483f-9dbc-01e32c35011b","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":139,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"9d1e6557-cd05-4838-968c-15b592775d4c","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":139,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"90994d3e-b1f1-4e4d-b619-2503da19a54d","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":139,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"f1ff30ef-9ed0-465a-ba97-9c9948f4e517","block_type":"box","text":"than through client commissions.","page_number":139,"box":{"x":68,"y":597,"width":237,"height":11}},{"id":"237f6860-9899-49aa-884a-49cd0162ae27","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":139,"box":{"x":102,"y":619,"width":770,"height":11}},{"id":"b6b30e66-2b22-4b76-80c6-79630effa1f8","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":139,"box":{"x":69,"y":634,"width":797,"height":12}},{"id":"dcf6458b-2f52-4dc2-9876-417d5af44e6c","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":139,"box":{"x":69,"y":650,"width":830,"height":11}},{"id":"de95cf33-b575-476c-a0c5-9f8a6c19b8cf","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":139,"box":{"x":70,"y":664,"width":780,"height":12}},{"id":"9160de0c-62fc-490c-abd1-9248314e3c93","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":139,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"bd69284b-df23-467f-b6f4-4ae66f6a0e63","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":139,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"2a640b73-4186-4783-96e9-d617824cf3de","block_type":"box","text":"research-oriented software and other services and products.","page_number":139,"box":{"x":69,"y":710,"width":430,"height":11}},{"id":"805fa01c-7ccf-4072-8852-1d81953d0f8a","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":139,"box":{"x":102,"y":732,"width":785,"height":12}},{"id":"0b3b27d2-56ae-4e01-ab29-33d240e6efe2","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":139,"box":{"x":70,"y":748,"width":768,"height":11}},{"id":"21bf5e6c-578b-4b13-9399-522eb3fc264f","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":139,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"a6291ac0-04f2-455b-9436-255c27b1409b","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":139,"box":{"x":69,"y":778,"width":818,"height":11}},{"id":"bb89790c-b4bd-4944-b6fc-877efedda825","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":139,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"775c1541-e868-457c-bddf-88df83501980","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":139,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"59cb5a2a-c1f9-4967-ae84-330ce570c07c","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":139,"box":{"x":69,"y":823,"width":824,"height":12}},{"id":"27e133d2-c8cf-4823-9dba-e6860213e7e2","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":139,"box":{"x":69,"y":839,"width":804,"height":10}},{"id":"0063bfa6-3122-47ae-b097-8edae06930a4","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":139,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"8a380e93-eefd-49c0-9499-f31679276b27","block_type":"box","text":"and services itself.","page_number":139,"box":{"x":69,"y":869,"width":134,"height":9}},{"id":"381847be-ab53-485b-8c9e-43ba0f3cd612","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":139,"box":{"x":102,"y":891,"width":793,"height":12}},{"id":"d1f652af-ce88-47ed-a560-2e1316c5b05a","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":139,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"e7ba91b9-4218-4ab5-b783-fcb776082912","block_type":"box","text":"II-93","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a98c212-edf3-4100-b499-9f2e147362b6","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ff87f2f-0079-4841-b29e-b2ec5b8ceb0d","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":140,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"a9ac6874-ce65-4867-b5db-442100469218","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":140,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"c89fb3ab-c8c5-454d-a790-463fa65a1342","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":140,"box":{"x":69,"y":75,"width":760,"height":11}},{"id":"60e4e9a6-db95-46f8-b7c0-60a145fd8f24","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":140,"box":{"x":68,"y":90,"width":803,"height":11}},{"id":"cb9fc79b-7300-472c-936d-132b86506a0e","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":140,"box":{"x":69,"y":105,"width":807,"height":11}},{"id":"d6509a09-15f5-4cfe-bacd-ecbe416cc584","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":140,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"540da692-3227-45b1-b31e-f36ed35a659e","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":140,"box":{"x":102,"y":143,"width":799,"height":11}},{"id":"7ee18088-d5b2-4ed8-9989-4532531c7c84","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":140,"box":{"x":70,"y":158,"width":767,"height":11}},{"id":"de0d9d76-1a36-4c46-8e40-73be166e96ba","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":140,"box":{"x":69,"y":173,"width":794,"height":11}},{"id":"df240b46-a368-4ae8-bcad-58e8f30930a6","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":140,"box":{"x":69,"y":188,"width":825,"height":11}},{"id":"606077cf-e38d-442f-8a32-11100ad430dc","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":140,"box":{"x":68,"y":204,"width":821,"height":11}},{"id":"dae59789-9b82-474d-bb7f-ba0de5a6f4a2","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":140,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"8f22b4d1-ab42-48bb-8204-8b5bbf9fb8db","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":140,"box":{"x":69,"y":234,"width":812,"height":11}},{"id":"e3e33d87-42b6-460c-adbd-9f019f73ac4f","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":140,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"0c035901-97b0-417b-b28b-3dd8e8f0a083","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":140,"box":{"x":68,"y":264,"width":519,"height":11}},{"id":"527c5412-56e3-4f13-b5b9-c54ba4242c6e","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":140,"box":{"x":102,"y":286,"width":793,"height":12}},{"id":"81dff7a4-ff63-4434-9064-11c0172a62f6","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":140,"box":{"x":69,"y":302,"width":782,"height":11}},{"id":"fe10bccd-760f-46d1-ac3e-e4c10d9403c8","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":140,"box":{"x":69,"y":317,"width":710,"height":11}},{"id":"e28828c0-9579-45b8-8470-b2536ada696f","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":140,"box":{"x":102,"y":339,"width":792,"height":12}},{"id":"b7663ef2-e803-4153-8724-fe3909d7b036","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":140,"box":{"x":68,"y":355,"width":784,"height":11}},{"id":"0effc84e-58ae-45a3-aab5-9e10a4c06b5a","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":140,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"dba9929c-8204-431e-a924-30a8c92fc365","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":140,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"64d993af-1004-40a2-8b2c-b6fc2fbadc1f","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":140,"box":{"x":68,"y":400,"width":837,"height":11}},{"id":"47a0b598-a104-4a60-ab01-6a1ee4dce141","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":140,"box":{"x":69,"y":415,"width":795,"height":11}},{"id":"a5f2db86-df08-4ede-8b5c-b75039bcbd1b","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":140,"box":{"x":70,"y":430,"width":490,"height":11}},{"id":"c43a0010-ecdd-4475-af7d-db2008b3298f","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":140,"box":{"x":102,"y":453,"width":757,"height":11}},{"id":"38d79178-959f-4166-9e8b-e1a0ba37043e","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":140,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"c6660cc8-51fa-47d2-8e85-e8d60f54e63f","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":140,"box":{"x":70,"y":483,"width":837,"height":11}},{"id":"2f9898e8-b5ad-410e-bccd-ae72c12f3dd8","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":140,"box":{"x":69,"y":498,"width":774,"height":11}},{"id":"55e53ee7-01a1-43fc-9f8c-6f58733af67a","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":140,"box":{"x":69,"y":513,"width":796,"height":12}},{"id":"3b93b87f-9c4a-474d-933b-36b14ade57a4","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":140,"box":{"x":69,"y":528,"width":830,"height":12}},{"id":"fd1d97ea-0d76-4f43-850c-28f93a2bb170","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":140,"box":{"x":69,"y":543,"width":831,"height":12}},{"id":"afd57571-90b3-4d5a-a80e-0f3dd8ec3cfe","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":140,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"6b979cfd-a140-4888-a8c9-f9ff2ca766f8","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":140,"box":{"x":69,"y":574,"width":355,"height":11}},{"id":"811db6e9-75cc-482e-9744-de8c1063d014","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":140,"box":{"x":102,"y":596,"width":742,"height":12}},{"id":"194c2759-7df1-4b3b-b04e-6d520ee84daf","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":140,"box":{"x":70,"y":612,"width":838,"height":11}},{"id":"48c248a3-ce67-412f-a8a7-80dd4b85819e","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":140,"box":{"x":69,"y":627,"width":788,"height":11}},{"id":"c8137a5d-b0ac-4a9c-9c13-98d980169254","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":140,"box":{"x":69,"y":642,"width":816,"height":11}},{"id":"173ba985-a766-4562-877d-bc1d6bbf387a","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":140,"box":{"x":69,"y":657,"width":806,"height":11}},{"id":"161de2f1-77ab-4eaf-a0a9-0303a093669f","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":140,"box":{"x":68,"y":672,"width":822,"height":11}},{"id":"f220a64a-80ba-4a4a-8c30-e15430e3e580","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":140,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"38e32cd3-6993-4a0a-8c1e-dc231e9136d8","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":140,"box":{"x":70,"y":702,"width":533,"height":9}},{"id":"d6c238dd-1049-417e-929e-fa35c84eb3db","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":140,"box":{"x":102,"y":725,"width":789,"height":11}},{"id":"6f718065-5f6e-4e73-bb60-4384c9a4ff48","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":140,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"6c652586-e664-4161-bb9f-5281b538662d","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":140,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"247ea979-4d06-40c4-b692-2c13b3ca9bcc","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":140,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"b41ef831-5e51-4f9a-ae0c-e7bdb037621f","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":140,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"442ae1d1-aaa0-46fb-b159-72f3772db817","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":140,"box":{"x":70,"y":801,"width":745,"height":11}},{"id":"f5de4e15-1371-4a8f-b336-d517de9a2067","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":140,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"70083773-0e02-4605-95ca-682c2572937c","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":140,"box":{"x":69,"y":831,"width":801,"height":11}},{"id":"a798c2d2-c628-4902-8041-33a8902a2b42","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":140,"box":{"x":70,"y":846,"width":711,"height":11}},{"id":"051a1ec1-ce01-49e1-898b-220c8f20177b","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":140,"box":{"x":102,"y":869,"width":741,"height":11}},{"id":"547682ca-0098-4a60-8a74-dc9a6da64239","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":140,"box":{"x":70,"y":884,"width":823,"height":11}},{"id":"dc81c78d-b00f-455c-95aa-aaf5e64fa67b","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":140,"box":{"x":68,"y":899,"width":829,"height":11}},{"id":"236a7948-c435-4511-9781-935bfb9089e4","block_type":"box","text":"II-94","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff95f8ed-d6f5-4823-88ee-6ff0d7726534","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5f7b7f3-a297-4631-92a2-4abff6b69177","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":141,"box":{"x":69,"y":45,"width":825,"height":11}},{"id":"3d7cbf12-e1b0-44c2-b1dd-fe6f8b80c38a","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":141,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"344cb5c8-6181-4948-90b7-82c869047f68","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":141,"box":{"x":69,"y":75,"width":824,"height":11}},{"id":"2a690d3c-41b5-4d47-914f-0b7b6a3bf356","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":141,"box":{"x":69,"y":90,"width":792,"height":11}},{"id":"03dacfaa-8278-4377-b9a3-cb722a005993","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":141,"box":{"x":101,"y":113,"width":784,"height":11}},{"id":"911c0488-db9e-4f99-aac0-7a05bded903c","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":141,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"9125e73a-0b1b-494f-b873-1c3fb6e04af4","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":141,"box":{"x":68,"y":143,"width":803,"height":11}},{"id":"bf4acb4e-6a07-41ec-81e3-559a534f71f5","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":141,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"e00976ee-be73-4c4a-89f9-dcb7887c5763","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":141,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"885816cd-c14d-4c2c-a848-cb9d5e35003f","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":141,"box":{"x":69,"y":188,"width":802,"height":12}},{"id":"836219da-cba4-4c41-9709-a6b4a1cbe5f0","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":141,"box":{"x":70,"y":203,"width":829,"height":12}},{"id":"95a0e000-9f02-40a2-9441-e349a60fc7cb","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":141,"box":{"x":68,"y":218,"width":832,"height":12}},{"id":"3c961e3b-3b33-42a8-a4ec-7be8d1b21fa1","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":141,"box":{"x":69,"y":234,"width":837,"height":11}},{"id":"aca2eec3-ba1b-4460-8d2f-4566f39f83ab","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":141,"box":{"x":68,"y":249,"width":829,"height":11}},{"id":"1d4397b1-ed71-4759-b290-84b5c690400d","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":141,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"4748007a-6219-47fa-a1a3-2b5bb64ac1af","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":141,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"5a0b1a2e-6426-412b-97ce-4964565fe410","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":141,"box":{"x":70,"y":294,"width":800,"height":11}},{"id":"f8448c10-2d0f-4bae-a227-5da7ee957aca","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":141,"box":{"x":70,"y":309,"width":779,"height":11}},{"id":"6e64a193-fda2-46dc-b2c1-689b61be60d0","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":141,"box":{"x":69,"y":324,"width":834,"height":12}},{"id":"d2e2eb3d-76c9-453f-9763-2a093076e128","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":141,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"97eddec4-244c-472f-81f5-a6a3d1be63a8","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":141,"box":{"x":69,"y":355,"width":765,"height":11}},{"id":"5a0f2af9-85e0-4226-8c7c-0b4ea3cf1abf","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":141,"box":{"x":101,"y":377,"width":784,"height":11}},{"id":"c1b57b8a-affe-4672-b102-a6825f17f737","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":141,"box":{"x":69,"y":392,"width":823,"height":12}},{"id":"a927b966-e0f1-4b16-aa4c-6d1b535808fc","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":141,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"09ab5825-db85-4aff-8a30-d9c850f9bfd2","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":141,"box":{"x":69,"y":423,"width":822,"height":11}},{"id":"6f840372-97eb-483c-aaba-483a8e645c59","block_type":"box","text":"some additional expenses.","page_number":141,"box":{"x":69,"y":438,"width":190,"height":11}},{"id":"58c8ee35-1a5d-4df5-90d9-00889443dbc3","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":141,"box":{"x":102,"y":460,"width":787,"height":12}},{"id":"26a961af-a39a-4179-aa36-ed766db39b5b","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":141,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"6c06219a-da65-4166-8b21-ed414c4b1a2f","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":141,"box":{"x":69,"y":491,"width":764,"height":11}},{"id":"bf295fa8-34a6-4bc0-a863-4eb5452eb090","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":141,"box":{"x":69,"y":506,"width":809,"height":11}},{"id":"c1004e62-1fc6-410c-8df9-c6436787ddba","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":141,"box":{"x":70,"y":521,"width":802,"height":11}},{"id":"2ce39898-22e0-4f4a-9506-14b86225f6b5","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":141,"box":{"x":70,"y":536,"width":828,"height":11}},{"id":"04262b61-2bd8-4ef7-9f1b-1ed933815b03","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":141,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"35f9b3f6-a572-4fa7-afae-0ee788e4ba06","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":141,"box":{"x":70,"y":566,"width":816,"height":11}},{"id":"09765f71-0f35-470e-86e7-537422d9dbcb","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":141,"box":{"x":70,"y":581,"width":836,"height":12}},{"id":"c180f298-3b78-4060-b5ed-96675630682f","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":141,"box":{"x":69,"y":596,"width":352,"height":12}},{"id":"a4e573f0-73f2-45a3-be40-fbd2879b9dc2","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":141,"box":{"x":102,"y":619,"width":768,"height":11}},{"id":"3ec2ad3c-885d-488e-921a-4a1599d6eaa5","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":141,"box":{"x":69,"y":634,"width":836,"height":12}},{"id":"c03cb171-996a-4b1a-a6dc-81d110ac6bfe","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":141,"box":{"x":68,"y":649,"width":839,"height":11}},{"id":"a229126a-5e13-4a01-a663-15c76a9fbf87","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":141,"box":{"x":69,"y":665,"width":824,"height":11}},{"id":"3af7ef74-7951-4366-81b7-833837f8e171","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":141,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"17141dd1-8077-4c32-a0a4-b06d761eb516","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":141,"box":{"x":68,"y":695,"width":826,"height":11}},{"id":"c287e851-9a24-4840-bfb1-4179a33c3e26","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":141,"box":{"x":68,"y":710,"width":810,"height":11}},{"id":"0dab7c53-aceb-4872-91dc-c989789a90e1","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":141,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"74195c7a-b7cd-46e1-be1a-1b0861e05cf1","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":141,"box":{"x":68,"y":740,"width":782,"height":11}},{"id":"de3eedc6-aeee-40a9-bb27-0da5e3b1f72f","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":141,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"45db07f9-8f71-47a3-b1fe-cd31d3a08f21","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":141,"box":{"x":70,"y":770,"width":804,"height":12}},{"id":"b624fc19-b609-4d56-afaa-d6c592c872ff","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":141,"box":{"x":69,"y":785,"width":799,"height":12}},{"id":"29d0957b-5a98-431a-b95f-841c08d1c845","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":141,"box":{"x":69,"y":801,"width":755,"height":11}},{"id":"d2d73258-4b00-45eb-9447-a0676522d7e1","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":141,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"be288777-dc48-44f9-bf7c-decf83b4fec6","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":141,"box":{"x":69,"y":831,"width":806,"height":11}},{"id":"af0e7f11-0c2d-4269-bc6c-b924537c29c1","block_type":"box","text":"public information about the company (","page_number":141,"box":{"x":70,"y":846,"width":276,"height":11}},{"id":"2c0b110f-4124-4b2b-9f5b-9b82d9107355","block_type":"box","text":"e.g.","page_number":141,"box":{"x":348,"y":847,"width":25,"height":10}},{"id":"7eef2dde-e665-47e5-9e53-b7d508919bf2","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":141,"box":{"x":376,"y":846,"width":499,"height":11}},{"id":"0a51aa6e-5b78-4046-a08a-08fbca5e7a56","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":141,"box":{"x":69,"y":861,"width":784,"height":11}},{"id":"019fff9b-7740-4914-86b6-262049be421d","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":141,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"707cf136-98c4-49cb-a418-00c7bb0ffd32","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":141,"box":{"x":69,"y":891,"width":830,"height":12}},{"id":"53ecde6c-2bcc-45bd-9e56-d8a35bb8bb50","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":141,"box":{"x":68,"y":906,"width":773,"height":11}},{"id":"729e7da4-0579-4e92-bc82-7fd08e1f43f1","block_type":"box","text":"II-95","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f576ae88-4951-4323-904d-e2818c190df7","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88ccbdc1-05fe-4a7e-b9ab-b0fa50a43834","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":142,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"27ca71eb-1ace-4290-a61c-579e2e4ed91c","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":142,"box":{"x":68,"y":60,"width":781,"height":11}},{"id":"d68e6562-8cc4-4462-acb7-9e5104f28137","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":142,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"64b96642-60d2-4fea-9dd3-28ffa529a1ae","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":142,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"7b3a856f-63f7-4645-b603-18fd8ae6a6f9","block_type":"box","text":"of the issuer.","page_number":142,"box":{"x":69,"y":105,"width":92,"height":9}},{"id":"b43cddff-d032-4f67-ab33-ae3b300c9b97","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":142,"box":{"x":102,"y":128,"width":748,"height":11}},{"id":"98cb9259-48df-499d-88db-1a2c18509620","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":142,"box":{"x":69,"y":143,"width":819,"height":11}},{"id":"720462c9-ad17-46e5-a7c9-8be89128df11","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":142,"box":{"x":70,"y":158,"width":817,"height":11}},{"id":"58f81900-345a-459e-b532-0562a52d97d7","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":142,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"218ad22c-5132-4e45-aff9-94ed83142002","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":142,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"a7e9345e-e99e-42e2-8b41-17204eb9344a","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":142,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"9050fa6e-7ab6-415f-85ef-d6f0a80af1b0","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":142,"box":{"x":68,"y":218,"width":797,"height":12}},{"id":"626b51bb-a030-4f95-aa33-d2cd81c49754","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":142,"box":{"x":70,"y":234,"width":667,"height":11}},{"id":"3d82fb80-5273-4fa1-9caa-bbbd5d4e5ac0","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":142,"box":{"x":102,"y":256,"width":794,"height":12}},{"id":"171a260c-2a7e-4bf1-9307-5f124d3709bf","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":142,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"a0eb0039-26cc-4d92-9cf1-2d3aa3c62228","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":142,"box":{"x":70,"y":286,"width":812,"height":12}},{"id":"b3c86e7b-5c84-4888-8c93-f021c9f527d5","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":142,"box":{"x":70,"y":302,"width":818,"height":11}},{"id":"7047d950-2170-43c7-b999-d47426fc966f","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":142,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"da6f74bd-338f-44c8-93e9-096458af4851","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":142,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"446289db-5b70-4090-aa6b-6bd45ec4b164","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":142,"box":{"x":70,"y":347,"width":824,"height":11}},{"id":"3a507572-6b4e-4136-868b-2f5c3a56233c","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":142,"box":{"x":68,"y":362,"width":472,"height":11}},{"id":"199e2690-3bb7-48a0-90a2-4628e49199af","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":142,"box":{"x":102,"y":385,"width":744,"height":11}},{"id":"7325de96-35af-4d41-a87b-ada4f0a612b8","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":142,"box":{"x":70,"y":400,"width":775,"height":11}},{"id":"47bbae4f-00d4-454b-b852-bdac6228a2c8","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":142,"box":{"x":69,"y":415,"width":818,"height":11}},{"id":"fd02d995-f8f5-4e5b-a8ab-d797df7f63ac","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":142,"box":{"x":68,"y":430,"width":779,"height":11}},{"id":"0c481763-9eaa-478e-b632-d23c29f576d8","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":142,"box":{"x":69,"y":445,"width":771,"height":12}},{"id":"10dfdc0e-8867-4474-8e1b-1681d17b427a","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":142,"box":{"x":68,"y":460,"width":812,"height":12}},{"id":"61879627-466b-43ef-a79a-83c790441ecc","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":142,"box":{"x":70,"y":475,"width":803,"height":12}},{"id":"5af8d476-1242-443d-a90d-4e93cd207dfc","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":142,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"d708de08-53a7-4816-a1d4-67a36d9f2bdf","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":142,"box":{"x":69,"y":506,"width":829,"height":11}},{"id":"13b69b89-08a4-4235-9671-58cb56e9ad68","block_type":"box","text":"a barrier.","page_number":142,"box":{"x":69,"y":521,"width":62,"height":9}},{"id":"649abf13-53c7-46ec-92ac-0121c1a83cd2","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":142,"box":{"x":101,"y":543,"width":788,"height":12}},{"id":"2c18877a-e983-4ccb-a890-b60859567eca","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":142,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"a32e21cd-ce55-41d7-ac1d-273ea68fb00d","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":142,"box":{"x":69,"y":574,"width":805,"height":11}},{"id":"5a9e33d3-e0fc-4309-8b21-5cc7e9ca25b8","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":142,"box":{"x":69,"y":589,"width":840,"height":11}},{"id":"dabeb82d-a631-42fd-a7ff-43f7b312c38a","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":142,"box":{"x":69,"y":604,"width":806,"height":11}},{"id":"b74cf83c-411d-46d9-be83-6c7229acec6b","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":142,"box":{"x":70,"y":619,"width":818,"height":11}},{"id":"36b0a710-391d-4952-a35f-dab92511aa27","block_type":"box","text":"that operate in cer tain industries (","page_number":142,"box":{"x":68,"y":634,"width":244,"height":11}},{"id":"d523ded6-ea91-42ce-bbd0-b74c0fb66e86","block_type":"box","text":"e.g.","page_number":142,"box":{"x":314,"y":636,"width":25,"height":10}},{"id":"b32033bc-529d-4dfc-a4fb-e0cf703ded62","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":142,"box":{"x":342,"y":634,"width":515,"height":12}},{"id":"22107d81-0416-4a41-8c99-d5c0b0238649","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":142,"box":{"x":69,"y":650,"width":523,"height":11}},{"id":"8bb009b2-5646-4477-836f-e8512fe8ae01","block_type":"box","text":"e.g.","page_number":142,"box":{"x":594,"y":651,"width":25,"height":10}},{"id":"77cf442e-4c3a-4eee-aa2c-fbc3dc4d17fe","block_type":"box","text":", with mechanisms such as poison pills","page_number":142,"box":{"x":621,"y":650,"width":280,"height":10}},{"id":"b46ebf68-6c2e-49fb-9ade-7a3538de10f7","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":142,"box":{"x":70,"y":664,"width":816,"height":12}},{"id":"7c5deedf-dd3b-4924-9237-59a8e0db1bf3","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":142,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"97fa9f1c-ed59-49d3-897e-af8bed21f2cf","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":142,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"b9d676d1-e26e-4846-9737-45f6adee8852","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":142,"box":{"x":69,"y":710,"width":769,"height":11}},{"id":"ca3a23cd-cc71-498d-9b08-f35748275729","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":142,"box":{"x":69,"y":725,"width":775,"height":11}},{"id":"826055e4-17c8-449e-8dc4-225b97481021","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":142,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"8be8fbeb-730e-475c-877b-e1b9167e263e","block_type":"box","text":"seek to make indirect investments (","page_number":142,"box":{"x":69,"y":755,"width":255,"height":11}},{"id":"e9662c31-ff8f-479b-8f1c-5c0e18775dac","block_type":"box","text":"e.g.","page_number":142,"box":{"x":326,"y":757,"width":24,"height":9}},{"id":"717abc51-e46b-4391-b2d8-e88f3cb92599","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":142,"box":{"x":353,"y":755,"width":514,"height":11}},{"id":"ccb2bf5c-c24c-47be-9f02-b221c4974b09","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":142,"box":{"x":69,"y":770,"width":817,"height":12}},{"id":"7384f378-44f6-463c-902e-c9000a68007d","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":142,"box":{"x":69,"y":786,"width":795,"height":11}},{"id":"07c94033-543d-4af8-86d7-001e72f54063","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":142,"box":{"x":68,"y":801,"width":799,"height":11}},{"id":"d7195b42-ba71-48b2-bfbe-3557f762a5e0","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":142,"box":{"x":69,"y":816,"width":767,"height":11}},{"id":"5575caa5-1fa8-42ab-9de6-50cee9c302db","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":142,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"db906089-c638-41aa-bbce-4f74201ba550","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":142,"box":{"x":69,"y":846,"width":772,"height":11}},{"id":"cec2c9c5-4bf8-4ed5-a93d-a235e45e8211","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":142,"box":{"x":102,"y":869,"width":783,"height":11}},{"id":"cabc9dc7-fca8-4a26-879a-977f2b14d1c3","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":142,"box":{"x":69,"y":884,"width":808,"height":11}},{"id":"56d509e8-bdc2-416c-99dc-83a4126549b1","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":142,"box":{"x":69,"y":899,"width":837,"height":11}},{"id":"711256b5-e942-4887-9236-fafc150380e4","block_type":"box","text":"II-96","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a90781ff-253e-4f0b-aec9-136d5c42e425","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1c8f22b8-6edf-4fa8-a754-5acb5584378e","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":143,"box":{"x":70,"y":45,"width":818,"height":11}},{"id":"93859571-18f7-4cf0-bfed-52090b924dd3","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":143,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"bdb7c49c-a848-4dd1-8e29-791314a64fee","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":143,"box":{"x":69,"y":75,"width":806,"height":11}},{"id":"c5a93cf8-ed10-4c54-958c-03b9b8bb64de","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":143,"box":{"x":70,"y":90,"width":839,"height":11}},{"id":"7fbb1549-6487-406d-b24d-a993d94f1e40","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":143,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"800c3eef-073d-4c47-9b46-a3e648b1ae5a","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":143,"box":{"x":69,"y":120,"width":807,"height":11}},{"id":"84e50744-dd9a-4505-8be0-48a71949c1a2","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":143,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"45d60935-bd66-4232-9ade-dc2bc26e275b","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":143,"box":{"x":69,"y":150,"width":765,"height":12}},{"id":"9a25e8a2-5dad-4cc9-a750-d2264d12db8b","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":143,"box":{"x":69,"y":166,"width":781,"height":11}},{"id":"4ab64c84-c12f-4319-a98e-0f2f0773541d","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":143,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"ba389e0c-21e7-4532-bcea-f170fe2ff440","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":143,"box":{"x":69,"y":196,"width":720,"height":11}},{"id":"99d23a06-0057-4b7f-b856-a1cbe006ddc8","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":143,"box":{"x":101,"y":219,"width":807,"height":11}},{"id":"e37c3c95-2174-4ea9-a402-f8ea3d0950d4","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":143,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"962a1368-6d9e-4b3b-bd46-8e64db59ec3d","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":143,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"6ae5f38f-8564-4aed-86f6-cf9f993f2869","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":143,"box":{"x":69,"y":264,"width":824,"height":11}},{"id":"c55e020f-059c-4ed9-b146-f5d8277daadf","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":143,"box":{"x":68,"y":279,"width":841,"height":11}},{"id":"5a0e5fda-3cd5-4535-935a-639ad3f97a51","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":143,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"578da9d5-c498-447c-b306-46e1d6be7c8d","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":143,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"1b6e2c89-541c-4357-8605-599b643cf896","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":143,"box":{"x":70,"y":325,"width":794,"height":11}},{"id":"f8f0c91e-a409-4d81-92b7-3560de89c637","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":143,"box":{"x":69,"y":340,"width":757,"height":11}},{"id":"a01cc518-2c14-4ff3-a4e2-58dcca1617f2","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":143,"box":{"x":69,"y":355,"width":807,"height":11}},{"id":"6f5a4853-a92f-4597-8ff5-6c94087b2d3f","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":143,"box":{"x":69,"y":370,"width":833,"height":11}},{"id":"06d783d7-dadc-4e2c-b102-5ec746a828f5","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":143,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"2ac33a06-9f33-4557-9f1d-94f9f34baac2","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":143,"box":{"x":68,"y":400,"width":803,"height":11}},{"id":"080b4b5b-870e-48ea-b4a9-ee658571fa06","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":143,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"fc68ffb3-7d92-45d2-a1c4-39f074092172","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":143,"box":{"x":69,"y":430,"width":826,"height":11}},{"id":"fc3a85ea-f52b-4f20-bfeb-4d313bdaf56f","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":143,"box":{"x":69,"y":445,"width":834,"height":11}},{"id":"caa6eee2-f007-425a-b07e-223a124bae7f","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":143,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"4a5289e7-9b54-44b1-aa6f-b7fcdf1e036a","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":143,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"c1315751-1e16-478f-889d-be7279c390b9","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":143,"box":{"x":69,"y":498,"width":566,"height":11}},{"id":"b5a81f3d-d682-41dc-8a27-7f23be39d6da","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":143,"box":{"x":102,"y":521,"width":798,"height":11}},{"id":"c423f715-0cfd-4bea-85ce-4f49508266a5","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":143,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"b57202ac-a931-4f6b-b543-efcc33fe06be","block_type":"box","text":"strategy with respect to such security or asset.","page_number":143,"box":{"x":69,"y":551,"width":333,"height":11}},{"id":"26782c13-839d-469a-9aca-5a587d77c8bd","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":143,"box":{"x":102,"y":574,"width":785,"height":11}},{"id":"55467901-8b23-489d-982f-4c106b85d969","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":143,"box":{"x":70,"y":589,"width":760,"height":11}},{"id":"3d801e13-6067-46d8-bea4-58cfd5f6e566","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":143,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"7db7ca7f-93c2-4081-8598-2c8fc5b799bc","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":143,"box":{"x":70,"y":619,"width":830,"height":11}},{"id":"d9073dfc-1b96-40ca-a95e-603568ad9c63","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":143,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"cd832686-a603-4e37-8204-b4629727867c","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":143,"box":{"x":68,"y":649,"width":829,"height":12}},{"id":"b60043a1-c16c-40da-932a-d65af27472fb","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":143,"box":{"x":69,"y":664,"width":784,"height":12}},{"id":"de5cd6df-e699-4c5b-b921-498f8eb73f08","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":143,"box":{"x":70,"y":680,"width":797,"height":11}},{"id":"8110b620-e503-40b4-88c1-958d2970fb8b","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":143,"box":{"x":70,"y":695,"width":837,"height":11}},{"id":"90c830d0-366b-4baf-a8ee-c83a79443d11","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":143,"box":{"x":70,"y":710,"width":746,"height":11}},{"id":"cef6caa3-c544-4925-abbb-d20ed57ee133","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":143,"box":{"x":102,"y":733,"width":686,"height":11}},{"id":"b2377965-7fcf-474d-9621-0310387e7c83","block_type":"box","text":"e.g.","page_number":143,"box":{"x":790,"y":734,"width":25,"height":10}},{"id":"1b9edec1-6886-431f-9e20-15acb6fc3529","block_type":"box","text":", custodians,","page_number":143,"box":{"x":817,"y":733,"width":90,"height":10}},{"id":"4404e510-03fc-4dc7-861c-f2af4a504c53","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":143,"box":{"x":69,"y":748,"width":756,"height":11}},{"id":"fb7483f4-abb0-4dc1-a385-f4d40a6e3f25","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":143,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"02eafd02-35d5-47eb-acff-f84cd7388f6d","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":143,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"98317e4b-1490-4ea9-b761-19670423cd88","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":143,"box":{"x":70,"y":793,"width":800,"height":11}},{"id":"6be23f25-3dc9-47cf-9956-83408a64d13f","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":143,"box":{"x":69,"y":808,"width":771,"height":11}},{"id":"8b5cbdee-4812-43d6-b8c2-17e74051c4bd","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":143,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"614b550d-3d12-4e8c-8f9d-fc47fbd54fca","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":143,"box":{"x":70,"y":838,"width":785,"height":12}},{"id":"b04079db-505b-40da-b705-6cbb58bebfc2","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":143,"box":{"x":70,"y":854,"width":786,"height":11}},{"id":"3e04a4e3-67f2-4c41-8f4a-ad77545dab06","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":143,"box":{"x":69,"y":869,"width":837,"height":11}},{"id":"eeea35fc-e65b-44ec-9939-d63c5e34d4e2","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":143,"box":{"x":69,"y":884,"width":809,"height":11}},{"id":"8d130abf-d998-4475-b738-b229c41c5cb6","block_type":"box","text":"II-97","page_number":143,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"833ed15e-b390-428a-87cc-89f389d2d673","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4b48835-260a-4281-af0a-10028c03277f","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":144,"box":{"x":102,"y":45,"width":788,"height":11}},{"id":"f4b05d6f-378c-4880-a067-ff25b3c76e66","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":144,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"7b04919a-dc2e-46f3-ba2c-94d583251d45","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":144,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"2b6697f1-e2d0-4aae-8b92-95c530ed86f7","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":144,"box":{"x":70,"y":90,"width":363,"height":9}},{"id":"0ca1ddea-ffbb-4aa1-bfe2-b040acb00b5e","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":144,"box":{"x":102,"y":113,"width":757,"height":11}},{"id":"383bf23a-1f9f-4c20-b4f6-4b3f3ba5653d","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":144,"box":{"x":70,"y":128,"width":826,"height":11}},{"id":"e71d1fdf-0f93-4578-8f8c-102213287729","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":144,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"865e96be-6d03-4982-9319-e21268340e69","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":144,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"50a1517e-b3d7-4588-a286-5d3d5dcfb2aa","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":144,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"d518d48e-acf3-4288-b993-4a39883250d6","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":144,"box":{"x":69,"y":188,"width":465,"height":11}},{"id":"d58e28c6-9cbd-440d-8477-49c4dc0e3131","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":144,"box":{"x":102,"y":211,"width":804,"height":11}},{"id":"234c4223-c7f2-4a1d-b3ca-a102d93a89fa","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":144,"box":{"x":69,"y":226,"width":840,"height":11}},{"id":"5065cf9e-1a17-4527-9a0b-4bff4d4ab40b","block_type":"box","text":"provider.","page_number":144,"box":{"x":70,"y":241,"width":58,"height":11}},{"id":"0d014f41-c56e-42c5-ae8e-2e2b924027f5","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":144,"box":{"x":102,"y":264,"width":778,"height":11}},{"id":"4bae4401-9a7b-4e76-9406-4af8243646aa","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":144,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"a4900b3c-5a05-4fd7-87cb-cc894ca56269","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":144,"box":{"x":68,"y":294,"width":485,"height":11}},{"id":"f6247fe2-326a-4ac4-b75d-597d6a37b8ed","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":144,"box":{"x":102,"y":317,"width":742,"height":11}},{"id":"cb454519-3cdf-4739-b3d5-830f4b7d7c12","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":144,"box":{"x":69,"y":332,"width":517,"height":11}},{"id":"18c6dd7c-96ce-46ed-9a49-ff4571c49ab0","block_type":"box","text":"PURCHASE OF SHARES","page_number":144,"box":{"x":395,"y":361,"width":188,"height":10}},{"id":"610a761d-0091-48e4-8667-1b3ab4267591","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":144,"box":{"x":102,"y":384,"width":800,"height":11}},{"id":"431c6d35-90bf-425f-a715-c97cc10b4ba6","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":144,"box":{"x":69,"y":399,"width":771,"height":12}},{"id":"1db8d246-4edd-48f3-9c2d-b920733b2202","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":144,"box":{"x":69,"y":414,"width":822,"height":12}},{"id":"12ce36b7-44d6-4501-9987-d76d1c6140e4","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":144,"box":{"x":68,"y":429,"width":809,"height":12}},{"id":"21c6ba74-28c4-4daa-adae-7fe150ac30ac","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":144,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"7efca86e-4eda-46d6-9d17-a153d425e762","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":144,"box":{"x":68,"y":460,"width":833,"height":11}},{"id":"880474c2-6e5e-4512-9045-e50c7ba35f99","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":144,"box":{"x":68,"y":475,"width":833,"height":11}},{"id":"58349be8-7def-46c1-bd1b-f456ed3f61eb","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":144,"box":{"x":69,"y":490,"width":835,"height":11}},{"id":"6dd3ad34-83d2-4e01-be8e-92b4138aa90a","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":144,"box":{"x":69,"y":505,"width":804,"height":11}},{"id":"c4cf6ab7-f549-4643-a5fd-b380cad7a5e9","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":144,"box":{"x":70,"y":520,"width":816,"height":12}},{"id":"8bf17090-4791-4cae-a06a-1919b367e6a8","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":144,"box":{"x":68,"y":535,"width":835,"height":11}},{"id":"200f9c0f-f9ac-48a3-a0e2-23a29a46c18a","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":144,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"4755d782-fca8-4172-83f7-c3cd4d884a25","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":144,"box":{"x":69,"y":566,"width":757,"height":11}},{"id":"78cce6fa-038b-4a25-a3c3-439344f8eb8d","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":144,"box":{"x":69,"y":581,"width":802,"height":11}},{"id":"17ae9be1-2a97-4b6b-a706-62b2497dd678","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":144,"box":{"x":101,"y":603,"width":799,"height":12}},{"id":"98254898-355a-4289-99f3-3f2008bc9010","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":144,"box":{"x":68,"y":618,"width":798,"height":12}},{"id":"af12b939-6c7b-4e96-9920-b04ea1350e39","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":144,"box":{"x":70,"y":634,"width":795,"height":11}},{"id":"15f21aed-bdd4-40c1-84af-24bfd58442b1","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":144,"box":{"x":68,"y":649,"width":786,"height":11}},{"id":"fba63f7b-c08e-4291-b142-736d87065568","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":144,"box":{"x":69,"y":664,"width":839,"height":11}},{"id":"b98272b0-d600-42ae-a61d-9ca36eafb957","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":144,"box":{"x":69,"y":679,"width":795,"height":11}},{"id":"65bce6f5-94e1-448b-ad32-61cb805471db","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":144,"box":{"x":68,"y":694,"width":819,"height":11}},{"id":"684aee5d-01b6-4ee3-aafc-5fa2daee2f89","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":144,"box":{"x":69,"y":709,"width":808,"height":11}},{"id":"bd48bd7a-e623-4460-b125-ffeb98b50066","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":144,"box":{"x":69,"y":724,"width":803,"height":12}},{"id":"b8374c77-06d6-42c2-8fe5-dae143c59a26","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":144,"box":{"x":70,"y":739,"width":812,"height":12}},{"id":"eb4c4e50-f0f1-4300-9d87-d41f358d8fac","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":144,"box":{"x":68,"y":755,"width":828,"height":11}},{"id":"ef2da38e-5b9d-4b35-b230-793cbdadad10","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":144,"box":{"x":68,"y":770,"width":788,"height":11}},{"id":"e7bc9fdd-7a74-4c0b-8f6f-c7c799fd7979","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":144,"box":{"x":69,"y":785,"width":779,"height":11}},{"id":"1f37c293-6d9b-4970-b2d1-cc84c82325c4","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":144,"box":{"x":70,"y":800,"width":830,"height":11}},{"id":"2439f887-b535-40bd-a036-aa4ee0094085","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":144,"box":{"x":69,"y":815,"width":828,"height":11}},{"id":"7fee186e-3993-43da-8af4-764626fd308f","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":144,"box":{"x":68,"y":829,"width":762,"height":12}},{"id":"2aa3cff3-ea72-4746-ab23-2abb4d64f894","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":144,"box":{"x":101,"y":853,"width":768,"height":11}},{"id":"4649806e-f3ab-4470-bb49-a264e6f1efa3","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":144,"box":{"x":69,"y":868,"width":819,"height":11}},{"id":"4e2c3343-7d23-499f-a7b5-20296c2ddf97","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":144,"box":{"x":69,"y":882,"width":769,"height":12}},{"id":"8c685363-2bdd-4ae1-841c-0e1686d06b9b","block_type":"box","text":"investment is $25.","page_number":144,"box":{"x":70,"y":898,"width":132,"height":10}},{"id":"59247f10-fcf1-47ef-ad9b-f1252fd7ab8a","block_type":"box","text":"II-98","page_number":144,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4e94a83f-3d1f-4f2d-9cb2-8449361041e1","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95f554f6-5499-4bb8-b320-58157525be1c","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":145,"box":{"x":102,"y":45,"width":802,"height":11}},{"id":"3f72b094-20f5-4762-b622-cdcdd328911e","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":145,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"24297da4-dfdb-4c87-8068-1c88a05c6519","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":145,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"21b91d39-f797-4f38-8bab-4028bfd8f4e1","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":145,"box":{"x":70,"y":90,"width":751,"height":11}},{"id":"1a96bf70-f802-4c75-86ed-8a800de74632","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":145,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"b2e00342-fb05-4129-84e4-79a299f57790","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":145,"box":{"x":102,"y":128,"width":768,"height":11}},{"id":"570468c6-50f5-457f-b367-5bbe6029220d","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":145,"box":{"x":68,"y":143,"width":807,"height":11}},{"id":"57f17ed7-d97b-498c-baed-f9ffd7912816","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":145,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"f2d125b3-110c-426f-8c7d-6e2553be9322","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":145,"box":{"x":69,"y":173,"width":814,"height":11}},{"id":"b6186844-afd6-4dfb-8073-7a43fb1b6ee9","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":145,"box":{"x":68,"y":188,"width":740,"height":11}},{"id":"e47f1437-7491-4bb2-ab53-ce07eaf2ce1a","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":145,"box":{"x":102,"y":211,"width":795,"height":11}},{"id":"9f38019e-b616-49d3-994e-52576bd80200","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":145,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"f90d9bde-b6c4-4935-86a1-1f1738eee6c4","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":145,"box":{"x":68,"y":241,"width":827,"height":11}},{"id":"2e572357-db68-4ae6-a938-537436847c75","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":145,"box":{"x":68,"y":256,"width":750,"height":12}},{"id":"91c696e3-625c-4b8c-85f7-e0d69ffa4b8f","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":145,"box":{"x":101,"y":279,"width":776,"height":11}},{"id":"fcdf71af-18dc-4675-82fe-8be72b68004e","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":145,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"7dc31260-a4d7-4706-b939-905104a97c3b","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":145,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"5f98fc67-1ca4-4149-b59f-c94a9e186430","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":145,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"29fb455d-2de9-4e0b-8b11-5b780b1c4585","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":145,"box":{"x":70,"y":339,"width":839,"height":12}},{"id":"db5a0803-9247-4dc7-85d4-65a858befa92","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":145,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"0026722a-813c-4cef-99a2-f734a2631614","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":145,"box":{"x":68,"y":370,"width":827,"height":11}},{"id":"343cc190-3f7d-48f6-bd79-ce572e65c234","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":145,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"a67d362d-3c06-4122-884e-e1a7dc479403","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":145,"box":{"x":70,"y":400,"width":788,"height":11}},{"id":"a5ee4d29-389a-495e-9c78-70adf2d07a41","block_type":"box","text":"adviser.","page_number":145,"box":{"x":69,"y":415,"width":53,"height":9}},{"id":"cc678fe6-4326-4112-8500-0e85656964cf","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":145,"box":{"x":101,"y":438,"width":795,"height":11}},{"id":"4e0700fd-9d1f-4a51-85c9-e49e00a0e2b2","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":145,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"075d9f88-2cef-46c7-8410-0ba193670cc8","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":145,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"a9cc81f2-cbf4-49c6-a1d3-5c6bb697179d","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":145,"box":{"x":69,"y":483,"width":834,"height":11}},{"id":"c282e2e1-5388-49ff-b325-4d0622a357ff","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":145,"box":{"x":68,"y":498,"width":747,"height":11}},{"id":"dcc5c568-9d80-4dcc-b5d4-cacd420ddb55","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":145,"box":{"x":70,"y":513,"width":809,"height":11}},{"id":"09ef316c-b5b8-4a05-830b-62fb6e94855f","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":145,"box":{"x":69,"y":528,"width":819,"height":12}},{"id":"25b54f1e-07e9-46a0-bb1c-eb1c974e737a","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":145,"box":{"x":68,"y":543,"width":840,"height":12}},{"id":"752fdebd-1495-4c79-9e61-2cb8cbd247ed","block_type":"box","text":"also be restricted from making additional investments.","page_number":145,"box":{"x":69,"y":559,"width":388,"height":11}},{"id":"9bb2c7f3-6b95-441b-8df7-36483b64f693","block_type":"box","text":"In-Kind Purchases","page_number":145,"box":{"x":102,"y":582,"width":127,"height":8}},{"id":"cb0b74ab-7a42-405b-a2b0-92206602ae9e","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":145,"box":{"x":230,"y":581,"width":649,"height":11}},{"id":"dac49854-2c6e-4434-91bc-0aa98b06fdff","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":145,"box":{"x":69,"y":596,"width":779,"height":12}},{"id":"b3fbeddb-d324-4d61-a3d8-1caae75c1fcd","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":145,"box":{"x":70,"y":612,"width":820,"height":11}},{"id":"d3ea5266-42e4-4657-b7fe-d559f6057b88","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":145,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"26c535bb-8106-40a6-a45c-f471bde5f6ab","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":145,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"1286748a-7366-4e5d-b052-38f71cbf42c6","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":145,"box":{"x":69,"y":657,"width":817,"height":11}},{"id":"69fa4314-47b1-4440-ac99-1b22cb538da8","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":145,"box":{"x":68,"y":672,"width":837,"height":11}},{"id":"8c67a3ff-8148-4686-a822-cb681911499b","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":145,"box":{"x":69,"y":687,"width":835,"height":11}},{"id":"27745832-7922-4480-8a70-b67ebe69a9cc","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":145,"box":{"x":69,"y":702,"width":795,"height":12}},{"id":"fa0f7213-d3c5-41da-b8d9-56ef6f3a2398","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":145,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"b5546adf-599a-468d-9f40-4ac704a3d2d0","block_type":"box","text":"has settled.","page_number":145,"box":{"x":69,"y":733,"width":83,"height":9}},{"id":"3b0ada5a-cec8-4acc-ab29-86846e9ee8ec","block_type":"box","text":"Institutional Shares","page_number":145,"box":{"x":69,"y":763,"width":142,"height":9}},{"id":"c3792aa0-bf7e-4ccd-af9d-37223b17e2a4","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":145,"box":{"x":102,"y":786,"width":759,"height":11}},{"id":"b3cc7602-e4b1-443a-97ba-a32ba43ed602","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":145,"box":{"x":70,"y":801,"width":756,"height":11}},{"id":"48fdb5ba-0738-4a7b-9a80-2dab70fac716","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":145,"box":{"x":70,"y":816,"width":775,"height":11}},{"id":"e10088c9-0bbc-42b4-b3f1-f37d3ea8312d","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":145,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"beae1791-cb32-4cdb-883d-5b521f5bbf4d","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":145,"box":{"x":69,"y":846,"width":807,"height":11}},{"id":"0d98f0bd-1a3a-41da-ad98-e215d5ed543b","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":145,"box":{"x":69,"y":861,"width":276,"height":11}},{"id":"4d243c9a-935f-4b30-9b73-19cb442d97a6","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":145,"box":{"x":102,"y":884,"width":259,"height":11}},{"id":"f52e8300-f2a3-47d0-a401-b2fa05fe3f06","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":145,"box":{"x":369,"y":884,"width":540,"height":11}},{"id":"4e9700a4-a0bb-4227-9f65-d124bdcc2091","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":145,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"bc5770d3-e7c7-42d9-ae0a-7c765808e027","block_type":"box","text":"II-99","page_number":145,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"11556d2f-ba72-49b6-b23d-faff0e3b757b","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4dacc6f0-5a14-4de4-af84-50c80b774faa","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":146,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"b7ce7ebd-ba20-44e8-85d8-0166e913de26","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":146,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"b7dcb52c-38e9-4885-a218-84993ab9114b","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":146,"box":{"x":69,"y":75,"width":840,"height":11}},{"id":"f2fb2c50-a2cc-41bf-b17d-980400510a4b","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":146,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"2ec7da2e-686c-4d99-a344-fe23b97b6975","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":146,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"6e6cdf3a-bab0-4df9-b12c-fb383e305353","block_type":"box","text":"these fees and conditions.","page_number":146,"box":{"x":68,"y":120,"width":189,"height":9}},{"id":"c0909503-7d1e-4463-8ee6-057225a4fbd5","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":146,"box":{"x":102,"y":143,"width":805,"height":11}},{"id":"d187f90d-d21a-4c6a-b631-033bfe4ce77c","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":146,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"b794a723-7acc-4327-af9a-d13fe0b379e9","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":146,"box":{"x":69,"y":173,"width":817,"height":11}},{"id":"68ed727e-8418-409c-a99a-bee454cffc74","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":146,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"e9e62aa7-14e8-431d-bb0c-64f14d05e5ac","block_type":"box","text":"incurred by the Fund.","page_number":146,"box":{"x":70,"y":204,"width":147,"height":11}},{"id":"3ef40d48-8dd6-4726-921b-2bb10f597ad4","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":146,"box":{"x":102,"y":226,"width":774,"height":11}},{"id":"0a9fac98-2858-4c58-ab47-b14b5fc8f4ba","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":146,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"622e4f9f-fc12-4d79-9aa2-57790aeffced","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":146,"box":{"x":70,"y":256,"width":773,"height":11}},{"id":"e8ee3413-e64a-4d4f-bf54-f3cedf6c826b","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":146,"box":{"x":70,"y":271,"width":762,"height":12}},{"id":"ccdfb65d-9359-4b53-8cb1-f09a13ec5eee","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":146,"box":{"x":70,"y":286,"width":821,"height":12}},{"id":"6554162f-3ab2-4d18-9aed-82ffaf25ce91","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":146,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"533af18e-0e3c-4b77-8db5-a8b8223ad4fa","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":146,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"ba3ccf23-4c80-49cb-800e-3e9680db3b3d","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":146,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"9c5a8422-7ca7-4eda-bde4-5a70808aa469","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":146,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"12ce6970-7aa3-453b-b36a-627f96b912d5","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":146,"box":{"x":69,"y":362,"width":815,"height":11}},{"id":"620bf269-5226-4f37-a88c-559ee481c461","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":146,"box":{"x":69,"y":377,"width":789,"height":12}},{"id":"c16768e7-956c-44a2-9861-5589fddc8a03","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":146,"box":{"x":70,"y":392,"width":772,"height":12}},{"id":"4fedb6bc-7738-4d60-a34b-cee8f0b03a76","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":146,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"a03e9b7b-d5ff-4c1d-aa08-885d3dfd6dab","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":146,"box":{"x":68,"y":423,"width":783,"height":11}},{"id":"768afb34-62e3-412b-beee-c48a56f55efe","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":146,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"21a7ecfc-f1b1-40ed-956a-8c4d42d9a3f5","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":146,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"816413c5-4ef9-4ae5-8f5a-16ec2f16445a","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":146,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"8db457a3-4a0b-4d13-acf6-6be1bd64202e","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":146,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"452bf06e-dad4-461e-bbea-d6e02c04879d","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":146,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"4ecac3fa-b297-482a-b54a-2e5d9399dd27","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":146,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"0310c738-5d9a-4f51-8c40-a4accb4828f7","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":146,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"517dae13-34f9-4765-bcbc-38e0e16b2dc3","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":146,"box":{"x":69,"y":543,"width":822,"height":11}},{"id":"b0bd06c3-da40-479f-960d-14d9976adfdd","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":146,"box":{"x":68,"y":559,"width":771,"height":11}},{"id":"61caa7ce-c588-4b6a-9925-0aa7e0e8ca5b","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":146,"box":{"x":70,"y":573,"width":801,"height":12}},{"id":"a9e1bd29-0500-40ce-98d9-c1d408d2bdf1","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":146,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"67787bcc-cdc5-4b78-a25a-72147a662c01","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":146,"box":{"x":102,"y":612,"width":280,"height":11}},{"id":"3a5a4326-3bd0-496e-9848-4dbac510248b","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":146,"box":{"x":389,"y":612,"width":496,"height":11}},{"id":"ab6f5b45-2777-41dd-afbc-b9c4d24da7b6","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":146,"box":{"x":70,"y":627,"width":812,"height":11}},{"id":"e1d12f7b-b6ac-4bc8-adaa-5b0a593bf58b","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":146,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"0049b445-b3c2-4134-a7a0-5d3027633f8a","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":146,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"c2b70cae-5c38-4521-9217-b1bba88bbe3f","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":146,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"2e720df2-fa45-4839-adfe-9556f194c959","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":146,"box":{"x":69,"y":687,"width":279,"height":11}},{"id":"8c8d809d-3dee-401f-9b86-181a94565c83","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":146,"box":{"x":69,"y":718,"width":382,"height":11}},{"id":"f4baee4e-01a1-4ab5-b89b-235d77b46493","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":146,"box":{"x":102,"y":740,"width":770,"height":11}},{"id":"9f05f9de-f322-4b15-9ecf-4ba7da9e4191","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":146,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"af0456c3-67ad-4d7c-b228-f46239f71d72","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":146,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"1d0967f5-51ee-4222-a810-2e2b5ffa17d1","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":146,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"425f79c7-20da-459b-983a-c4ae5cf9f377","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":146,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"ab89ffa6-9030-4143-be93-93ef1d5a670f","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":146,"box":{"x":69,"y":816,"width":791,"height":11}},{"id":"2de1e7df-c901-404c-bc72-b5aea92a033a","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":146,"box":{"x":70,"y":831,"width":727,"height":11}},{"id":"1227a80b-fbb8-42aa-9d98-e9c0ff0a0a64","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":146,"box":{"x":102,"y":853,"width":770,"height":12}},{"id":"9563ff03-3698-4608-9060-06f6958d52c3","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":146,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"929d5309-e488-41b3-a93b-50db20c7f874","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":146,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"a725a105-ea44-48d5-8411-b241edfbdeda","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":146,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"cb481919-38e6-408d-a593-a43291d8eb91","block_type":"box","text":"II-100","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"28a77cf1-bd76-4707-917e-eeec0ac6c26c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f33e40bb-d8dd-4042-b569-83beeaf14a98","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":147,"box":{"x":68,"y":45,"width":808,"height":11}},{"id":"dc5433d9-8340-44c1-aa1b-f8526fb9be93","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":147,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"cbb61793-4915-4eb3-8641-5713b0dc0d6b","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":147,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"0bc325f1-619a-4e7b-be96-a86e53e50402","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":147,"box":{"x":70,"y":90,"width":789,"height":11}},{"id":"164b4c79-4e87-4220-8bdb-ae4a7030e4e4","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":147,"box":{"x":70,"y":105,"width":805,"height":11}},{"id":"bcf1a0a7-3b16-4795-bf26-aef8368a5d9d","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":147,"box":{"x":70,"y":120,"width":792,"height":12}},{"id":"1d63963f-a2fd-4a11-88d7-594e26474d39","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":147,"box":{"x":69,"y":135,"width":826,"height":12}},{"id":"6ebeb67f-d5d0-4a15-8f73-fe2b9dad3573","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":147,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"5d061278-2412-419c-9cff-42f861daeeb9","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":147,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"ded8bde8-5f01-4652-b609-642f95b76199","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":147,"box":{"x":69,"y":181,"width":358,"height":9}},{"id":"368cf095-dcc4-4f51-8b47-a4117171029d","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":147,"box":{"x":102,"y":203,"width":734,"height":12}},{"id":"c9ccc7c1-ed4b-4e7e-a3ae-a14a8fb57eee","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":147,"box":{"x":70,"y":218,"width":785,"height":11}},{"id":"13ecaa0c-eaa0-493d-acf6-dcdbe9fd5d80","block_type":"box","text":"periods indicated.","page_number":147,"box":{"x":70,"y":234,"width":124,"height":11}},{"id":"1186d463-33ba-4c4e-a613-40bf6902d3b6","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":147,"box":{"x":101,"y":256,"width":806,"height":11}},{"id":"62e4fc65-4e6e-46f1-84fc-7e3aa9a3f4f4","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":147,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"4bfd26f5-b735-48a7-b44d-9d0ef8da0a64","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":147,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"8b596e56-86c8-4081-98dd-2d8b48de171d","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":147,"box":{"x":69,"y":302,"width":714,"height":11}},{"id":"7089ac09-ee55-4ed0-a2a1-3225263c3503","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":147,"box":{"x":69,"y":332,"width":297,"height":11}},{"id":"57d88aa5-a6b2-48c3-8b22-5f09496106c3","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":147,"box":{"x":102,"y":355,"width":761,"height":11}},{"id":"f4a5b6d8-5e7e-49f4-93aa-79e059640beb","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":147,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"7cd7825c-6cde-49d1-85d8-f3c272be558c","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":147,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"5aaac4b0-d1ba-411d-b199-50d410ed6cd6","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":147,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"4e5fd8c7-63c1-49c6-a0bd-d143a6e54c62","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":147,"box":{"x":69,"y":415,"width":578,"height":9}},{"id":"7f061739-e7f9-4ba5-bb58-d898f6e9a742","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":147,"box":{"x":102,"y":438,"width":734,"height":11}},{"id":"de931726-8ce0-4978-88d8-c5cf49d41776","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":147,"box":{"x":70,"y":453,"width":800,"height":11}},{"id":"6193b704-8047-4f29-9ced-21285cd899ec","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":147,"box":{"x":101,"y":475,"width":806,"height":12}},{"id":"b0bf1e5a-397d-4c4a-8fbf-769d3b8c370f","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":147,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"7768c62d-5bd4-408f-a48f-020d9ef8c529","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":147,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"00f853db-3b32-4a6e-a761-b331bf08d4f0","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":147,"box":{"x":69,"y":521,"width":714,"height":11}},{"id":"19e9b626-29c4-4fed-a12a-3be72f087f3a","block_type":"box","text":"Reduced Initial Sales Charges","page_number":147,"box":{"x":69,"y":551,"width":219,"height":11}},{"id":"33758784-181e-471c-bd92-aad578f69e16","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":147,"box":{"x":102,"y":574,"width":782,"height":11}},{"id":"ab04290a-a3b1-48c8-9ee4-925f677ff39d","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":147,"box":{"x":69,"y":589,"width":827,"height":11}},{"id":"5f754862-dbca-4563-b91f-0d37a27a0b73","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":147,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"ef47f007-681f-4fe8-8e31-f99e3f898800","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":147,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"972c46b0-a3fe-4b95-9a49-b5c371503aa8","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":147,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"3d3d9f91-a202-4250-b0cd-9c9548462488","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":147,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"f72ac649-56bd-4d7d-9b17-5c02edce45a7","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":147,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"370ee4a6-1e65-4c8a-81a7-e49ca1d0beab","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":147,"box":{"x":70,"y":680,"width":603,"height":11}},{"id":"967dd805-c3b5-4c0f-b122-8f1af86e9f27","block_type":"box","text":"Reinvested Dividends.","page_number":147,"box":{"x":102,"y":703,"width":156,"height":8}},{"id":"f392a667-19c1-4e7a-8fec-f0985d452b67","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":147,"box":{"x":265,"y":702,"width":566,"height":12}},{"id":"e47eeeda-db29-4ff3-932e-289330854df6","block_type":"box","text":"reinvestment of dividends.","page_number":147,"box":{"x":69,"y":717,"width":186,"height":9}},{"id":"9ee14610-bb56-4015-a4a8-5ebed69bd821","block_type":"box","text":"Right of Accumulation.","page_number":147,"box":{"x":102,"y":740,"width":158,"height":11}},{"id":"534d4341-6c23-4290-aaf0-aac5a4563625","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":147,"box":{"x":267,"y":740,"width":574,"height":11}},{"id":"f6b9efba-d343-40ba-b61e-16a3c023558f","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":147,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"b180fb09-2010-424c-88ad-2066ee99cce1","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":147,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"9acb6ca8-8c7f-4a71-a052-c08fd47f2fb7","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":147,"box":{"x":70,"y":785,"width":825,"height":11}},{"id":"80440232-35b6-4b4d-8cc4-9b87666d4188","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":147,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"1b6e4906-afca-4fc6-92d5-45b74b7c4cac","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":147,"box":{"x":70,"y":816,"width":828,"height":11}},{"id":"e132625c-78fe-4ece-8b01-24f24f43c2ad","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":147,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"2ba3f674-d08a-4928-b35b-568776c3faca","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":147,"box":{"x":70,"y":846,"width":794,"height":11}},{"id":"ec09b9d7-9921-43c3-8de7-a220acc88c4a","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":147,"box":{"x":70,"y":861,"width":814,"height":11}},{"id":"22afc0a8-a1bb-4dd3-babc-50f8bc58919b","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":147,"box":{"x":70,"y":876,"width":828,"height":11}},{"id":"eebd06e6-ae9d-40de-bdf6-c5debf6408cd","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":147,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"e7bffd94-1fce-4fa0-9c2f-c568be4533ed","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":147,"box":{"x":70,"y":906,"width":776,"height":12}},{"id":"212b5b9c-666e-4bad-ac1a-f851564a27c1","block_type":"box","text":"II-101","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e7aa33ca-4ce1-4fdb-bf24-23dce1f5f696","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71bd59b2-2923-4d43-8c24-016d525ed4af","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":148,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"c0883949-2bbf-4c9a-848f-b6d22bdbfe5d","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":148,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"1925e9d1-803d-4b56-a4ab-ab5fdeaa1580","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":148,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"a53e1438-debb-4d20-8b7d-cb54d2ab081c","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":148,"box":{"x":70,"y":90,"width":774,"height":11}},{"id":"6216205a-9d95-4dce-80a1-3a7932abda40","block_type":"box","text":"Letter of Intent.","page_number":148,"box":{"x":102,"y":113,"width":109,"height":9}},{"id":"014f855e-27c2-4d6d-ad32-f9fc1b9a9f97","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":148,"box":{"x":217,"y":113,"width":681,"height":11}},{"id":"c7311a35-8c0e-4852-8397-5771c8d1ac6f","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":148,"box":{"x":70,"y":128,"width":820,"height":11}},{"id":"02533ffa-7cb3-4a9f-b91e-6074e9ead4b6","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":148,"box":{"x":68,"y":143,"width":792,"height":11}},{"id":"e9edd8ae-5a89-4d6a-af53-bfde7441bad9","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":148,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"193d1168-e84b-419d-ae14-6d591c5c7048","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":148,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"1ea0315c-c7b6-41a5-95b5-f421087b93a6","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":148,"box":{"x":69,"y":188,"width":800,"height":12}},{"id":"2dcaa59a-e6fd-4fae-85cf-548f1edfce13","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":148,"box":{"x":70,"y":203,"width":826,"height":12}},{"id":"486d7589-7ba8-4a1a-b917-a754a0eef4a9","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":148,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"b6c55ff8-03ff-465f-a759-0b20eb31df08","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":148,"box":{"x":70,"y":234,"width":764,"height":11}},{"id":"8e926c55-0cba-4b57-9de6-547c66b63a48","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":148,"box":{"x":70,"y":249,"width":800,"height":11}},{"id":"41ad4a7b-0347-46a3-b5c3-c32dc2c88333","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":148,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"cee5c951-ec98-4394-9cfc-9aa6d49b06f7","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":148,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"82259c75-9133-4822-a2ee-1472df0bf72c","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":148,"box":{"x":70,"y":294,"width":811,"height":11}},{"id":"9c33f790-c89a-4ee9-a700-2951c5e94ded","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":148,"box":{"x":69,"y":309,"width":814,"height":11}},{"id":"fa8fb4c1-5f8c-4f6b-b3b6-32e6f17950a7","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":148,"box":{"x":68,"y":324,"width":827,"height":12}},{"id":"3839165c-d715-4824-ba63-adfa68ec7b0f","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":148,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"dabb2ce3-28d0-4e56-ad95-beec57d67ca5","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":148,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"2fbbd4c0-35f7-4309-a100-96b728fa6e21","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":148,"box":{"x":70,"y":370,"width":807,"height":11}},{"id":"4bd2975d-cf5f-417b-ae23-8cd6931b1d0d","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":148,"box":{"x":69,"y":385,"width":423,"height":11}},{"id":"dfc862b6-80d2-4133-bfd7-df4ec948b45c","block_type":"box","text":"Placement Fees.","page_number":148,"box":{"x":102,"y":408,"width":116,"height":8}},{"id":"fa4fa89e-3720-4fed-9f75-7b51217b1057","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":148,"box":{"x":102,"y":430,"width":777,"height":11}},{"id":"fad5f6e9-7bec-41f2-a06d-e79acb812894","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":148,"box":{"x":68,"y":445,"width":704,"height":12}},{"id":"1d8168c1-4f4a-4ca3-8c4b-b432ef83a37e","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":148,"box":{"x":102,"y":468,"width":741,"height":11}},{"id":"c346ff12-2c94-4283-9a3a-c92d11f543d2","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":495,"width":361,"height":10}},{"id":"dc06aa51-6d37-492f-ac37-726f357d8349","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":148,"box":{"x":535,"y":496,"width":288,"height":9}},{"id":"eba3aae5-c0b9-4634-9337-a91a9b54f2b9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":510,"width":361,"height":11}},{"id":"4013fdfe-e72c-4904-a73a-edac38c0e3dc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":511,"width":288,"height":9}},{"id":"3d5fcd26-b278-447b-b66a-c930d8b13de0","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":525,"width":345,"height":11}},{"id":"ae12c37d-9319-4bab-b8b5-4c115ca1d9ff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":526,"width":305,"height":9}},{"id":"ea1593dc-8a53-4dc6-bc77-368987ae3b7d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":148,"box":{"x":101,"y":550,"width":776,"height":11}},{"id":"59cfecee-f272-42c4-aa26-a486bc68381e","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":148,"box":{"x":69,"y":565,"width":774,"height":11}},{"id":"25f8323e-2dbd-4a5c-988a-1d5f9bb8a5a0","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":148,"box":{"x":70,"y":580,"width":824,"height":11}},{"id":"f1fb05aa-7f52-427e-9dbf-3f07ffb7bcb6","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":148,"box":{"x":69,"y":595,"width":695,"height":11}},{"id":"2d6019ce-db1e-4407-892f-2221adc0d533","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":622,"width":410,"height":11}},{"id":"aa6788fd-a10f-423a-932c-3eabffb274c1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":148,"box":{"x":583,"y":623,"width":240,"height":9}},{"id":"5effccbc-112e-4d26-9df0-45386f5cbcd9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":637,"width":361,"height":11}},{"id":"de881150-6b16-4d1c-8b83-85100aac6de8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":638,"width":288,"height":9}},{"id":"fd3639b9-c2a1-4ada-9f76-895db022017a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":652,"width":345,"height":11}},{"id":"ee274e06-c22c-412e-b8f9-0079123bc8cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":653,"width":305,"height":9}},{"id":"c540e06f-7a10-4342-87e2-71cbee3a38fc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":148,"box":{"x":101,"y":677,"width":806,"height":11}},{"id":"d765dfbc-f20b-4e9f-98c5-76527ea8aa77","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":148,"box":{"x":68,"y":692,"width":821,"height":11}},{"id":"beae49a6-6096-4242-8923-8643a5c1c392","block_type":"box","text":"SM","page_number":148,"box":{"x":890,"y":693,"width":11,"height":4}},{"id":"1d542fd4-eb3f-410c-9e37-614439e1a719","block_type":"box","text":",","page_number":148,"box":{"x":903,"y":700,"width":2,"height":3}},{"id":"6d0be694-49bb-4bda-a0f6-3e2ef5575276","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":148,"box":{"x":70,"y":707,"width":816,"height":12}},{"id":"358aa7d6-1310-478c-8b4c-63ea6b0ff601","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":148,"box":{"x":70,"y":722,"width":835,"height":12}},{"id":"f2c2536d-4f1e-449c-b779-1ebbfd46ee56","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":738,"width":520,"height":11}},{"id":"e75ef4d6-5b06-42be-a3d8-610e2d707b22","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":765,"width":361,"height":10}},{"id":"7010077e-1de5-48c2-9537-b36f2bd76f67","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":148,"box":{"x":535,"y":765,"width":288,"height":9}},{"id":"4aeb0c3f-ebbd-464f-af13-5edef8af92b1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":780,"width":361,"height":10}},{"id":"63b75ccb-7b42-48d6-b0d7-97a76a93e81a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":780,"width":288,"height":9}},{"id":"aa67efcb-b089-4c5e-a3d0-59cde6686933","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":795,"width":345,"height":10}},{"id":"64948d15-f57b-400b-812d-30cf9346ad31","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":796,"width":305,"height":8}},{"id":"70ee9d2a-43f0-4c66-bff8-88f2a0fc37ea","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":148,"box":{"x":101,"y":819,"width":743,"height":12}},{"id":"f68a6dc6-b02a-43d1-b178-5dbf9786b46c","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":835,"width":674,"height":11}},{"id":"47603523-6228-431d-acab-3861792a3f3b","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":862,"width":361,"height":10}},{"id":"bb181cda-bd1f-48cf-bddf-d54b294a27bf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":862,"width":288,"height":9}},{"id":"504ab9f2-522f-4f5e-9980-1a9f58fb8286","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":877,"width":361,"height":10}},{"id":"9d195a1e-c09a-49e0-a3e0-9f2f748b5ca3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":535,"y":878,"width":288,"height":8}},{"id":"b64efa0e-31cd-47f4-ad4c-ef4d458883a8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":892,"width":345,"height":10}},{"id":"1b9037b3-bffd-4ebb-8be0-41d95583ccff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":518,"y":893,"width":305,"height":9}},{"id":"15dc398a-705b-49c3-adb6-5594ec21931d","block_type":"box","text":"II-102","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"506b8f26-ea7a-45eb-814a-0c8e13f4b89c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19a19003-8d09-4376-9353-3e5a98b7d715","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":149,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"95cd3265-4596-4ce9-9251-4c57e77898b6","block_type":"box","text":"may be up to the following amounts:","page_number":149,"box":{"x":69,"y":60,"width":257,"height":11}},{"id":"a92c973f-ece8-465c-80e1-bbea395399ce","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":87,"width":410,"height":11}},{"id":"1030489e-7f74-42de-ae8a-b54ee0cf140c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":149,"box":{"x":583,"y":88,"width":240,"height":8}},{"id":"60f79bc6-4cd3-4b7a-b5c7-f67c7de221b0","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":102,"width":361,"height":10}},{"id":"d28eb51c-f947-4e9e-bf54-47115dc2065d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":535,"y":103,"width":288,"height":9}},{"id":"d4eae463-5d79-451a-af3a-6a54e8e1fd32","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":117,"width":345,"height":11}},{"id":"ebaa077f-3c9f-4e91-950f-077be376bb96","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":149,"box":{"x":518,"y":118,"width":305,"height":9}},{"id":"81e1b5ca-0b3f-4088-90ab-23af2fb91314","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":149,"box":{"x":101,"y":142,"width":768,"height":11}},{"id":"37c6650c-b73b-4219-ba4c-532c24d66fa4","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":149,"box":{"x":70,"y":157,"width":371,"height":11}},{"id":"65261f31-a167-42c9-8003-3bbf75bfe11e","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":184,"width":361,"height":10}},{"id":"db939a62-011c-462c-b83a-40a0b06ec70a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":149,"box":{"x":535,"y":185,"width":288,"height":8}},{"id":"1b2fda89-1fcb-49df-bdac-35799ab7a983","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":199,"width":361,"height":10}},{"id":"52dc82eb-4755-4ab5-8aea-bc7d6b054955","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":149,"box":{"x":535,"y":200,"width":288,"height":9}},{"id":"7bab26a5-8870-4760-995a-2c1b39a2a825","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":214,"width":345,"height":11}},{"id":"9adc103d-5531-496d-b0f5-6ef85e58abc7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":149,"box":{"x":518,"y":215,"width":305,"height":9}},{"id":"35d433b1-2e3c-4867-be22-0adc008b3fee","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":149,"box":{"x":101,"y":239,"width":778,"height":11}},{"id":"b0708eed-0e90-4c48-ac90-64c406c6970c","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":149,"box":{"x":69,"y":254,"width":830,"height":11}},{"id":"e8c92e6b-13ea-4c4c-8c7d-4ab42a7ff7f6","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":149,"box":{"x":70,"y":269,"width":371,"height":11}},{"id":"63c60fe3-5929-433e-8173-6979865ad5f9","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":296,"width":410,"height":11}},{"id":"63ea90bb-345c-4c24-a58e-40ac42858ee2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":149,"box":{"x":583,"y":297,"width":240,"height":9}},{"id":"479f1d32-aae9-49b9-b61d-5ecf67c41923","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":311,"width":361,"height":11}},{"id":"1e8ac7b3-7b94-4b3d-a276-6e2bb0b53cc2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":149,"box":{"x":535,"y":312,"width":288,"height":9}},{"id":"4540b926-2eac-42cb-96f0-d9a93e4bc2ed","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":326,"width":345,"height":11}},{"id":"ebcd3d1e-bb81-44a8-aa12-5892e99b2f76","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":518,"y":327,"width":305,"height":9}},{"id":"447369dd-4652-4ea1-b682-9414f5e306cd","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":149,"box":{"x":101,"y":351,"width":779,"height":11}},{"id":"5095c8ab-8fc5-48f5-9678-78e54606e633","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":149,"box":{"x":70,"y":366,"width":780,"height":11}},{"id":"5147a26f-c960-4e6d-ac18-acfdedf07269","block_type":"box","text":"$250,000 and above . . . .","page_number":149,"box":{"x":167,"y":393,"width":182,"height":11}},{"id":"69f7a4ad-3e73-428d-98ff-0f2b925fc70a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":149,"box":{"x":355,"y":394,"width":468,"height":9}},{"id":"44491498-9325-4541-a2a7-d952bd52c335","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":149,"box":{"x":101,"y":418,"width":779,"height":11}},{"id":"d13a57f8-aebd-42b7-94e1-aecd42ca8ed5","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":149,"box":{"x":70,"y":433,"width":819,"height":11}},{"id":"b5da0873-f80d-47eb-a472-a2cc4b2ec3df","block_type":"box","text":"the following amounts:","page_number":149,"box":{"x":68,"y":448,"width":161,"height":11}},{"id":"6fb7502a-7c2c-4e15-b1da-bce812806f67","block_type":"box","text":"$100,000 and above . . . .","page_number":149,"box":{"x":167,"y":475,"width":182,"height":11}},{"id":"258edf6a-384c-4752-af0f-411c9b8fb14f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":355,"y":476,"width":468,"height":8}},{"id":"de91ad85-10b7-4c30-8c2c-e500173b7083","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":149,"box":{"x":101,"y":499,"width":779,"height":11}},{"id":"621bd987-57a9-4be9-be7d-395b6e06d151","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":149,"box":{"x":70,"y":515,"width":775,"height":11}},{"id":"0ff35f05-a1c7-4105-90a4-8cb7c350b039","block_type":"box","text":"$250,000 and above . . . .","page_number":149,"box":{"x":167,"y":542,"width":182,"height":11}},{"id":"50accc14-49c9-4e29-9952-4f95fa372a62","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":355,"y":542,"width":468,"height":9}},{"id":"dbc01ff6-c66a-473a-aeb9-60a7cc168fcc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":149,"box":{"x":101,"y":566,"width":788,"height":11}},{"id":"1445a446-818a-4dd0-9c11-75b4ab226e24","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":149,"box":{"x":69,"y":581,"width":792,"height":11}},{"id":"48a9d14a-a1ca-426d-9bd1-039cc54f8349","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":149,"box":{"x":70,"y":597,"width":787,"height":11}},{"id":"92b4665a-749b-4640-969e-72694e266c99","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":149,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"9105b4c4-5d7b-485e-a57e-d599550fbde3","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":149,"box":{"x":70,"y":627,"width":729,"height":11}},{"id":"8637178d-0750-4310-8007-f8c3f4d50a06","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":654,"width":410,"height":11}},{"id":"a2415235-9a23-4aae-b5ea-25df329b7675","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":149,"box":{"x":583,"y":655,"width":240,"height":8}},{"id":"f9bdd977-e83b-4692-9fee-1f9ff1f1ebdb","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":669,"width":361,"height":10}},{"id":"ae8bced6-9e12-4af7-a314-ff873cac6123","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":149,"box":{"x":535,"y":670,"width":288,"height":9}},{"id":"6930b789-7833-4ef1-a7ca-6d2524303e44","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":684,"width":345,"height":10}},{"id":"3910f4a0-5144-4ab2-a08f-30f817e85b5d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":518,"y":685,"width":305,"height":9}},{"id":"d56e7ae4-4aa6-40b8-9a7f-82c919008dee","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":149,"box":{"x":101,"y":709,"width":801,"height":11}},{"id":"933b2029-40fa-4143-8aab-9ff2f561f45f","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":149,"box":{"x":69,"y":724,"width":769,"height":11}},{"id":"63a33285-7619-4102-b598-8047ac9ad999","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":149,"box":{"x":70,"y":739,"width":818,"height":10}},{"id":"2f5b929f-138e-40a5-85aa-b257c106416a","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":149,"box":{"x":68,"y":754,"width":401,"height":11}},{"id":"5656a822-2cf2-49b7-ae5a-cb9f3b004ab7","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":781,"width":410,"height":11}},{"id":"4ead26e6-373a-4951-8991-028aa884b1f8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":149,"box":{"x":583,"y":782,"width":240,"height":9}},{"id":"fdcc9b28-d0ec-4eb9-a66c-8f1e60fbea10","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":796,"width":361,"height":11}},{"id":"85b493e2-c487-4a4e-9b85-e59706cfdc11","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":149,"box":{"x":535,"y":797,"width":288,"height":9}},{"id":"d7cb3183-147d-4925-a784-19dd909e0f7b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":811,"width":345,"height":11}},{"id":"a8820844-36d6-4710-a3ef-b085a57bec31","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":518,"y":812,"width":305,"height":9}},{"id":"7ded13ef-dc5c-409b-8841-573c35b2c7a8","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":149,"box":{"x":101,"y":836,"width":398,"height":11}},{"id":"112f23a4-fb78-4967-a930-5c9fed4924d5","block_type":"box","text":"®","page_number":149,"box":{"x":500,"y":836,"width":6,"height":5}},{"id":"92672784-bcf5-4fbb-a998-8e6d0e24f5c5","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":149,"box":{"x":513,"y":836,"width":264,"height":10}},{"id":"daa86a85-d6e8-44db-9e27-17de0cae7377","block_type":"box","text":"®","page_number":149,"box":{"x":778,"y":836,"width":6,"height":5}},{"id":"a2c5959f-e18e-45a3-b7f4-a893ef589b45","block_type":"box","text":"Index 2035","page_number":149,"box":{"x":791,"y":836,"width":79,"height":9}},{"id":"53504e7e-d8e4-4bed-aa2a-c2878dd5d16b","block_type":"box","text":"Fund, BlackRock LifePath","page_number":149,"box":{"x":70,"y":851,"width":177,"height":10}},{"id":"f1c387bc-6a7a-4928-be4f-0c31d831415c","block_type":"box","text":"®","page_number":149,"box":{"x":249,"y":851,"width":6,"height":5}},{"id":"8c0b428c-3e80-4a50-8d77-05c6db61f3f5","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":149,"box":{"x":261,"y":851,"width":265,"height":10}},{"id":"36044862-b659-497d-9b3e-5c7130b0f5a3","block_type":"box","text":"®","page_number":149,"box":{"x":527,"y":851,"width":6,"height":5}},{"id":"865b17ed-9636-4a11-b658-5b7d084c66f6","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":149,"box":{"x":539,"y":851,"width":265,"height":10}},{"id":"255d2e10-0a8b-431b-9923-97c0445ef3e7","block_type":"box","text":"®","page_number":149,"box":{"x":805,"y":851,"width":6,"height":5}},{"id":"c00235a2-7c01-48b9-9f7e-7e1802451508","block_type":"box","text":"Index 2050","page_number":149,"box":{"x":817,"y":851,"width":80,"height":9}},{"id":"94ccedb9-5286-4711-9a56-b996837939b1","block_type":"box","text":"Fund, BlackRock LifePath","page_number":149,"box":{"x":70,"y":866,"width":177,"height":11}},{"id":"265f96db-f5c9-4fdd-9eb8-b813a2bd13e9","block_type":"box","text":"®","page_number":149,"box":{"x":248,"y":866,"width":6,"height":5}},{"id":"19bf3389-8c6c-4efc-85b1-9c61fae951de","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":149,"box":{"x":261,"y":866,"width":263,"height":11}},{"id":"e9091985-fb18-496a-a490-73583a99bb9e","block_type":"box","text":"®","page_number":149,"box":{"x":526,"y":866,"width":6,"height":5}},{"id":"849c910b-aea3-4f59-8670-ff6addf920e6","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":149,"box":{"x":538,"y":866,"width":264,"height":11}},{"id":"c6114182-26dc-4da6-b03a-c3ddf7fcfa70","block_type":"box","text":"®","page_number":149,"box":{"x":803,"y":866,"width":6,"height":5}},{"id":"67f758ab-2b19-4792-8889-5feaf70e255a","block_type":"box","text":"Index 2065","page_number":149,"box":{"x":815,"y":866,"width":80,"height":9}},{"id":"3ce149ea-0fa3-44e9-8aab-7d0d7970ef96","block_type":"box","text":"II-103","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"46fa8e6d-5de9-47d7-8e3d-ec7e59d035e9","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9903f54b-761f-4498-afdb-7b6da562f7da","block_type":"box","text":"Fund, BlackRock LifePath","page_number":150,"box":{"x":70,"y":45,"width":177,"height":10}},{"id":"70f83c45-63f0-482f-8e01-10637dd18d98","block_type":"box","text":"®","page_number":150,"box":{"x":248,"y":45,"width":6,"height":4}},{"id":"2c3b65b2-1fbf-4ed4-9c27-6a643eded4b6","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":150,"box":{"x":261,"y":45,"width":290,"height":9}},{"id":"23da2292-9f06-432c-bf60-4b2a7f931d68","block_type":"box","text":"®","page_number":150,"box":{"x":552,"y":45,"width":6,"height":4}},{"id":"82ff9de2-ce43-4c0a-898d-8afb2a438d83","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":150,"box":{"x":564,"y":45,"width":324,"height":10}},{"id":"a216d080-57b3-496f-9f5f-37bafe7a200d","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":150,"box":{"x":68,"y":60,"width":401,"height":11}},{"id":"c66224b6-5926-4652-a78e-c709ba66d28e","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":150,"box":{"x":167,"y":87,"width":206,"height":11}},{"id":"047ed54a-9eb5-4dc5-b303-e9d45309e911","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":150,"box":{"x":380,"y":88,"width":443,"height":8}},{"id":"bc32b32d-25d3-4a56-a335-492a48e0a2e5","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":150,"box":{"x":101,"y":111,"width":657,"height":11}},{"id":"92ddc401-5e1d-4087-8051-a98a7adb82f7","block_type":"box","text":"SM","page_number":150,"box":{"x":760,"y":112,"width":10,"height":4}},{"id":"d70c5c74-1ef9-47a6-8d00-601a4c71a351","block_type":"box","text":", the placement","page_number":150,"box":{"x":773,"y":112,"width":110,"height":10}},{"id":"195c31cf-ae33-48b9-93b6-af72a6ead298","block_type":"box","text":"fees may be up to the following amounts:","page_number":150,"box":{"x":68,"y":126,"width":294,"height":12}},{"id":"567c7cf7-d5e0-401e-8f8b-171ebd279b0a","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":150,"box":{"x":167,"y":154,"width":206,"height":11}},{"id":"e053fde4-07f9-4084-9a97-df78eddc25a0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":150,"box":{"x":380,"y":154,"width":443,"height":9}},{"id":"a246d0ad-a98e-4bfb-a987-e5817cd801b4","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":150,"box":{"x":101,"y":178,"width":787,"height":11}},{"id":"2faf768c-8e49-46ee-af78-9cb2846920bc","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":150,"box":{"x":70,"y":193,"width":808,"height":11}},{"id":"361dfbb5-0220-4baf-9cf9-abd7de19297c","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":150,"box":{"x":70,"y":208,"width":393,"height":12}},{"id":"cdfae83c-844f-4bc3-b491-e4340971f46d","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":150,"box":{"x":102,"y":231,"width":740,"height":11}},{"id":"d99c2406-668f-4295-a3d4-529887f3446d","block_type":"box","text":"example, a sale of $4 million wor th of Investor A Shares of BlackRock Impact Mor tgage Fund of BlackRock Funds V","page_number":150,"box":{"x":69,"y":246,"width":823,"height":11}},{"id":"861a8429-217d-49ec-8dda-8eaa882363e2","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":150,"box":{"x":68,"y":261,"width":780,"height":11}},{"id":"500ad816-d5dd-41f6-8b08-18cc77e57362","block_type":"box","text":"$1 million).","page_number":150,"box":{"x":69,"y":276,"width":79,"height":11}},{"id":"0a3ddbd7-8935-428b-8b4f-2d84090f078f","block_type":"box","text":"Other.","page_number":150,"box":{"x":102,"y":299,"width":41,"height":9}},{"id":"75dba463-564e-4762-b0b9-815523b4cb55","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":150,"box":{"x":149,"y":299,"width":698,"height":11}},{"id":"4be92d01-b3ed-4907-bfd3-0d8a9f2467b6","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":150,"box":{"x":69,"y":314,"width":839,"height":11}},{"id":"e969a6b9-a7f6-4643-9ed3-c3947e59659b","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through cer tain employer","page_number":150,"box":{"x":69,"y":329,"width":790,"height":12}},{"id":"0ab7f0e7-f67a-44e8-b469-b2dd2e6a5850","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":150,"box":{"x":69,"y":344,"width":825,"height":11}},{"id":"645f2e9d-aa6f-404e-a683-c22c4ccc3044","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":150,"box":{"x":68,"y":360,"width":773,"height":11}},{"id":"d486c253-dafc-43ba-aa20-48f781e38780","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":150,"box":{"x":70,"y":375,"width":838,"height":11}},{"id":"0e269cd2-e4b6-4148-9b28-ef26bacc1ce3","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":150,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"8029d922-4f6c-4e54-9bea-91f70541be38","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":150,"box":{"x":69,"y":405,"width":836,"height":11}},{"id":"1066769b-9904-423b-a99e-e5679f4f7c16","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":150,"box":{"x":69,"y":420,"width":793,"height":11}},{"id":"186749f4-b216-41f7-8abd-6ef5158e790d","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":150,"box":{"x":69,"y":435,"width":811,"height":11}},{"id":"26b554e9-4655-4be0-bf61-4588d5ccf279","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":150,"box":{"x":68,"y":450,"width":827,"height":12}},{"id":"9691c2d8-131f-4902-b2cd-9232655e1a71","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":150,"box":{"x":70,"y":465,"width":782,"height":12}},{"id":"4fea01e4-bda6-4c84-bd3b-979cddc9ce50","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":150,"box":{"x":69,"y":481,"width":830,"height":11}},{"id":"85ae2fc1-1d9c-4865-b6dc-7b4ed9f5b9fd","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":150,"box":{"x":69,"y":496,"width":815,"height":11}},{"id":"8eec14b4-85ad-4565-9874-835b36b4b4a4","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":150,"box":{"x":70,"y":511,"width":799,"height":11}},{"id":"f7ddd2d4-1d21-431d-855f-90b7138a253e","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":150,"box":{"x":69,"y":526,"width":752,"height":11}},{"id":"69822415-495e-434d-b12d-bd5c5a5f47c0","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":150,"box":{"x":70,"y":541,"width":836,"height":11}},{"id":"d501b512-8a68-4bc0-941b-5cfad1fc7744","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":150,"box":{"x":69,"y":556,"width":812,"height":11}},{"id":"48c23c43-a89a-481c-a948-5a2b037316d5","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":150,"box":{"x":69,"y":571,"width":839,"height":12}},{"id":"e4a7f78f-892a-45b3-92b5-11e44fe1e43b","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":150,"box":{"x":69,"y":586,"width":788,"height":12}},{"id":"d1daba11-2518-412d-809b-b41c969ba1e1","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":150,"box":{"x":70,"y":601,"width":838,"height":12}},{"id":"b5bfb7de-cebb-4bef-aa08-e6a3a5cf8281","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":150,"box":{"x":69,"y":617,"width":810,"height":11}},{"id":"e66da2c0-a351-4c3a-b38f-026f473b3641","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":150,"box":{"x":68,"y":632,"width":787,"height":11}},{"id":"0f206af3-3a04-4d91-ac10-f892fe712a85","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":150,"box":{"x":69,"y":647,"width":834,"height":11}},{"id":"d6efcafd-7a65-41d6-97d1-15f5c5e996cf","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":150,"box":{"x":70,"y":662,"width":808,"height":11}},{"id":"7d40abf2-d95f-431d-8729-3056b140b4d3","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":150,"box":{"x":69,"y":677,"width":837,"height":11}},{"id":"0e3a6ad1-0c0e-44ae-ae4a-50b5f80b9a86","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":150,"box":{"x":70,"y":692,"width":820,"height":11}},{"id":"8cbcb149-22e7-43d6-8b0f-45af1b3ac99e","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":150,"box":{"x":69,"y":707,"width":813,"height":12}},{"id":"1bc61113-e161-49e0-8788-8d2aad9e7e33","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":150,"box":{"x":70,"y":723,"width":831,"height":11}},{"id":"7b58a7a5-df95-48b9-8dd4-a56e693ed3cb","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":150,"box":{"x":69,"y":738,"width":783,"height":11}},{"id":"d483e62f-ed2d-4f37-b6f4-eddaf474c240","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":150,"box":{"x":70,"y":753,"width":668,"height":11}},{"id":"ae32e675-38f7-46e9-939b-b54319006c2d","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":150,"box":{"x":102,"y":775,"width":754,"height":12}},{"id":"c8832317-952f-49f2-b207-c1bd6589dc5a","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":150,"box":{"x":70,"y":790,"width":823,"height":12}},{"id":"0a731a78-3df7-47c0-b23f-fdd50d092ad0","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":150,"box":{"x":69,"y":806,"width":833,"height":10}},{"id":"94ec9b40-4672-411a-bf0a-5d419f8ae394","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":150,"box":{"x":70,"y":821,"width":802,"height":11}},{"id":"acdba78d-a09a-4e49-8ded-cd54a84ee4fe","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":150,"box":{"x":70,"y":836,"width":781,"height":11}},{"id":"a4ad6677-df7c-4a72-9508-55e72e1d2801","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":150,"box":{"x":70,"y":851,"width":819,"height":11}},{"id":"a5d8ca26-71cf-43e8-a125-67e0a539992b","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":150,"box":{"x":68,"y":866,"width":835,"height":11}},{"id":"a2ad9d86-ab3e-4d65-b0ce-96a57983ed52","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":150,"box":{"x":69,"y":881,"width":813,"height":11}},{"id":"a2adb63a-424e-463f-8bd6-92312828bac4","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":150,"box":{"x":70,"y":896,"width":792,"height":11}},{"id":"fdab12d7-5bf7-4715-9665-7a3c3677b2ec","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":150,"box":{"x":70,"y":911,"width":813,"height":12}},{"id":"be0cfc2a-b161-47f1-82cb-f87d21898224","block_type":"box","text":"II-104","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"36fcd5d0-7775-48e2-a614-3f87b7e47fcc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47e5f37e-0183-4129-b747-b39e4d8e0441","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":151,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"b99e7559-8e4a-4477-bfc3-f578bd50e965","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":151,"box":{"x":70,"y":60,"width":790,"height":11}},{"id":"ce153e0e-d36e-47e8-9051-8d70a65feffd","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":151,"box":{"x":69,"y":75,"width":736,"height":11}},{"id":"9efeb725-9fda-4387-b313-39be38ea843a","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":151,"box":{"x":101,"y":98,"width":763,"height":11}},{"id":"56157c1c-4969-497b-8bfa-8973e729c93b","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":151,"box":{"x":70,"y":113,"width":782,"height":11}},{"id":"5fb3cebd-dd28-4d05-8820-e7785449dafe","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":151,"box":{"x":70,"y":128,"width":832,"height":11}},{"id":"c1d1d297-6dc9-4076-88ef-6b00b04cada9","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":151,"box":{"x":68,"y":142,"width":839,"height":12}},{"id":"27188854-1659-47cc-af17-5200b10a866e","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":151,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"db39bc5b-0797-409f-b7ec-80d6e9d69df1","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":151,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"c85d36ea-3149-4c87-b1ea-adbd81c0eac2","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":151,"box":{"x":70,"y":188,"width":818,"height":12}},{"id":"8f2b6eb7-4b97-4952-9a3f-695030fbc1b8","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":151,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"14841ec7-659e-4bd2-932d-e0170bddb91a","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":151,"box":{"x":69,"y":218,"width":830,"height":12}},{"id":"61d25c70-0048-4f40-91af-d3fed97123c8","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":151,"box":{"x":70,"y":234,"width":778,"height":11}},{"id":"78cf714f-8af3-498f-9353-23a0abf93fa9","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":151,"box":{"x":70,"y":249,"width":526,"height":11}},{"id":"d6f5d281-e693-4e6a-8e5e-3821b0bcf265","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":151,"box":{"x":101,"y":271,"width":788,"height":12}},{"id":"f8e0cfb6-5ca6-4968-95e3-938f5615307f","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":151,"box":{"x":69,"y":286,"width":819,"height":12}},{"id":"5b66670a-76b0-4e2f-8915-7da6c7225cc8","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":151,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"33c061da-296a-4e4a-a53c-f3ed619aacc6","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":151,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"854058f0-1d25-4aca-8d67-09b0588f54ce","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":151,"box":{"x":68,"y":332,"width":812,"height":11}},{"id":"62ad0a25-c9ca-4f59-9af0-1babe823024f","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":151,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"ccdb8782-d793-48d4-9366-201e4ed749ac","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":151,"box":{"x":69,"y":362,"width":772,"height":11}},{"id":"d5ac414a-a436-4220-b2ed-f90dafa28513","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":151,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"bd1767cd-7758-44af-bafb-954edd570a9d","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":151,"box":{"x":69,"y":392,"width":814,"height":12}},{"id":"7fffe0c2-8dc8-4ec9-9db9-fa6efa2741a7","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":151,"box":{"x":70,"y":408,"width":772,"height":11}},{"id":"bbb07c39-3995-41a6-9472-c30007dbb69a","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":151,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"122790f8-2456-4384-88c5-10b607de0119","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":151,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"d45afa22-1bb7-4495-90c4-3a3d03f569d2","block_type":"box","text":"the absolute discretion of a Fund.","page_number":151,"box":{"x":68,"y":453,"width":239,"height":9}},{"id":"bd479c71-b42b-48fe-ad3f-fd56856048ea","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":151,"box":{"x":101,"y":475,"width":794,"height":12}},{"id":"3d10ea98-995f-4a8f-9821-3c780d5ed844","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":151,"box":{"x":68,"y":490,"width":776,"height":12}},{"id":"d64bdfc0-bd6f-4b56-bfa9-0dc66cd4bb77","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":151,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"4ff4476f-5cbc-4296-ac0e-6ea5081c01d9","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":151,"box":{"x":70,"y":521,"width":800,"height":10}},{"id":"c2136f34-80a0-4095-883a-80a492e7259c","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":151,"box":{"x":70,"y":536,"width":806,"height":11}},{"id":"4ac0ca20-8316-4619-9de7-1aa8441b2465","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":151,"box":{"x":70,"y":551,"width":823,"height":11}},{"id":"8a6a495a-4f61-4240-af5c-5e6301861d69","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":151,"box":{"x":70,"y":566,"width":770,"height":11}},{"id":"64e43576-22c0-4952-b674-68224c738536","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":151,"box":{"x":70,"y":581,"width":766,"height":11}},{"id":"cbc54f03-c677-4609-b215-8b8ff4387641","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":151,"box":{"x":69,"y":596,"width":837,"height":12}},{"id":"7f689fc0-322d-4b26-849d-6cd49b1879cc","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":151,"box":{"x":70,"y":612,"width":805,"height":11}},{"id":"d22fcab9-6056-4c99-9194-6f319504b52a","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":151,"box":{"x":70,"y":626,"width":832,"height":12}},{"id":"0bd54264-b7da-4c0c-b9f7-fcadf8c63e38","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":151,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"71e302cb-3a86-45db-890c-dd02a69eb465","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":151,"box":{"x":70,"y":657,"width":746,"height":11}},{"id":"3e8bc135-6277-49ed-90f3-b4d95976eea7","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":151,"box":{"x":70,"y":672,"width":307,"height":11}},{"id":"754f84bd-631f-480b-b6d2-6002b04fa158","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":151,"box":{"x":102,"y":695,"width":799,"height":11}},{"id":"4c3157b7-a090-49d2-a310-df5181225ff4","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":151,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"03cebbd4-d834-412c-9903-33b9f2fbaa83","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":151,"box":{"x":68,"y":725,"width":317,"height":11}},{"id":"299d9757-0efc-4498-8258-d4f7703200ee","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":151,"box":{"x":101,"y":748,"width":326,"height":11}},{"id":"b95030ad-6394-4878-95f9-99854aababe2","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":151,"box":{"x":434,"y":748,"width":413,"height":11}},{"id":"3afafc45-d9a8-4395-a7eb-8476435a9698","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":151,"box":{"x":69,"y":763,"width":811,"height":11}},{"id":"2204c587-1af3-450f-be40-c5ee86fd7d84","block_type":"box","text":"public or private investment company.","page_number":151,"box":{"x":70,"y":778,"width":266,"height":11}},{"id":"521995f2-cc0e-4261-9d77-fc684f15db02","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":151,"box":{"x":102,"y":801,"width":372,"height":11}},{"id":"4b01dc24-3f76-4df2-8657-59731342ebfd","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":151,"box":{"x":481,"y":801,"width":421,"height":11}},{"id":"6c446681-896a-41fa-be64-66e329fa3ebc","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":151,"box":{"x":70,"y":816,"width":825,"height":11}},{"id":"dc869d0c-9af8-4608-afc3-d16901f96f55","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":151,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"8b313abe-ec93-46d0-9657-767d069e9db2","block_type":"box","text":"II-105","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cc8df82f-a2ca-4244-b52a-1c55eb88a6a5","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8628757-1713-482e-8979-190b69ec0642","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":152,"box":{"x":69,"y":45,"width":405,"height":11}},{"id":"5c3a9594-1024-4df6-b38f-bf5cc069ce20","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":152,"box":{"x":102,"y":67,"width":799,"height":12}},{"id":"10cd472e-f718-4f89-bd81-192e15cccc59","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":152,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"26be12f9-f570-45dd-b6f7-fff67b0d5578","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":152,"box":{"x":70,"y":97,"width":778,"height":12}},{"id":"62c6aa83-cf5b-4814-886e-d41f455d07ed","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":152,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"77b4c2f7-81ca-4bd5-8902-63e86d56de8f","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":152,"box":{"x":69,"y":128,"width":311,"height":9}},{"id":"ce136272-b6af-4432-be60-f9327b366ce6","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":152,"box":{"x":102,"y":150,"width":789,"height":12}},{"id":"cfe2289e-eeff-47d2-9404-2efe82513e9a","block_type":"box","text":"intermediary associated with the account.","page_number":152,"box":{"x":70,"y":166,"width":297,"height":11}},{"id":"4fc9124c-42a8-49a4-9a07-347d1b29045b","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":152,"box":{"x":102,"y":188,"width":669,"height":12}},{"id":"2e0db990-8479-4011-ad79-64e90d0d4a3d","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":152,"box":{"x":101,"y":211,"width":763,"height":11}},{"id":"8c4d8d9e-5a4d-4544-9451-9f721dc56bcf","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":152,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"dee5d15f-f7ed-480e-a766-31278ed5320d","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":152,"box":{"x":68,"y":241,"width":813,"height":11}},{"id":"7f837863-2a88-4b35-ba7c-0cb385147a70","block_type":"box","text":"CDSC shares.","page_number":152,"box":{"x":69,"y":256,"width":97,"height":9}},{"id":"35f87ff4-5ced-487d-b070-8281a0fc5be7","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":152,"box":{"x":102,"y":279,"width":804,"height":11}},{"id":"e1772abc-4e4e-4dbb-8bd7-fc215937c3fe","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":152,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"5ac7243a-1988-4d2f-81db-bcaa81613295","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":152,"box":{"x":69,"y":309,"width":786,"height":11}},{"id":"0362ba79-df81-4c11-8a57-fe3dfac0d98e","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":152,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"441de0a1-2219-4f53-bec4-8aa31ba0a5ce","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":152,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"9b6e4ebe-daec-4c6d-b7a4-029f6990cc24","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":152,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"a6ee8b0f-0d24-4ed1-9b1a-ee6cb73e9a40","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":152,"box":{"x":70,"y":370,"width":822,"height":11}},{"id":"9fd269a4-fd52-4bf4-ba25-4fab02a6b977","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":152,"box":{"x":69,"y":385,"width":618,"height":11}},{"id":"30ad1d9d-187b-440d-b8ed-c9f4360e688b","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":152,"box":{"x":102,"y":407,"width":782,"height":12}},{"id":"d0555620-ffcd-4f0b-bee9-a55d5f5ed0b7","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":152,"box":{"x":70,"y":423,"width":764,"height":11}},{"id":"c27bc7cc-d963-40a8-9020-41f5420ad636","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":152,"box":{"x":69,"y":438,"width":820,"height":11}},{"id":"ae4e81f4-05a9-433d-b1b6-f6c0e76399e3","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":152,"box":{"x":70,"y":453,"width":806,"height":11}},{"id":"c2d716bf-3e48-4453-89a2-f41ce44d260f","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":152,"box":{"x":70,"y":468,"width":813,"height":11}},{"id":"6abe10f5-17ff-4c9e-9b33-7eb8f2bed586","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":152,"box":{"x":68,"y":483,"width":811,"height":11}},{"id":"9da755c8-1db7-4cb2-8dd5-c80807f3aa16","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":152,"box":{"x":68,"y":498,"width":554,"height":11}},{"id":"c1636621-2e03-4b81-a59d-0d16724ad666","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":152,"box":{"x":102,"y":521,"width":783,"height":11}},{"id":"7960a577-2a48-4f87-a62f-685c77ed6d6b","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":152,"box":{"x":70,"y":536,"width":808,"height":11}},{"id":"339dcbdc-36c8-4a01-8c00-8c402b569314","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":152,"box":{"x":70,"y":551,"width":797,"height":11}},{"id":"ff367c9a-cfbc-4f4c-a573-0b2e081e86a0","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":152,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"91a7a5f5-67e5-4512-86e7-06fd70484a47","block_type":"box","text":"Investor A Shares.","page_number":152,"box":{"x":70,"y":581,"width":128,"height":9}},{"id":"2995914e-e025-4875-8833-67db26c4fbfd","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":152,"box":{"x":102,"y":604,"width":378,"height":9}},{"id":"ba2d8d21-a8e4-4545-97d7-5b9785fe3122","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":152,"box":{"x":102,"y":627,"width":804,"height":11}},{"id":"9ea39a87-5b75-4bf6-bcf1-8d70d49d43dd","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":152,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"3dbb3f83-c367-425f-8a94-b130e3c59cf6","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":152,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"5236c231-607d-4de9-b448-42ba5af71539","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":152,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"783467d5-f97b-486f-91a5-4347b1d78fac","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":152,"box":{"x":70,"y":687,"width":793,"height":11}},{"id":"60912a8c-8114-4a39-92ac-e48fe8602894","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":152,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"2b7993e2-f061-42d3-b9f8-b1dd179a35ed","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":152,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"24200285-d244-41bd-9fc6-30418433caf6","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":152,"box":{"x":69,"y":732,"width":793,"height":12}},{"id":"0d558223-3f51-40a5-bd3e-0bd2524d9e89","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":152,"box":{"x":69,"y":748,"width":817,"height":11}},{"id":"6fb3cc42-1766-47c8-a631-e411630fb059","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":152,"box":{"x":68,"y":763,"width":814,"height":11}},{"id":"039b24bc-bf36-465c-a633-167d1febbc35","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":152,"box":{"x":69,"y":778,"width":828,"height":11}},{"id":"7d3acefc-5e31-4b9f-8bb7-4d0883e8d7d3","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":152,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"329439f2-5433-4808-8dbe-bbd1d8206fdc","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":152,"box":{"x":69,"y":808,"width":718,"height":11}},{"id":"3b420793-71f2-4d45-b88a-bdd8d32fbbce","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":152,"box":{"x":102,"y":831,"width":764,"height":11}},{"id":"faa0ee5a-6fe7-4886-b034-0a1aeb96d480","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":152,"box":{"x":70,"y":846,"width":816,"height":11}},{"id":"46f9ac1f-c4ca-4445-a131-6b36e64537dd","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":152,"box":{"x":69,"y":861,"width":772,"height":11}},{"id":"616431d3-5793-4881-aacc-b03a0d5dd7b0","block_type":"box","text":"“Investor C Conversions”).","page_number":152,"box":{"x":70,"y":876,"width":186,"height":11}},{"id":"cb9f7427-880d-4591-9c91-a517edd53dc9","block_type":"box","text":"II-106","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"504911b0-c25f-40b2-b985-479bf299fb9e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1dfb7529-713d-4d6c-bbdd-f0875e83dc16","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":153,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"a42f4343-705a-4c8d-a4af-2f302fccd06d","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":153,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"06064b71-3ec5-40b9-bb56-eacf71836fdd","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":153,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"b2217a91-1757-475e-a76f-bd3dd01b2daf","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":153,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"57046833-e9a5-42b0-8736-d65766a40d20","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":153,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"3745a852-85ff-4efd-9f9b-c18b84b3fdda","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":153,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"bf853593-92be-41a8-a558-e64de68bebaa","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":153,"box":{"x":69,"y":136,"width":445,"height":11}},{"id":"ec36a0c5-1e84-4557-8f66-fc26d444b7de","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":153,"box":{"x":102,"y":158,"width":396,"height":11}},{"id":"ee3f949c-05ea-43c3-8724-7fe04b85cd9f","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":153,"box":{"x":102,"y":181,"width":804,"height":11}},{"id":"0de5d67b-5224-4ba5-bca0-95a5068612d5","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":153,"box":{"x":70,"y":196,"width":826,"height":11}},{"id":"be65fcfa-2ac9-4e4c-9687-eced69fab57b","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":153,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"b89e1854-555c-4bf1-8690-6b59d72113a9","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":153,"box":{"x":68,"y":226,"width":795,"height":11}},{"id":"92676656-6c2f-4d63-91de-555d1ec6ca2f","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":153,"box":{"x":69,"y":241,"width":840,"height":11}},{"id":"311bf7ae-268f-407d-9634-58224f4347cf","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":153,"box":{"x":70,"y":256,"width":804,"height":12}},{"id":"55635d45-714f-442a-b6e3-4c37233356b4","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":153,"box":{"x":69,"y":271,"width":772,"height":12}},{"id":"0e34d174-0076-4c62-9b89-22e8572c5071","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":153,"box":{"x":70,"y":286,"width":790,"height":12}},{"id":"7dea1c54-d467-4f11-b137-76b8e4230a7f","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":153,"box":{"x":69,"y":302,"width":776,"height":9}},{"id":"5e2f04df-edac-4094-afe8-2d420db86188","block_type":"box","text":"redemption.","page_number":153,"box":{"x":69,"y":317,"width":83,"height":11}},{"id":"d12727de-cc0b-4b05-b877-53f55f624b32","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":153,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"e3865803-508f-4ec0-bccf-1422a3b3da50","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":153,"box":{"x":70,"y":355,"width":769,"height":11}},{"id":"4f55ae2c-f428-4778-a1e7-c09cbddd4cb4","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":153,"box":{"x":102,"y":377,"width":572,"height":12}},{"id":"3a4ad9fd-c5d9-4f30-97a4-f0f029dea3ca","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":153,"box":{"x":101,"y":400,"width":740,"height":11}},{"id":"987a75bb-352c-44a3-80a9-3601fe0f0e81","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":153,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"0eacce35-9a01-43cc-9a56-c8f6c159821d","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":153,"box":{"x":69,"y":430,"width":786,"height":11}},{"id":"9289bd6b-29db-4464-b43b-a14c8253d7c2","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":153,"box":{"x":70,"y":445,"width":797,"height":12}},{"id":"19b66437-3444-4fff-a0b3-99f510a55c5b","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":153,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"d37d2330-1792-42f3-a3b1-5086fe180c8c","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":153,"box":{"x":69,"y":475,"width":747,"height":12}},{"id":"7d3e0836-c8a0-431b-a30b-f46f513bd435","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":153,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"a1a1083e-47b4-4d1f-a78d-9ffb32c36e67","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":153,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"291dece4-b4e5-4856-8348-4a44e2ec9db3","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":153,"box":{"x":69,"y":521,"width":806,"height":11}},{"id":"4130628e-e072-4305-a29d-938d1c07edad","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":153,"box":{"x":69,"y":536,"width":786,"height":11}},{"id":"ae6e9008-3ade-49a7-8409-ecbea84cdd99","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":153,"box":{"x":70,"y":551,"width":834,"height":11}},{"id":"9866c4c6-643b-477d-8490-04f63ba79583","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":153,"box":{"x":70,"y":566,"width":809,"height":11}},{"id":"3c7ec321-42e5-4ec0-bb39-37ae946621f5","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":153,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"6794ceba-27c2-4a64-9a7a-1c3adb44d728","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":153,"box":{"x":70,"y":596,"width":784,"height":12}},{"id":"34fb2272-dc0f-4679-ad40-9c767a62283f","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":153,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"ec5690c2-b48a-431c-be58-e0fb5e330bfa","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":153,"box":{"x":69,"y":627,"width":451,"height":11}},{"id":"50603d63-fff7-4ac9-98de-9c8e54259aca","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":153,"box":{"x":102,"y":649,"width":781,"height":12}},{"id":"5eedf755-df83-4f8c-bfae-d95f6df5692a","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":153,"box":{"x":70,"y":664,"width":813,"height":12}},{"id":"04cb262b-0efb-4160-bd7f-045b83cfe4c6","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":153,"box":{"x":69,"y":680,"width":462,"height":11}},{"id":"0fca6059-fe8d-4c8b-890a-26b7280549e4","block_type":"box","text":"Class R Shares","page_number":153,"box":{"x":69,"y":710,"width":110,"height":9}},{"id":"06e7bc9a-a3d8-46ef-aefb-58da35f03a46","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":153,"box":{"x":102,"y":732,"width":775,"height":11}},{"id":"c106438f-3dde-4aed-bbef-3b2fe4f7070e","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":153,"box":{"x":69,"y":748,"width":799,"height":11}},{"id":"f0a9aed0-70d1-4239-a6ec-a830ac2e669f","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":153,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"8601a19a-0915-443c-977d-3b7909222f04","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":153,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"a8329a43-f2c8-4a3d-b5fa-f6801d858605","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":153,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"343fde50-4656-4047-a409-956ad1012d53","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":153,"box":{"x":68,"y":808,"width":636,"height":11}},{"id":"00272840-11cd-484d-a5e9-b5268f3b3986","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":153,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"05b7db58-667b-41f5-89dc-3c8689492402","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":153,"box":{"x":69,"y":846,"width":440,"height":11}},{"id":"548017c8-bfa0-460b-baab-dee330f0d26f","block_type":"box","text":"II-107","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"40123731-e602-4451-b51d-ee360e3d9dd5","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb44286c-8e1f-4155-9a17-98bcf23a2db6","block_type":"box","text":"Class K Shares","page_number":154,"box":{"x":69,"y":45,"width":109,"height":9}},{"id":"8d726fa7-a384-4eac-b9f3-acacaf2309bc","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":154,"box":{"x":102,"y":67,"width":797,"height":11}},{"id":"3bfc47a2-062c-49e4-93f0-d0b48622e4f5","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":154,"box":{"x":69,"y":82,"width":772,"height":12}},{"id":"53c5237b-1093-495a-8750-5dda2ec888d7","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":154,"box":{"x":69,"y":98,"width":827,"height":11}},{"id":"887e3822-f9f3-49ec-9379-72ad81e61234","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":154,"box":{"x":69,"y":113,"width":817,"height":11}},{"id":"0ca08fd2-959f-4058-9f26-2f11912f676c","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":154,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"01c4c597-4f1f-47fc-ad9b-46b25994f681","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":154,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"88381a04-1cf8-4420-9b78-874c639666e9","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":154,"box":{"x":68,"y":158,"width":828,"height":11}},{"id":"2db640cc-a753-4d6d-af11-545813712a3e","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":154,"box":{"x":70,"y":173,"width":760,"height":11}},{"id":"e97a7c83-4508-4dad-888c-3230de632a30","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":154,"box":{"x":70,"y":188,"width":823,"height":12}},{"id":"340f3699-15e7-45a2-aae9-dae92e95254b","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":154,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"09a0943b-58de-4171-889d-753320c18f0a","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":154,"box":{"x":70,"y":218,"width":814,"height":12}},{"id":"22f0f9d0-2c65-4a83-b8e2-f513014a65e6","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":154,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"4c457b3a-959f-414f-9d7e-56d3657d1638","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":154,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"222a3f86-b297-4ccc-a806-75723069bf20","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":154,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"e42bf364-5f0c-4bae-840e-7ae5e3dd4c0b","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":154,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"5296126d-299f-4d3c-86f7-09bb1681980e","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":154,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"c150d538-c83e-473c-bf56-7a2d5530f732","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":154,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"bca6d754-e12c-4e53-80d4-6c77728f1840","block_type":"box","text":"distribution and marketing agreement.","page_number":154,"box":{"x":69,"y":325,"width":270,"height":11}},{"id":"1dd30c85-55c6-4949-9cfb-d14ac553ee41","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":154,"box":{"x":102,"y":347,"width":734,"height":11}},{"id":"5d11374a-83b1-4165-a326-827e0a462f0f","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":154,"box":{"x":70,"y":362,"width":817,"height":11}},{"id":"b0929c76-399d-4af3-9f7c-f77a0611e6bc","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":154,"box":{"x":70,"y":377,"width":753,"height":12}},{"id":"2f89e46f-90a6-4d59-8994-c336b6a38e8a","block_type":"box","text":"Class G Shares","page_number":154,"box":{"x":69,"y":408,"width":110,"height":8}},{"id":"75053353-d7c8-403b-92a7-edad947a89ce","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":154,"box":{"x":102,"y":430,"width":804,"height":11}},{"id":"0ff7271d-deab-450d-92ca-0e7044af6e0e","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":154,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"719e933a-b557-413d-9738-84490c1fc764","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":154,"box":{"x":68,"y":460,"width":836,"height":12}},{"id":"3daec404-c3b6-4f7a-9b51-c511d89c611e","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":154,"box":{"x":69,"y":476,"width":803,"height":11}},{"id":"6d1584f9-79d8-4659-a578-1eff01843b65","block_type":"box","text":"eligibility requirements.","page_number":154,"box":{"x":69,"y":491,"width":164,"height":11}},{"id":"c387d3bf-b21f-4ef6-b248-80beba863963","block_type":"box","text":"Service Shares","page_number":154,"box":{"x":68,"y":521,"width":109,"height":9}},{"id":"eabec05d-036f-4f15-9bec-0b547822b0ed","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":154,"box":{"x":102,"y":543,"width":788,"height":12}},{"id":"09acacfa-ea90-474d-b46e-cb555a6a73bb","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":154,"box":{"x":70,"y":559,"width":815,"height":11}},{"id":"6d6de519-8098-46cd-a625-09f405b6eaaf","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":154,"box":{"x":69,"y":574,"width":693,"height":11}},{"id":"9a6d62b4-2bab-4817-99e6-444ed3fce5fc","block_type":"box","text":"®","page_number":154,"box":{"x":763,"y":574,"width":6,"height":5}},{"id":"d19039d4-c3ad-4713-b41f-5c0d7ad93999","block_type":"box","text":"Fund in 1996; and","page_number":154,"box":{"x":775,"y":574,"width":130,"height":10}},{"id":"cd16a398-fc29-48e5-b664-f183939be123","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":154,"box":{"x":69,"y":589,"width":287,"height":11}},{"id":"fc1cfe06-6f20-493e-a618-fbad36b1e3c2","block_type":"box","text":"SM","page_number":154,"box":{"x":357,"y":589,"width":11,"height":5}},{"id":"2d370266-3406-40ff-9ca3-481bc44ad8bb","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":154,"box":{"x":374,"y":589,"width":534,"height":11}},{"id":"99c8260b-fb0c-4e79-97a2-3471a5c89dbc","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":154,"box":{"x":69,"y":604,"width":776,"height":11}},{"id":"9739a527-c51b-4369-aaf9-a8739153d548","block_type":"box","text":"BlackRock Shares","page_number":154,"box":{"x":69,"y":634,"width":133,"height":9}},{"id":"2358c199-882e-488c-a764-ac662497e9ec","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":154,"box":{"x":102,"y":657,"width":760,"height":11}},{"id":"0a7ee52f-56e9-464e-9c7d-a98664a14970","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":154,"box":{"x":69,"y":672,"width":813,"height":11}},{"id":"edfbd8c7-4b3d-4349-a8dc-dac8e4702367","block_type":"box","text":"fee-based programs.","page_number":154,"box":{"x":68,"y":687,"width":145,"height":11}},{"id":"df0d626f-6ff5-4093-ad64-7010071c9e55","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":154,"box":{"x":69,"y":718,"width":348,"height":11}},{"id":"460080f7-187c-453a-b5cc-b6b11b550553","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":154,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"302aafeb-7382-4a37-b6c4-5bc3e57bcba2","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":154,"box":{"x":69,"y":755,"width":761,"height":11}},{"id":"5fb85c9b-f054-4cba-ba94-71539f662b96","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":154,"box":{"x":69,"y":770,"width":541,"height":12}},{"id":"c64e4367-5703-4a6e-b311-ea7359ed6a1d","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":154,"box":{"x":102,"y":793,"width":803,"height":11}},{"id":"2261ea32-e4f4-47fd-8ba0-ba2cd3bf8e22","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":154,"box":{"x":70,"y":808,"width":783,"height":11}},{"id":"16f78793-08c6-4d80-b225-1eecbf1f3cc4","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":154,"box":{"x":70,"y":823,"width":809,"height":11}},{"id":"bc30b5a4-37d5-427a-b47a-993d7c80be71","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":154,"box":{"x":69,"y":838,"width":360,"height":11}},{"id":"304ca814-83e9-4502-8cc8-93b4a1425615","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":154,"box":{"x":102,"y":861,"width":770,"height":11}},{"id":"1abc6d2a-5228-4318-865a-e8d4acb53f55","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":154,"box":{"x":69,"y":876,"width":824,"height":11}},{"id":"789c9fa8-a0a1-4606-9e8a-872014be0c8b","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":154,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"a5074570-eb87-4cc7-b594-f6119edfe09a","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":154,"box":{"x":68,"y":906,"width":355,"height":11}},{"id":"7589bf90-8094-4c80-bec3-17671124e4f0","block_type":"box","text":"II-108","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7e6a0839-ab81-4fe5-8b53-2ca6e9d92957","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8828b782-e26e-447b-923d-c04456f9f148","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":155,"box":{"x":102,"y":45,"width":727,"height":11}},{"id":"1522a82d-7c82-427b-959d-0a02c3df4123","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":155,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"82fca8bf-044a-43ad-8e5d-45c7fa1e41ff","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":155,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"6dc4c538-c752-4ba1-bec2-c66e75f146ce","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":155,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"1912ca38-0b0f-4afd-9cc2-a0c7a25fc8ce","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":155,"box":{"x":68,"y":105,"width":786,"height":11}},{"id":"b3cb078a-48ef-4dbf-a001-a0a0850a6823","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":155,"box":{"x":69,"y":120,"width":789,"height":11}},{"id":"c143fc70-4a3a-4770-9eff-798a02e239cb","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":155,"box":{"x":70,"y":135,"width":562,"height":12}},{"id":"05114740-8193-4804-a43e-9af35d650396","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":155,"box":{"x":101,"y":158,"width":798,"height":11}},{"id":"3982e101-7f92-4958-aac2-b5233192b68b","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":155,"box":{"x":69,"y":173,"width":808,"height":11}},{"id":"c453007b-08be-4e1d-aae4-8d96b50560d8","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":155,"box":{"x":70,"y":188,"width":776,"height":12}},{"id":"a7a83605-22a1-401f-8eb3-987a4e6cb7bf","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":155,"box":{"x":70,"y":203,"width":835,"height":12}},{"id":"e88fc083-700f-48de-ab7a-cb1d33e17097","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":155,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"eb694af3-b15a-4d3f-b2fe-25bab168f69a","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":155,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"2835b05d-fe1d-42ea-af07-053b85dd608b","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":155,"box":{"x":68,"y":249,"width":501,"height":11}},{"id":"ffd9c0d8-5dfe-4ebf-85e4-e5816e47c753","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":155,"box":{"x":102,"y":271,"width":783,"height":12}},{"id":"c25cc782-2781-4d69-bf65-939052f1eb0b","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":155,"box":{"x":68,"y":286,"width":810,"height":12}},{"id":"7205cadf-47a8-409c-9d17-c1ddba4c5160","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":155,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"f75461b4-0898-4229-9384-24fa19d4dd4b","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":155,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"f19e2732-2747-4cba-9117-0f33d595e52c","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":155,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"cd5d3721-0acd-4d94-b171-f579332dd5cc","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":155,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"6e4a153b-32e1-4c4a-aac9-38ec600ed4c7","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":155,"box":{"x":68,"y":362,"width":803,"height":11}},{"id":"41f48356-6610-4fbd-a5a8-7b53e5b48648","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":155,"box":{"x":68,"y":377,"width":788,"height":12}},{"id":"981c961a-98d2-497e-b3e3-c10873ddf20b","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":155,"box":{"x":69,"y":393,"width":798,"height":11}},{"id":"525d175c-f443-41b4-bded-b0b0c85a1951","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":155,"box":{"x":69,"y":407,"width":755,"height":12}},{"id":"ba95db62-f1ee-43f7-aa4e-3605651038ed","block_type":"box","text":"compensation for selling different classes of shares.","page_number":155,"box":{"x":69,"y":423,"width":375,"height":11}},{"id":"f0b585af-04e0-425e-9c26-22c28e435863","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":155,"box":{"x":102,"y":445,"width":803,"height":11}},{"id":"3266e1bf-4b2b-4fda-8062-2a0e60f3b65b","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":155,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"e9ec3396-3ccf-498f-a341-8a5bf9e28e7d","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":155,"box":{"x":68,"y":475,"width":788,"height":12}},{"id":"7b74d3fa-9673-4240-8aee-19cb850e1384","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":155,"box":{"x":70,"y":491,"width":818,"height":9}},{"id":"8bf6a556-2dad-4628-8049-044c6f9466dd","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":155,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"2e1ccfd2-95ac-44fb-a988-7b9ff749ab34","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":155,"box":{"x":69,"y":521,"width":821,"height":11}},{"id":"04874466-7286-4a01-9b3d-bde4f6719471","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":155,"box":{"x":69,"y":536,"width":778,"height":11}},{"id":"4c3d18ee-4b78-4071-8e84-fc45e6905e65","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":155,"box":{"x":70,"y":551,"width":773,"height":11}},{"id":"aedb2e87-6ad4-4a31-92e6-70c6f61d2e2c","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":155,"box":{"x":69,"y":566,"width":796,"height":11}},{"id":"0113cc69-d11c-4710-a3c7-aae30c0257ee","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":155,"box":{"x":69,"y":581,"width":837,"height":12}},{"id":"4dd6e5a8-5649-4644-85a5-aec5308bfd2c","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":155,"box":{"x":70,"y":597,"width":801,"height":11}},{"id":"8bb2e16d-c396-4b1c-b3f2-701c56e8edc5","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":155,"box":{"x":69,"y":612,"width":787,"height":11}},{"id":"8047a924-db4f-4ed5-b2de-02a18dc9d70a","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":155,"box":{"x":70,"y":627,"width":802,"height":11}},{"id":"6ef451f0-3031-432e-aff7-08a1bda1baba","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":155,"box":{"x":69,"y":642,"width":826,"height":11}},{"id":"fc356078-3c49-4453-b7a4-fc8f2915254a","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":155,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"0acffcfb-bb45-4b74-95b1-289aa14b196f","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":155,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"f2855296-3489-4f77-b8b1-660ab215071f","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":155,"box":{"x":68,"y":687,"width":792,"height":11}},{"id":"79ec2808-e657-4fe9-8e9b-4e80bca259d1","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":155,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"3d4179e5-6ec1-44fa-9450-2b91f09f6ca1","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":155,"box":{"x":69,"y":717,"width":807,"height":12}},{"id":"63a2c894-29f5-4a3c-ac6f-ba1fdd3ea340","block_type":"box","text":"easily accessible place.","page_number":155,"box":{"x":69,"y":733,"width":167,"height":11}},{"id":"b8368675-b32e-4bf2-b833-c41dac1d5e3d","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":155,"box":{"x":102,"y":755,"width":804,"height":11}},{"id":"6f62369c-d8a1-4266-a233-91096645eaa6","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":155,"box":{"x":70,"y":770,"width":542,"height":11}},{"id":"83600425-99fd-4846-8f21-d7cdbd876f6a","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":155,"box":{"x":102,"y":793,"width":734,"height":11}},{"id":"0a15b12d-3460-45dc-8aad-0fb5362549eb","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":155,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"a6fbe4a4-c933-4ed0-a9ab-9de9ceca7466","block_type":"box","text":"fiscal year.","page_number":155,"box":{"x":68,"y":823,"width":75,"height":11}},{"id":"f063a603-74e3-49fd-9a3f-9d3d5f11e9c1","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":155,"box":{"x":69,"y":854,"width":396,"height":11}},{"id":"244401ec-51c8-49d3-9af8-160b328b674d","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":155,"box":{"x":101,"y":876,"width":777,"height":11}},{"id":"baeb4b9f-b259-4f94-8c28-53d3d9d856a4","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":155,"box":{"x":70,"y":891,"width":835,"height":12}},{"id":"1fcce908-4deb-4427-9c5d-583f2e95765a","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":155,"box":{"x":68,"y":906,"width":822,"height":12}},{"id":"c23fd51e-398b-4896-8977-004b2fcfa40c","block_type":"box","text":"II-109","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5b6f16be-8ea6-4344-8fb5-30121480f307","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93943654-5672-43be-a218-83b292722d0e","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":156,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"568b7c14-3efc-495d-8447-dd60b0ca3624","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":156,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"a72e5127-ec58-4770-9ac6-c1c0a46ad09a","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":156,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"86cba194-f50e-40f7-927f-667454ec4f28","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":156,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"d7da183f-55ac-4ccb-a9c0-85257375bd48","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":156,"box":{"x":69,"y":105,"width":839,"height":11}},{"id":"4734f386-ddda-44fd-a290-4c837357b2f6","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":156,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"54679d66-b6a5-4679-94a8-8b72cba6babf","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":156,"box":{"x":68,"y":135,"width":839,"height":11}},{"id":"a643f16d-e636-4ac9-914c-f02731eb3f98","block_type":"box","text":"and Class R Shares of your Fund.","page_number":156,"box":{"x":69,"y":150,"width":236,"height":12}},{"id":"4970d5ec-300a-4b8c-ad14-f8ebf3cc02e8","block_type":"box","text":"Other Payments by the Fund","page_number":156,"box":{"x":69,"y":181,"width":206,"height":11}},{"id":"77d4732b-04e1-4619-97a3-e5bd961fdf4f","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":156,"box":{"x":102,"y":203,"width":800,"height":12}},{"id":"a4a91309-2998-43cf-999f-26a42436b1ab","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":156,"box":{"x":68,"y":218,"width":816,"height":12}},{"id":"f917e58a-194d-45d3-9d43-03fccab42675","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":156,"box":{"x":69,"y":234,"width":794,"height":11}},{"id":"d18c05c3-aae7-4259-ae9c-71cd6d18d1c7","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":156,"box":{"x":69,"y":249,"width":792,"height":11}},{"id":"8bb46948-cebb-4948-8f27-f48012ab5062","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":156,"box":{"x":68,"y":264,"width":841,"height":11}},{"id":"5eb20a48-841f-4e0c-880a-d7ae5df01f3b","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":156,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"a1b9bdb1-7234-4cdf-96f2-b4e92eb11db1","block_type":"box","text":"of these payments may be substantial.","page_number":156,"box":{"x":69,"y":294,"width":276,"height":11}},{"id":"7f1fff31-6f07-4324-b60c-3a6f1bac84e0","block_type":"box","text":"Additional Payments by BlackRock","page_number":156,"box":{"x":68,"y":324,"width":256,"height":11}},{"id":"380768cd-0da5-4904-b0fe-4b6382898122","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":156,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"36021323-538a-4fb7-af71-625e66498a9f","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":156,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"ce240524-d7f4-401f-92e7-f4394556989e","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":156,"box":{"x":70,"y":377,"width":768,"height":12}},{"id":"e20521da-5a6c-4565-952e-5e3efd017907","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":156,"box":{"x":69,"y":392,"width":830,"height":12}},{"id":"27dca387-012f-4a61-b85f-0a8b101d2289","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":156,"box":{"x":69,"y":407,"width":599,"height":12}},{"id":"e78ad1a2-5ba7-47a1-b489-2c36310f0a30","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":156,"box":{"x":101,"y":430,"width":776,"height":11}},{"id":"952c9144-5380-4ced-a0ff-cf1c638e386e","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":156,"box":{"x":70,"y":445,"width":832,"height":11}},{"id":"baff83de-3f10-4514-9e01-5269ebbdab13","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":156,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"e7a9566b-56e1-4f1f-adc2-30fd874b2a37","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":156,"box":{"x":69,"y":475,"width":802,"height":12}},{"id":"990d2d77-6b58-4881-a713-fce751a1d8d0","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":156,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"6e8a2c77-d8ed-450f-9890-199a00a0ed8f","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":156,"box":{"x":70,"y":506,"width":796,"height":11}},{"id":"f7e72ba8-54e0-44f7-8821-49cbbcbd4ddf","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":156,"box":{"x":69,"y":521,"width":836,"height":11}},{"id":"3591f761-34e5-406a-879e-d3edb9a22e02","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":156,"box":{"x":69,"y":536,"width":828,"height":11}},{"id":"42d29139-cfd3-4cc5-a8c4-46a3f3a5d2f7","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":156,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"db754798-78ea-421f-bea7-f27b5c61e701","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":156,"box":{"x":69,"y":566,"width":818,"height":11}},{"id":"d9171423-f797-4a33-ad16-7260f110773f","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":156,"box":{"x":70,"y":581,"width":294,"height":11}},{"id":"fcff36c1-c485-423f-9ea2-cd3325aec8e1","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":156,"box":{"x":101,"y":604,"width":803,"height":11}},{"id":"24844fd2-3b90-4038-aa69-ddf162cdfff5","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":156,"box":{"x":69,"y":619,"width":792,"height":11}},{"id":"b6b8099b-00d8-400f-b0e0-b2edcc21d20d","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":156,"box":{"x":69,"y":634,"width":623,"height":12}},{"id":"18ca4659-6d64-4f0e-b2dc-f7830819ac7f","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":156,"box":{"x":102,"y":657,"width":765,"height":11}},{"id":"1aee1bfa-08ad-4666-ac20-46309465dd33","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":156,"box":{"x":69,"y":672,"width":841,"height":11}},{"id":"ecf8e535-e026-4893-ab8d-bc75a48500fe","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":156,"box":{"x":68,"y":687,"width":806,"height":11}},{"id":"d048c6be-bc28-4a74-8d38-52c7fedc847f","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":156,"box":{"x":69,"y":702,"width":776,"height":11}},{"id":"ad387d53-4a94-4d72-8a73-598d292855f3","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":156,"box":{"x":70,"y":717,"width":802,"height":12}},{"id":"f4bcb971-aea9-4091-8d22-8151f9866877","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":156,"box":{"x":68,"y":732,"width":811,"height":12}},{"id":"18df385a-f9d2-4318-aa3c-70cad4d1feb4","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":156,"box":{"x":69,"y":748,"width":538,"height":11}},{"id":"d5d6b8af-03c6-4007-8c2c-75ab4bb9c59e","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":156,"box":{"x":101,"y":770,"width":795,"height":12}},{"id":"85cfcacf-d8b9-47f7-901f-8a5f3ee4734a","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":156,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"cb1011ba-3ae7-47f5-a9d7-b1930ebaf107","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":156,"box":{"x":69,"y":801,"width":823,"height":11}},{"id":"808d6874-6ff4-4486-a4d3-ed05c7030d67","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":156,"box":{"x":68,"y":816,"width":819,"height":11}},{"id":"c53cb2ce-1aca-4b31-9a99-5dd16a9c0887","block_type":"box","text":"Funds.","page_number":156,"box":{"x":70,"y":831,"width":44,"height":9}},{"id":"c8457b4b-e916-4a52-96a8-75ca8ff0485c","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":156,"box":{"x":101,"y":854,"width":270,"height":11}},{"id":"bd42bccb-1ebb-413c-ae77-5959f49de712","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. 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Conflicts","page_number":160,"box":{"x":102,"y":872,"width":78,"height":9}},{"id":"efaa8565-9e07-4cf0-84af-7768de572363","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":160,"box":{"x":101,"y":895,"width":710,"height":11}},{"id":"e2b1c610-1965-4c53-b438-bbdf3f918de3","block_type":"box","text":"arrangements may be an impor tant factor in the Service Organization’s willingness to suppor t the sale of a Fund","page_number":160,"box":{"x":69,"y":910,"width":803,"height":11}},{"id":"6d41ba5d-2d44-434f-b041-112e65382e58","block_type":"box","text":"II-114","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4925165b-8c84-4c4b-8795-d9a9502b4a53","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f3c211b-a960-42db-a101-94e73629c2fd","block_type":"box","text":"and/or par ticular share class through its distribution system or to per form services with respect to such Fund.","page_number":161,"box":{"x":69,"y":45,"width":788,"height":11}},{"id":"ec18eaae-4754-4ef6-b5c5-e53a84c1b060","block_type":"box","text":"Additional Payments and other incentive arrangements may also be impor tant factors in the Service Organization’s","page_number":161,"box":{"x":68,"y":60,"width":819,"height":11}},{"id":"08de6180-d284-42a8-a523-e9739e64dd8a","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":161,"box":{"x":68,"y":75,"width":473,"height":11}},{"id":"255066a1-3dc1-4875-a3b9-56a8ee1c917f","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":161,"box":{"x":102,"y":98,"width":793,"height":11}},{"id":"9a3467ca-719a-4173-9ec2-1800b4f0416c","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":161,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"9c63df62-5133-451b-b978-46a9cc1c707d","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":161,"box":{"x":68,"y":128,"width":833,"height":11}},{"id":"47579483-29e9-4a87-909a-a9d1536f0a71","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":161,"box":{"x":70,"y":143,"width":830,"height":11}},{"id":"2bdce2f8-65de-4528-9093-dce3cadab5b9","block_type":"box","text":"Service Organizations may have financial incentives for recommending a par ticular Fund, share class or fund","page_number":161,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"f5868343-d15e-4d7b-ae50-6a63644346e4","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":161,"box":{"x":69,"y":181,"width":794,"height":11}},{"id":"d8cdb3b3-3c13-4beb-af35-0c2074b617b0","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":161,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"fc610059-343a-4640-af3d-eb1731767861","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":161,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"b6ccbe74-38c3-423d-b2c3-bedba067118b","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":161,"box":{"x":69,"y":226,"width":723,"height":11}},{"id":"aeaf68f5-9553-4550-bc13-277e00644c38","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":161,"box":{"x":102,"y":249,"width":759,"height":11}},{"id":"b701ddb1-ba3d-4725-9540-9f74de12e4e0","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":161,"box":{"x":69,"y":264,"width":760,"height":11}},{"id":"fc3648d6-3be7-4131-bb43-e7e8c9988b4f","block_type":"box","text":"appropriate.","page_number":161,"box":{"x":69,"y":279,"width":84,"height":11}},{"id":"19689425-9f61-4df4-97d8-7e31d1a84da8","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":161,"box":{"x":160,"y":279,"width":738,"height":11}},{"id":"1758e3d9-f00e-4bd6-a09b-7cd64c2da789","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":161,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"fa5edcfd-f223-44a7-96cd-c2681e000063","block_type":"box","text":"described above.","page_number":161,"box":{"x":69,"y":309,"width":122,"height":9}},{"id":"a0cffdac-b173-4708-b83f-d0076ea74949","block_type":"box","text":"REDEMPTION OF SHARES","page_number":161,"box":{"x":385,"y":339,"width":208,"height":9}},{"id":"8ef631ad-b26e-47cf-9698-3e330cef424b","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":161,"box":{"x":102,"y":361,"width":798,"height":12}},{"id":"2b15bec2-45d5-4513-a906-fcce4422e8ef","block_type":"box","text":"the right to redeem some or all of its shares in-kind under unusual circumstances (valued in the same way as they","page_number":161,"box":{"x":68,"y":377,"width":817,"height":11}},{"id":"f71a86f3-33c1-4ae8-85a6-31b1aefa01f8","block_type":"box","text":"would be valued for purposes of computing a Fund’s NAV), in order to protect the interests of remaining shareholders,","page_number":161,"box":{"x":68,"y":392,"width":840,"height":11}},{"id":"7ed636da-707b-4e18-8ad9-d3f944f44678","block_type":"box","text":"or to accommodate a request by a par ticular shareholder that does not adversely affect the interest of the remaining","page_number":161,"box":{"x":69,"y":407,"width":834,"height":11}},{"id":"b0e6569e-ae1b-42b4-ab57-d1377e75c840","block_type":"box","text":"shareholders, by delivery of securities and other assets selected from the Fund’s por tfolio holdings at its discretion.","page_number":161,"box":{"x":69,"y":422,"width":829,"height":11}},{"id":"30fb8c9d-0cf7-4ab5-96ea-08f0be153e03","block_type":"box","text":"In-kind payment means payment will be made in por tfolio securities and other assets rather than cash. If this occurs,","page_number":161,"box":{"x":70,"y":437,"width":834,"height":11}},{"id":"685d8e1e-5a8a-49c0-b401-7d15cbd39f12","block_type":"box","text":"the redeeming shareholder might incur brokerage or other transaction costs to conver t the securities and other","page_number":161,"box":{"x":68,"y":452,"width":793,"height":11}},{"id":"a3d26ff0-f17b-477f-80f8-0b905ed78c40","block_type":"box","text":"assets to cash. In an in-kind redemption, a pro rata por tion of a Fund’s por tfolio holdings will generally be distributed","page_number":161,"box":{"x":69,"y":467,"width":834,"height":12}},{"id":"915b2363-807e-4398-b2db-be6b036d3c83","block_type":"box","text":"to the redeeming shareholder, but an Index Fund may, under cer tain circumstances, deviate from pro rata redemption","page_number":161,"box":{"x":68,"y":482,"width":838,"height":12}},{"id":"5f25e3ab-66d1-4842-bcfa-87466d18be3b","block_type":"box","text":"if the securities and other assets to be distributed are deemed to be a fair representation of por tfolio holdings and","page_number":161,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"7bdeaefc-1825-4523-95d8-879a8e8456b0","block_type":"box","text":"the interests of the remaining shareholders in the Index Fund are not diluted. Each Fund has elected, however, to be","page_number":161,"box":{"x":68,"y":513,"width":831,"height":11}},{"id":"636a7eb9-146d-45fb-8a4f-0ea2432d9173","block_type":"box","text":"governed by Rule 18f-1 under the Investment Company Act so that the Fund is obligated to redeem its shares solely","page_number":161,"box":{"x":68,"y":528,"width":828,"height":11}},{"id":"2b3b9f3d-66ef-4ae6-a4b5-a101ccd62151","block_type":"box","text":"in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. The","page_number":161,"box":{"x":70,"y":542,"width":826,"height":12}},{"id":"3895d579-8e88-44be-ad3b-93d2669e848b","block_type":"box","text":"redemption price is the NAV per share next determined after the initial receipt of proper notice of redemption. The","page_number":161,"box":{"x":69,"y":558,"width":810,"height":11}},{"id":"b5fe349a-081a-48c2-9e0e-3eca41d11283","block_type":"box","text":"value of shares of each Fund at the time of redemption may be more or less than your cost at the time of purchase,","page_number":161,"box":{"x":68,"y":573,"width":827,"height":11}},{"id":"967d21f2-9491-4e06-9ccd-e790fe51f493","block_type":"box","text":"depending in par t on the market value of the securities held by the Fund at such time. Except for any CDSC that may","page_number":161,"box":{"x":69,"y":588,"width":832,"height":12}},{"id":"d0177c1d-60b8-4034-81ce-064e890ab384","block_type":"box","text":"be applicable, there will be no redemption charge if your redemption request is sent directly to the Transfer Agent. If","page_number":161,"box":{"x":69,"y":603,"width":828,"height":12}},{"id":"4b38080a-9ff0-4dcb-8e13-71cb05c33a44","block_type":"box","text":"you are liquidating your holdings you will receive all dividends reinvested through the date of redemption.","page_number":161,"box":{"x":68,"y":618,"width":746,"height":12}},{"id":"a12f4643-7f7c-4bfb-876a-d0f85bc0cbcc","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":161,"box":{"x":101,"y":641,"width":807,"height":11}},{"id":"ec606999-564a-4339-a449-d861ca9af9ab","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":161,"box":{"x":69,"y":656,"width":835,"height":12}},{"id":"74b08aab-7d9d-493e-88b1-adccac02cd2c","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":161,"box":{"x":68,"y":671,"width":811,"height":12}},{"id":"48c2f676-625c-42b0-8a52-2caf89e37ff7","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":161,"box":{"x":69,"y":686,"width":741,"height":12}},{"id":"bebd561f-4cf4-4ade-b5d4-52a8f44de4e0","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":161,"box":{"x":69,"y":702,"width":813,"height":11}},{"id":"f9cdc4a3-ee63-40ab-b7ed-1d9cd24750a7","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":161,"box":{"x":69,"y":717,"width":787,"height":11}},{"id":"2e07cb4c-d94e-444d-a51e-655a84139724","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":161,"box":{"x":69,"y":732,"width":685,"height":11}},{"id":"9244701e-7c71-4a3e-9705-1f69c2d27c7c","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":161,"box":{"x":102,"y":755,"width":798,"height":11}},{"id":"0d440e25-59d4-4383-b307-dc9ee99e8ab6","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":161,"box":{"x":69,"y":770,"width":820,"height":11}},{"id":"ac2af8bd-d738-4814-a584-7844b5bb37e2","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":161,"box":{"x":69,"y":785,"width":653,"height":11}},{"id":"b73d02ff-78a1-471a-88f7-2a12d6d50778","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":161,"box":{"x":102,"y":807,"width":803,"height":12}},{"id":"b4144756-6cf8-491f-bb33-771d67ddb4fd","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":161,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"bf6cabc1-0ca7-4fd5-aa3d-793669910a6e","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":161,"box":{"x":68,"y":838,"width":824,"height":11}},{"id":"df4d3fe5-29c5-43fd-b1df-d03cb4f0d177","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":161,"box":{"x":70,"y":853,"width":825,"height":11}},{"id":"bfb0dcca-687a-4bd8-bf5f-274369c03ea7","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":161,"box":{"x":69,"y":868,"width":825,"height":11}},{"id":"3edb52ef-6916-42d9-b7b3-ee355ab47264","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":161,"box":{"x":69,"y":883,"width":823,"height":11}},{"id":"32442ea6-f777-4f99-a891-5ac0eba04cbd","block_type":"box","text":"II-115","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c3b07ea2-1283-48d9-96de-7cab86a23886","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fbe5bf96-4ea8-40b1-a54b-80ffd5a6d98b","block_type":"box","text":"Redemption","page_number":162,"box":{"x":69,"y":45,"width":86,"height":11}},{"id":"c26a353d-2b5d-4a7d-8a95-52365f359077","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":162,"box":{"x":70,"y":67,"width":481,"height":11}},{"id":"f39a3176-b01e-43e0-b54d-c97133ab4dec","block_type":"box","text":"Redeem by Telephone:","page_number":162,"box":{"x":102,"y":90,"width":162,"height":11}},{"id":"778cdcc4-b805-4799-9c68-6216631a7b4d","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":162,"box":{"x":270,"y":90,"width":571,"height":11}},{"id":"0901a5e8-6aac-44ec-8749-0ed4a24a7c02","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":162,"box":{"x":68,"y":104,"width":829,"height":12}},{"id":"c633ae95-f7d3-4b11-a1a9-619840363a76","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":162,"box":{"x":69,"y":120,"width":798,"height":12}},{"id":"022b131b-d5fc-463b-a4e7-59fc0cc23f40","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":162,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"c8735a2a-ee06-4b0d-bf02-1100fb7b0519","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":162,"box":{"x":68,"y":150,"width":831,"height":12}},{"id":"1ad32224-9553-416e-bc5f-ccd35806e3d4","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":162,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"8187f2ae-3402-4071-b5db-5123a5581143","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":162,"box":{"x":70,"y":181,"width":791,"height":11}},{"id":"f31b86be-30c7-42e8-9716-b2e7b4928ea7","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":162,"box":{"x":68,"y":196,"width":818,"height":11}},{"id":"337c2109-ab14-4acb-b8c5-def5869821df","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":162,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"44fce493-99f5-40ab-b20d-f3296ea2b00d","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":162,"box":{"x":69,"y":226,"width":803,"height":11}},{"id":"8d6d03ec-0958-45bf-9821-0c3277cb8bb3","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":162,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"4db2807e-6e0a-4332-95d5-100d6743ce52","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":162,"box":{"x":69,"y":256,"width":825,"height":12}},{"id":"20613d59-73e7-43bc-97a2-3ece677c8d5d","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":162,"box":{"x":68,"y":271,"width":840,"height":12}},{"id":"029abba3-3bd9-4a64-87d2-5392a93f02ae","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":162,"box":{"x":68,"y":287,"width":835,"height":11}},{"id":"e860340f-dba4-4bbf-b1dd-52e71efbefa7","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":162,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"463d29e0-c6b1-4b8d-86e4-3d9c459b894a","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":162,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"79b6a308-f6b8-446e-b7dd-39bd0bd58166","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":162,"box":{"x":70,"y":332,"width":603,"height":11}},{"id":"a5ac91dc-156d-49ad-bbee-fac842e856bb","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":162,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"421274b5-0025-4448-a5d2-088d765b0387","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":162,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"b74add32-95b2-474c-82e1-867bb2342e22","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":162,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"2186b652-713f-4b96-afee-f444b92dd1a4","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":162,"box":{"x":68,"y":400,"width":823,"height":11}},{"id":"4c3cede3-3be4-4406-a966-a5f55437c852","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":162,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"89bbca28-994a-4421-b49f-29a09eb61630","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":162,"box":{"x":69,"y":430,"width":809,"height":11}},{"id":"271a4797-912b-4d7e-8aaf-1ab6e30e2935","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":162,"box":{"x":69,"y":445,"width":833,"height":12}},{"id":"8b2eac9a-902f-48c1-a9e2-9cc81eefb37e","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":162,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"f33062eb-68bf-45b3-9584-4c4587072aec","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":162,"box":{"x":69,"y":476,"width":785,"height":11}},{"id":"33f4b18d-418f-48d5-917a-1332c5db625b","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":162,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"b9e2e736-cd26-447f-b006-6ebb482a259b","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":162,"box":{"x":69,"y":506,"width":782,"height":11}},{"id":"d044a4af-5a5e-44f9-b7aa-5b9368063560","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":162,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"fdc61f6d-0b88-4427-9421-947012b82fa7","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":162,"box":{"x":68,"y":536,"width":837,"height":11}},{"id":"09b1a8fd-c682-4d99-a6e7-85ead6542f36","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":162,"box":{"x":69,"y":551,"width":800,"height":11}},{"id":"ac1d7b5e-6f46-4964-b37b-fd12aa1f377d","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":162,"box":{"x":102,"y":574,"width":776,"height":11}},{"id":"2d287406-7b94-4a5d-b470-fb1a512a4531","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":162,"box":{"x":70,"y":589,"width":823,"height":11}},{"id":"efa31e69-8412-439c-8a26-ce2c9fc630fc","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":162,"box":{"x":69,"y":604,"width":820,"height":11}},{"id":"630daf29-451c-4dc5-9c98-e10712bd05e4","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":162,"box":{"x":68,"y":619,"width":826,"height":11}},{"id":"f119dcb0-2d27-4bbf-aab6-6925b946f207","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":162,"box":{"x":68,"y":634,"width":817,"height":12}},{"id":"7c07cb24-df2d-4550-aa4d-e849f1aa6e91","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":162,"box":{"x":70,"y":649,"width":648,"height":11}},{"id":"a69351b8-b2d0-44cc-80ce-09ee15a06a84","block_type":"box","text":"Redeem by VRU:","page_number":162,"box":{"x":102,"y":672,"width":120,"height":11}},{"id":"67798b28-a327-46e4-bc2d-328a785a983b","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":162,"box":{"x":229,"y":672,"width":667,"height":11}},{"id":"cabe036e-516b-46f0-bb7b-1ae9fcdda0e8","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":162,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"f56bf4a6-0da6-4e8a-98dd-13a1aa1c7226","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":162,"box":{"x":68,"y":702,"width":644,"height":12}},{"id":"4272a044-f025-40a9-9742-030519fe2403","block_type":"box","text":"Redeem by Internet:","page_number":162,"box":{"x":102,"y":725,"width":147,"height":11}},{"id":"3cefe499-f45a-4784-8e79-d9e0107974b3","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":162,"box":{"x":255,"y":725,"width":637,"height":11}},{"id":"19f69825-571a-4aaa-a6ab-869cf4ec7de7","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":162,"box":{"x":70,"y":740,"width":836,"height":11}},{"id":"b2112bf1-5707-499f-a977-f248b9cf9d73","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":162,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"3f1fca22-7997-4d78-b04d-ded8f1ffa0b2","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":162,"box":{"x":68,"y":770,"width":789,"height":12}},{"id":"46359820-3a12-4c61-87f1-79a44e5a952b","block_type":"box","text":"institutional investors.","page_number":162,"box":{"x":70,"y":786,"width":155,"height":8}},{"id":"ba64ed70-0901-42bd-9c89-6c1be99ee2a3","block_type":"box","text":"Redeem in Writing:","page_number":162,"box":{"x":102,"y":808,"width":137,"height":11}},{"id":"447c3289-91f9-487b-a0e4-787d967b6642","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":162,"box":{"x":247,"y":808,"width":639,"height":11}},{"id":"8c38c61a-657c-45ac-b6d5-4f0170c68774","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":162,"box":{"x":68,"y":823,"width":831,"height":12}},{"id":"4679dad4-7303-4f8a-834d-0a6a7eaf663a","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":162,"box":{"x":68,"y":838,"width":745,"height":12}},{"id":"8776bd48-742f-42ca-928b-6eda8820a6bd","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":162,"box":{"x":69,"y":853,"width":764,"height":12}},{"id":"06bda707-60c8-470b-8321-c1ba1a3ee92b","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":162,"box":{"x":69,"y":869,"width":831,"height":11}},{"id":"e0d02fea-108d-403c-b9c3-030320cf71d9","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":162,"box":{"x":68,"y":884,"width":794,"height":11}},{"id":"3eea564e-adcd-4b15-bd91-4f7f6e5fe213","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":162,"box":{"x":68,"y":899,"width":782,"height":11}},{"id":"6029e198-0c2f-40a9-b96f-91186ad9e8b2","block_type":"box","text":"II-116","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8d9d9b30-c4de-430d-b8c1-5eb8fe0f8898","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cac33b1-8db5-4a4f-ba4e-700cc11b3ab0","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":163,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"8501adb6-3e2c-498e-afad-d8799c46f8f2","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":163,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"aa54b4e0-4f41-4370-86c9-f5010683c866","block_type":"box","text":"or wire to the bank account of record.","page_number":163,"box":{"x":69,"y":75,"width":266,"height":9}},{"id":"9e9cc506-24a9-49c6-8736-04978c817497","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":163,"box":{"x":102,"y":98,"width":802,"height":11}},{"id":"4b6fbb43-e249-46d4-b9b5-70c0f8f86cb7","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":163,"box":{"x":69,"y":113,"width":489,"height":11}},{"id":"c1decadf-2a75-4aa9-97de-5afd88e6012a","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":163,"box":{"x":101,"y":135,"width":668,"height":12}},{"id":"f0d2c9d3-745c-42de-9d6e-b77872a27c79","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":163,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"b6ef78e4-421e-4bae-b330-162b357c70e8","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":163,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"e0994801-2631-4dfe-9565-aaee8653273d","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":163,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"d621ab83-71d9-42c0-bb29-9683090c06f8","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":163,"box":{"x":69,"y":203,"width":789,"height":12}},{"id":"5e9037c1-c7a8-4245-b509-79023883a4a5","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":163,"box":{"x":69,"y":218,"width":775,"height":12}},{"id":"e8d04994-3736-4432-b510-835e5d94a9fd","block_type":"box","text":"redeemed by the Fund.","page_number":163,"box":{"x":69,"y":234,"width":162,"height":11}},{"id":"b9fe4535-7ee4-4db8-bad0-12c4da269e4a","block_type":"box","text":"Note on Low Balance Accounts.","page_number":163,"box":{"x":102,"y":257,"width":223,"height":8}},{"id":"a4c600bf-9d59-4be7-b9b5-33307ee013e6","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":163,"box":{"x":332,"y":256,"width":503,"height":12}},{"id":"68343a28-22a1-4da5-b1ba-8e367dba578a","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":163,"box":{"x":70,"y":271,"width":752,"height":12}},{"id":"bdb6ec1d-3007-470b-ad57-3b21c26b4ca3","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":163,"box":{"x":70,"y":286,"width":829,"height":12}},{"id":"e185a470-d459-4f89-8086-15bdabb7afdc","block_type":"box","text":"for any reason, including market fluctuation.","page_number":163,"box":{"x":68,"y":302,"width":313,"height":11}},{"id":"17def7eb-c2d0-4de0-832d-2c898d06a47d","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":163,"box":{"x":101,"y":324,"width":775,"height":11}},{"id":"70a60e4c-1be7-46b2-9077-699cb104aa38","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":163,"box":{"x":70,"y":339,"width":773,"height":12}},{"id":"528dc4f0-db80-4771-942f-b98436a01c4c","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":163,"box":{"x":70,"y":354,"width":776,"height":12}},{"id":"fda4d6ab-187d-44c0-8e40-161627b0b7ad","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":163,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"4fc73a28-7bfa-47f5-8fad-714588206647","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":163,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"c13f30c7-3762-4077-93ce-f12b45d6efe4","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":163,"box":{"x":69,"y":400,"width":435,"height":11}},{"id":"ea4badef-1f3a-4c6f-8cd3-6f810bd70c2d","block_type":"box","text":"Repurchase","page_number":163,"box":{"x":69,"y":430,"width":85,"height":11}},{"id":"936bf91f-6633-4fc3-a6ea-f9e0dccbf915","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":163,"box":{"x":101,"y":453,"width":800,"height":11}},{"id":"533ffcf9-67e2-4c8a-b855-d75d72a0f84c","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":163,"box":{"x":70,"y":468,"width":833,"height":11}},{"id":"bd34abf5-9271-441c-b6f5-cbeb77df7b86","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":163,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"22f45274-e25a-483d-8908-f7f320c0dd00","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":163,"box":{"x":70,"y":498,"width":809,"height":11}},{"id":"2c417fe0-2daa-4bc5-a731-cb8bbbf2255d","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":163,"box":{"x":69,"y":513,"width":831,"height":11}},{"id":"80cbfc2c-c824-4e95-b99b-ece692adfdcb","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":163,"box":{"x":70,"y":528,"width":796,"height":12}},{"id":"07e4c3ea-a8a7-4ca5-bec8-23c45954c1ec","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":163,"box":{"x":69,"y":543,"width":812,"height":12}},{"id":"e909af35-38be-4dc8-b147-a027a4cfe78a","block_type":"box","text":"next business day.","page_number":163,"box":{"x":69,"y":559,"width":130,"height":11}},{"id":"04d58078-7488-4486-ac7a-70e3a6d88529","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":163,"box":{"x":101,"y":581,"width":783,"height":12}},{"id":"454c49cc-a988-477a-8867-d7b34ab1b91f","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":163,"box":{"x":69,"y":596,"width":813,"height":12}},{"id":"51975f7d-6484-4c38-8b69-82a47f798472","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":163,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"31d5c992-c8f6-40af-96e4-e9647a02aa7e","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":163,"box":{"x":70,"y":627,"width":814,"height":11}},{"id":"021af959-c3ca-4fae-a3a3-a554f25fe985","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":163,"box":{"x":69,"y":642,"width":788,"height":11}},{"id":"bac0de39-906e-4506-aca1-9af1c42a6ac8","block_type":"box","text":"redeem shares as set out above.","page_number":163,"box":{"x":69,"y":657,"width":235,"height":9}},{"id":"e15918cd-cfab-4475-80c1-ca61e6d260ef","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":163,"box":{"x":69,"y":687,"width":440,"height":11}},{"id":"9817b931-b4c9-4a8e-87a5-0b06e1c5f458","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":163,"box":{"x":102,"y":710,"width":791,"height":11}},{"id":"634a6008-78ff-436e-912f-4d0317cd9d85","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":163,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"7f41bea0-8f31-402a-b834-a60103442580","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":163,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"06dbe0d0-3f01-4320-8e58-74321c117617","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":163,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"091789a4-3e5f-4bd9-a90b-5b33c0df18e7","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":163,"box":{"x":69,"y":770,"width":768,"height":11}},{"id":"1ac44843-0f23-4445-8a36-69ac47adbb69","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":163,"box":{"x":70,"y":785,"width":827,"height":12}},{"id":"8137f48e-c0c1-4f0d-ae60-fb696cb77673","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":163,"box":{"x":68,"y":801,"width":809,"height":11}},{"id":"b7eec9c6-3f69-4163-ad35-bfb3a78b7abc","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":163,"box":{"x":69,"y":816,"width":764,"height":11}},{"id":"81df8c76-48c2-47ca-bc71-37f43d4e09a2","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":163,"box":{"x":69,"y":831,"width":400,"height":11}},{"id":"3d54e857-5522-4f9e-a2b2-fe7427b51307","block_type":"box","text":"II-117","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7635c0e4-42a9-46df-afbb-7d004fea4740","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b9114521-2a6a-4637-88ef-d8ef60d83404","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":164,"box":{"x":384,"y":45,"width":210,"height":10}},{"id":"44a94b72-3da2-4364-a731-8449a743d2c0","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":164,"box":{"x":102,"y":68,"width":747,"height":11}},{"id":"7fefc21f-cd07-4f16-94a1-b59bc3182f7e","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":164,"box":{"x":70,"y":83,"width":781,"height":11}},{"id":"585dffe2-8512-4336-b9e0-4d8c9a7ec6cb","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":164,"box":{"x":68,"y":98,"width":836,"height":11}},{"id":"ad2b48e9-322a-4b42-b2ff-b6f37efd3bb0","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":164,"box":{"x":69,"y":113,"width":641,"height":11}},{"id":"b9914fe4-5dd5-41fc-962a-a386a3ccae55","block_type":"box","text":"Investment Account","page_number":164,"box":{"x":69,"y":144,"width":146,"height":9}},{"id":"0546dbc7-405d-4946-8a01-b584cabfea41","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":164,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"00579908-c70e-4b7c-bd9d-0565d38c1ee7","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":164,"box":{"x":70,"y":181,"width":796,"height":12}},{"id":"babd8d35-f2d8-4157-9f29-5eff833a6517","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":164,"box":{"x":70,"y":196,"width":807,"height":12}},{"id":"0b629d12-c539-4fab-87f2-ff6ac608c736","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":164,"box":{"x":68,"y":212,"width":830,"height":11}},{"id":"1510fd8c-27e6-4b5f-b002-902fdc6bb546","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":164,"box":{"x":69,"y":227,"width":829,"height":11}},{"id":"f54a4913-0480-4cc2-9717-e8480c12b120","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":164,"box":{"x":68,"y":242,"width":815,"height":11}},{"id":"51d8ea2a-cdce-4a04-abce-a90a6bc657a5","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":164,"box":{"x":70,"y":256,"width":781,"height":12}},{"id":"b327e00c-0944-41c0-bf57-3e29544880f7","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":164,"box":{"x":69,"y":272,"width":825,"height":11}},{"id":"2c702060-1846-4c8e-9abb-d11d085ba966","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":164,"box":{"x":69,"y":287,"width":785,"height":11}},{"id":"e145499f-fc0a-43ee-a70c-fbb9cd5903bf","block_type":"box","text":"automatically at the Transfer Agent.","page_number":164,"box":{"x":69,"y":302,"width":251,"height":12}},{"id":"ba76b8a3-2551-4518-a84f-94bf96922992","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":164,"box":{"x":101,"y":325,"width":750,"height":11}},{"id":"6ec3931a-27af-48b0-ab60-c45222e26b04","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":164,"box":{"x":69,"y":340,"width":797,"height":11}},{"id":"9a42b76e-c627-4a30-9d3e-4ea9ae7f8852","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":164,"box":{"x":69,"y":355,"width":797,"height":11}},{"id":"f400b146-7d17-4bdd-bf67-79024476d245","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":164,"box":{"x":69,"y":370,"width":826,"height":11}},{"id":"bcb6da1d-75d4-4f34-93bc-0db19f724328","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":164,"box":{"x":68,"y":386,"width":792,"height":11}},{"id":"b0eed82a-9d05-4f05-878a-437400319db5","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":164,"box":{"x":69,"y":401,"width":824,"height":11}},{"id":"b2a767a7-d251-4a24-8aec-9eb66d25706e","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":164,"box":{"x":69,"y":416,"width":820,"height":11}},{"id":"b364f31b-feb8-4316-be0b-b1650ddad8e2","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":164,"box":{"x":68,"y":431,"width":833,"height":11}},{"id":"4ffd590a-6de1-437d-becc-9901aa55173a","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":164,"box":{"x":68,"y":446,"width":795,"height":11}},{"id":"1290f75d-d02c-43c5-baac-860924da5e20","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":164,"box":{"x":70,"y":461,"width":822,"height":11}},{"id":"5e102794-521c-4bb3-b13b-51bdfe549e1c","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":164,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"06599ab9-a741-4b12-bfa7-d2ffb7c8a627","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":164,"box":{"x":68,"y":491,"width":822,"height":12}},{"id":"ac77ca04-0116-49cd-b8b5-27825a2900b0","block_type":"box","text":"issued.","page_number":164,"box":{"x":70,"y":507,"width":49,"height":8}},{"id":"34a1c7fe-b0d2-41ab-831f-3fd233895bcc","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":164,"box":{"x":102,"y":529,"width":785,"height":11}},{"id":"a223b556-5c55-48ef-b2be-f67435ea8937","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":164,"box":{"x":68,"y":544,"width":830,"height":11}},{"id":"cdaf7698-a528-44bb-8914-2dadf84806ab","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":164,"box":{"x":68,"y":559,"width":790,"height":12}},{"id":"cec92de2-f5fd-4cbe-a650-b72b8026b2b9","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":164,"box":{"x":69,"y":574,"width":831,"height":12}},{"id":"5129b1db-1e3f-4279-b975-0ec885ef1bf0","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":164,"box":{"x":68,"y":589,"width":652,"height":12}},{"id":"7e131907-f910-480e-8fe1-f3dce999258c","block_type":"box","text":"Exchange Privilege","page_number":164,"box":{"x":69,"y":620,"width":138,"height":11}},{"id":"c4c36074-78b0-4328-b562-fde61ea500b6","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":164,"box":{"x":102,"y":642,"width":797,"height":11}},{"id":"1e778b88-629b-44b0-a906-0537d87f18af","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":164,"box":{"x":69,"y":658,"width":832,"height":11}},{"id":"bf7c22e8-e063-466b-82c7-82f9294e069d","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":164,"box":{"x":68,"y":672,"width":788,"height":12}},{"id":"9e74b529-94f2-4230-b49d-e4a713e96e1a","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":164,"box":{"x":69,"y":687,"width":796,"height":12}},{"id":"22464e26-8353-4bc4-980e-fa4dc9655846","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":164,"box":{"x":69,"y":703,"width":824,"height":11}},{"id":"18040133-3d75-42ca-b993-0a0da6e23ade","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":164,"box":{"x":69,"y":718,"width":835,"height":11}},{"id":"e1cee142-8008-4065-a492-2a961e02a89e","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":164,"box":{"x":70,"y":733,"width":820,"height":11}},{"id":"546c9192-84a8-447e-8759-6206858c50ca","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":164,"box":{"x":69,"y":748,"width":600,"height":11}},{"id":"ccdcdd59-a8c4-44ac-a6cc-340945888e70","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":164,"box":{"x":102,"y":771,"width":648,"height":11}},{"id":"fde9a1d8-06c4-447b-9d7a-a899ff08fdb6","block_type":"box","text":"Institutional Shares","page_number":164,"box":{"x":757,"y":771,"width":137,"height":9}},{"id":"8293690e-b272-404c-aa1a-f0143698e440","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":164,"box":{"x":69,"y":786,"width":817,"height":11}},{"id":"fbe8a297-0fba-4c12-967c-e3293fd3bfcd","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":164,"box":{"x":70,"y":801,"width":798,"height":11}},{"id":"ca99dc56-31bb-4f96-b246-48a6ae80e221","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":164,"box":{"x":69,"y":816,"width":838,"height":12}},{"id":"e68cf1f0-63e1-4b10-98ca-99c8002c08ff","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":164,"box":{"x":70,"y":831,"width":834,"height":12}},{"id":"59fb6d1e-3655-4cdb-af14-17ed44f6a4a4","block_type":"box","text":"for Class G Shares of other Funds.","page_number":164,"box":{"x":68,"y":846,"width":246,"height":10}},{"id":"fd50dd4c-58d0-4853-ad27-21b510bcfbdd","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":164,"box":{"x":102,"y":869,"width":800,"height":11}},{"id":"5aa84d74-15fb-43af-b392-0acf927170e8","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":164,"box":{"x":69,"y":884,"width":826,"height":12}},{"id":"90a88a17-7687-44f5-adaa-657e7b824a3e","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":164,"box":{"x":69,"y":899,"width":795,"height":12}},{"id":"c2a7ec51-45ea-4a0e-b984-6377f8399584","block_type":"box","text":"II-118","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"96faa337-bf65-4096-b581-d790afdb0c8e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8804ffde-1ce9-44f1-8c1e-ae5e9471c492","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":165,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"42ba07c1-3c36-4181-9ef7-2b12fbf768c1","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":165,"box":{"x":70,"y":60,"width":814,"height":11}},{"id":"25c8aa97-b277-4fa5-ad48-9fe2cc4acf32","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":165,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"d8237361-135f-4453-adb1-cd31810ea0bc","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":165,"box":{"x":69,"y":90,"width":828,"height":11}},{"id":"f9bba472-b1e9-4af9-95a7-a57c04ff3545","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":165,"box":{"x":69,"y":105,"width":561,"height":11}},{"id":"faaea477-6eec-4b44-8c51-675d3e5996e5","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":165,"box":{"x":102,"y":128,"width":229,"height":11}},{"id":"4ca2ff63-e7d3-4561-a293-5f3c5c23b10b","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":165,"box":{"x":338,"y":128,"width":570,"height":11}},{"id":"f50b5a2a-192f-4ba6-99be-2375e0a8b9ef","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":165,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"958da5bc-a30e-487f-92bd-0984e83e30a3","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":165,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"a8134f11-0454-4f90-9901-de114b6589cb","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":165,"box":{"x":68,"y":173,"width":811,"height":11}},{"id":"1be77372-b34e-43e9-a18d-da1ad7afa027","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":165,"box":{"x":69,"y":188,"width":827,"height":11}},{"id":"d9cb16b9-f005-4ac4-8875-b92aa667873a","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":165,"box":{"x":68,"y":203,"width":781,"height":12}},{"id":"428d7885-6a5e-4f71-98ad-3925856b5efd","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":165,"box":{"x":68,"y":218,"width":654,"height":12}},{"id":"e66957e2-1325-4779-80c4-917c4a46e7ee","block_type":"box","text":"Exchanges of Service Shares.","page_number":165,"box":{"x":102,"y":241,"width":211,"height":11}},{"id":"d8cc97e5-4457-4053-b49d-d894dff37644","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":165,"box":{"x":319,"y":241,"width":588,"height":11}},{"id":"14c14294-9a5e-4b0f-b5d5-95ddb69f6139","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":165,"box":{"x":69,"y":257,"width":342,"height":11}},{"id":"9800bdaf-0765-4716-aca4-1181b13d9220","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":165,"box":{"x":102,"y":279,"width":335,"height":11}},{"id":"839fd54f-8416-488e-8d29-7733c3379458","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":165,"box":{"x":443,"y":279,"width":455,"height":11}},{"id":"95ebc185-6c5d-4b1c-9c53-b5d190bdd987","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":165,"box":{"x":70,"y":294,"width":788,"height":11}},{"id":"c0585fae-cdd8-4d32-92c8-aacc3ad3b03f","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":165,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"11da7251-4d12-45a8-97ca-8441f1df0a6b","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":165,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"a76db6b1-f013-4e87-8635-f6876ff1cdb0","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":165,"box":{"x":69,"y":339,"width":824,"height":12}},{"id":"cecc260b-d9b1-4673-a53a-9d9dbaf64eb9","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":165,"box":{"x":69,"y":355,"width":805,"height":11}},{"id":"3a75d157-4b98-4932-960a-0536d3f711bf","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":165,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"56eca687-3269-4faf-87a9-25168f9e8567","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":165,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"6dcf3971-7d96-4eda-afde-c94d092a1b06","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":165,"box":{"x":69,"y":400,"width":822,"height":11}},{"id":"02c3870b-da92-405b-90af-e1f8a23ff22f","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":165,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"dd80c1db-6e92-46d9-8ae1-e383951671bf","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":165,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"c320520d-1eae-4956-8c56-500021b18d35","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":165,"box":{"x":69,"y":445,"width":830,"height":12}},{"id":"22b7c11e-ce14-4fec-adad-0e83357726ed","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":165,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"15eaa625-9f4e-4633-aefb-623632ee7605","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":165,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"6afb4cdd-c81a-4d65-9399-6d311d1902f8","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":165,"box":{"x":70,"y":491,"width":781,"height":11}},{"id":"c0eba7a1-60e9-4850-b17f-9ae42e544c09","block_type":"box","text":"exchange.","page_number":165,"box":{"x":69,"y":506,"width":70,"height":11}},{"id":"056e6f42-8346-4c90-a620-ef4c84e777d3","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":165,"box":{"x":102,"y":529,"width":337,"height":11}},{"id":"45da6f59-f9cc-4204-a059-4aab87af4d03","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":165,"box":{"x":445,"y":528,"width":448,"height":12}},{"id":"ce1ca317-af5a-4174-8241-084879db95f5","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":165,"box":{"x":70,"y":543,"width":828,"height":12}},{"id":"ba068048-5f42-4c2b-95a5-ea2d18271266","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":165,"box":{"x":69,"y":559,"width":796,"height":11}},{"id":"9ee19ffd-3539-4493-9b52-a1f5bd74f111","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":165,"box":{"x":70,"y":574,"width":324,"height":11}},{"id":"22288642-ef9a-441f-9607-33ca1e50a88f","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":165,"box":{"x":102,"y":596,"width":245,"height":12}},{"id":"72c1216c-a4f7-4dfe-bc6a-6a7552a055ee","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":165,"box":{"x":353,"y":596,"width":543,"height":12}},{"id":"04b5722f-fb7c-4c17-b7ed-7b4aaee43800","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":165,"box":{"x":69,"y":612,"width":794,"height":11}},{"id":"32ec18a6-ed09-4821-be47-cadbc20b2d11","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":165,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"47011216-e312-401a-998f-b119e537752c","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":165,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"6bc28b35-e592-4ef6-8873-23fb9b1c3c69","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":165,"box":{"x":101,"y":665,"width":772,"height":11}},{"id":"9c31de47-8cd9-486d-95af-33461f41e2e0","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":165,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"cdd3fb44-fdab-4ebb-8a0a-0b538547bbed","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":165,"box":{"x":69,"y":695,"width":801,"height":11}},{"id":"9a940daa-72c1-4f2e-8a10-1effbd5f5e26","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":165,"box":{"x":68,"y":710,"width":817,"height":11}},{"id":"69013c4e-1c0c-4f23-b09c-798fbae3ef9a","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":165,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"805c7b6c-3393-4e29-a2f8-4263e2f11bf6","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":165,"box":{"x":69,"y":740,"width":840,"height":11}},{"id":"03710ce5-4935-452f-a35a-228017a4e210","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":165,"box":{"x":68,"y":755,"width":811,"height":11}},{"id":"a3e195e6-eb12-40e1-8745-c79b63cddca7","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":165,"box":{"x":68,"y":770,"width":815,"height":12}},{"id":"400cc98f-387a-43f5-b4b2-e0528d636806","block_type":"box","text":"Transfer Agent in writing.","page_number":165,"box":{"x":68,"y":785,"width":175,"height":12}},{"id":"50d89b5d-65ad-40ca-91b9-86e96f524bec","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":165,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"1578f604-5ce5-4e7a-9a4a-394aeed8e1a8","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":165,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"a893422a-75c6-42c5-a189-63c8646b8500","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":165,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"1dc26f0b-7c43-42b3-91af-d060fe84b7b6","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":165,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"b91feae7-f9c8-4d3f-b61e-459bfe9226ae","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":165,"box":{"x":68,"y":869,"width":763,"height":11}},{"id":"5fddf0d7-160b-4a43-8933-36ae08ef1eb1","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":165,"box":{"x":69,"y":884,"width":424,"height":11}},{"id":"254022f6-3c05-4c51-a75f-b61bee01d687","block_type":"box","text":"II-119","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0b933b29-37f2-479e-8a69-d15193392165","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f38fb48-f0ab-48f0-8c33-d809f87b1e0f","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":166,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"18c542c2-9665-43f5-b8da-5a620e60ccb3","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":166,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"4a9a3474-ef77-4ea9-af86-965f400526e8","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":166,"box":{"x":69,"y":75,"width":771,"height":11}},{"id":"816a4c3b-a6eb-4f4a-9303-e968430b06c7","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":166,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"b54fc66c-46e5-4fca-8e15-484a2f8af704","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":166,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"cd2314ef-02cd-4db1-b4bc-72e0cdff3145","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":166,"box":{"x":70,"y":120,"width":354,"height":12}},{"id":"6d12b886-2371-4221-a93c-21b70505d543","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":166,"box":{"x":101,"y":143,"width":782,"height":11}},{"id":"c03b0ba4-0c95-45af-a4e8-7947127ab989","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":166,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"d3637105-1eff-4612-86e0-d9f8b7af34c8","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":166,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"71cda45d-49c0-4114-a22c-dc4e17dc80b2","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":166,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"abd7e034-d0f4-4eb5-81b6-c20d2af850fc","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":166,"box":{"x":69,"y":203,"width":506,"height":12}},{"id":"5891829e-3836-4159-8ee7-50a980c3e080","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":166,"box":{"x":101,"y":226,"width":733,"height":11}},{"id":"e4806457-7881-4aa4-a403-0a3320edd1b3","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":166,"box":{"x":69,"y":241,"width":793,"height":11}},{"id":"f36bb5d9-0b2c-4dac-9366-7ad2651f6f4b","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":166,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"19eb58ac-12bf-46bc-9293-571692ae7669","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":166,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"fd2f2a40-f698-4c2c-9645-5ac7ee771bcc","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":166,"box":{"x":68,"y":286,"width":825,"height":12}},{"id":"938d4307-7af7-4f29-86a1-c692d00696d0","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":166,"box":{"x":68,"y":302,"width":837,"height":11}},{"id":"accd8ae5-eb9f-44b1-9916-0ccc46b08b9e","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":166,"box":{"x":69,"y":317,"width":767,"height":11}},{"id":"d40f0a3a-03f2-48e8-881e-3aa0008011b5","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":166,"box":{"x":69,"y":332,"width":750,"height":11}},{"id":"fa5bf5b7-4de0-4179-bb51-6b8d062b98a0","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":166,"box":{"x":102,"y":355,"width":757,"height":11}},{"id":"7c45fb8c-baf8-4829-a935-8c97c13390ec","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":166,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"a54e8d2b-239e-4410-b4e2-0a3f0f5ace0d","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":166,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"0ebf2514-a1c7-4a43-9a51-1baa18b4b07d","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":166,"box":{"x":69,"y":400,"width":817,"height":11}},{"id":"c0360174-cf52-4326-bb01-ad6eb5d6377a","block_type":"box","text":"may be distributed by the Distributor.","page_number":166,"box":{"x":69,"y":415,"width":262,"height":11}},{"id":"0282f5db-971b-4863-8e80-020d0efd2122","block_type":"box","text":"Participation in Fee-Based Programs","page_number":166,"box":{"x":69,"y":445,"width":266,"height":11}},{"id":"25f3521d-b0ca-4af5-af7c-f3b335414713","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":166,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"05443d61-a0d0-4bca-a6e1-4997bade5ae0","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":166,"box":{"x":69,"y":483,"width":826,"height":11}},{"id":"19a765a1-81de-438a-bc52-7dc4a60f0944","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":166,"box":{"x":70,"y":498,"width":825,"height":11}},{"id":"64a4852a-02be-40b2-a3a9-2630f5a107cd","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":166,"box":{"x":69,"y":513,"width":770,"height":12}},{"id":"9db2385d-e755-4365-bb4b-260dc6bcf65c","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":166,"box":{"x":69,"y":528,"width":837,"height":12}},{"id":"6e389f09-4be4-4494-b3e2-2a152ccfa334","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":166,"box":{"x":70,"y":543,"width":808,"height":12}},{"id":"56c06b7a-9935-477f-beb4-7b4f18dd2b75","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":166,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"f03cc60e-6074-44b9-88f0-352328fe1cfa","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":166,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"0520b545-f291-4af6-8819-aebfa47a5546","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":166,"box":{"x":70,"y":589,"width":555,"height":11}},{"id":"82186e26-27ef-468d-9202-e41095fad65c","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":166,"box":{"x":102,"y":612,"width":788,"height":11}},{"id":"da49af27-f441-476a-8e24-e298f3d4ec48","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":166,"box":{"x":69,"y":627,"width":817,"height":10}},{"id":"38703f0b-426e-464d-9a4a-02b4c5729876","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":166,"box":{"x":69,"y":642,"width":796,"height":11}},{"id":"b1b1f80e-34b6-467a-95d7-73af42a961ee","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":166,"box":{"x":70,"y":657,"width":754,"height":11}},{"id":"9bf1b4e4-d0ca-4bf5-ba01-4af75e7edd42","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":166,"box":{"x":70,"y":672,"width":820,"height":11}},{"id":"989a36fc-fd1c-46a7-91a5-eecbf31267d0","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":166,"box":{"x":70,"y":687,"width":777,"height":11}},{"id":"6fb464f0-45c4-4970-a9a6-71134b7b45e3","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":166,"box":{"x":70,"y":702,"width":791,"height":12}},{"id":"98c067ec-5c09-4192-9e6e-108a4ac5ca05","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":166,"box":{"x":69,"y":717,"width":756,"height":12}},{"id":"718a4ce7-8bfa-40ee-aa7c-e584bebf7425","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":166,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"7a6fd998-f40f-408e-9c37-e906ac172146","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":166,"box":{"x":68,"y":755,"width":791,"height":11}},{"id":"b6f97e44-eb9e-49ef-a127-53461a573ac4","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":166,"box":{"x":70,"y":770,"width":830,"height":12}},{"id":"c8769c65-0609-41e5-9497-af782cc604a2","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":166,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"cefa8ca9-b738-4b61-a710-f9d725d5db74","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":166,"box":{"x":69,"y":801,"width":801,"height":11}},{"id":"c3c1dbb6-b7df-4cdb-a893-9386e651b7bb","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":166,"box":{"x":69,"y":816,"width":424,"height":11}},{"id":"99f2232e-6739-4f3c-a4f4-5a926180c4ab","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":166,"box":{"x":102,"y":838,"width":752,"height":12}},{"id":"c72dd576-eaa2-470b-9c94-445e19dc6b57","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":166,"box":{"x":70,"y":853,"width":789,"height":12}},{"id":"db4e7363-d79c-478a-84df-6b78cf12f725","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":166,"box":{"x":69,"y":869,"width":785,"height":11}},{"id":"f9859b01-ff12-4f7e-acec-1cac86134021","block_type":"box","text":"information.","page_number":166,"box":{"x":70,"y":884,"width":83,"height":9}},{"id":"87d090f2-37dd-4ce3-883a-537d38cf9bbc","block_type":"box","text":"II-120","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e61ac2e3-b1b0-42b9-aa5a-68b3101d69ab","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d553066d-3e6b-4f85-b077-2516a63e0f2b","block_type":"box","text":"Retirement and Education Savings Plans","page_number":167,"box":{"x":69,"y":45,"width":296,"height":11}},{"id":"ca117dfb-120b-4600-b897-5e56e9a29240","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":167,"box":{"x":102,"y":67,"width":805,"height":12}},{"id":"75f752b0-36ba-4b53-8ef4-5c7642258ce7","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":167,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"5dc0a558-561d-4b02-a9c2-58a9b51cda65","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":167,"box":{"x":68,"y":98,"width":819,"height":11}},{"id":"da9d0864-3592-483a-b5ab-7189e3caec7c","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":167,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"770bce4a-418f-4d58-b0c3-44f8e6cc786c","block_type":"box","text":"your financial intermediary.","page_number":167,"box":{"x":68,"y":128,"width":191,"height":11}},{"id":"6f9f6343-5082-4aeb-b074-18c70fac9421","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":167,"box":{"x":102,"y":150,"width":796,"height":11}},{"id":"c73d9603-037d-43c5-88d8-188b243c847d","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":167,"box":{"x":68,"y":166,"width":784,"height":11}},{"id":"0e812c4e-1003-480b-8793-5aa19838b84b","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":167,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"5cec59ac-efdb-4301-b4f0-91b7ae89cba6","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":167,"box":{"x":69,"y":196,"width":753,"height":11}},{"id":"94eaaa8c-792b-4bef-9661-76965e5f3cc3","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":167,"box":{"x":69,"y":211,"width":354,"height":11}},{"id":"19ecb0b3-060b-476a-b68e-11600906a756","block_type":"box","text":"Automatic Investment Plans","page_number":167,"box":{"x":68,"y":241,"width":207,"height":9}},{"id":"614b3de7-c8ae-47bb-9bd5-acf1f009c0db","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":167,"box":{"x":102,"y":264,"width":773,"height":11}},{"id":"f7055908-b319-447a-af4c-f8f8147b1f73","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":167,"box":{"x":69,"y":279,"width":477,"height":11}},{"id":"de7db8be-6f0d-4ced-bc8a-a2c511f40fed","block_type":"box","text":"®","page_number":167,"box":{"x":547,"y":279,"width":6,"height":5}},{"id":"7be9d031-f826-49e3-b895-72a2ec484956","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":167,"box":{"x":559,"y":279,"width":272,"height":11}},{"id":"2604ece6-fb3e-4c30-b7b4-1b8f81ab987c","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":167,"box":{"x":70,"y":294,"width":787,"height":11}},{"id":"80c4743c-eb46-4bf3-989e-d63c5328abc4","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":167,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"8f62fd4d-2b9b-43cd-b1db-6c20feb34334","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":167,"box":{"x":68,"y":324,"width":805,"height":11}},{"id":"2c1cc3a0-0b57-457a-b80d-1211bb1ea9f5","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":167,"box":{"x":68,"y":355,"width":285,"height":9}},{"id":"9242f715-fc76-471a-9183-d01160f94af9","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":167,"box":{"x":102,"y":377,"width":782,"height":12}},{"id":"e08e971a-e79b-42fd-add9-4617dc7d36aa","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":167,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"45eef0fb-17a5-4110-a3e7-e40c314c3574","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":167,"box":{"x":69,"y":407,"width":839,"height":9}},{"id":"9b296678-7e4e-4d86-a73b-5f1e689fb484","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":167,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"471f5939-d714-4bd3-ba27-0d29cc22e28a","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":167,"box":{"x":69,"y":438,"width":614,"height":11}},{"id":"9e5d5f88-0e42-45e6-8626-f6ce89d3d338","block_type":"box","text":"Systematic Withdrawal Plans","page_number":167,"box":{"x":68,"y":468,"width":214,"height":11}},{"id":"5ed22e27-9687-49f2-b6f3-392df052ceaa","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":167,"box":{"x":102,"y":491,"width":780,"height":11}},{"id":"84eb0d46-6daf-4684-9a01-05ac0d9d3e42","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":167,"box":{"x":70,"y":505,"width":742,"height":12}},{"id":"59b4ea09-3c79-4ee6-9b1b-8745952ed6b2","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":167,"box":{"x":69,"y":520,"width":834,"height":12}},{"id":"076b58f6-bf55-479f-b155-cfb9472d21e9","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":167,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"71bcac20-7ef8-4a5e-aeb1-a729595c530a","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":167,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"8ed5bf5d-b43a-4049-8761-c2bc348e5328","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":167,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"a7cf405a-daa7-4ad9-8856-5e810902d0b7","block_type":"box","text":"www.blackrock.com.","page_number":167,"box":{"x":68,"y":582,"width":142,"height":8}},{"id":"3682fe54-95f8-4269-981e-1355c14556dd","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":167,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"13456d4b-fd93-4e24-92b1-463717ec7fde","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":167,"box":{"x":68,"y":619,"width":774,"height":11}},{"id":"fb1111d7-e87e-4685-83f4-5931158cedf5","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":167,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"ac75edd5-46be-4d6b-b579-87db600a950b","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":167,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"e8cb7e18-8287-4302-b04e-36e25db4a1d1","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":167,"box":{"x":69,"y":664,"width":803,"height":12}},{"id":"2483f34a-9086-43fe-9146-bb9b0349aab2","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":167,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"82842da4-b218-4e62-a85a-64aad6034114","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":167,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"90430500-7feb-4904-8493-ebfbc47a1440","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":167,"box":{"x":70,"y":710,"width":816,"height":11}},{"id":"03343625-108a-48fd-be80-568f60ebbab7","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":167,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"44a08b1a-4381-4c33-ad35-0959eee368ed","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":167,"box":{"x":69,"y":740,"width":367,"height":11}},{"id":"600e937e-3443-4d4f-8d0d-3b76be552d1b","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":167,"box":{"x":102,"y":763,"width":798,"height":11}},{"id":"9db6f19f-0a4f-4e30-a155-8174cc731e56","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":167,"box":{"x":68,"y":778,"width":834,"height":11}},{"id":"d02f00d2-88d2-42a4-b6ce-d7ae26cea701","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":167,"box":{"x":69,"y":793,"width":311,"height":11}},{"id":"4bf80cc4-973a-422f-81d8-11bf7bf27a90","block_type":"box","text":"Dividend Allocation Plan","page_number":167,"box":{"x":69,"y":823,"width":176,"height":9}},{"id":"4629aa2c-c539-4c75-8beb-01029d772ea5","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":167,"box":{"x":101,"y":846,"width":807,"height":11}},{"id":"0a046f1f-ce25-413a-927d-33f6ca088221","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":167,"box":{"x":69,"y":861,"width":763,"height":11}},{"id":"935317af-6121-4fe7-8adb-52377f720540","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":167,"box":{"x":69,"y":876,"width":814,"height":11}},{"id":"e81c99ca-49cb-48d9-9993-1946f1611590","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":167,"box":{"x":70,"y":891,"width":771,"height":11}},{"id":"390cdc2c-df2a-41d3-a0a4-8c7f5050e1bc","block_type":"box","text":"II-121","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e4c108ab-460b-4677-89f3-73eccce1ba7e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c6606c5-ca9a-4cf3-b387-013aee483e88","block_type":"box","text":"PRICING OF SHARES","page_number":168,"box":{"x":406,"y":45,"width":167,"height":10}},{"id":"2204a231-0f48-4b67-b2d3-64aef8843107","block_type":"box","text":"Determination of Net Asset Value","page_number":168,"box":{"x":69,"y":76,"width":243,"height":8}},{"id":"cb918328-bf6c-4a6d-9c06-2daaf81acbe2","block_type":"box","text":"Valuation of Shares.","page_number":168,"box":{"x":101,"y":98,"width":145,"height":9}},{"id":"53987c38-ff11-46e1-9fe4-026e29b3c55b","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":168,"box":{"x":252,"y":98,"width":626,"height":11}},{"id":"e769bcf8-c756-4286-884c-355c473b4988","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":168,"box":{"x":69,"y":113,"width":785,"height":12}},{"id":"768389fd-06dd-4a3f-adee-fd08f8712914","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":168,"box":{"x":68,"y":128,"width":343,"height":12}},{"id":"443d2b73-0056-475a-a5ab-116a5bab5684","block_type":"box","text":"Equity Investments.","page_number":168,"box":{"x":102,"y":151,"width":143,"height":11}},{"id":"b507340f-f9f7-4569-ad87-db409fe650ed","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":168,"box":{"x":252,"y":151,"width":439,"height":11}},{"id":"48cd6f77-79fc-426b-99b3-423be5e4ad42","block_type":"box","text":"e.g.","page_number":168,"box":{"x":693,"y":153,"width":25,"height":9}},{"id":"4a6a3b53-9ae5-4998-be0b-1e8299f65330","block_type":"box","text":", NYSE), on separate","page_number":168,"box":{"x":720,"y":151,"width":147,"height":11}},{"id":"c4e34643-24ac-4892-95d8-2eb616f79b9b","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":168,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"5aeba83d-a0b8-4bad-9ecb-0cfc78652bc0","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":168,"box":{"x":70,"y":181,"width":808,"height":12}},{"id":"918a5352-ee88-4672-af63-79cc0af0e032","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":168,"box":{"x":68,"y":196,"width":820,"height":12}},{"id":"32c2a55a-1532-4ec6-816a-43d13c96ff52","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":168,"box":{"x":70,"y":212,"width":805,"height":11}},{"id":"4165a0ed-4540-4c87-aea4-7672716906d0","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":168,"box":{"x":69,"y":227,"width":793,"height":11}},{"id":"ff9fa6c0-6e64-4a55-b28a-17c78ef38cb1","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":168,"box":{"x":70,"y":242,"width":836,"height":11}},{"id":"83a0e77f-1eaa-4353-a96b-01f11efa53b4","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":168,"box":{"x":68,"y":257,"width":815,"height":11}},{"id":"82891e65-1a0f-40a9-9e49-2cde3df35a10","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":168,"box":{"x":70,"y":272,"width":837,"height":11}},{"id":"ae3e6e6e-5b99-4e6e-b7a0-251bbac82f45","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":168,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"82dd8d4c-ef0a-4bef-9384-cf1705338f94","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":168,"box":{"x":68,"y":302,"width":828,"height":11}},{"id":"c24e8da4-8bc9-4466-adbb-251ed3ac34ad","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":168,"box":{"x":68,"y":318,"width":819,"height":11}},{"id":"da585284-93ec-40f9-81f6-06025657ce40","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":168,"box":{"x":70,"y":332,"width":798,"height":12}},{"id":"1a01c4c3-cbe5-42b8-9cf8-ddbf18f9e8cb","block_type":"box","text":"defined below).","page_number":168,"box":{"x":69,"y":348,"width":106,"height":11}},{"id":"51d2c06f-4655-4b50-8ea5-8262f3b62fe7","block_type":"box","text":"Fixed-Income Investments.","page_number":168,"box":{"x":102,"y":370,"width":194,"height":9}},{"id":"34c05f8f-f2df-4ef1-885b-c597af3237b6","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by dealers or","page_number":168,"box":{"x":304,"y":371,"width":592,"height":11}},{"id":"cf1d6f54-6c71-4023-9753-27a18202069a","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":168,"box":{"x":70,"y":386,"width":825,"height":11}},{"id":"dca20529-a1bd-4bc2-958c-d9bd768fdf2e","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":168,"box":{"x":69,"y":401,"width":823,"height":11}},{"id":"b8684e7e-a31e-482b-a77b-9095529fd7e1","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":168,"box":{"x":69,"y":416,"width":443,"height":11}},{"id":"d5d7d3fc-9b5b-4200-973d-e9e93ad58774","block_type":"box","text":"e.g.","page_number":168,"box":{"x":514,"y":417,"width":24,"height":10}},{"id":"ca07de26-177a-4d37-b4c5-42824c724b96","block_type":"box","text":", recent representative bids and offers), credit","page_number":168,"box":{"x":541,"y":416,"width":328,"height":11}},{"id":"bf261447-1337-492d-acc0-8d75d44e1a27","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":168,"box":{"x":69,"y":431,"width":834,"height":11}},{"id":"23478716-314d-4a0f-8b47-bf7e7ebc0b98","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":168,"box":{"x":69,"y":446,"width":769,"height":11}},{"id":"e9e9c5b9-a125-46df-8968-ca858229fba2","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":168,"box":{"x":70,"y":461,"width":797,"height":11}},{"id":"cf010a29-d21b-484a-bd2d-e2e198825ddf","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":168,"box":{"x":69,"y":476,"width":821,"height":11}},{"id":"c9c0fd86-dfc0-41e3-9a52-284fce5edc1b","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":168,"box":{"x":68,"y":491,"width":798,"height":11}},{"id":"eb3c14fb-c7b7-40f9-9072-c6b105aad3e7","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":168,"box":{"x":69,"y":507,"width":825,"height":11}},{"id":"f9238357-deeb-4363-8372-6a5f5974f3d9","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":168,"box":{"x":69,"y":521,"width":791,"height":12}},{"id":"69b63b57-8484-4cb8-9f2c-aaed2ed8ba46","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":168,"box":{"x":69,"y":537,"width":814,"height":11}},{"id":"4044ebce-17e4-4a5c-a591-27ff69c6a606","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":168,"box":{"x":68,"y":552,"width":802,"height":11}},{"id":"ebbe68fc-137d-4548-a87f-04f17d709307","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":168,"box":{"x":69,"y":567,"width":773,"height":10}},{"id":"17ac611a-2353-42d3-b85e-91e26ae36e83","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":168,"box":{"x":69,"y":582,"width":795,"height":11}},{"id":"f25b4a4e-f203-4056-9277-5821e2451ce9","block_type":"box","text":"attributes of the tranche.","page_number":168,"box":{"x":69,"y":597,"width":176,"height":9}},{"id":"7a577fd1-47e0-4b90-b00d-f41c77e843a6","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":168,"box":{"x":101,"y":620,"width":344,"height":11}},{"id":"c5f967b9-52f8-4bfd-9e2d-62a2e31eeb75","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":168,"box":{"x":453,"y":620,"width":416,"height":11}},{"id":"47ce1f4c-1115-487a-bd6a-1103fa419b9a","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":168,"box":{"x":70,"y":635,"width":829,"height":11}},{"id":"d0706c4b-fe27-4ddf-98b5-78fff169693f","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":168,"box":{"x":69,"y":650,"width":824,"height":11}},{"id":"2750d89e-4db9-4650-b3ad-05bb482edd91","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":168,"box":{"x":68,"y":665,"width":838,"height":11}},{"id":"32e48f7c-459f-45ab-9434-9f2998f31dae","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":168,"box":{"x":68,"y":680,"width":820,"height":12}},{"id":"c16fb186-9506-4af0-9c7b-e02654035593","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":168,"box":{"x":68,"y":695,"width":808,"height":11}},{"id":"bbbf1db6-1a79-4bbc-8047-f9e1bde25791","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":168,"box":{"x":69,"y":710,"width":824,"height":12}},{"id":"f026400d-60e7-4c75-9126-6031eae01f8d","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":168,"box":{"x":68,"y":726,"width":789,"height":11}},{"id":"76001a83-ef31-4004-8dc7-5ed82acb490a","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":168,"box":{"x":69,"y":741,"width":807,"height":11}},{"id":"e889fc15-b042-4348-bf6c-4537613db2a0","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":168,"box":{"x":69,"y":756,"width":824,"height":11}},{"id":"abf3260d-6061-4139-8eec-d2c19011d6ad","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":168,"box":{"x":69,"y":771,"width":833,"height":11}},{"id":"bea89ad8-57b7-40ec-a0db-7c5239ca635b","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":168,"box":{"x":69,"y":786,"width":830,"height":11}},{"id":"cdbcd470-2b9f-4e6d-bc3c-c62f1122120c","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":168,"box":{"x":69,"y":801,"width":301,"height":9}},{"id":"50a9d969-d335-4887-b140-9610cea8a252","block_type":"box","text":"Underlying Funds.","page_number":168,"box":{"x":102,"y":824,"width":128,"height":11}},{"id":"3e89db49-4d31-4e9c-aaa8-311d175283c0","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued at NAV.","page_number":168,"box":{"x":237,"y":824,"width":621,"height":11}},{"id":"3059dfc6-199a-418a-86ce-c94c66d572f8","block_type":"box","text":"Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their most recent closing price.","page_number":168,"box":{"x":69,"y":839,"width":837,"height":11}},{"id":"25937464-0739-4e26-9bf1-da70777dbdc8","block_type":"box","text":"General Valuation Information.","page_number":168,"box":{"x":101,"y":862,"width":220,"height":9}},{"id":"a04109f8-7080-4ebc-b9af-f3fe50647478","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":168,"box":{"x":328,"y":862,"width":564,"height":11}},{"id":"a6ad679e-08c9-483a-8836-7433fb117b60","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":168,"box":{"x":69,"y":877,"width":831,"height":9}},{"id":"18e0f1d8-8309-4783-96b2-4f40f080b5c3","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":168,"box":{"x":68,"y":892,"width":828,"height":11}},{"id":"2c900cdc-2aa7-4e17-9921-bf77dd1d8b6d","block_type":"box","text":"II-122","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8d09b617-17ac-41c9-b631-98cb5a10493c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0bfc629b-fe16-4546-ba80-33d877a6a86f","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":169,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"3ba9d137-b0c7-44de-abb3-b5c607894e24","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":169,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"7e415ada-148a-410c-aff5-03d4cde61d4d","block_type":"box","text":"the revision.","page_number":169,"box":{"x":68,"y":75,"width":87,"height":9}},{"id":"a5f3a04e-a7ec-4ffa-9057-55f6931f2519","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":169,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"ae1c8655-82bd-4825-9711-9aa6fa55501e","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":169,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"fb840991-30a2-43a4-8324-e6119520039a","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":169,"box":{"x":69,"y":128,"width":818,"height":11}},{"id":"8ae45d88-b9f6-4395-8782-99bf51e12166","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":169,"box":{"x":70,"y":143,"width":832,"height":11}},{"id":"522ea005-cf12-4ee4-91bf-2ba7acaaed61","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":169,"box":{"x":70,"y":158,"width":832,"height":11}},{"id":"137e696b-f954-4678-8fbd-2eb0a2226e95","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":169,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"84287ef9-6a55-4628-9296-6ab1e593317e","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":169,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"69191d6d-fe00-4d28-860c-ba00c1f0ed21","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":169,"box":{"x":70,"y":204,"width":833,"height":11}},{"id":"9d6b856a-c458-4686-96ed-c8c6bb0f4bb3","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":169,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"ea3610e2-0206-432f-84ab-6200bcf1c066","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":169,"box":{"x":70,"y":234,"width":741,"height":11}},{"id":"b234e54b-eadc-489e-90c4-c577968b6b2d","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":169,"box":{"x":102,"y":256,"width":800,"height":11}},{"id":"55771bd0-04f6-450e-b668-1bd9e3c1e9aa","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":169,"box":{"x":69,"y":271,"width":811,"height":12}},{"id":"2aa47066-e5bc-4a95-9c96-5754389a631a","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":169,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"f0dd1a1d-e48c-449a-9b12-74e93eb764b1","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":169,"box":{"x":68,"y":302,"width":824,"height":11}},{"id":"dace726a-f766-4e73-b88e-7d08768d182d","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":169,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"5a60c0d9-d2f3-4767-ab14-9e3a66243376","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":169,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"f6f95ba8-3c93-4c05-9366-d3a3edba0a6e","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":169,"box":{"x":69,"y":347,"width":685,"height":11}},{"id":"9488ea85-9f1b-40c3-862f-573e9e6d9d85","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":169,"box":{"x":102,"y":370,"width":795,"height":11}},{"id":"23132199-230d-45d5-8621-eef4c61d4c32","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":169,"box":{"x":68,"y":385,"width":805,"height":11}},{"id":"35872d0c-d0b8-4851-9e1c-46a75b1416f7","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":169,"box":{"x":69,"y":400,"width":529,"height":11}},{"id":"c8e0cf9f-a554-4623-b093-c62530537d9e","block_type":"box","text":"Fair Value.","page_number":169,"box":{"x":102,"y":423,"width":74,"height":9}},{"id":"59d4287a-52b6-41d0-924e-69554a117608","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":169,"box":{"x":183,"y":423,"width":693,"height":11}},{"id":"09c2c4fd-b087-41b9-a27c-3577969c2f4f","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":169,"box":{"x":70,"y":438,"width":785,"height":11}},{"id":"f9f13aa2-f6e5-47e5-b801-75be3e8617be","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":169,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"09e7d985-8823-42a2-a76c-3786fcd701f2","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":169,"box":{"x":70,"y":468,"width":779,"height":11}},{"id":"3ce2a4db-0079-4a14-8622-ebfe8aca7f13","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":169,"box":{"x":70,"y":483,"width":773,"height":11}},{"id":"6b26949c-7d3e-40da-bfd7-15a2710ce3b6","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":169,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"126a9aa4-b031-4543-988e-93525f3827a0","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":169,"box":{"x":69,"y":513,"width":826,"height":12}},{"id":"f2c22886-411b-4b11-bcd7-1cae3e77196b","block_type":"box","text":"(","page_number":169,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"5f336c4e-bb86-4abf-ba61-a00763bdd684","block_type":"box","text":"e.g.","page_number":169,"box":{"x":74,"y":530,"width":25,"height":10}},{"id":"1d3ee059-eb5c-4f4e-85a8-a203eb1d59a7","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":169,"box":{"x":101,"y":528,"width":806,"height":12}},{"id":"1d9dce39-6261-455e-989f-b36a4f8cc591","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":169,"box":{"x":69,"y":544,"width":813,"height":11}},{"id":"03abf80c-5d19-407f-ad42-acde65d923e8","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":169,"box":{"x":68,"y":559,"width":837,"height":11}},{"id":"1cbb878b-a784-4b80-8331-21101dd7e401","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":169,"box":{"x":70,"y":574,"width":838,"height":11}},{"id":"95190c71-7a97-4302-aaac-42ba91ca0e5f","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":169,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"2421e8c9-fba0-4263-9556-0c8359d1ef66","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":169,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"f70b1641-7c73-4e30-89e6-21258153fdc5","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":169,"box":{"x":69,"y":619,"width":793,"height":11}},{"id":"989f5658-94f9-4310-822d-4ed714d634ac","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":169,"box":{"x":70,"y":634,"width":819,"height":12}},{"id":"53c93c2b-c578-4400-9f93-fe9394c32d68","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":169,"box":{"x":68,"y":649,"width":810,"height":12}},{"id":"edfea267-cbf3-42c7-8083-c896e23949a9","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":169,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"4b9b9713-bbe3-4982-ba28-25bce4ccc3b5","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":169,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"221be491-d537-46c8-bb1f-bb7ccdebe045","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":169,"box":{"x":68,"y":695,"width":814,"height":11}},{"id":"794be224-ed8b-483c-a623-748f5308df6c","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":169,"box":{"x":69,"y":710,"width":827,"height":11}},{"id":"85f0062d-58d3-46cc-ba7e-4459761b52c0","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":169,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"8cf61a92-a42b-47f9-84da-432abd32aeab","block_type":"box","text":"pricing time.","page_number":169,"box":{"x":70,"y":740,"width":85,"height":11}},{"id":"8dd222a6-c864-4251-873e-04f462be888f","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":169,"box":{"x":102,"y":763,"width":794,"height":11}},{"id":"7672531d-58d4-4f3b-ad06-164387554ce6","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":169,"box":{"x":69,"y":778,"width":829,"height":11}},{"id":"87048936-85ea-45ee-acbb-bf149702fcb4","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":169,"box":{"x":69,"y":793,"width":813,"height":11}},{"id":"27b5584f-7633-468c-af5e-5b0e4eac70ab","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":169,"box":{"x":70,"y":808,"width":808,"height":11}},{"id":"131a6d8a-448a-45c2-a955-d3a00d8eb40d","block_type":"box","text":"assets and liabilities of the Funds.","page_number":169,"box":{"x":69,"y":823,"width":245,"height":9}},{"id":"2440e87b-d595-4bf6-9adb-37e9ea01e509","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":169,"box":{"x":101,"y":846,"width":795,"height":11}},{"id":"dbf2862f-c4c0-4b8d-80d1-b6b2fb75cc8b","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":169,"box":{"x":69,"y":861,"width":832,"height":11}},{"id":"a2527c46-80f7-4be8-af89-5a901ab61bfa","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":169,"box":{"x":69,"y":876,"width":805,"height":11}},{"id":"b642dac0-5ff0-4fc3-ad95-49022e27cdd7","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":169,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"dd76ab89-d3ec-4ad3-8936-cf4122848dd9","block_type":"box","text":"II-123","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"74c3c6d7-15c7-4643-8905-64714d3e4849","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa616c0e-feb5-4bdd-a41b-fad58d633b06","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":170,"box":{"x":69,"y":45,"width":744,"height":11}},{"id":"604675b5-05a4-4e79-8693-cc2d99f32a68","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":170,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"b8ceb689-d10b-4850-8aab-099c7ebd8b4e","block_type":"box","text":"valuation models.","page_number":170,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"e53ff616-57e2-4fd0-bcd2-4bcad9da3929","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":170,"box":{"x":102,"y":98,"width":785,"height":11}},{"id":"e78dca92-153e-44de-81ff-3406cd0cd862","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":170,"box":{"x":68,"y":113,"width":822,"height":11}},{"id":"29d2ac1d-aba8-4078-9195-df406e095dbf","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":170,"box":{"x":68,"y":128,"width":820,"height":11}},{"id":"b2a9708b-6352-4b64-8398-754263fbcb09","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":170,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"9dd9bca6-d35f-478e-b848-495385b230d7","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":170,"box":{"x":69,"y":158,"width":766,"height":11}},{"id":"6c086b59-6ce8-4f11-80a5-7108ab8f02be","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":170,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"cddf631a-2305-4150-94b8-32496767c8e0","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":170,"box":{"x":69,"y":188,"width":378,"height":12}},{"id":"855928eb-549f-4ae8-aacd-b1cff46c0a80","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":170,"box":{"x":101,"y":211,"width":784,"height":11}},{"id":"3bcbebc8-4367-48b1-b296-9a2d7d27a3d9","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":170,"box":{"x":70,"y":226,"width":836,"height":11}},{"id":"ecae86d9-73a0-4169-a180-761b580aaba0","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":170,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"6aee210d-f713-4e47-91dd-fa0a0fb7d81e","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":170,"box":{"x":68,"y":256,"width":728,"height":12}},{"id":"e1788970-fd8e-4e9c-b2e0-5784ad1deb30","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":170,"box":{"x":102,"y":279,"width":786,"height":11}},{"id":"37a230bd-7927-4a0f-b29b-19c2a37c158f","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":170,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"fef7f0da-1af1-4580-98d1-9a61837ef4e9","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":170,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"dfaac3b9-7047-493a-8ba4-bef452a931d2","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":170,"box":{"x":70,"y":324,"width":818,"height":12}},{"id":"d0510a78-2973-44ef-bea6-d80ac7f6d77a","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":170,"box":{"x":69,"y":339,"width":641,"height":12}},{"id":"8a82fc94-f8d0-4f2b-9e50-c01b53dc9d76","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":170,"box":{"x":102,"y":362,"width":786,"height":11}},{"id":"681035b0-8cf7-45ff-8105-99a76515e470","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":170,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"69d0d3fe-a059-44f5-8423-bf70b4f169bd","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":170,"box":{"x":69,"y":392,"width":780,"height":12}},{"id":"c67e9b96-acc7-4e49-a8ed-6942358bd8e9","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":170,"box":{"x":70,"y":407,"width":810,"height":12}},{"id":"586e09e1-1b50-4d87-a534-edf8b12d6451","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":170,"box":{"x":70,"y":423,"width":810,"height":11}},{"id":"1b001042-b26c-4dc7-bb25-90f8afff527b","block_type":"box","text":"par ty determination of fair market value.","page_number":170,"box":{"x":70,"y":438,"width":285,"height":11}},{"id":"b39dcea8-8b7b-4fb7-b903-a275455bcaea","block_type":"box","text":"Computation of Offering Price Per Share","page_number":170,"box":{"x":69,"y":468,"width":292,"height":11}},{"id":"537781cb-1fe8-4eea-9aad-21ed56aad0c9","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":170,"box":{"x":102,"y":491,"width":791,"height":11}},{"id":"4421111e-050f-4aed-a927-a5f304fceea9","block_type":"box","text":"the offering price for shares of your Fund.","page_number":170,"box":{"x":68,"y":506,"width":295,"height":11}},{"id":"8754ebed-7b49-43eb-bd5f-c0b927166f17","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":170,"box":{"x":303,"y":535,"width":373,"height":10}},{"id":"8e2d4149-c75f-48dc-9969-081afd5905a4","block_type":"box","text":"Transactions in Portfolio Securities","page_number":170,"box":{"x":68,"y":566,"width":257,"height":9}},{"id":"0d462430-031a-4089-87a7-25c330c1650e","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":170,"box":{"x":102,"y":588,"width":798,"height":11}},{"id":"e7bf5c92-1346-4b47-a760-3f8a1c777e56","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":170,"box":{"x":69,"y":603,"width":839,"height":12}},{"id":"3f924ee8-b076-4445-a9ad-eb0a668e6307","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":170,"box":{"x":70,"y":618,"width":822,"height":12}},{"id":"655a9254-7e8e-4dd7-861d-5b4fef828fcb","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":170,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"5b126455-6718-4ff1-8218-1cb12dd9f82a","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":170,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"23877b7a-52be-4993-b3c3-3e660c981696","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":170,"box":{"x":69,"y":664,"width":765,"height":11}},{"id":"0856056b-dc1b-4f7e-adad-d55420c5bcbf","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":170,"box":{"x":69,"y":679,"width":768,"height":11}},{"id":"a941c72c-0517-4a58-a0cd-588bae5521c4","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":170,"box":{"x":70,"y":694,"width":830,"height":11}},{"id":"80b58ab9-b1f8-4af8-b8e7-d4da1910fc3e","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":170,"box":{"x":69,"y":709,"width":760,"height":11}},{"id":"1ed60e61-7f8c-40bf-b4da-4b9947e55ce7","block_type":"box","text":"reasonable in relation to the services provided.","page_number":170,"box":{"x":69,"y":725,"width":336,"height":10}},{"id":"f27957bd-262e-44d3-934d-695f459f5371","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":170,"box":{"x":102,"y":747,"width":794,"height":11}},{"id":"df15d750-23d0-464f-bf87-d99c043f183f","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":170,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"62f301b3-202d-40a3-9383-9d56c25dfdea","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":170,"box":{"x":102,"y":785,"width":784,"height":11}},{"id":"e10d4fcd-efea-40dc-81a3-bd85e72399ab","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":170,"box":{"x":68,"y":800,"width":829,"height":11}},{"id":"7cf5d0e7-e083-47f9-a677-d0741a7233ef","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":170,"box":{"x":69,"y":815,"width":802,"height":11}},{"id":"3f0d8b21-ab46-4560-8d19-2d6185e90ccb","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":170,"box":{"x":69,"y":830,"width":826,"height":11}},{"id":"e53a1ec6-005a-40b1-9031-4c6a26851674","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":170,"box":{"x":69,"y":845,"width":789,"height":12}},{"id":"d31de170-ccc0-4ec7-a91f-09d777c41cd6","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":170,"box":{"x":70,"y":860,"width":818,"height":12}},{"id":"bef4abbd-16f2-4fd3-92fc-9b6caae92837","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":170,"box":{"x":69,"y":875,"width":769,"height":12}},{"id":"35c9f4d4-1564-40d3-a6b9-f87412005d30","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":170,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"588af1d1-a390-4c3f-98a7-e67578c784de","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":170,"box":{"x":69,"y":906,"width":391,"height":11}},{"id":"0f43ad0c-d7f8-45c7-8b1b-7b8d370f30d8","block_type":"box","text":"II-124","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4fb40210-af27-42b7-9f35-77dba5518227","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e77fc1ca-fd11-4e74-9c5f-917294a2fc66","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":171,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"deaa4382-0046-4b73-8eea-48311650e640","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":171,"box":{"x":68,"y":60,"width":802,"height":11}},{"id":"ab0848f0-20e3-46bf-91a8-2c731df670dc","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":171,"box":{"x":69,"y":75,"width":775,"height":11}},{"id":"4c6033cf-85bf-41b5-be8c-b2294156e58e","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":171,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"9ffbfe12-9413-4315-8104-db505ab835b2","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":171,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"56053d27-7a30-4b0f-a02b-6f7424c1531e","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":171,"box":{"x":68,"y":120,"width":753,"height":12}},{"id":"49653b6b-88bd-4e51-a487-b75dec30896a","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":171,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"aee64afe-d9dd-42aa-a679-c15237fc0b29","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":171,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"0859c038-db1c-4c86-89f1-ca54ae5a683b","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":171,"box":{"x":70,"y":166,"width":775,"height":11}},{"id":"da087f4a-32d3-41aa-94ad-cf05df24a12d","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":171,"box":{"x":69,"y":181,"width":764,"height":11}},{"id":"d9eccfd0-145e-496f-bda9-aa0e77b19b34","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":171,"box":{"x":69,"y":196,"width":770,"height":11}},{"id":"42b931ca-16da-40d3-84d2-de8931085590","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":171,"box":{"x":69,"y":211,"width":599,"height":11}},{"id":"17ba52f4-56f9-4203-8002-059510810435","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":171,"box":{"x":102,"y":234,"width":796,"height":11}},{"id":"48130b0a-d598-4e79-bb05-2760904d5216","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":171,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"5955c8d6-3c4d-4884-9528-9bef39905814","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":171,"box":{"x":68,"y":264,"width":839,"height":11}},{"id":"b13fe503-2595-4275-bc56-ef6b0877e4af","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":171,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"85aceae0-87ce-4f09-84dc-750bfe66b7a2","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":171,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"89c8ab05-5602-445b-8a97-ee60811352aa","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":171,"box":{"x":69,"y":309,"width":808,"height":11}},{"id":"92da2103-22a2-40c0-8c65-891a56daeef0","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":171,"box":{"x":69,"y":325,"width":818,"height":11}},{"id":"ce5ce274-da37-46a4-bade-1c3d69a9dba0","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":171,"box":{"x":70,"y":339,"width":813,"height":12}},{"id":"d9f4fac9-d556-4c32-aabf-4f4732dea5b3","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":171,"box":{"x":70,"y":355,"width":801,"height":11}},{"id":"39a107ff-956f-481a-be14-8b249c3863a5","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":171,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"4bbf427d-c24b-489c-8468-2a78a41f35f7","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":171,"box":{"x":69,"y":385,"width":790,"height":11}},{"id":"8352dd3c-4967-4604-800c-de0f4f06329a","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":171,"box":{"x":70,"y":400,"width":361,"height":11}},{"id":"7c34593d-4d06-42de-b3e5-0093cc9a8311","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":171,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"8ec18087-52e9-4fa5-a321-4e702504ac97","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":171,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"fe221fc8-f12c-4881-9260-b00c20d5b540","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":171,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"9b205593-a364-48ff-96a7-48796deb7378","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":171,"box":{"x":70,"y":468,"width":785,"height":11}},{"id":"e8c13c6d-cc0f-4d5a-a08b-3c49ab382839","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":171,"box":{"x":70,"y":483,"width":806,"height":11}},{"id":"a9027300-8600-4eda-824d-1cf98dee897f","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":171,"box":{"x":68,"y":498,"width":772,"height":11}},{"id":"4a2d46aa-0cc2-402e-ae86-fb1428925733","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":171,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"e4edf6b1-bd85-4912-b0a9-4fdae1c09c8f","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":171,"box":{"x":68,"y":528,"width":769,"height":12}},{"id":"f8057838-fd47-4eb9-9fd0-1d87a8c958ef","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":171,"box":{"x":69,"y":543,"width":801,"height":12}},{"id":"c2339357-af41-4526-adec-c8b31815b173","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":171,"box":{"x":69,"y":559,"width":778,"height":11}},{"id":"dca5acb4-8886-4ae2-9402-dc2722237742","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":171,"box":{"x":69,"y":574,"width":363,"height":11}},{"id":"7355be7d-8189-4d6a-ad44-e11c9aea7e56","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":171,"box":{"x":102,"y":596,"width":749,"height":12}},{"id":"a3ecfb71-4ba4-4d8a-a2f5-a040f6d52a01","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":171,"box":{"x":69,"y":612,"width":799,"height":11}},{"id":"d05d6569-1ab2-4c4b-883e-9373e7b2026c","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":171,"box":{"x":70,"y":627,"width":752,"height":11}},{"id":"c0ba1f38-2e54-4924-8e9a-d640ff959805","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":171,"box":{"x":70,"y":642,"width":823,"height":11}},{"id":"ed3b465c-9245-4201-84c6-1399b5fee4a6","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":171,"box":{"x":70,"y":657,"width":822,"height":11}},{"id":"91219bcf-2550-4cb1-acbc-d30b2e2b05dc","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":171,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"3d69abc2-2751-4f4e-9ac1-7b90df98db3b","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":171,"box":{"x":68,"y":687,"width":805,"height":11}},{"id":"6dd5204c-1c17-4aad-a949-6254cf77472d","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":171,"box":{"x":69,"y":702,"width":798,"height":12}},{"id":"1a8d6d88-b465-48c1-a582-1b1033bd6cf0","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":171,"box":{"x":69,"y":717,"width":836,"height":12}},{"id":"9bf36397-7433-405f-b83b-947a7657ca36","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":171,"box":{"x":70,"y":732,"width":832,"height":12}},{"id":"449272f1-687f-4ca6-b714-aefb9ebd79b4","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":171,"box":{"x":70,"y":748,"width":798,"height":11}},{"id":"97caeab2-defe-4ae4-a3f7-130bec3850df","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":171,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"4b5a300f-e6b1-41ce-a6d6-f4167f2da0ab","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":171,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"2b50b1e5-932c-4741-9864-582cbc465ae8","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":171,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"bff4b83a-2611-4f5d-a746-54c6074c3f0b","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":171,"box":{"x":69,"y":808,"width":797,"height":11}},{"id":"0279f557-e7f1-4831-b72b-fa79543c94e8","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":171,"box":{"x":70,"y":823,"width":815,"height":12}},{"id":"34989718-c71c-4306-81a4-bc65159a25ea","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":171,"box":{"x":68,"y":838,"width":555,"height":11}},{"id":"6db24087-c388-4ff2-bc1e-526ed5b3f31a","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":171,"box":{"x":102,"y":861,"width":802,"height":11}},{"id":"bad953bc-de30-4f00-95fe-2d3c7b773562","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":171,"box":{"x":68,"y":876,"width":825,"height":11}},{"id":"c45d8658-e6f9-403b-b2b1-cf6c979787f5","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":171,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"82ca5866-fca0-4580-8e33-1e204405d7f1","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":171,"box":{"x":68,"y":906,"width":824,"height":12}},{"id":"9adbc438-f62f-4063-b0ea-b4c2a6dcf09a","block_type":"box","text":"II-125","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"819cfc95-f8b7-4157-94f7-2d15481753d4","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e3b8a7b-8784-48d2-b086-9d6bd2b1c385","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":172,"box":{"x":70,"y":45,"width":812,"height":11}},{"id":"f52e74b5-3e13-40b4-a388-8fcb31fe6e60","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":172,"box":{"x":69,"y":60,"width":547,"height":11}},{"id":"0bb0b255-d8bf-435a-b4c5-de32e19bb169","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":172,"box":{"x":102,"y":82,"width":804,"height":12}},{"id":"a19afe3b-7300-4a4d-b5ad-57e2b42d42d2","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":172,"box":{"x":68,"y":98,"width":806,"height":11}},{"id":"c0a2665b-235e-4ade-a126-30e004d6fa67","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":172,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"e075e9b2-87c1-4546-8e11-6cc08962f57e","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":172,"box":{"x":70,"y":128,"width":777,"height":11}},{"id":"96922e44-2ca2-480e-ae85-43a3d86447d3","block_type":"box","text":"brokerage.","page_number":172,"box":{"x":69,"y":143,"width":74,"height":11}},{"id":"b54df95b-7b97-489c-b245-0f12e93a3c92","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":172,"box":{"x":102,"y":166,"width":781,"height":11}},{"id":"ab521e83-75f3-4219-b8f0-10cf0dd377e3","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":172,"box":{"x":68,"y":181,"width":810,"height":11}},{"id":"49d257c5-570a-42f2-93fb-64da62c54f30","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":172,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"221d1eec-cc9c-4b0d-9551-02d342a93c21","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":172,"box":{"x":69,"y":211,"width":818,"height":11}},{"id":"997a147a-f459-414e-99df-465d6f7568a8","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":172,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"90cfdde5-4275-46e8-9170-c28251c2ebdd","block_type":"box","text":"Section 28(e).","page_number":172,"box":{"x":69,"y":241,"width":99,"height":11}},{"id":"0f7dd2ca-3a5e-48f9-b370-7e591b43fa2b","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":172,"box":{"x":102,"y":264,"width":755,"height":9}},{"id":"fa622c7c-c783-489d-906d-1b0933174e00","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":172,"box":{"x":69,"y":279,"width":828,"height":11}},{"id":"78e8fc75-53ff-4d6c-9838-a7f34bcd24ca","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":172,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"8e783a1c-0ed5-4d58-8afc-6c03dee25409","block_type":"box","text":"execute transactions for those mutual funds.","page_number":172,"box":{"x":69,"y":309,"width":319,"height":9}},{"id":"3f54694d-c2cc-4588-9d9e-a6cddacaca68","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":172,"box":{"x":102,"y":332,"width":770,"height":11}},{"id":"2dd7b831-7b19-471a-8b18-5f20b18e756d","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":172,"box":{"x":70,"y":347,"width":825,"height":11}},{"id":"99cf40cc-921c-4b6f-b0a4-995474ab8849","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":172,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"32b09479-353b-4c5d-a384-d48a8c91112e","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":172,"box":{"x":69,"y":377,"width":805,"height":12}},{"id":"5b38834e-69c7-4e24-b35b-e233a83a3f6f","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":172,"box":{"x":68,"y":392,"width":773,"height":12}},{"id":"024c3fa0-5aeb-49d6-a190-c2aad05c38fa","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":172,"box":{"x":69,"y":407,"width":798,"height":12}},{"id":"4b31cbe2-e133-4af4-be58-07cec86bb523","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":172,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"693a0c63-96b0-415e-88c0-4e1d199e854c","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":172,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"e6a2725c-6312-445b-97ec-bff585d58cf9","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":172,"box":{"x":69,"y":453,"width":540,"height":11}},{"id":"93c5317e-8d92-47ef-994e-00b5c5806c25","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":172,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"721fd15d-fb25-44d9-9106-70d80a526ce6","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":172,"box":{"x":68,"y":491,"width":597,"height":11}},{"id":"95b048ad-212e-48fb-9dd4-04cbb4d8192b","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":172,"box":{"x":102,"y":513,"width":802,"height":11}},{"id":"8ccc0226-c34c-4407-af0d-c64eecee3e29","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":172,"box":{"x":68,"y":529,"width":822,"height":10}},{"id":"71aea22f-1bb0-4421-9ef7-be97af0be60b","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":172,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"1d0b12d0-d936-4940-bcf7-cf4d5ca5cefd","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":172,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"39c0c2af-5591-448b-a9df-347e1219e97a","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":172,"box":{"x":69,"y":574,"width":762,"height":11}},{"id":"488b3c2c-aa47-4737-8c80-e43febd50a73","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":172,"box":{"x":68,"y":589,"width":770,"height":11}},{"id":"474145db-39e2-4c63-afda-8f57d08bfca7","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":172,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"747cbd46-ab46-4f9c-a8fd-0d4027668a7e","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":172,"box":{"x":70,"y":619,"width":814,"height":11}},{"id":"12e5c276-595a-4b55-bf27-3b90ee49b170","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":172,"box":{"x":69,"y":634,"width":825,"height":12}},{"id":"222b90b5-2cbd-4cdb-9c62-ca8d4ea53231","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":172,"box":{"x":69,"y":649,"width":645,"height":12}},{"id":"e7a1fd25-aead-4695-9a9f-d230cc34018d","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":172,"box":{"x":102,"y":672,"width":797,"height":11}},{"id":"ee16be16-13e1-41e4-81ef-bdc18bc05edd","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":172,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"fdc2db59-2507-48b9-adcc-f4d32113c5a8","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":172,"box":{"x":69,"y":703,"width":839,"height":11}},{"id":"4566e94e-a523-42e1-a5e0-b87de0f00735","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":172,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"5fdf1068-9e43-482b-90bb-b73a9525dcdb","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":172,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"0fbac975-6d94-4c48-9a97-f2c169cbdb1b","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":172,"box":{"x":70,"y":748,"width":730,"height":11}},{"id":"9c07046b-336a-4d2d-abc8-eceb4f6de725","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":172,"box":{"x":102,"y":770,"width":800,"height":11}},{"id":"54f83d5b-5aa3-4f88-9188-8d6ef011f052","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":172,"box":{"x":69,"y":786,"width":807,"height":11}},{"id":"258f04f5-a34d-4bf3-a622-0d58b765273e","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":172,"box":{"x":70,"y":801,"width":812,"height":11}},{"id":"e8f6781b-a70e-4e2c-9be4-02f456521849","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":172,"box":{"x":69,"y":816,"width":807,"height":11}},{"id":"914831b5-cdc2-411b-b4e5-e56016274112","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":172,"box":{"x":68,"y":831,"width":827,"height":11}},{"id":"539234e2-3160-4058-b903-e298647a723e","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":172,"box":{"x":68,"y":846,"width":817,"height":11}},{"id":"07485cc5-798e-4d6f-a0d6-5169b5dd5a83","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":172,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"bf3dc359-12fb-4d60-87f7-66e81b2d05fe","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":172,"box":{"x":69,"y":876,"width":700,"height":11}},{"id":"0ab42aac-acd6-496e-ade7-3f62c8169d2c","block_type":"box","text":"II-126","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aeacf825-3c02-44b0-938e-582def859acc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0b32f4a-8957-45a4-8455-e2be61309738","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":173,"box":{"x":102,"y":45,"width":756,"height":11}},{"id":"334253d8-0cd2-4430-91b3-c4c541f32ccf","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":173,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"f9b957a6-f36d-4173-93c0-1b5ff04d6a70","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":173,"box":{"x":69,"y":75,"width":766,"height":11}},{"id":"3928ded6-67fb-43c6-831c-654afb2405bb","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":173,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"f831318e-8646-49c9-b490-bde1e6395cf1","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":173,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"67b0420f-f677-42c1-8238-4981f0775306","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":173,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"0f77acd4-1114-4f3e-83b7-b52fc89b5b39","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":173,"box":{"x":69,"y":143,"width":776,"height":11}},{"id":"4eb5eebc-dbc4-4458-b993-a2d121c166fe","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":173,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"b4bb2968-e2a5-42f8-bdbf-9bb7a2207951","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":173,"box":{"x":69,"y":173,"width":352,"height":11}},{"id":"a6b2cef3-d4a3-4e72-a5e8-2247c77a5af6","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":173,"box":{"x":102,"y":196,"width":800,"height":11}},{"id":"cd7d92c6-c150-4a15-809c-fe0705ab7172","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":173,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"1e3dc5ed-87f5-4ef2-8c86-ef3fe9a0c176","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":173,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"3e0f1654-6744-471a-a90d-d1927021d110","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":173,"box":{"x":68,"y":241,"width":788,"height":11}},{"id":"8e72db54-be7d-4eaf-857f-372796397b93","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":173,"box":{"x":69,"y":256,"width":759,"height":12}},{"id":"32db1846-d2ae-4e7f-8288-0f736583cb73","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":173,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"938b671e-a462-4dff-b712-13eb432a05cb","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":173,"box":{"x":69,"y":286,"width":777,"height":12}},{"id":"d3f3f016-84ce-42e3-9033-84d7eb4106d5","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":173,"box":{"x":69,"y":302,"width":788,"height":11}},{"id":"1d222942-5a90-4996-b895-6ff6ee9f933e","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":173,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"03178392-9810-4b14-99b5-8772cea70b48","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":173,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"6ea87ac9-c17f-4858-934e-58c72bc24e82","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":173,"box":{"x":68,"y":347,"width":808,"height":11}},{"id":"5d6f1f10-1c46-470f-9015-80b87b5f9317","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":173,"box":{"x":70,"y":362,"width":832,"height":11}},{"id":"d7a0f582-00d5-4282-b941-d36b9f1fff15","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":173,"box":{"x":70,"y":377,"width":836,"height":11}},{"id":"c98abb97-2024-4c76-83d4-662c25b178ec","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":173,"box":{"x":69,"y":392,"width":613,"height":12}},{"id":"d8e14693-91ce-4df4-9939-93fd64fcaccc","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":173,"box":{"x":102,"y":415,"width":802,"height":11}},{"id":"0c53d776-1023-405b-8e8c-4be3eb68fb16","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":173,"box":{"x":69,"y":430,"width":800,"height":11}},{"id":"07d9cf6d-3808-4c35-aed6-7865db076de8","block_type":"box","text":"accounts and compliance constraints.","page_number":173,"box":{"x":69,"y":446,"width":269,"height":10}},{"id":"0a187ddc-0b4d-404c-bb9e-16930322a6ef","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":173,"box":{"x":102,"y":468,"width":736,"height":11}},{"id":"f292a601-4413-43a5-826a-a2216d437685","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":173,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"adf59206-c6fe-4cae-b655-c9bd68806f22","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":173,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"126fec65-b5e2-4b90-82d6-38623799133f","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":173,"box":{"x":69,"y":513,"width":823,"height":12}},{"id":"15d2059c-3bd7-48db-ab9e-1afd6e83e4de","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":173,"box":{"x":70,"y":528,"width":783,"height":12}},{"id":"edf5420e-f859-42cb-b4a1-f7d9423e0a65","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":173,"box":{"x":69,"y":543,"width":793,"height":12}},{"id":"60b3fb59-8ba5-4c63-924d-49ee2c607430","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":173,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"035545b6-7dfd-4cde-9785-866dc4bedaa4","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":173,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"17a601ef-dc62-483b-98ff-5d71ff33d271","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":173,"box":{"x":68,"y":589,"width":839,"height":11}},{"id":"07209688-ecc2-4837-9b6a-a952750bc50f","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":173,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"82a91c06-572f-4373-9ab5-3fa76cd1b349","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":173,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"224a367d-3184-470d-803c-cef62b3744c0","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":173,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"14744e88-ec52-4fa5-9bd3-381f88824c0f","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":173,"box":{"x":69,"y":649,"width":791,"height":12}},{"id":"256ba83d-ed48-4c0f-acd0-ac3f92cb4477","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":173,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"25c9aeb4-7d7d-493c-b39d-045ab17d5024","block_type":"box","text":"clients may be used as well.","page_number":173,"box":{"x":69,"y":680,"width":200,"height":11}},{"id":"bd8684c7-ae6c-46ac-8c54-0c457fdfee57","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":173,"box":{"x":102,"y":702,"width":789,"height":12}},{"id":"3a040b97-77aa-4846-8886-f6266d1f39b2","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":173,"box":{"x":68,"y":717,"width":815,"height":12}},{"id":"164c4928-b0af-4a77-ab6d-7a829bfafd75","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":173,"box":{"x":69,"y":732,"width":835,"height":12}},{"id":"6cc2f9a3-dc52-4005-979f-20c400796e94","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":173,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"1d5590dc-16bb-4b59-aceb-69dcba0a484c","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":173,"box":{"x":69,"y":763,"width":829,"height":11}},{"id":"f766c5ec-b09e-4dff-9638-4de2d0202ac3","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":173,"box":{"x":69,"y":778,"width":825,"height":11}},{"id":"8fca9892-a1b2-4b85-b641-3b3da8b1a36a","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":173,"box":{"x":69,"y":793,"width":806,"height":11}},{"id":"3cf6adcb-3de4-40db-9f5c-67430c7ae5d2","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":173,"box":{"x":69,"y":808,"width":814,"height":11}},{"id":"3b7e2522-d68b-4506-9835-29076d451fd4","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":173,"box":{"x":69,"y":823,"width":836,"height":9}},{"id":"95e22dc8-c1d7-4f0e-8bf3-806d362106b7","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":173,"box":{"x":69,"y":838,"width":773,"height":12}},{"id":"b939ea8f-6b95-4ca4-a79c-4b580fb568f7","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":173,"box":{"x":69,"y":853,"width":467,"height":11}},{"id":"d397bd77-5e39-4be8-87f8-639f9b3249c9","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":173,"box":{"x":102,"y":876,"width":741,"height":11}},{"id":"318037f4-537b-49f0-b6b2-68f82d1b4253","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":173,"box":{"x":69,"y":891,"width":721,"height":12}},{"id":"15bda16d-ad50-4f61-b2c9-f8544043a10a","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":173,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"1823c327-369d-451e-ba75-bf402f7cfba4","block_type":"box","text":"II-127","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cde239fb-529b-4ab5-bf2b-b8bc78057c0c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdaadaa0-b47e-4d97-a49b-d1bebc2f4c24","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":174,"box":{"x":68,"y":45,"width":795,"height":11}},{"id":"f1d3e392-92b5-4f42-9130-d2192fd751c0","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":174,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"2affb61a-d112-499d-bce5-34fd9aea7c31","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":174,"box":{"x":69,"y":75,"width":783,"height":11}},{"id":"65489844-3b5c-455f-9139-6635f0c3e11f","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":174,"box":{"x":70,"y":90,"width":796,"height":11}},{"id":"8dadd755-ff2b-4a92-834a-e1e5d1964458","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":174,"box":{"x":69,"y":105,"width":821,"height":11}},{"id":"88c26d6e-094e-4a73-9dee-af59a41ed072","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":174,"box":{"x":68,"y":120,"width":819,"height":12}},{"id":"47e0bd60-f1af-431f-9855-628e141e5b41","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":174,"box":{"x":70,"y":135,"width":771,"height":11}},{"id":"9c34e627-504a-48ca-a04a-cecd4e573953","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":174,"box":{"x":68,"y":150,"width":815,"height":12}},{"id":"c0968169-56a2-48aa-a418-dbc531de5073","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":174,"box":{"x":68,"y":166,"width":835,"height":11}},{"id":"92981341-a1dd-4e75-949d-acef7688eb07","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":174,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"956507be-58e1-4354-a3e3-217fe437a4ba","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":174,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"9e9d595c-d5ff-4f6d-b6d7-72bd2a7bd7c7","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":174,"box":{"x":69,"y":211,"width":803,"height":11}},{"id":"13b1c9dd-f9ee-4f6c-a207-7d72027baa58","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":174,"box":{"x":101,"y":234,"width":767,"height":11}},{"id":"be4f897e-2739-4c37-89db-71e131acb797","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":174,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"099b5ade-a51a-405e-8cd5-edfc57360ef9","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":174,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"31cc2d9f-c363-47d9-abcf-39e563c486f1","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":174,"box":{"x":70,"y":279,"width":833,"height":11}},{"id":"f06371af-c2f0-4364-87f4-09120c9e4aff","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":174,"box":{"x":69,"y":294,"width":818,"height":11}},{"id":"c0da724b-7e86-4943-9372-86602f2c7d9f","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":174,"box":{"x":101,"y":317,"width":786,"height":11}},{"id":"62284d67-113e-408b-a937-3dbe42a7bff2","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":174,"box":{"x":69,"y":332,"width":814,"height":11}},{"id":"50c0acd9-248c-42b8-9a17-1d4987a92b85","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":174,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"bfb7fbc9-a8f0-41f4-8815-1a1a916f9710","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":174,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"90c2a40e-ae35-4683-bdd0-429b57410290","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":174,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"608b7fee-3078-4c35-a899-2615bfa26a69","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":174,"box":{"x":69,"y":392,"width":834,"height":12}},{"id":"366e5f1f-67ea-4c8f-9a9c-1de8672e81d0","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":174,"box":{"x":68,"y":407,"width":820,"height":12}},{"id":"71e460b7-4b0f-48a7-b31c-83e62a58db48","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":174,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"9cacd81c-0d22-4dcb-b249-008e1486cfff","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":174,"box":{"x":69,"y":438,"width":781,"height":10}},{"id":"ade658f7-43b5-4e52-884e-f6b69481164a","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":174,"box":{"x":69,"y":453,"width":805,"height":11}},{"id":"6e1c51b5-1507-47f9-a450-805561751749","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":174,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"29648342-94e3-4969-8dba-761fff7c7213","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":174,"box":{"x":69,"y":483,"width":815,"height":11}},{"id":"47766640-14e0-43b3-b105-c17b3241e6ce","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":174,"box":{"x":69,"y":498,"width":713,"height":11}},{"id":"13c1b1d4-b71e-4e50-b438-4d659ca501be","block_type":"box","text":"Portfolio Turnover","page_number":174,"box":{"x":69,"y":528,"width":129,"height":9}},{"id":"8d866f28-db34-4d91-9dcf-e3e2063bf576","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":174,"box":{"x":101,"y":551,"width":798,"height":11}},{"id":"8fa90802-d524-4c33-acdf-1b7826b85b7a","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":174,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"a970dc7b-b86d-46b3-be89-d1ec61d0e636","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":174,"box":{"x":68,"y":581,"width":814,"height":12}},{"id":"a7cb17e8-98f5-43f5-b589-20026144af68","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":174,"box":{"x":68,"y":596,"width":777,"height":12}},{"id":"f91ec1e7-f396-45cd-a95f-3552413a69f2","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":174,"box":{"x":69,"y":612,"width":818,"height":11}},{"id":"31e797f7-180c-4428-91d6-c59c62d09df1","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":174,"box":{"x":69,"y":627,"width":519,"height":11}},{"id":"327e19bc-1c62-44b8-ad35-549a2a94bfae","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":174,"box":{"x":396,"y":656,"width":186,"height":10}},{"id":"a87df195-c8b4-4e69-a670-8d4f4802d5ac","block_type":"box","text":"Dividends","page_number":174,"box":{"x":69,"y":687,"width":69,"height":9}},{"id":"ab3901f3-c80c-40c2-aebd-bc5b08bcada9","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":174,"box":{"x":102,"y":709,"width":776,"height":11}},{"id":"1714592c-6aac-4fed-acf2-2e9aa47fb5ed","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":174,"box":{"x":70,"y":724,"width":795,"height":11}},{"id":"78ef4429-12a6-4b90-bbf9-e1657eff69ee","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":174,"box":{"x":69,"y":739,"width":837,"height":12}},{"id":"261313a8-9d0c-4b96-a195-25899badf2f8","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":174,"box":{"x":69,"y":755,"width":836,"height":11}},{"id":"f270e5d3-2e35-4dda-af2a-a72255c60e00","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":174,"box":{"x":70,"y":770,"width":822,"height":11}},{"id":"16e2f1ca-bd2c-4d44-a9a0-a33c0c9ef679","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":174,"box":{"x":69,"y":785,"width":739,"height":11}},{"id":"6b6336c3-bb3c-42d6-8224-0acdccde772d","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":174,"box":{"x":102,"y":807,"width":773,"height":12}},{"id":"8f3425fc-789e-41ee-95e5-b85241caadf0","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":174,"box":{"x":70,"y":823,"width":819,"height":11}},{"id":"cf65c91d-6fa2-4895-a388-96fa3d4f188d","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":174,"box":{"x":69,"y":838,"width":807,"height":11}},{"id":"99e791c2-5c19-40a0-8fd1-117f386ce1a3","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":174,"box":{"x":68,"y":853,"width":800,"height":11}},{"id":"2303ebed-c64f-4def-b2e9-3aae99437c7c","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":174,"box":{"x":69,"y":868,"width":801,"height":11}},{"id":"d8a5e84c-9422-4541-b7e0-1a7fec5c19e9","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":174,"box":{"x":69,"y":883,"width":783,"height":11}},{"id":"cdc9458c-5336-40c7-939d-7bf13c844dde","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":174,"box":{"x":69,"y":898,"width":820,"height":11}},{"id":"85a7e500-83fb-4277-82bf-3d483fd623ba","block_type":"box","text":"II-128","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b1f2b47f-4a49-4fa7-8cbf-e8550824a20e","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af3486db-1227-4fcd-b121-341bc04737d1","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":175,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"af059f19-4d53-4391-a13d-f1aba7a4a81b","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":175,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5bfd1c72-fd52-41a5-b83b-913013bba34c","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":175,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"eb64d06a-5a63-432d-95d0-3ad12b73f68f","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":175,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"42d2fc70-aae0-4353-9585-d2a3df6c9970","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":175,"box":{"x":68,"y":105,"width":461,"height":11}},{"id":"b340aa33-05f8-4794-9ebb-96d5b49857d9","block_type":"box","text":"Taxes","page_number":175,"box":{"x":68,"y":136,"width":42,"height":8}},{"id":"c4c61d68-4e59-4f06-a0c9-8874f8ce72a0","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":175,"box":{"x":102,"y":158,"width":732,"height":11}},{"id":"aa1f4b49-ae93-4ced-93aa-6328b5941350","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":175,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"4788d068-1b29-4dde-8246-3b7e352e0932","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":175,"box":{"x":70,"y":188,"width":817,"height":12}},{"id":"7005e5fb-12b7-46fc-b0c8-ebbdbb176111","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":175,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"e68e77ec-82f0-4e37-b5e0-1ba9871a6db0","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":175,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"0d40f98d-739c-4fd2-8873-3ed6d0c30e30","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":175,"box":{"x":69,"y":234,"width":786,"height":11}},{"id":"019de700-5d9d-47b1-8721-453bfe3ecfb7","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":175,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"b87fc16b-6f31-435b-adcd-6bbe0ff73f6d","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":175,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"c6ccf460-2867-4466-a0ef-9b97a46c22d0","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":175,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"cc9346d2-5ad5-41de-aeb0-8eee68afec94","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":175,"box":{"x":69,"y":294,"width":739,"height":11}},{"id":"25c170f1-9420-44ab-bebd-612634c4960d","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":175,"box":{"x":101,"y":317,"width":792,"height":11}},{"id":"d38e7c98-784d-4455-a193-cf0a9c71dc09","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":175,"box":{"x":68,"y":332,"width":819,"height":11}},{"id":"a52b7eb5-10fc-483e-885b-eafe2cdf47fa","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":175,"box":{"x":70,"y":347,"width":830,"height":11}},{"id":"31f43c3b-0150-4378-a6a3-68d3433e40e2","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":175,"box":{"x":68,"y":362,"width":744,"height":11}},{"id":"4e231b70-2189-41fd-9858-6943c0b85f3c","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":175,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"dbd4ff65-2c64-4f34-a904-4059476786f8","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":175,"box":{"x":69,"y":392,"width":808,"height":12}},{"id":"fe077f72-52d2-4ac9-b35b-339c0654afea","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":175,"box":{"x":69,"y":407,"width":767,"height":12}},{"id":"d8e56989-8f54-4969-8d9c-890a2b8909ff","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":175,"box":{"x":70,"y":423,"width":826,"height":11}},{"id":"2fd851f4-4169-47ce-845a-d4cf3a4c3864","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":175,"box":{"x":68,"y":438,"width":521,"height":11}},{"id":"33d7b5d4-e400-4885-bf98-44f75bbbcdfa","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":175,"box":{"x":102,"y":460,"width":798,"height":12}},{"id":"d9b16e27-5331-4d57-bb41-d93cc774e1d3","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":175,"box":{"x":69,"y":475,"width":762,"height":12}},{"id":"d67293c7-fd79-44e6-b095-d9c3900c3f8a","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":175,"box":{"x":70,"y":491,"width":789,"height":11}},{"id":"a74f4d99-81d7-4b0a-9797-32fdee8574e1","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":175,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"e6e25668-c300-468c-a62d-7ec30047b53e","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":175,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"317efbf9-ac43-43c9-b45e-78861cb16e1b","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":175,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"eff151c0-d250-4ac4-bf4e-7fad60968585","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":175,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"feed982b-bc0d-4955-bf39-2569744b099d","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":175,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"6f969b59-54a4-4a68-9663-159c2b061fa3","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":175,"box":{"x":70,"y":581,"width":813,"height":12}},{"id":"47363e58-572f-4f6f-82be-75cf2c2b6f24","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":175,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"a599fb15-c8fb-4202-86bb-fce0bcf52671","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":175,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"e96e664d-72c8-4967-8d6b-63d58c4a65b2","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":175,"box":{"x":69,"y":627,"width":771,"height":11}},{"id":"f77fef5f-edf8-4860-81a4-52abd87705e6","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":175,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"c8cbbf56-8102-44d4-92d1-b1621a9529c9","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":175,"box":{"x":101,"y":665,"width":759,"height":11}},{"id":"5268557c-fbaa-4e0d-a50c-21313461f6b6","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":175,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"4ae9461c-3522-4b62-8007-bdcb28ff3269","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":175,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"d31f9916-21ab-4c30-9772-ddea9b926510","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":175,"box":{"x":68,"y":710,"width":832,"height":11}},{"id":"b69a3290-5b5f-483f-be60-8e9ef05653c1","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":175,"box":{"x":70,"y":725,"width":825,"height":11}},{"id":"1559ba8f-9229-4924-a124-466332b41fc3","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":175,"box":{"x":70,"y":740,"width":810,"height":11}},{"id":"2228f960-6022-4e9a-aea7-7af19f3e1b61","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":175,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"643dbf0d-5c22-4c30-9763-7142b1700267","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":175,"box":{"x":68,"y":770,"width":666,"height":12}},{"id":"bfa7140e-ca63-48ac-9e6e-6ac390a138ec","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":175,"box":{"x":102,"y":793,"width":790,"height":11}},{"id":"fed4f06b-3f60-4d8a-bbfb-274b7c5c7911","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":175,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"581d385d-3137-4b6c-954a-a41fa2ce8fb3","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":175,"box":{"x":69,"y":823,"width":770,"height":11}},{"id":"3003f332-8c9b-477c-aabf-f7303210d523","block_type":"box","text":"limitation.","page_number":175,"box":{"x":70,"y":839,"width":68,"height":8}},{"id":"5ef12665-cd82-40ca-aa63-3e45d41097c7","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":175,"box":{"x":102,"y":861,"width":803,"height":11}},{"id":"be0706d8-5090-4fc9-88ad-c82670856ba7","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":175,"box":{"x":68,"y":876,"width":790,"height":11}},{"id":"4aba7fca-ac86-45a2-8d10-db7b31996001","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":175,"box":{"x":70,"y":891,"width":815,"height":12}},{"id":"fdd5d3eb-2e0a-4ef8-8aaa-fc58b06d2060","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":175,"box":{"x":68,"y":906,"width":748,"height":12}},{"id":"4284386a-98b5-4c7d-953a-95022bb7f8de","block_type":"box","text":"II-129","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a4ef064c-d3ff-49bb-b555-29a0167480fe","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49fdd461-be85-4a29-be51-f983148c9d4f","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":176,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"a64d26f9-e172-46b5-bec2-7bbde7f7e8e1","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":176,"box":{"x":70,"y":60,"width":829,"height":11}},{"id":"b25d186f-bff7-44b8-869d-ed5475f54364","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":176,"box":{"x":70,"y":75,"width":785,"height":11}},{"id":"eb3cdd9e-fe16-422a-94b2-f7d9860da1aa","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":176,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"689e45b8-d6c8-49c8-aecc-55133980c828","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":176,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"84c3f1dd-adc6-48cd-bbcf-4d2b227b78e7","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":176,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"d90cbfab-9a5d-41ce-8b79-b41a67f8d078","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":176,"box":{"x":68,"y":135,"width":822,"height":12}},{"id":"fb0510d7-26b7-4883-9bd5-7fc2b03600b3","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":176,"box":{"x":68,"y":150,"width":751,"height":11}},{"id":"07dfb99e-21d7-4e3f-ace4-8e6c016446c9","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":176,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"613eadff-310b-4b30-b982-0f55deb7c37f","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":176,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"90f26029-a5b4-4e8a-a960-945a919b4ca5","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":176,"box":{"x":68,"y":196,"width":813,"height":11}},{"id":"bac49781-f990-4e34-be34-e23e579fd0d4","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":176,"box":{"x":69,"y":211,"width":825,"height":11}},{"id":"f057cb53-1412-4bdb-ab52-7bb6dd2acd3a","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":176,"box":{"x":68,"y":226,"width":789,"height":11}},{"id":"8b3a63c9-53b4-4304-86fd-5102edb925f6","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":176,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"313adfb1-3c14-4679-a3d5-bc37b2d11928","block_type":"box","text":"constitute “qualified dividend income.”","page_number":176,"box":{"x":69,"y":256,"width":275,"height":11}},{"id":"f226b8f0-3124-4351-b2da-d0c941f620cf","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":176,"box":{"x":101,"y":279,"width":806,"height":11}},{"id":"b018d96e-c56e-49b7-963f-41684a2b5d86","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":176,"box":{"x":70,"y":294,"width":368,"height":11}},{"id":"8a935a50-bcca-4314-ab5f-54b5d670cc22","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":176,"box":{"x":101,"y":317,"width":772,"height":11}},{"id":"59930549-b529-47c1-982c-e760c65a3a19","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":176,"box":{"x":69,"y":332,"width":811,"height":11}},{"id":"b267f068-08c9-4b2a-8a20-d42d99c46d82","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":176,"box":{"x":70,"y":347,"width":745,"height":11}},{"id":"5b258eb8-d4da-45e5-869f-c1fa5e060acd","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":176,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"e89fc226-477d-4756-bbf0-124ced557df2","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":176,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"57c815c1-01b0-4597-9b38-2a0b6dc49388","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":176,"box":{"x":69,"y":392,"width":809,"height":12}},{"id":"8aef63d7-7ca0-4b96-86db-6f90e040b245","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":176,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"dfd211b3-4d51-4079-bcfd-dd53ccc3e941","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":176,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"010d0f6c-4141-4326-9480-5f9feebe926e","block_type":"box","text":"against their taxes.","page_number":176,"box":{"x":69,"y":438,"width":135,"height":11}},{"id":"8e406765-1190-4b97-8d61-386a875dcd6d","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":176,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"10fe658e-234e-4a43-a9c7-5a5a4e1785e9","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":176,"box":{"x":68,"y":475,"width":812,"height":12}},{"id":"a0f7c691-36a3-45e8-a061-85e4af6221ce","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":176,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"dd1e4c9e-03f6-4bbe-8167-e0101cebd991","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":176,"box":{"x":69,"y":506,"width":805,"height":11}},{"id":"b5fe3bff-883a-4121-a021-9b09c5997107","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":176,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"c147b579-5f17-4cea-b527-eccc528e5779","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":176,"box":{"x":68,"y":536,"width":831,"height":11}},{"id":"bd68ef3d-8612-4fa0-aab8-7c0314ea7f03","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":176,"box":{"x":68,"y":551,"width":817,"height":11}},{"id":"f50da6a5-01fb-41f4-a61d-312c7648aa8f","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":176,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"3c530728-6ba4-45d1-9c67-255b5bb9d267","block_type":"box","text":"dividends received by the shareholder.","page_number":176,"box":{"x":69,"y":582,"width":272,"height":10}},{"id":"46b19878-6234-466f-a68f-fa2dd2f8eb41","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":176,"box":{"x":102,"y":604,"width":792,"height":11}},{"id":"7cfef11a-51ca-4fba-acd3-30a603f2caad","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":176,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"6cbbe8db-db5f-45b0-b873-ab5d85c3fd4b","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":176,"box":{"x":68,"y":634,"width":809,"height":11}},{"id":"8cc68661-604c-4090-abcf-af2373d04edf","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":176,"box":{"x":68,"y":649,"width":819,"height":11}},{"id":"012fc168-47c6-4929-9729-e775dcc543e4","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":176,"box":{"x":69,"y":664,"width":839,"height":12}},{"id":"afe9d5ce-1ac5-4b5a-a77e-2998a424e452","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":176,"box":{"x":69,"y":680,"width":794,"height":11}},{"id":"ee447ef3-2e19-4d01-9ebc-c3e5562127cd","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":176,"box":{"x":69,"y":695,"width":804,"height":11}},{"id":"671a82fb-b29b-4501-9a42-579e2ca475c8","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":176,"box":{"x":70,"y":710,"width":797,"height":11}},{"id":"6ce80075-2f5d-4422-a1ee-573ed1dab21d","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":176,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"b699d86a-e1c1-4da6-ad3b-3db36bf58931","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":176,"box":{"x":68,"y":740,"width":826,"height":11}},{"id":"2448e035-628a-4cf7-a13e-7b8ef89f7f35","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":176,"box":{"x":70,"y":755,"width":772,"height":11}},{"id":"7379beca-c55c-4e5e-a722-6866b90c376d","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":176,"box":{"x":70,"y":770,"width":795,"height":12}},{"id":"17337040-2dd1-400b-8dcf-e0a7b4f82e51","block_type":"box","text":"taxable year.","page_number":176,"box":{"x":68,"y":786,"width":89,"height":11}},{"id":"a3930b2f-bdfd-4585-ac04-9a7e9824826c","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":176,"box":{"x":102,"y":808,"width":733,"height":11}},{"id":"0143adf6-ad3c-4d93-bea8-8f820990a7e9","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":176,"box":{"x":69,"y":823,"width":832,"height":11}},{"id":"db265414-97ec-4904-949e-86707a5274a5","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":176,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"1e208492-4090-4a31-a492-9ad9b4fe96a5","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":176,"box":{"x":69,"y":853,"width":362,"height":12}},{"id":"b05bd331-8b19-433e-b566-69ac0bc2938e","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":176,"box":{"x":102,"y":876,"width":795,"height":11}},{"id":"6bf91e75-1f0f-460f-8dd4-d559c6cc04ad","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":176,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"d48f4472-3e64-4aca-8985-7fd1bce40d20","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":176,"box":{"x":69,"y":907,"width":797,"height":11}},{"id":"b1660575-f054-4849-9998-9506dc733729","block_type":"box","text":"II-130","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b3352ead-7722-45e2-b093-c8b0391bfe1a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a718d92c-fef4-404b-a2d7-e57a44a02dd6","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":177,"box":{"x":69,"y":45,"width":791,"height":11}},{"id":"c6069225-83b0-462e-8c5d-58026625fdfb","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":177,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"6124c141-3327-4745-8525-650a94c90a7f","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":177,"box":{"x":101,"y":82,"width":807,"height":12}},{"id":"ead7f3db-4a79-44a2-9aed-3b8c4f4ee6dd","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":177,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"6020dc72-d65d-4545-b5cf-6153d05ae05d","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":177,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"b186c39f-d0d1-454d-a7df-ba130dc0d5c9","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":177,"box":{"x":69,"y":128,"width":534,"height":11}},{"id":"90f70377-5be1-4784-b984-8e17285c589b","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":177,"box":{"x":101,"y":150,"width":792,"height":12}},{"id":"8ac9d198-142d-4329-bb84-53ebe74b7797","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":177,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"ac9d0b5c-3c45-4637-8978-f6425893b99d","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":177,"box":{"x":70,"y":181,"width":828,"height":11}},{"id":"bbb5d593-a533-45a9-a0f4-f661ecc9c78d","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":177,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"a200bba6-771c-43d1-b4e8-3a4e82f204dd","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":177,"box":{"x":69,"y":211,"width":816,"height":11}},{"id":"567a4835-6a24-4e17-b2f0-2ad27eea1f1d","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":177,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"d49e474d-5fb7-4de1-876f-9efe6756ef8a","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":177,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"dfeef252-d5bc-4dec-8c57-b76d34ac1584","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":177,"box":{"x":69,"y":256,"width":788,"height":12}},{"id":"58fe505c-ae2a-4d84-a210-8d04e3492f86","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":177,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"d0d9f615-e325-4e86-b24c-4a2996392d1b","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":177,"box":{"x":69,"y":286,"width":821,"height":12}},{"id":"8261dbf6-57cc-44d0-8594-31272941773c","block_type":"box","text":"redemption of such shares.","page_number":177,"box":{"x":69,"y":302,"width":195,"height":11}},{"id":"69897d08-7a7c-47c0-adf5-ef038ec13120","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":177,"box":{"x":102,"y":324,"width":799,"height":11}},{"id":"31f03b31-5923-4377-9cea-460d39c3f62b","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":177,"box":{"x":69,"y":339,"width":791,"height":12}},{"id":"ead9f87c-8061-4614-a41e-0a1dab83223d","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":177,"box":{"x":70,"y":355,"width":826,"height":11}},{"id":"fbbf571a-4cd9-45e5-bcfd-43a27499b431","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":177,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"564e147c-b1fe-437a-a5b0-2240f35df109","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":177,"box":{"x":70,"y":385,"width":825,"height":11}},{"id":"c5559657-7ec7-4bfe-8399-453b6ce13722","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":177,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"7afc769e-087f-4a60-abe0-6fef572a5a33","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":177,"box":{"x":69,"y":415,"width":826,"height":11}},{"id":"95f6e48e-84aa-4fa5-923f-173c220e0c6c","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":177,"box":{"x":69,"y":430,"width":808,"height":11}},{"id":"90868991-25a0-41fa-8c5e-850fef3f6f96","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":177,"box":{"x":69,"y":445,"width":787,"height":11}},{"id":"ef63e4aa-09e9-417c-87c6-d1dc93106ed3","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":177,"box":{"x":69,"y":460,"width":816,"height":12}},{"id":"02f636ec-68f2-46ab-a880-37a790bfdf52","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":177,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"ea263d50-4dad-4ffc-bd4d-094994637114","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":177,"box":{"x":68,"y":491,"width":542,"height":11}},{"id":"eda299fd-8e26-419d-bb4a-56465b5d1800","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":177,"box":{"x":102,"y":513,"width":744,"height":12}},{"id":"01e23c98-91a0-4a3f-9d96-0041e761af3e","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":177,"box":{"x":69,"y":528,"width":751,"height":12}},{"id":"cb874388-07e7-4352-9b3c-84f48415f049","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":177,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"ac85c522-8a5f-4797-a07a-8d71761ddccc","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":177,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"50bed52c-1300-41b8-a10c-6286553fe840","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":177,"box":{"x":68,"y":574,"width":823,"height":11}},{"id":"229dac4f-a6bc-4e04-ba9f-25c802673cc0","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":177,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"ac280b2b-fc02-47bb-9325-165b33a795df","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":177,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"c5cc2b4f-382d-479b-a133-d95f73925e5c","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":177,"box":{"x":68,"y":619,"width":838,"height":11}},{"id":"a0d43a6b-2fa7-488b-8863-6801fb93d3e0","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":177,"box":{"x":69,"y":634,"width":695,"height":12}},{"id":"209e4b31-5745-4702-80e8-da9747782720","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":177,"box":{"x":102,"y":657,"width":768,"height":11}},{"id":"d0366933-1e85-4278-bdc6-188a68ed697f","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":177,"box":{"x":69,"y":672,"width":769,"height":11}},{"id":"98305f8d-bea8-422a-b96d-15c6b1f8a134","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":177,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"e475aaa8-8073-4342-b3e0-877e23b13ce4","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":177,"box":{"x":70,"y":702,"width":819,"height":12}},{"id":"06bfeb3a-3239-47ee-bd9d-6ee4c707c7f4","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":177,"box":{"x":68,"y":718,"width":818,"height":11}},{"id":"f651e219-77b4-403a-bbeb-063f31478b1b","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":177,"box":{"x":70,"y":732,"width":830,"height":12}},{"id":"31de1bd2-1ec2-47a7-84f4-03e8463c8a10","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":177,"box":{"x":70,"y":748,"width":792,"height":11}},{"id":"bafece03-5498-429f-a88e-357b78f7f6a6","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":177,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"2b3c9736-d1aa-4bc4-a9df-a3f49844ceb0","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":177,"box":{"x":70,"y":778,"width":812,"height":11}},{"id":"91cb2b3a-85e2-408d-b6e5-1e0a1f2aee18","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":177,"box":{"x":69,"y":793,"width":789,"height":11}},{"id":"66f1b642-f925-442e-ab83-1e94d97e4f1c","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":177,"box":{"x":68,"y":808,"width":777,"height":11}},{"id":"8a0fd6b1-d528-4946-adfb-dcc71b9dc555","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":177,"box":{"x":69,"y":823,"width":810,"height":12}},{"id":"35dc537a-30c2-4f58-835c-2619a37e084f","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":177,"box":{"x":70,"y":838,"width":801,"height":12}},{"id":"be469816-bdff-4150-9e82-4a7c1675cc60","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":177,"box":{"x":69,"y":853,"width":762,"height":12}},{"id":"6ebfeb12-d352-48ca-bb7e-c5f2a87fede6","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":177,"box":{"x":70,"y":869,"width":827,"height":11}},{"id":"708689d8-f09e-433a-b74e-384c59f58b10","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":177,"box":{"x":69,"y":884,"width":787,"height":11}},{"id":"f18d283e-ff88-44b8-beb6-d85951955b59","block_type":"box","text":"II-131","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"75033862-2fdd-4d9d-bdd3-0a46012692cc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c0de4c70-d745-4d41-8d2f-c21c0485ad8d","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":178,"box":{"x":70,"y":45,"width":822,"height":11}},{"id":"af5dd2c1-3f81-45b7-b1a7-6c6028b0a5ff","block_type":"box","text":"in subsequent taxable years.","page_number":178,"box":{"x":70,"y":60,"width":203,"height":11}},{"id":"f8e48bcb-0481-4c79-8d17-0941c9c58774","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":178,"box":{"x":102,"y":82,"width":795,"height":12}},{"id":"3e46e190-8e9d-44fb-919a-98ba93b13c2a","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":178,"box":{"x":68,"y":98,"width":816,"height":11}},{"id":"d0dac639-04f0-4265-a6d4-4f752746a86a","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":178,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"30fe8c19-fb75-4ffa-8e1a-26edd16184e9","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":178,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"cb3b2f59-f1e9-4deb-96f3-bb7916516980","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":178,"box":{"x":69,"y":143,"width":816,"height":11}},{"id":"7d2a5600-8a49-4999-b709-790c51ea3a64","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":178,"box":{"x":69,"y":158,"width":840,"height":11}},{"id":"3e2d71fa-37af-49be-a7db-9243bc62405d","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":178,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"38f04641-93fe-4606-9c22-4c8305565d56","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":178,"box":{"x":69,"y":188,"width":824,"height":12}},{"id":"1193b314-3b5f-4a0c-88a3-45b07a8b8aa7","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":178,"box":{"x":69,"y":204,"width":832,"height":11}},{"id":"91607c8d-826a-4b71-a9d8-339d0b0c9902","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":178,"box":{"x":68,"y":219,"width":808,"height":11}},{"id":"8719e8d3-bd8e-40d9-be6d-a4809ce097c7","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":178,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"943e5553-f220-4ede-bb27-cd8643bf76b1","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":178,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"96050d93-c3af-4346-a10e-41e68e02a392","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":178,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"27ece3b5-4e71-4ab6-a9a8-aa531e053cd6","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":178,"box":{"x":68,"y":279,"width":784,"height":11}},{"id":"73bc022f-4a93-420f-bf7e-46c788bac9a7","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":178,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"59d80744-6817-4132-84a9-9dbe68809bee","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":178,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"a41c8e33-0150-4c47-8e3e-34d9d0633153","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":178,"box":{"x":70,"y":325,"width":772,"height":11}},{"id":"6e6892f5-7829-4073-ac8a-c1282e9081b1","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":178,"box":{"x":70,"y":339,"width":791,"height":11}},{"id":"e917f69f-7394-4ed3-883a-cac4de43fc84","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":178,"box":{"x":70,"y":355,"width":787,"height":11}},{"id":"012e3363-4fec-43d4-ae8c-edd9d4daa8d3","block_type":"box","text":"dividends under these rules.","page_number":178,"box":{"x":69,"y":370,"width":201,"height":9}},{"id":"f718ddaa-b7d0-404c-8dc6-965081e2a369","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":178,"box":{"x":102,"y":392,"width":747,"height":12}},{"id":"f5679f14-e1d5-4d64-8ef0-f9e0c107e973","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":178,"box":{"x":70,"y":407,"width":838,"height":12}},{"id":"91ba69ea-7a93-44fb-9dd7-15a2a539cbc3","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":178,"box":{"x":68,"y":423,"width":829,"height":11}},{"id":"d809e2c1-9e1e-46b4-bc99-484b943ee324","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":178,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"2784e896-46ba-4e6e-943d-cc5b2f8bb1f6","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":178,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"e74ae5c1-12f4-4bd8-81ec-5086859a8b52","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":178,"box":{"x":69,"y":468,"width":800,"height":11}},{"id":"f1055eb9-0843-487e-9b8f-660242e250b4","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":178,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"7a4f00af-0691-4653-931b-b52d427354af","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":178,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"7dda0cc8-4e9d-49d6-8229-50000b16c78b","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":178,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"41a78213-44bf-406f-a435-1c1339172942","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":178,"box":{"x":68,"y":528,"width":820,"height":12}},{"id":"71bdd245-176e-4480-a6f8-44131dd572bf","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":178,"box":{"x":69,"y":543,"width":833,"height":12}},{"id":"41c43339-252a-4fcd-9bc6-9b712b658525","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":178,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"434712d3-259b-4995-a1a9-ba4556138b42","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":178,"box":{"x":69,"y":574,"width":774,"height":11}},{"id":"54ceb560-a54c-45cb-825e-abf75cad1264","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":178,"box":{"x":69,"y":589,"width":839,"height":11}},{"id":"a15c48ca-853f-49f0-a1f3-525ca80c59f4","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":178,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"6911c438-5584-4873-9902-46e9240fc102","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":178,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"6dc83a14-26eb-4a24-9019-3eb026d193a6","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":178,"box":{"x":69,"y":634,"width":823,"height":12}},{"id":"e8f1f6f7-df2b-44b8-bd43-fcc3c2e54a57","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":178,"box":{"x":68,"y":649,"width":827,"height":12}},{"id":"04406fcd-4fb6-4649-857c-c4c2d68c2f0d","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":178,"box":{"x":69,"y":664,"width":596,"height":12}},{"id":"8d64e0d7-ae28-47e8-80f4-e840c3cd3381","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":178,"box":{"x":102,"y":687,"width":802,"height":11}},{"id":"cddace99-3cad-42ec-9bda-69737c715ffe","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":178,"box":{"x":69,"y":702,"width":827,"height":12}},{"id":"a2d57dc8-d3d2-49d1-9a56-ca3269876915","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":178,"box":{"x":69,"y":717,"width":804,"height":12}},{"id":"a749c444-b96b-48a6-a81f-8be1a2e0ff44","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":178,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"461b967e-2658-49e9-9dea-55119e84c758","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":178,"box":{"x":68,"y":748,"width":801,"height":11}},{"id":"c5c4e1d7-3bb9-44d1-80b2-89e8aa4ae9b6","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":178,"box":{"x":69,"y":763,"width":803,"height":11}},{"id":"739dc80e-67c1-4739-bf5b-265dcd582812","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":178,"box":{"x":69,"y":778,"width":785,"height":11}},{"id":"b60e0693-855d-4670-996e-8224a24f3ff2","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":178,"box":{"x":69,"y":793,"width":676,"height":11}},{"id":"4e88618e-f19c-43bd-9bac-ad62a1c1af3f","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":178,"box":{"x":101,"y":816,"width":798,"height":11}},{"id":"c8137fd2-b132-435d-9215-dbcc65c2efbf","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":178,"box":{"x":69,"y":831,"width":651,"height":11}},{"id":"5c5a0d10-0e49-4390-8097-4112bcee5a9c","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":178,"box":{"x":102,"y":853,"width":731,"height":12}},{"id":"0b027d00-4485-4fbe-b77a-cf85ebd2615d","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":178,"box":{"x":69,"y":869,"width":570,"height":11}},{"id":"8a1e6bec-6f4d-40d7-8f93-aae2a5154b2d","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":178,"box":{"x":102,"y":891,"width":763,"height":12}},{"id":"adfeadae-ffce-4412-abd3-9d88107fabf3","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":178,"box":{"x":70,"y":906,"width":820,"height":12}},{"id":"4ea7ef81-c89a-4bff-82a4-c393f13bd22f","block_type":"box","text":"II-132","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d2c93132-f14f-4678-b79f-185bb1eac5c9","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"757996dd-1eaa-4250-b01b-0790301f562d","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":179,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"751776fd-068c-4bcc-8a76-70072e28a57d","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":179,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"f8b41f4e-f672-4042-94b8-78ad2ce3a396","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":179,"box":{"x":69,"y":75,"width":791,"height":11}},{"id":"cae3936a-32fb-40f0-9a3b-435ca9b2934d","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":179,"box":{"x":68,"y":90,"width":791,"height":11}},{"id":"801b9af4-08b4-4f5e-a872-580dd8d7afa1","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":179,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"bac520cd-db22-489a-a9f8-23997789fce8","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":179,"box":{"x":70,"y":120,"width":739,"height":12}},{"id":"eaf9e93c-ad9e-4468-b762-15b16068157a","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":179,"box":{"x":102,"y":143,"width":786,"height":11}},{"id":"2617e009-8f3e-49d0-a938-eb4d99510b98","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":179,"box":{"x":70,"y":158,"width":820,"height":11}},{"id":"185d22b0-7b77-4128-a634-a99aefd41737","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":179,"box":{"x":69,"y":173,"width":837,"height":11}},{"id":"098c33ba-0989-44f7-bb91-df7dee120b70","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":179,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"8a4f9d9e-9eeb-44ff-9208-fb52e9ac3890","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":179,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"8817be4f-87f0-40f7-947a-ea66b7f84910","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":179,"box":{"x":69,"y":219,"width":826,"height":11}},{"id":"bf61a21a-bd8b-4d1d-a33d-60b5a23c4ffc","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":179,"box":{"x":69,"y":234,"width":802,"height":11}},{"id":"be0fc676-17f0-402d-abaa-8cb5eeebf850","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":179,"box":{"x":69,"y":249,"width":364,"height":11}},{"id":"ed962454-1ed1-4660-b384-0cce086b5bb3","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":179,"box":{"x":102,"y":271,"width":774,"height":12}},{"id":"a229ec5e-4699-492e-a1fd-0904003b7941","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":179,"box":{"x":68,"y":286,"width":787,"height":12}},{"id":"352471f6-7251-4185-b94b-94c723a7eb77","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":179,"box":{"x":68,"y":301,"width":835,"height":12}},{"id":"b455d44f-0a0c-471f-bc74-5ece6eed9882","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":179,"box":{"x":68,"y":317,"width":809,"height":11}},{"id":"1790b817-5f48-4daf-9dec-5a97887aa0dc","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":179,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"5b8735d0-9b76-416b-8942-c981bfd108be","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":179,"box":{"x":69,"y":347,"width":783,"height":11}},{"id":"dbb1d357-e8f6-4899-8946-a6e28249544c","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":179,"box":{"x":69,"y":362,"width":710,"height":11}},{"id":"1abe65a5-e53d-4d02-8108-b29d40208d13","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":179,"box":{"x":102,"y":385,"width":758,"height":11}},{"id":"53a4e898-a024-49a8-9165-649d77811794","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":179,"box":{"x":69,"y":400,"width":782,"height":11}},{"id":"5daeb6db-8dd9-43bd-b2cc-602ba7d66cfa","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":179,"box":{"x":70,"y":415,"width":783,"height":11}},{"id":"e79845df-612d-4ef0-a781-843c51b74330","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":179,"box":{"x":69,"y":430,"width":797,"height":11}},{"id":"dc1e28df-7e9b-4a37-9dab-81234820fc8c","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":179,"box":{"x":70,"y":445,"width":822,"height":12}},{"id":"c0627a22-cd94-48ee-a780-2d23d864c78d","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":179,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"940fb032-18d8-4f88-9d97-775c1e8d73b7","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":179,"box":{"x":70,"y":475,"width":826,"height":12}},{"id":"add150d2-d484-47b1-9f6e-de9facaca1b0","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":179,"box":{"x":69,"y":491,"width":808,"height":11}},{"id":"b3100d4c-0490-47b1-9fa3-d9275cc3c6d1","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":179,"box":{"x":69,"y":506,"width":800,"height":11}},{"id":"c0b9415a-843c-41a0-b3a5-2b47892f2f2c","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":179,"box":{"x":70,"y":521,"width":770,"height":11}},{"id":"47ef3381-9888-4531-be95-35fc844a5d4b","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":179,"box":{"x":70,"y":536,"width":816,"height":11}},{"id":"3b927773-311e-4c57-9a20-1c33c55c0638","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":179,"box":{"x":70,"y":551,"width":796,"height":11}},{"id":"1f584d83-db1a-4d8a-8c72-975e21d16380","block_type":"box","text":"investment oppor tunities.","page_number":179,"box":{"x":70,"y":566,"width":180,"height":11}},{"id":"0361ddab-c11b-49dc-8d7f-4f2260a509b4","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":179,"box":{"x":102,"y":589,"width":801,"height":11}},{"id":"7248c9e8-25dd-4b68-a9f1-6c5644a3a502","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":179,"box":{"x":70,"y":604,"width":839,"height":11}},{"id":"0f2cfe8a-22de-471f-ba5c-58c1287518b3","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":179,"box":{"x":69,"y":619,"width":840,"height":11}},{"id":"1572771c-78d9-42dc-bb46-814257c74973","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":179,"box":{"x":68,"y":634,"width":837,"height":12}},{"id":"d77d8796-af84-412b-8c7f-66aa25fc162f","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":179,"box":{"x":70,"y":649,"width":774,"height":11}},{"id":"d29e09fc-3dec-44b7-aecc-a361966fe0b5","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":179,"box":{"x":69,"y":664,"width":820,"height":12}},{"id":"8bb08100-6099-4b4f-89f2-643755e4c01b","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":179,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"eafc378b-bb57-4dd6-af9b-1a505af9c73c","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":179,"box":{"x":69,"y":695,"width":755,"height":11}},{"id":"e5cedb0b-c699-4842-9422-73648a9ca015","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":179,"box":{"x":69,"y":710,"width":811,"height":11}},{"id":"5a11484d-3ffe-49e2-b10a-3173673927a6","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":179,"box":{"x":69,"y":725,"width":839,"height":11}},{"id":"b7392973-e4e7-446b-a98c-d75a072e30a9","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":179,"box":{"x":68,"y":740,"width":812,"height":11}},{"id":"3cb491fc-d074-4d92-8bbf-3e51fa700db5","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":179,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"546cf576-f32e-4c87-8fb7-7b49863d05b2","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":179,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"1002351b-dcc6-4d5a-9420-df848a94afb3","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":179,"box":{"x":70,"y":785,"width":829,"height":12}},{"id":"22c9b29a-a8b4-4efb-9c1d-e29b993fbdab","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":179,"box":{"x":68,"y":801,"width":825,"height":11}},{"id":"e1fd60ab-c436-44df-ac07-100babed7f7c","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":179,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"24829368-9c03-4feb-b5b7-5639bd5980cf","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":179,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"ec8d6489-e9d2-41c7-817e-29367936bad3","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":179,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"f30e4e81-a645-4546-86db-dfc8c50e266e","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":179,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"fd5a09ea-d8a3-4a24-95e9-e692c5cfdc1a","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":179,"box":{"x":70,"y":876,"width":814,"height":11}},{"id":"f538170f-02ec-4668-b15a-abec3e474685","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":179,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"e083fb42-c981-437e-9a4d-19352083ddd5","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":179,"box":{"x":68,"y":906,"width":527,"height":12}},{"id":"1df2d959-060d-4099-a06e-12a1c7a1682a","block_type":"box","text":"II-133","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d1baa8c3-1ca2-4ae6-8e9c-cb8a6b8203dc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"976dcb10-4c11-4db1-9c28-151c63a5cc6b","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":180,"box":{"x":102,"y":45,"width":768,"height":11}},{"id":"872cea6f-0864-496f-80f5-13f6e6e284c0","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":180,"box":{"x":69,"y":60,"width":780,"height":11}},{"id":"5074ca57-9e36-42f3-a973-dbd999d98ee2","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":180,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"0f908879-4fa5-4314-8472-c585a4e40f7f","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":180,"box":{"x":69,"y":90,"width":802,"height":11}},{"id":"057bcdfe-bac5-45a3-aca2-6543e74a2638","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":180,"box":{"x":69,"y":105,"width":831,"height":11}},{"id":"310a1840-b347-4296-863a-5a44af4ac5b2","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":180,"box":{"x":69,"y":120,"width":776,"height":11}},{"id":"6a79aa60-16dc-4242-b65c-ccde174aafe1","block_type":"box","text":"positions in its por tfolio (","page_number":180,"box":{"x":70,"y":135,"width":177,"height":11}},{"id":"f3e4190a-3f26-4b60-a099-0044a45cabc0","block_type":"box","text":"i.e.","page_number":180,"box":{"x":249,"y":136,"width":20,"height":8}},{"id":"1b90c4a2-347b-47a9-8366-0ff89337a4a4","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":180,"box":{"x":272,"y":135,"width":636,"height":12}},{"id":"ea125767-dad1-4720-b660-718171fdfc18","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":180,"box":{"x":69,"y":150,"width":795,"height":12}},{"id":"bd52764a-f5e5-4a2d-883d-1ed1c0356f0c","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":180,"box":{"x":70,"y":166,"width":830,"height":11}},{"id":"926ebbb0-1b7e-4ffa-b993-8cc11dcb3786","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":180,"box":{"x":69,"y":181,"width":804,"height":11}},{"id":"c4d705e2-cc40-4b09-9736-cdc2e6bc0694","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":180,"box":{"x":69,"y":196,"width":415,"height":11}},{"id":"1d5bcd3f-e88d-4c8c-8ec5-ef0c6c6e1e4d","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":180,"box":{"x":102,"y":218,"width":781,"height":12}},{"id":"f098a61d-d427-4337-9a69-36ef97955766","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":180,"box":{"x":69,"y":234,"width":835,"height":11}},{"id":"b0355a82-edd7-4454-9bf0-b7476aaaf66c","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":180,"box":{"x":70,"y":249,"width":811,"height":11}},{"id":"6ef26fcd-1988-439a-b3aa-c0c52e60b22a","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":180,"box":{"x":69,"y":264,"width":818,"height":11}},{"id":"1dd4b882-efba-4df4-bbca-937de1353dbf","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":180,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"4a8fa687-b8c6-4142-9037-8c5c0441f4f9","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":180,"box":{"x":69,"y":294,"width":834,"height":11}},{"id":"26a4caf4-93c6-4fae-ad3f-4c4aa3cebd32","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":180,"box":{"x":69,"y":309,"width":833,"height":11}},{"id":"49b04270-1eeb-461d-afbe-6f7cc959742c","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":180,"box":{"x":69,"y":324,"width":805,"height":12}},{"id":"6a6c04d5-0665-44b4-a5f1-245499684d23","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":180,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"c310a137-7a67-44b4-9f30-e8dbc4c2095f","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":180,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"af034830-1d23-4c46-bd24-5e1541bad90e","block_type":"box","text":"capital asset.","page_number":180,"box":{"x":69,"y":370,"width":95,"height":11}},{"id":"423f4359-cd9a-45b8-b53e-d7e018f8e98e","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":180,"box":{"x":102,"y":392,"width":787,"height":12}},{"id":"22d2493a-7f43-4b7f-bdfb-dc1759ac2104","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":180,"box":{"x":70,"y":407,"width":836,"height":12}},{"id":"443e8e1d-60d7-40fa-b23d-25102cdc2028","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":180,"box":{"x":69,"y":423,"width":812,"height":11}},{"id":"e655d132-5c76-4db7-ae81-5086ea56d0ce","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":180,"box":{"x":69,"y":438,"width":805,"height":11}},{"id":"a92806b7-d1c3-4217-bd1e-ae29fa85fe28","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":180,"box":{"x":68,"y":453,"width":829,"height":11}},{"id":"1d948ec8-dfb7-431a-ab1e-270b3368901e","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":180,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"8bbfb93e-0bb8-4f33-a5b2-02ee259abe9b","block_type":"box","text":"Fund were to invest otherwise.","page_number":180,"box":{"x":70,"y":483,"width":216,"height":9}},{"id":"87848d35-8f50-42aa-a856-6954e695ee12","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":180,"box":{"x":101,"y":506,"width":721,"height":11}},{"id":"83e49f5d-4247-48a1-905e-c5a55eb525a8","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":180,"box":{"x":70,"y":521,"width":787,"height":11}},{"id":"0b757a60-5f2a-400d-a73d-759335aa9eb0","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":180,"box":{"x":70,"y":536,"width":831,"height":11}},{"id":"90ab19a4-3195-441f-875c-4217ba9ed9d3","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":180,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"9b098c04-df76-4c48-9862-a3c4bb6fe266","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":180,"box":{"x":69,"y":566,"width":825,"height":11}},{"id":"2521c71b-c7e7-40ab-81a8-a8a036fb68ee","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":180,"box":{"x":68,"y":581,"width":838,"height":12}},{"id":"a676d8e9-d7db-4adc-a14c-b06899d0fd98","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":180,"box":{"x":68,"y":596,"width":830,"height":12}},{"id":"e15b1e30-4075-44c7-9fb5-b1442e739f64","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":180,"box":{"x":69,"y":612,"width":515,"height":11}},{"id":"f65ccd1c-0e8a-4c39-91be-4c4ede540e4f","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":180,"box":{"x":102,"y":634,"width":798,"height":12}},{"id":"61c81883-a98f-4e43-83e2-6db6e2df3893","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":180,"box":{"x":68,"y":649,"width":835,"height":12}},{"id":"9c5aefd4-a73a-4b96-b35a-5b2e7a60904a","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":180,"box":{"x":70,"y":664,"width":827,"height":12}},{"id":"88ebbee1-fb04-4703-ac24-6bb30d6a0288","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":180,"box":{"x":68,"y":680,"width":830,"height":11}},{"id":"a6ba875b-1364-4338-bf47-3c2862c95a6b","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":180,"box":{"x":69,"y":695,"width":802,"height":11}},{"id":"45208425-c1fa-4072-ae0d-06236624c083","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":180,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"d5a6ad84-a30d-458f-84bf-7b7a3a7be4f3","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":180,"box":{"x":70,"y":725,"width":797,"height":11}},{"id":"1d1673f8-e91c-4345-888b-d5062c839e7f","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":180,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"d11922e5-a451-40ec-a3fb-6448c0707540","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":180,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"a4ee7c16-caa6-4385-b17a-e690b82878c6","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":180,"box":{"x":68,"y":770,"width":797,"height":11}},{"id":"eb9ca69a-a94e-4369-8c69-5437d64a7ccf","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":180,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"a43c5680-1fdd-4c64-9e65-3d2c54b913cb","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":180,"box":{"x":68,"y":801,"width":804,"height":11}},{"id":"e18b6503-336b-4d8c-a376-dd9857e6c144","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":180,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"e7fdf6c1-4d55-4ed2-b1f4-d74088b9928e","block_type":"box","text":"PFICs.","page_number":180,"box":{"x":69,"y":831,"width":42,"height":9}},{"id":"00f24895-22e6-4ebe-a106-fec0a87a926d","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":180,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"58954646-6568-42a7-ad53-18352b3ea03b","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":180,"box":{"x":69,"y":869,"width":816,"height":11}},{"id":"04379f32-a39e-4781-8699-a2914a740759","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":180,"box":{"x":69,"y":884,"width":816,"height":11}},{"id":"d9225fbb-a46b-499c-8c67-00092292a15f","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":180,"box":{"x":68,"y":899,"width":840,"height":11}},{"id":"2a18e344-92e6-4547-87d1-57a5bdd828db","block_type":"box","text":"II-134","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"408a0dff-ed52-448b-9e6e-5fd4d4d76a8b","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"21946217-703d-4ec9-923f-05a6a9b585d1","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":181,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"b97a1338-e845-43ae-b373-eb9c1d4b86ba","block_type":"box","text":"difficult or impossible to obtain.","page_number":181,"box":{"x":69,"y":60,"width":225,"height":11}},{"id":"516837f9-79c7-4e30-b0b9-bbf6cad83656","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":181,"box":{"x":102,"y":82,"width":796,"height":12}},{"id":"6f78ac56-2db1-4eb5-8b9d-92a2498c42b8","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":181,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"0b07e1c1-0d0e-416f-bb55-72c08915019b","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":181,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"08fabc48-5f67-4546-acfa-6ca15706b500","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":181,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"87034418-af1f-41d6-b58f-f388c159cce5","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":181,"box":{"x":68,"y":143,"width":824,"height":11}},{"id":"31cffa3e-0a36-4a36-b7c6-0dd74741307b","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":181,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"bc682dee-ad30-409f-9e80-b1396108aa31","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":181,"box":{"x":69,"y":173,"width":511,"height":11}},{"id":"95eae188-e5de-4a5e-b0af-279b3870c7fc","block_type":"box","text":"Municipal Funds","page_number":181,"box":{"x":102,"y":196,"width":115,"height":11}},{"id":"95dcc7d5-3e35-498b-aa85-e6a54b3c7907","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":181,"box":{"x":102,"y":218,"width":798,"height":12}},{"id":"82aef74d-1530-4b8d-bf27-865465653ab2","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":181,"box":{"x":69,"y":234,"width":815,"height":11}},{"id":"b0a7adb4-4afd-48c7-a413-87134b7281c4","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":181,"box":{"x":70,"y":249,"width":803,"height":11}},{"id":"b60f22cb-0da1-4cc1-85b5-418b9738cd47","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":181,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"ea8fc820-80f6-47d0-bcbd-480a77d6c8cf","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":181,"box":{"x":69,"y":279,"width":752,"height":11}},{"id":"e606c273-7e16-47e8-8963-9c981e313675","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":181,"box":{"x":70,"y":294,"width":817,"height":11}},{"id":"9202b208-297a-4111-b57d-1c2bd1c23dbd","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":181,"box":{"x":70,"y":309,"width":780,"height":11}},{"id":"d89d5160-b337-4aa2-96ab-1bbacfcd7385","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":181,"box":{"x":70,"y":324,"width":815,"height":12}},{"id":"ab383dda-6053-4fc7-bac5-bcb76495c472","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":181,"box":{"x":69,"y":340,"width":839,"height":11}},{"id":"11b94ece-d3b8-4db6-931a-fdea69ef69cf","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":181,"box":{"x":70,"y":355,"width":835,"height":11}},{"id":"7b19c6d0-05e6-4b3b-84a2-12106e2a3727","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":181,"box":{"x":68,"y":370,"width":730,"height":11}},{"id":"70ff646b-5dd8-4882-b7a1-90a9fd529856","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":181,"box":{"x":102,"y":392,"width":763,"height":12}},{"id":"77b02632-0ae6-4fd8-926e-9cbec9fc6d27","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":181,"box":{"x":70,"y":407,"width":809,"height":12}},{"id":"dbd9595e-8c4f-4d49-8ab6-9212064cc199","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":181,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"11bd9a83-fcd9-4d9c-8a17-bf663317f8a7","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":181,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"906e7d5a-3c51-4bf2-896e-70452581b347","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":181,"box":{"x":68,"y":453,"width":800,"height":11}},{"id":"58415112-2be0-4c82-b1c7-64bfed1ea263","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":181,"box":{"x":69,"y":468,"width":810,"height":11}},{"id":"7481888c-73ee-4721-96ae-1f3016049a4e","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":181,"box":{"x":70,"y":483,"width":836,"height":11}},{"id":"7d2fbad0-e08d-434b-9501-b451bf6466b6","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":181,"box":{"x":69,"y":498,"width":835,"height":11}},{"id":"0636d679-2780-4d3f-9557-8f36520cbad2","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":181,"box":{"x":69,"y":513,"width":217,"height":11}},{"id":"f3b777ec-e3a3-45b0-88fa-113e8dde0a91","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":181,"box":{"x":102,"y":536,"width":788,"height":11}},{"id":"d3610317-fc7a-4242-b49f-4053d9eb6f41","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":181,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"5268b376-ee76-44f9-98b9-def146afbaf9","block_type":"box","text":"constitute exempt-interest dividends.","page_number":181,"box":{"x":69,"y":566,"width":261,"height":11}},{"id":"6c7ab271-860a-4cec-8d80-9cd88a82c394","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":181,"box":{"x":102,"y":589,"width":765,"height":11}},{"id":"5de5b90c-c4b0-4efb-9914-ceabd1831cc4","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":181,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"d4e10781-d897-4a00-9f8c-3172d6ef4d6d","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":181,"box":{"x":68,"y":619,"width":813,"height":11}},{"id":"237bb6ef-8845-4af4-bbbb-43d5581af122","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":181,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"0ab3c6ba-e29f-499e-8d29-f2fbb77dc544","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":181,"box":{"x":69,"y":649,"width":829,"height":12}},{"id":"c2ffccf2-6b1b-4cbd-b127-f8bee0aa6696","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":181,"box":{"x":69,"y":665,"width":388,"height":11}},{"id":"12f18a50-9264-44a4-b151-6b4f8fe7b61e","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":181,"box":{"x":101,"y":687,"width":787,"height":11}},{"id":"7cd93670-91c5-40d5-81cd-70537dab9417","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":181,"box":{"x":69,"y":702,"width":817,"height":12}},{"id":"e0084922-4b49-49d1-9c30-340e24d5545e","block_type":"box","text":"income dividends received by shareholders.","page_number":181,"box":{"x":70,"y":718,"width":309,"height":11}},{"id":"7a98112f-8832-403b-96b6-700481a2cfdf","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":181,"box":{"x":101,"y":740,"width":766,"height":11}},{"id":"6e5a8634-436b-45b4-b792-9250852219e8","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":181,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"75092790-a565-4247-b276-a7c7828df89a","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":181,"box":{"x":70,"y":771,"width":815,"height":11}},{"id":"8df42817-1786-4e55-a94a-3b1342394130","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":181,"box":{"x":70,"y":785,"width":815,"height":12}},{"id":"5f3c228c-67f6-4b5c-94aa-37e9e1e9fb9e","block_type":"box","text":"the accrued market discount.","page_number":181,"box":{"x":68,"y":801,"width":208,"height":9}},{"id":"c3036af1-3c99-422c-8b0c-981d37933270","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":181,"box":{"x":101,"y":823,"width":801,"height":11}},{"id":"fdd266e7-4ecf-4dcb-aad7-b0a27f174780","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":181,"box":{"x":68,"y":838,"width":818,"height":12}},{"id":"69796b10-f00b-4166-a216-93319586e333","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":181,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"19082627-842e-4db5-820b-3a3010b32532","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":181,"box":{"x":69,"y":869,"width":351,"height":11}},{"id":"227fca97-90ab-4fac-8750-11630a497c99","block_type":"box","text":"e.g.","page_number":181,"box":{"x":422,"y":870,"width":24,"height":10}},{"id":"9e176322-da6c-4db2-9e67-8f45a7a4170f","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":181,"box":{"x":449,"y":869,"width":441,"height":11}},{"id":"9e3406b0-bac0-490f-979e-f60e3b32d317","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":181,"box":{"x":70,"y":884,"width":827,"height":11}},{"id":"abdfce0b-0073-43b2-84a9-7f65ccfb871d","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":181,"box":{"x":69,"y":899,"width":786,"height":11}},{"id":"6dc50129-17f0-4b2d-892d-1c69b5e9ea12","block_type":"box","text":"II-135","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3e1d6334-3c6d-4870-9a91-219375e0ea83","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71972c6e-fd30-4bb4-9126-1e9a9c23dab4","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":182,"box":{"x":70,"y":45,"width":782,"height":11}},{"id":"bb6384a8-f7ba-4661-bf03-c7f3f4a2ea6c","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":182,"box":{"x":69,"y":60,"width":740,"height":11}},{"id":"e62c3b52-ca64-464a-8e95-a24680d276d2","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":182,"box":{"x":102,"y":82,"width":802,"height":12}},{"id":"74a17651-58a6-4ecf-a800-f491c4314f70","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":182,"box":{"x":68,"y":98,"width":812,"height":11}},{"id":"f1f88f20-e79e-4121-b121-54508d49f4d3","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":182,"box":{"x":69,"y":113,"width":794,"height":11}},{"id":"e5d49a00-9761-49b1-b5c8-701a65793989","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":182,"box":{"x":70,"y":128,"width":776,"height":11}},{"id":"371ce4df-208e-4f42-80c3-d41e20781a2d","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":182,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"9d32082d-2fe8-4092-8117-4dbcaac2377b","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":182,"box":{"x":69,"y":158,"width":436,"height":11}},{"id":"4f1b5153-70cc-4d04-868b-6df7126faa26","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":182,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"5c847008-82d2-4cf1-8fcc-d3ab005b4047","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":182,"box":{"x":69,"y":196,"width":828,"height":11}},{"id":"295a82d2-4c52-4b2a-a83c-9f4f84e3b353","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":182,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"4ae0e5cf-6209-4eab-a908-14f814374abc","block_type":"box","text":"within each applicable state.","page_number":182,"box":{"x":68,"y":226,"width":203,"height":11}},{"id":"c25348a1-d738-45dc-9166-0ea0956f1dd8","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":182,"box":{"x":102,"y":249,"width":774,"height":11}},{"id":"6cd068e0-e415-40ae-8f8d-e5645d29fdb6","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":182,"box":{"x":68,"y":264,"width":837,"height":11}},{"id":"b95d7c20-9a13-41d8-9790-fe93859c4e3e","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":182,"box":{"x":70,"y":279,"width":816,"height":11}},{"id":"11c55e35-cb6d-48a7-b7d5-2b2144bc815f","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":182,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"b3cf2544-77af-482e-8c2a-8fa39d24ee7d","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":182,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"3def2893-b75b-443e-b340-6cfdcb0b2d9f","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":182,"box":{"x":70,"y":324,"width":783,"height":11}},{"id":"6007ba24-cf99-4d18-a0e8-a6b65b9e2441","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":182,"box":{"x":68,"y":339,"width":822,"height":12}},{"id":"baaca45c-d139-46e1-9565-acfdfd12aa94","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":182,"box":{"x":68,"y":355,"width":710,"height":11}},{"id":"254af0fd-7a11-4b4d-8b02-681fed76b6fc","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":182,"box":{"x":102,"y":377,"width":796,"height":12}},{"id":"08ecaa7d-bf24-47fc-8ada-d3e2b0909e04","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":182,"box":{"x":68,"y":392,"width":828,"height":12}},{"id":"e07da3ef-dd4d-4697-bdde-e308e674e633","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":182,"box":{"x":68,"y":408,"width":841,"height":11}},{"id":"176fae65-f8c2-4680-9261-b223f3db8136","block_type":"box","text":"exempt from state income tax.","page_number":182,"box":{"x":69,"y":423,"width":216,"height":11}},{"id":"0520f1db-01af-4eeb-b634-6c2b4c3f9e44","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":182,"box":{"x":102,"y":445,"width":771,"height":12}},{"id":"e7bf3390-98fb-4c13-98f3-1ac168269e20","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":182,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"dbdf1f77-9aa0-402b-bbb0-b259d7ff9b06","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":182,"box":{"x":68,"y":475,"width":309,"height":9}},{"id":"7a74ff97-15c5-4eed-bbe0-e14be0b4d2da","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":182,"box":{"x":101,"y":498,"width":749,"height":11}},{"id":"217df7da-a1e6-4221-8f48-70f2a0929f4b","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":182,"box":{"x":69,"y":513,"width":803,"height":12}},{"id":"cc7832b7-eca6-42ad-b160-f5f9daba209b","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":182,"box":{"x":69,"y":528,"width":801,"height":12}},{"id":"75a2edb0-604a-4420-99c2-32a05201185d","block_type":"box","text":"decisions may have a retroactive effect.","page_number":182,"box":{"x":69,"y":543,"width":283,"height":12}},{"id":"602bcf10-b0d1-4920-bbde-09af9bd540d2","block_type":"box","text":"PERFORMANCE DATA","page_number":182,"box":{"x":403,"y":573,"width":173,"height":10}},{"id":"0bdee6cd-2b4a-4e3e-9faa-64834fa98f1f","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":182,"box":{"x":102,"y":596,"width":738,"height":11}},{"id":"4f462161-f0e3-4e39-a676-3dc53a0c7abf","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":182,"box":{"x":69,"y":611,"width":779,"height":11}},{"id":"0cd26468-d416-4648-a1f2-32e39c6955e2","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":182,"box":{"x":69,"y":626,"width":833,"height":11}},{"id":"b3812bb8-377b-4d4c-ae62-e984f05fcb00","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":182,"box":{"x":70,"y":641,"width":792,"height":11}},{"id":"f9893b20-c1d2-41a0-9a6b-25c734f8a30e","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":182,"box":{"x":69,"y":656,"width":473,"height":11}},{"id":"b637a4ed-ffc1-4c4d-9803-e24fa5c710dc","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":182,"box":{"x":102,"y":679,"width":761,"height":11}},{"id":"9a234f41-5a7e-453d-8165-a1f0dc447037","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":182,"box":{"x":69,"y":694,"width":836,"height":11}},{"id":"c83a7b11-9ac1-472c-b719-f6a7aad0fc1e","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":182,"box":{"x":68,"y":709,"width":798,"height":11}},{"id":"79afec33-6afe-4077-a44e-7dd00f6c44d8","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":182,"box":{"x":69,"y":724,"width":765,"height":12}},{"id":"f7a59844-f726-4e2f-b6d4-d1242ca8565a","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":182,"box":{"x":69,"y":740,"width":808,"height":11}},{"id":"a398b4e7-fc77-4c71-baf8-afe4f6705ea0","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":182,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"7891b823-f51c-4ae7-b232-4eef2b9585c2","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":182,"box":{"x":69,"y":770,"width":839,"height":11}},{"id":"f61300e8-3ada-401c-a45c-ef7577391fef","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":182,"box":{"x":69,"y":785,"width":546,"height":11}},{"id":"629e5735-8d96-4a43-92ee-e7fed55e510c","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":182,"box":{"x":102,"y":807,"width":781,"height":12}},{"id":"c7d61062-a980-45f4-b6f7-697b20841a28","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":182,"box":{"x":68,"y":823,"width":819,"height":11}},{"id":"a030d931-815d-4136-ad04-03f1a8c33b38","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":182,"box":{"x":68,"y":838,"width":810,"height":11}},{"id":"8dcf8113-df55-4ed7-a8b0-5c031d60a55b","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":182,"box":{"x":70,"y":853,"width":823,"height":11}},{"id":"51ad75a1-6ff1-47a1-b424-3cc997dd027b","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":182,"box":{"x":69,"y":868,"width":780,"height":11}},{"id":"879eff35-ced4-4be4-819e-36029f0af245","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":182,"box":{"x":70,"y":883,"width":825,"height":11}},{"id":"6c9438f2-2cbe-41dc-95b0-b9f5ac9e3297","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":182,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"138cb147-cb4b-4917-ad60-d1875b24a477","block_type":"box","text":"II-136","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"278e0965-0832-43fb-9351-16c7edd5d719","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5369c30b-702d-4ba8-84cf-05017006ca1d","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":183,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"84f2e77e-d1af-46a6-9390-d2a5c66ee08f","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":183,"box":{"x":70,"y":60,"width":833,"height":11}},{"id":"585991a0-216a-4d33-9154-c1018aeb8329","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":183,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"5ddfee7b-b940-4969-9363-918145547f51","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":183,"box":{"x":68,"y":90,"width":824,"height":11}},{"id":"b3607700-df51-46bb-8be9-74a8fd226e52","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":183,"box":{"x":69,"y":105,"width":837,"height":11}},{"id":"9f2ccfc7-797f-4e83-a16e-ce04825e9511","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":183,"box":{"x":69,"y":120,"width":814,"height":12}},{"id":"4a4e6e33-9df6-4286-be37-2aa5212245a1","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":183,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"ade941c1-1113-43d6-aa20-2e11880c578a","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":183,"box":{"x":69,"y":150,"width":774,"height":11}},{"id":"0be5e666-9d76-4068-9352-e589889bbcb8","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":183,"box":{"x":102,"y":173,"width":752,"height":11}},{"id":"df8a0328-8275-48f9-9d67-e451f29b95e8","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":183,"box":{"x":70,"y":188,"width":835,"height":12}},{"id":"b98a3be1-efd8-40ae-8e6f-2732338ff4bf","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":183,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"9eda2057-46f3-4c8b-8a42-b5d069959dbc","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":183,"box":{"x":69,"y":218,"width":756,"height":12}},{"id":"cb4844b5-c5e1-4832-b9a9-6a8efadd9a52","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":183,"box":{"x":69,"y":234,"width":772,"height":11}},{"id":"0965bb47-bd64-4d0b-9934-4c3450589170","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":183,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"3b57250f-574b-4d25-b0c1-e2fbf5cec4c1","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":183,"box":{"x":69,"y":264,"width":825,"height":11}},{"id":"13d1f788-832c-4f67-b75d-c10e8b99bc2a","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":183,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"366a358f-0cb0-4830-ac21-a7b09a0c232a","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":183,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"54e58958-9cf9-4897-8bfe-f4bdb9a2d47c","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":183,"box":{"x":69,"y":309,"width":768,"height":11}},{"id":"a15320e2-7a29-4064-8c7c-3d49f2afae4f","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":183,"box":{"x":69,"y":324,"width":810,"height":12}},{"id":"34a67859-a1c0-4ac2-be62-a00ceec7b10e","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":183,"box":{"x":69,"y":339,"width":802,"height":12}},{"id":"19f6e292-1cec-4eb2-9261-e41c4f325ff0","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":183,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"7b2ab1da-b573-4385-b933-853dfdd20e58","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":183,"box":{"x":68,"y":370,"width":823,"height":11}},{"id":"da2d2f13-bf00-46b8-a465-3d13001d67b6","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":183,"box":{"x":69,"y":385,"width":743,"height":11}},{"id":"c0747455-942c-47e7-9489-d175663877e6","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":183,"box":{"x":69,"y":400,"width":814,"height":11}},{"id":"9eca3a58-e936-48ba-8fa4-eb43de0904a0","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":183,"box":{"x":68,"y":415,"width":422,"height":11}},{"id":"4a25cea4-db07-4afa-8aad-62b93d948a9d","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":183,"box":{"x":101,"y":438,"width":720,"height":11}},{"id":"418f08a2-f07f-48e8-ab70-ca0dd2065352","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":183,"box":{"x":70,"y":452,"width":813,"height":12}},{"id":"35b13bbb-d292-4bd4-a01f-713562576107","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":183,"box":{"x":69,"y":468,"width":781,"height":11}},{"id":"0f1befb9-3b76-4215-86c9-a8989c7585c2","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":183,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"33905eb1-d377-4b50-ad07-7fc25f1c0e74","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":183,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"7e324fe0-543a-4506-b2ed-abc95e8a56ff","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":183,"box":{"x":68,"y":513,"width":815,"height":11}},{"id":"43a767ae-10c2-4bf4-9cc3-d6320d61d283","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":183,"box":{"x":70,"y":528,"width":801,"height":12}},{"id":"6c58d69d-830b-4d45-846d-c5bf98f50d99","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":183,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"f89d2c91-a21c-45d7-89d9-59f8ca70ec62","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":183,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"c97072e1-1e34-431d-934f-5b40a0714a11","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":183,"box":{"x":69,"y":574,"width":686,"height":11}},{"id":"9e3dd58e-8b67-4c26-a8d2-49ec72ebb06c","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":183,"box":{"x":101,"y":596,"width":796,"height":12}},{"id":"88deb950-05b8-44b5-ae5d-129f518ad961","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":183,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"fc948019-5368-4818-ae39-bf8f24836725","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":183,"box":{"x":68,"y":627,"width":817,"height":11}},{"id":"b96663b6-6afd-48b1-aadc-01b635899a82","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":183,"box":{"x":68,"y":642,"width":837,"height":11}},{"id":"f7111c98-a481-45d6-bfcb-6b6ebb14417f","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":183,"box":{"x":69,"y":657,"width":759,"height":11}},{"id":"4d2c6f52-e3f1-47e6-9ef0-36157d0e00f3","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":183,"box":{"x":101,"y":680,"width":779,"height":11}},{"id":"62752d0f-cbc3-457b-a0c0-1900872790a5","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":183,"box":{"x":70,"y":695,"width":819,"height":11}},{"id":"e36f8693-cc46-4ca0-bf8b-31cee0f78d49","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":183,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"565b7fa1-f8f7-4103-8fdd-f0ba12ed22fe","block_type":"box","text":"less than their original cost.","page_number":183,"box":{"x":70,"y":725,"width":196,"height":11}},{"id":"c6eb8b5f-5c07-49c6-a7a6-ca28de47e0aa","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":183,"box":{"x":102,"y":748,"width":782,"height":11}},{"id":"20d98b0e-a724-41d0-8dd2-8adb2e51af72","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":183,"box":{"x":68,"y":763,"width":836,"height":11}},{"id":"27824154-fe20-44a5-9045-1460e03eb963","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":183,"box":{"x":69,"y":778,"width":807,"height":11}},{"id":"1dba3512-927f-481e-bf1a-bc54f04262c5","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":183,"box":{"x":68,"y":793,"width":820,"height":11}},{"id":"e014c252-123c-43f7-8f6f-4b20b6a2fc9b","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":183,"box":{"x":68,"y":808,"width":824,"height":11}},{"id":"0e671290-e416-401f-9f6d-c474bb9babba","block_type":"box","text":"lower amount of expenses is deducted.","page_number":183,"box":{"x":70,"y":823,"width":278,"height":11}},{"id":"391a0245-779e-4cda-92ce-cf1fcd96f38d","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":183,"box":{"x":102,"y":846,"width":741,"height":11}},{"id":"e8589a00-4f2b-4024-8e4d-7455c8606cb2","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":183,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"1b8d64a3-2d58-476f-b038-9195b2fd10ff","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":183,"box":{"x":70,"y":876,"width":646,"height":11}},{"id":"0b1172ed-e2e2-4814-a42c-a5d36b883a8a","block_type":"box","text":"Money Magazine, U.S.","page_number":183,"box":{"x":724,"y":876,"width":156,"height":11}},{"id":"aafc8988-9e72-4c01-8af3-ca4e6655e065","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":183,"box":{"x":70,"y":891,"width":533,"height":12}},{"id":"0800a683-e35b-4111-9342-04916fa4f73b","block_type":"box","text":"or other industry publications. When","page_number":183,"box":{"x":608,"y":891,"width":257,"height":11}},{"id":"76c4789e-52d2-4d2e-b3dd-13423a9dcdf1","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":183,"box":{"x":69,"y":906,"width":797,"height":12}},{"id":"5bb0b809-9b98-4388-9491-b27997047723","block_type":"box","text":"II-137","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"25d90229-7efc-4bcc-babc-029370c77deb","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e8deafd-4ac7-4d39-ba0a-37ec7f298a8d","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":184,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"2f14a951-d4c2-42d1-aef1-867d3b8520ac","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":184,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"19c74c3e-24cf-40c6-8aaa-cc286d9fc75a","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":184,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"c53c5958-648b-4877-b4c2-31bb6e256d56","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":184,"box":{"x":69,"y":90,"width":793,"height":11}},{"id":"71f42d4f-1f68-4c1e-b770-9164c4d11f93","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":184,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"d42b13f9-7586-47ad-9777-31780628ce8b","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":184,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"3c03da2b-636c-4d7c-af5c-42ebec982c83","block_type":"box","text":"developed by Fund management.","page_number":184,"box":{"x":69,"y":136,"width":233,"height":11}},{"id":"abd60483-57bd-43ad-9900-7bc3a37a10d4","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":184,"box":{"x":101,"y":158,"width":780,"height":11}},{"id":"13e2568a-9ee4-41aa-8d77-99959810d04a","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":184,"box":{"x":70,"y":173,"width":810,"height":11}},{"id":"86581dcd-fe7f-43cf-be61-95a998c862f9","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":184,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"5d5c27d1-f63f-420b-af53-45404437a238","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":184,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"dd297b17-38d3-4da1-b52a-21b2a0844264","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":184,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"501844c4-0b36-4adb-bd87-797d606f484f","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":184,"box":{"x":70,"y":234,"width":835,"height":11}},{"id":"9b373817-3364-46ec-bcd5-3d8326a5f681","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":184,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"ce62b61c-c114-4ca4-b981-06272a43f953","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":184,"box":{"x":68,"y":264,"width":461,"height":11}},{"id":"ddeacc19-08a2-4b52-9c05-e1e04418cba4","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":184,"box":{"x":308,"y":293,"width":362,"height":10}},{"id":"88afec98-12f8-423f-abb0-ab2e3ebcb312","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":184,"box":{"x":101,"y":316,"width":802,"height":11}},{"id":"20763731-72b7-4fae-8a7b-ebe95f19eab3","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":184,"box":{"x":70,"y":331,"width":809,"height":12}},{"id":"772f31b8-0d21-4042-8ac1-138a2df3aa51","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":184,"box":{"x":69,"y":347,"width":833,"height":11}},{"id":"4f418471-994f-4530-9f67-fa993403ece4","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":184,"box":{"x":70,"y":361,"width":755,"height":12}},{"id":"92b2b3a7-11a7-4411-8027-332ec89db2c1","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":184,"box":{"x":101,"y":384,"width":785,"height":11}},{"id":"7d4a547d-a04b-41e6-aa1e-2b0bbf39760d","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":184,"box":{"x":68,"y":399,"width":822,"height":12}},{"id":"4befad2c-2931-4320-8d54-05503488c074","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":184,"box":{"x":70,"y":414,"width":824,"height":12}},{"id":"4b547918-ae67-4551-8c97-ad0e316d1856","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":184,"box":{"x":68,"y":430,"width":812,"height":11}},{"id":"1f731f03-b932-4695-a47d-4655692b175a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":184,"box":{"x":69,"y":445,"width":392,"height":11}},{"id":"d123f178-6519-48ef-952a-31fb92e697ad","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":184,"box":{"x":101,"y":468,"width":749,"height":11}},{"id":"052ba761-0044-4946-af73-6e0ea0ef9888","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":184,"box":{"x":70,"y":482,"width":759,"height":12}},{"id":"ded27d4e-4da7-4e7c-a1f1-81d7b61ba9c2","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":184,"box":{"x":70,"y":498,"width":830,"height":11}},{"id":"d46b0315-5e69-4383-ac75-975a993a5759","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":184,"box":{"x":69,"y":513,"width":838,"height":11}},{"id":"95f9893f-62e2-4d77-94b6-d66c14cbd5c9","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":184,"box":{"x":68,"y":528,"width":822,"height":11}},{"id":"f99df311-21af-443a-97c7-e1fbb731c97b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":184,"box":{"x":69,"y":543,"width":392,"height":11}},{"id":"99ea95bb-6bd8-4932-b51c-01fa090daeed","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":184,"box":{"x":102,"y":566,"width":767,"height":11}},{"id":"f5a51b44-36af-4cec-b454-4ae848921ffd","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":184,"box":{"x":68,"y":581,"width":827,"height":11}},{"id":"0d6292b3-4cdd-41a1-a333-94eec17c2b2b","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":184,"box":{"x":69,"y":596,"width":819,"height":11}},{"id":"3140bd9b-fa4a-4a38-a330-c0191b5fb91d","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":184,"box":{"x":69,"y":611,"width":684,"height":11}},{"id":"6d42e5e6-b206-471d-a94c-d4f4592c44ef","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":184,"box":{"x":102,"y":634,"width":766,"height":11}},{"id":"03f4aa8a-21dd-4a0a-a87e-f6214ddb2aa6","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":184,"box":{"x":69,"y":649,"width":784,"height":11}},{"id":"0f83f831-d26d-4bc0-a4cd-df3a5c5102b1","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":184,"box":{"x":69,"y":664,"width":805,"height":11}},{"id":"029dcaf1-01ed-45c9-982b-88885eda38f8","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":184,"box":{"x":68,"y":679,"width":790,"height":11}},{"id":"3e95e9c8-cb4a-442d-97cf-ed455c365129","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":184,"box":{"x":70,"y":694,"width":810,"height":11}},{"id":"6d8d3fb6-b373-47bd-8f87-7b534d3cb030","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":184,"box":{"x":69,"y":709,"width":788,"height":11}},{"id":"b1807e85-a4fb-4057-bab6-2b1363567ed7","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":184,"box":{"x":69,"y":724,"width":327,"height":12}},{"id":"71cbbc4f-51a2-4bb0-aa76-59339153c950","block_type":"box","text":"GENERAL INFORMATION","page_number":184,"box":{"x":391,"y":754,"width":195,"height":10}},{"id":"c7869cfc-fc2f-48f4-80e3-9477db8e00d7","block_type":"box","text":"Description of Shares","page_number":184,"box":{"x":69,"y":784,"width":156,"height":11}},{"id":"c467c9f1-7e41-405c-ad42-699d305e6e85","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":184,"box":{"x":102,"y":807,"width":800,"height":9}},{"id":"0ad6f4b1-0743-482f-a961-c45ab3edc62f","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":184,"box":{"x":69,"y":822,"width":811,"height":11}},{"id":"f94812ee-c73f-40c1-a301-c46fd8f2c92c","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":184,"box":{"x":69,"y":837,"width":825,"height":11}},{"id":"6dcf75d7-5f3d-4df0-adf1-54f72dd896a7","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":184,"box":{"x":69,"y":852,"width":838,"height":11}},{"id":"022de890-0d46-4f2a-baf3-119499455f6f","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":184,"box":{"x":69,"y":867,"width":835,"height":12}},{"id":"a23bb66f-eb4f-4485-92e3-c9fe1d91dc9c","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":184,"box":{"x":69,"y":882,"width":781,"height":12}},{"id":"25e6423d-f5b3-41a6-a1f7-0188b0eadbe3","block_type":"box","text":"II-138","page_number":184,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"02b97e12-502c-457e-9cbf-00e8c18af9ec","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff4b05fd-2cdc-4880-84a3-3ea864328558","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":185,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"7fa4e951-79ad-4fec-8574-1b9bdc7d38bf","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":185,"box":{"x":69,"y":60,"width":760,"height":11}},{"id":"51bd136e-9967-45ff-a5a1-9917e3d5904e","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":185,"box":{"x":69,"y":75,"width":810,"height":11}},{"id":"f4e9244a-d68e-42d0-9d47-eeebbef15f43","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":185,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"d3a35416-5be7-483e-937f-6fef3ae22052","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":185,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"f09bf1a3-a40c-4555-a050-aa1999c44ff4","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":185,"box":{"x":69,"y":120,"width":797,"height":11}},{"id":"fd62ca1c-ccdd-43e9-be59-633e6ae1a512","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":185,"box":{"x":69,"y":135,"width":658,"height":12}},{"id":"4e0efb21-7601-4945-a582-9a5aab80eda8","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":185,"box":{"x":102,"y":158,"width":741,"height":11}},{"id":"da96709d-b8c6-4af0-9c11-e628406bb55c","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":185,"box":{"x":69,"y":173,"width":790,"height":11}},{"id":"deaf83b7-b8ff-4c7a-8b41-2886b4064fff","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":185,"box":{"x":69,"y":188,"width":546,"height":12}},{"id":"17be658a-2123-43ca-b7af-ac5f0f2b7e31","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":185,"box":{"x":102,"y":211,"width":712,"height":11}},{"id":"f9bcaa0d-2369-46df-9bf6-a543ff3708cc","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":185,"box":{"x":69,"y":226,"width":765,"height":11}},{"id":"45ab944f-01f4-4502-bdcd-de94c198d18e","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":185,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"504d133c-233f-49eb-9559-9d298758bf3a","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":185,"box":{"x":68,"y":256,"width":729,"height":11}},{"id":"c463c69e-e72f-4cf5-99ea-639375db6e76","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":185,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"e9f9cd41-6af5-4881-9dc3-d970346195e6","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":185,"box":{"x":68,"y":286,"width":761,"height":12}},{"id":"556ac35f-913e-4c3b-a414-2dd560f6d218","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":185,"box":{"x":69,"y":302,"width":824,"height":11}},{"id":"79cda830-4c0a-426a-bbab-48895283c730","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":185,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"7d16324e-d507-483d-82a6-b7a6e30a751b","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":185,"box":{"x":69,"y":332,"width":813,"height":11}},{"id":"18dc145d-ab65-4f7e-b805-5244c230c7d0","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":185,"box":{"x":68,"y":347,"width":827,"height":11}},{"id":"15c7ada9-4cbe-4fbe-858e-978a7ce1f186","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":185,"box":{"x":70,"y":362,"width":699,"height":11}},{"id":"e5042ffd-c6df-40b4-b92f-0a6d3375e728","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":185,"box":{"x":102,"y":385,"width":413,"height":11}},{"id":"8051e778-698c-4988-82b8-aadde9ac6168","block_type":"box","text":"Additional Information","page_number":185,"box":{"x":68,"y":415,"width":161,"height":9}},{"id":"74a06bd3-ce23-4c9d-8a59-ec52b60276bd","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":185,"box":{"x":102,"y":438,"width":789,"height":11}},{"id":"7b87dbdd-91e1-47e5-bb1a-b14f95e4fd01","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":185,"box":{"x":69,"y":453,"width":799,"height":11}},{"id":"8cb67b8f-9037-42b8-87f8-2b52d866918d","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":185,"box":{"x":70,"y":468,"width":837,"height":11}},{"id":"ee84b115-0405-4654-81a1-6ca5ebf67667","block_type":"box","text":"such name to any other company.","page_number":185,"box":{"x":69,"y":483,"width":238,"height":11}},{"id":"332f51e5-a5d5-4bab-afb5-42e3bc12aa9d","block_type":"box","text":"II-139","page_number":185,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4b634bc2-7056-4d0d-b279-0dac91b9552c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22a9da3b-4a29-4bb6-ae3e-f65315358301","block_type":"box","text":"APPENDIX A","page_number":186,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"00e6d7be-daee-42db-ab08-ac6890004de4","block_type":"box","text":"Description of Bond Ratings","page_number":186,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"fdca12c4-71d0-42f3-85a4-cc2584787c80","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":186,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"f8e0ee3a-ea4c-431b-8d1a-5c9ff8dd1a05","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC. While NRSROs may from","page_number":186,"box":{"x":69,"y":106,"width":827,"height":12}},{"id":"e6b5e101-503c-40bf-8641-1a716db44557","block_type":"box","text":"time to time revise such ratings, they under take no obligation to do so, and the ratings given to securities at","page_number":186,"box":{"x":68,"y":122,"width":775,"height":11}},{"id":"9a8df79c-4058-4232-b992-b9cb36aa46e6","block_type":"box","text":"issuance do not necessarily represent ratings which would be given to these securities on a par ticular subsequent","page_number":186,"box":{"x":70,"y":137,"width":815,"height":11}},{"id":"eb9a1a35-3aa7-4235-b3e4-2e71b9ad88b7","block_type":"box","text":"date.","page_number":186,"box":{"x":69,"y":152,"width":34,"height":9}},{"id":"8563084b-44d9-46f3-818b-7f726183586a","block_type":"box","text":"NRSROs may rate specific investments (","page_number":186,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"c277561d-67ec-4de8-ab9b-5569ae45eff1","block_type":"box","text":"e.g.","page_number":186,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"318e5706-4e31-4fd3-ac1f-dda136722aa3","block_type":"box","text":", bonds), issuers (","page_number":186,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"43a3fed7-072c-49a9-a4b0-5b4dc2e19825","block_type":"box","text":"e.g.","page_number":186,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"17ee4baa-b409-4a38-b6c8-a6157f6a1c03","block_type":"box","text":", corporations, governments and financial","page_number":186,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"75265c9c-1acc-4080-8afb-3b28f87f5118","block_type":"box","text":"institutions) and/or programs (","page_number":186,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"04cb88f7-bdf1-4547-83a2-1e798fc029a1","block_type":"box","text":"e.g.","page_number":186,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"a0bfd866-98d2-4420-ada4-3dfa02f82046","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":186,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"ef99dc54-2513-4450-90de-f66fceaf6e6a","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":186,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"1b0e4852-e38d-47cd-98ce-de24c04a8c08","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":186,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"8dade616-3bef-4065-b5c0-d6a111e88f9f","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where a NRSRO has not rated the","page_number":186,"box":{"x":70,"y":235,"width":798,"height":11}},{"id":"f92c2495-8a8d-44aa-a9a8-2f37262884e3","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":186,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"e316b15f-73f4-4547-97cc-24f07b28cdf6","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":186,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"f364eb4d-63ae-490e-a1db-994daeb025e0","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":186,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"a85ac667-adec-46f2-bd3e-a2cb21577cf5","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":186,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"de6042c0-c3f6-44ed-ba92-9f1f7abfa1d5","block_type":"box","text":"security (","page_number":186,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"96baad92-d3d0-4697-87ce-8ef7ed37aa1e","block_type":"box","text":"e.g.","page_number":186,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"a9fc4a8f-0008-4d23-899d-fff465ec92fe","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":186,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"e4f22592-0547-4457-8fc0-ab6668390ba6","block_type":"box","text":"highest of the multiple ratings.","page_number":186,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"4810548d-40c1-4610-87a7-cf899a1ecb0e","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial offering.","page_number":186,"box":{"x":102,"y":348,"width":751,"height":12}},{"id":"ceda74a8-ad30-44f6-9813-d7f1c08a4540","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":186,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"3689cbdf-62ba-4a6b-b69f-c5cdfb7b62ac","block_type":"box","text":"determined by the underwriter and/or issuer) or a NRSRO rating for the issuer of the security. If applicable, when","page_number":186,"box":{"x":69,"y":378,"width":804,"height":12}},{"id":"402824b9-9f86-4ad0-bea1-e628e8c77a89","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by a NRSRO, BlackRock may attribute","page_number":186,"box":{"x":69,"y":394,"width":831,"height":11}},{"id":"371722d4-7ab2-4454-9ad4-c9a0fa3bdec8","block_type":"box","text":"an expected rating to the security based on: (i) the expected rating of the security set for th in the preliminary","page_number":186,"box":{"x":69,"y":409,"width":777,"height":11}},{"id":"6b902b3f-97dc-4c23-acd8-a874e35d6573","block_type":"box","text":"prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in the","page_number":186,"box":{"x":70,"y":424,"width":779,"height":11}},{"id":"44db07df-d40d-497f-8b55-ba1db6834b5e","block_type":"box","text":"preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a","page_number":186,"box":{"x":70,"y":439,"width":819,"height":11}},{"id":"79042420-b196-444c-bcac-0fd22e52dd1a","block_type":"box","text":"prior issuance having a similar structure or the same sponsor.","page_number":186,"box":{"x":70,"y":454,"width":441,"height":11}},{"id":"5af87280-78b2-43d2-aa25-82ac8dedb38d","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":186,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"6d0e699d-f462-4a19-b005-c9933ada747a","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":186,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"222ba2ae-423c-47e0-8004-15bd4c9a0086","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":186,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"34bb32b3-1963-44f7-9b04-fc43d8b64593","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":186,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"518f9ce8-657f-4e7e-ba57-48d9d9d8cc76","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":186,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"929d48db-818d-42b5-87d7-6c2276eb2400","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":186,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"97ae36d7-1e20-4804-b227-41cb5017e78b","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":186,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"1c244c1c-0bab-4b19-94aa-c75c72710a77","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":186,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"01d1a3de-cc1e-44e9-b129-9bc07a862f08","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":186,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"43ac5671-9489-4b0f-8883-634c33af020e","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these","page_number":186,"box":{"x":70,"y":620,"width":773,"height":12}},{"id":"42075e0c-ff33-437e-a18c-fcce95728633","block_type":"box","text":"securities is dependent on BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":186,"box":{"x":69,"y":635,"width":791,"height":12}},{"id":"fbfdee46-c85a-42e6-94bf-ee7b7a6873bf","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":186,"box":{"x":102,"y":658,"width":776,"height":11}},{"id":"301e934e-ff08-4a3a-a615-b39b76056a59","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":186,"box":{"x":69,"y":673,"width":818,"height":11}},{"id":"9c4c5c4a-3879-41d4-b816-67783f67dbb2","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":186,"box":{"x":102,"y":696,"width":799,"height":11}},{"id":"070204d3-df30-4e45-be68-7d8c8968a21f","block_type":"box","text":"Fitch.","page_number":186,"box":{"x":70,"y":711,"width":35,"height":9}},{"id":"c3dd7044-2c3d-4ad2-9175-c296ef84e2c2","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":186,"box":{"x":101,"y":734,"width":643,"height":11}},{"id":"54e8e4ce-a1e2-4d4c-a793-afb61b7f2ee6","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":186,"box":{"x":68,"y":764,"width":616,"height":11}},{"id":"33879ddb-c0ee-4207-b339-e7795990e47d","block_type":"box","text":"Ratings assigned on Moody’s global long-term and shor t-term rating scales are forward-looking opinions of the","page_number":186,"box":{"x":102,"y":787,"width":787,"height":11}},{"id":"af1d2dd9-79b5-4b5c-babe-1267abab1367","block_type":"box","text":"relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured","page_number":186,"box":{"x":69,"y":802,"width":785,"height":11}},{"id":"93d49f63-4421-4c54-aded-e37228de39e3","block_type":"box","text":"finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the risk that an","page_number":186,"box":{"x":68,"y":817,"width":820,"height":11}},{"id":"2be59ea6-2644-46a7-8934-7395e19dac0f","block_type":"box","text":"entity may not meet its contractual financial obligations as they come due and any estimated financial loss in the","page_number":186,"box":{"x":69,"y":832,"width":807,"height":11}},{"id":"7a08f68b-e323-48a1-afc7-6a056bbbba2a","block_type":"box","text":"event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are those that call","page_number":186,"box":{"x":69,"y":847,"width":835,"height":11}},{"id":"c4157a5c-6ccd-42cc-b526-9d88638ad52c","block_type":"box","text":"for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based upon standard","page_number":186,"box":{"x":68,"y":862,"width":822,"height":12}},{"id":"cde8c566-b139-4eda-8dc5-a3d2285321ce","block_type":"box","text":"sources of variation (","page_number":186,"box":{"x":69,"y":877,"width":149,"height":11}},{"id":"1872ea74-c790-4fab-9bbf-7fe8a2ab7e05","block_type":"box","text":"e.g.","page_number":186,"box":{"x":220,"y":879,"width":25,"height":10}},{"id":"1cc81921-3034-4b4a-98e4-13084e1e7a6b","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses the issuer’s","page_number":186,"box":{"x":247,"y":877,"width":637,"height":12}},{"id":"d348772d-3771-48ff-a1c4-26d33b02e9f5","block_type":"box","text":"ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do not address","page_number":186,"box":{"x":69,"y":892,"width":820,"height":12}},{"id":"60ab7d3a-cedf-445f-a87e-1a2ce55d6e50","block_type":"box","text":"non-standard sources of variation in the amount of the principal obligation (","page_number":186,"box":{"x":69,"y":908,"width":536,"height":11}},{"id":"657ca0e0-f8bc-47a8-8e9b-2af138cbc44b","block_type":"box","text":"e.g.","page_number":186,"box":{"x":607,"y":909,"width":25,"height":10}},{"id":"fa2b21ce-a472-4a6e-91fe-c37f048fb8c9","block_type":"box","text":", equity indexed), absent an express","page_number":186,"box":{"x":634,"y":908,"width":257,"height":11}},{"id":"f69341bb-b00e-4343-b61c-f492b14aa213","block_type":"box","text":"A-1","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"56abb053-6a05-408e-93ae-6b71e7b4dab0","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a08caa2-8553-4c7c-b418-e67a89492440","block_type":"box","text":"statement to the contrary in a press release accompanying an initial rating. Long-term ratings are assigned to issuers","page_number":187,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"cbeab094-af16-4550-93c1-2d961830ea2c","block_type":"box","text":"or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or","page_number":187,"box":{"x":69,"y":60,"width":761,"height":11}},{"id":"53e8a01d-28ff-4037-8b6e-10c60f056e3a","block_type":"box","text":"impairment on contractual financial obligations and the expected financial loss suffered in the event of default or","page_number":187,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"f2894ea0-d4a2-483a-b1fe-5c15f81bebca","block_type":"box","text":"impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen months or less and","page_number":187,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"c5d9690c-4a26-4358-a870-e6489b35a798","block_type":"box","text":"reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":187,"box":{"x":69,"y":105,"width":775,"height":11}},{"id":"8852564c-930f-416f-9fe1-c9fc3e4d99f7","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level and","page_number":187,"box":{"x":68,"y":120,"width":764,"height":12}},{"id":"bb691fde-182c-44e1-b273-b8a760e70125","block_type":"box","text":"instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly available","page_number":187,"box":{"x":70,"y":136,"width":819,"height":11}},{"id":"6b3559fb-4206-471d-9bbc-13905152a992","block_type":"box","text":"although private and unpublished ratings may also be assigned.","page_number":187,"box":{"x":69,"y":151,"width":454,"height":11}},{"id":"5a59846d-8c28-415e-82f2-42ef167d6d52","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":187,"box":{"x":102,"y":173,"width":542,"height":11}},{"id":"bb0ddc89-3009-4f37-a209-6c01b5c79903","block_type":"box","text":"i.e.","page_number":187,"box":{"x":646,"y":173,"width":20,"height":9}},{"id":"a7ffc515-38ba-482b-849e-150862c06585","block_type":"box","text":", ratings on nonfinancial","page_number":187,"box":{"x":669,"y":173,"width":169,"height":11}},{"id":"bd31c6cc-68ab-41af-b11c-27517d5a4eff","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":187,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"b26b851e-387e-4e1b-891a-1e565ff4ba2d","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":187,"box":{"x":68,"y":203,"width":828,"height":12}},{"id":"6f817257-8b73-4d00-b40b-bd5040c53fcb","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":187,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"f919e675-124b-4199-8e4f-641f3bd7ea04","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":187,"box":{"x":69,"y":234,"width":797,"height":11}},{"id":"af868af8-fe33-4fdf-a19c-1b22f36512ee","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":187,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"50b90ee8-b575-4659-8a86-b09fab73c5bc","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":187,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"68b44d66-977f-4c18-80bd-503fd281ff54","block_type":"box","text":"of time.","page_number":187,"box":{"x":69,"y":279,"width":53,"height":9}},{"id":"11741df5-67e3-45ed-aa9a-790cd58c043f","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":187,"box":{"x":69,"y":309,"width":395,"height":11}},{"id":"0fa1f2f9-d854-4ee7-9db2-d9992400ee36","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":187,"box":{"x":68,"y":337,"width":815,"height":11}},{"id":"aeb9beb1-3c45-4a3c-b0ae-c22da4485ee7","block_type":"box","text":"risk.","page_number":187,"box":{"x":197,"y":352,"width":28,"height":9}},{"id":"601f4e46-cc9e-4572-9bfe-ef25ea6d3d8d","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":187,"box":{"x":68,"y":372,"width":773,"height":11}},{"id":"cdea88e3-aa04-45d3-8c71-dafd37af3b76","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":187,"box":{"x":68,"y":392,"width":776,"height":12}},{"id":"6bfad116-4d96-4c16-9130-d8418ee43919","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":187,"box":{"x":70,"y":413,"width":813,"height":11}},{"id":"4d4e103c-83fc-4819-ad30-ebca9fd0dfe7","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":187,"box":{"x":196,"y":428,"width":385,"height":11}},{"id":"f693a541-2757-49f1-bc07-e1fbe007b8ce","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":187,"box":{"x":70,"y":448,"width":775,"height":11}},{"id":"8e22c8d6-75ef-405b-9e32-e6c13f6f43c5","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":187,"box":{"x":70,"y":468,"width":707,"height":11}},{"id":"fd184701-c580-4a71-b098-aca876c50e87","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":187,"box":{"x":69,"y":488,"width":810,"height":11}},{"id":"01bd38b0-e3f6-4731-b643-19873d69d7cf","block_type":"box","text":"credit risk.","page_number":187,"box":{"x":196,"y":503,"width":74,"height":9}},{"id":"7cacaccc-eba6-4ed1-9e12-976f39f6fee2","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":187,"box":{"x":69,"y":523,"width":783,"height":12}},{"id":"850687d0-f3d1-4b3f-8e25-da2bdf1316a2","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":187,"box":{"x":197,"y":538,"width":322,"height":12}},{"id":"152aad09-c9d3-4c59-b7c8-eb3e9fc6ff73","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":187,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"d0e13cad-5e76-4500-ac32-a91090ff2698","block_type":"box","text":"of principal or interest.","page_number":187,"box":{"x":196,"y":574,"width":160,"height":11}},{"id":"17e5015f-5d85-41a3-b40b-b9955d9702b3","block_type":"box","text":"Note:","page_number":187,"box":{"x":102,"y":594,"width":37,"height":9}},{"id":"cd00d732-3275-4cae-a58c-ab255a1527f8","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":187,"box":{"x":146,"y":594,"width":731,"height":11}},{"id":"10b00aef-8969-4495-9417-b09743d3fe9a","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":187,"box":{"x":69,"y":609,"width":831,"height":11}},{"id":"da8edc9e-0f9f-46d4-8869-ef81cb2ece96","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":187,"box":{"x":70,"y":624,"width":829,"height":11}},{"id":"74c8496e-214e-486c-a6b3-4a284fbc84fe","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":187,"box":{"x":68,"y":639,"width":795,"height":12}},{"id":"4ebf39c2-2d62-4fc8-b8b7-cff6b6c8d500","block_type":"box","text":"companies, and securities firms.","page_number":187,"box":{"x":69,"y":654,"width":232,"height":11}},{"id":"fb3fcaa3-08b1-4cfb-8318-aa936773c059","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":187,"box":{"x":102,"y":677,"width":787,"height":11}},{"id":"b835aacb-d0a3-4d5c-8203-577038fab024","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":187,"box":{"x":68,"y":692,"width":788,"height":11}},{"id":"58edf570-52e9-4fe1-a9cf-1d72240b13bd","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":187,"box":{"x":69,"y":707,"width":833,"height":12}},{"id":"3eb4c97a-9c2b-4817-a551-4fa6b4a4a39b","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":187,"box":{"x":70,"y":722,"width":809,"height":12}},{"id":"899a8ba0-3316-4e9e-8f07-3f741deff17e","block_type":"box","text":"that security.","page_number":187,"box":{"x":68,"y":738,"width":91,"height":11}},{"id":"ae49af20-7a72-49c5-b1a4-fa5101d2dd3c","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":187,"box":{"x":69,"y":768,"width":400,"height":11}},{"id":"bdbed4a5-e825-4291-83bc-8ff415407dba","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":187,"box":{"x":69,"y":795,"width":658,"height":12}},{"id":"e475bf71-e995-4f15-9ed6-8e66b1b6cf75","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":187,"box":{"x":69,"y":816,"width":645,"height":11}},{"id":"58888439-eede-4bab-830b-6c20eafcc1b3","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":187,"box":{"x":69,"y":836,"width":686,"height":11}},{"id":"f7416821-098c-4980-b5fa-d27b9e22d44c","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":187,"box":{"x":70,"y":856,"width":778,"height":11}},{"id":"6fe7c828-9bf9-4e0e-96d6-14c991aad602","block_type":"box","text":"categories.","page_number":187,"box":{"x":196,"y":871,"width":77,"height":11}},{"id":"bdd3bd31-6bb1-4389-9b10-bc8f87b9a683","block_type":"box","text":"A-2","page_number":187,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"8ad2d891-abad-4f64-9563-07021cbf72a0","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"513318ad-efe8-4d88-a531-51ebe2543cfa","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":188,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"7c46a3c7-5533-4491-90c7-5e8eb742b5d8","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":188,"box":{"x":69,"y":75,"width":391,"height":11}},{"id":"d2ed6eca-f3e4-4b4d-95c2-ac2eca39c7fc","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":188,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"9f1a6d49-ac64-4921-9b8d-cb7693afa978","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":188,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"471f9719-9b40-4df0-8e32-8cc87fae3732","block_type":"box","text":"an issuer’s self-liquidity.","page_number":188,"box":{"x":69,"y":128,"width":170,"height":11}},{"id":"67b89670-a259-4f80-a0ce-568ec3f76834","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":188,"box":{"x":102,"y":150,"width":736,"height":12}},{"id":"3b8f5161-e707-4869-8675-082c4fee19e2","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":188,"box":{"x":70,"y":166,"width":796,"height":11}},{"id":"92faf1e3-2aa8-40af-9ab0-6b6e9cdaccb6","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":188,"box":{"x":102,"y":188,"width":803,"height":11}},{"id":"7c9e1f4d-5b79-4631-9074-5155d8a38585","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":188,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"aab8f00f-3496-434d-9ee8-1985ca241dc3","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":188,"box":{"x":69,"y":218,"width":480,"height":12}},{"id":"c1541a42-b385-44ea-81dd-04c311641161","block_type":"box","text":"MIG Scale","page_number":188,"box":{"x":102,"y":241,"width":71,"height":9}},{"id":"ac49a15e-6c3a-4e64-951a-fff4134f45b8","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":188,"box":{"x":70,"y":269,"width":802,"height":11}},{"id":"02e33597-f952-4dc1-a3cd-efddbebdd2dc","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":188,"box":{"x":196,"y":284,"width":703,"height":11}},{"id":"00ede318-4152-4a60-85e7-515dc1474b8d","block_type":"box","text":"refinancing.","page_number":188,"box":{"x":197,"y":299,"width":80,"height":11}},{"id":"f8f3cc77-100d-4ca0-8b83-31910cd68a4d","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":188,"box":{"x":70,"y":319,"width":809,"height":12}},{"id":"10cbae7b-56ea-443f-bbf4-9eccdfee39c0","block_type":"box","text":"large as in the preceding group.","page_number":188,"box":{"x":197,"y":335,"width":224,"height":11}},{"id":"7002f58b-3912-4e8f-b2ed-985ca2880db3","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":188,"box":{"x":70,"y":355,"width":785,"height":11}},{"id":"54e4c193-18b3-429e-bf99-045fae290e93","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":188,"box":{"x":197,"y":370,"width":554,"height":11}},{"id":"203eb628-0f2d-4cdd-ba8c-2c1775c6a5d7","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":188,"box":{"x":69,"y":390,"width":813,"height":11}},{"id":"717ca174-28a3-4ad8-9a47-9dc49497988c","block_type":"box","text":"lack sufficient margins of protection.","page_number":188,"box":{"x":197,"y":405,"width":259,"height":11}},{"id":"65f3fa19-c285-42e1-b4a2-10b4ee4023a3","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":188,"box":{"x":69,"y":433,"width":371,"height":11}},{"id":"b6040c5d-0fd2-4edc-a0b6-4315d1f00e94","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":188,"box":{"x":102,"y":455,"width":804,"height":12}},{"id":"34082b58-700d-47f2-9ca9-de4e5c7e0dc8","block_type":"box","text":"are a long-term rating and a shor t-term demand obligation rating. The long-term rating addresses the issuer’s ability","page_number":188,"box":{"x":69,"y":471,"width":826,"height":11}},{"id":"1f0ee06f-d97e-4092-88a2-4d7ec0366ef6","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term demand obligation rating addresses the ability of","page_number":188,"box":{"x":68,"y":486,"width":832,"height":11}},{"id":"3bd01518-e919-48c5-a90d-e7c9662d6362","block_type":"box","text":"the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature","page_number":188,"box":{"x":68,"y":501,"width":784,"height":11}},{"id":"5b0f45d4-5a50-45e2-a40f-028eaccf575e","block_type":"box","text":"(“demand feature”) of the VRDO. The shor t-term demand obligation rating uses the VMIG scale. VMIG ratings with","page_number":188,"box":{"x":69,"y":516,"width":811,"height":11}},{"id":"1758183c-b8c9-4474-af16-e75c37284beb","block_type":"box","text":"liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t provider, or the long","page_number":188,"box":{"x":70,"y":531,"width":819,"height":11}},{"id":"41a5bc92-2604-4128-bf37-e4429cc24d29","block_type":"box","text":"term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of VMIG ratings of","page_number":188,"box":{"x":68,"y":546,"width":802,"height":11}},{"id":"06e64289-f220-4935-ac27-36b8c28af43f","block_type":"box","text":"demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to reflect the risk that","page_number":188,"box":{"x":69,"y":561,"width":833,"height":11}},{"id":"a89df779-8a1b-42d3-bfe6-2253c286205c","block_type":"box","text":"external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment grade.","page_number":188,"box":{"x":69,"y":576,"width":719,"height":12}},{"id":"1627954b-e7c6-48b3-80e6-1a85a6277f2b","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":188,"box":{"x":102,"y":599,"width":807,"height":11}},{"id":"653a5556-3df0-4076-b1f1-6f017272f3eb","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":188,"box":{"x":70,"y":614,"width":833,"height":11}},{"id":"3f74feea-66bc-42da-a5c0-40176020f348","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":188,"box":{"x":70,"y":629,"width":635,"height":11}},{"id":"ceb30a64-ab7d-4818-bb75-a6867262b9e3","block_type":"box","text":"VMIG Scale","page_number":188,"box":{"x":101,"y":652,"width":81,"height":9}},{"id":"5b522eae-e27f-4885-a136-27d19677fd34","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":188,"box":{"x":68,"y":680,"width":808,"height":11}},{"id":"9bbc6f7e-b34a-49ec-9a4e-02a9dfe4bf10","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":188,"box":{"x":196,"y":695,"width":695,"height":11}},{"id":"e84cfa89-721f-4e92-a81d-7bf022476c62","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":188,"box":{"x":195,"y":710,"width":370,"height":11}},{"id":"80dd26b1-6a5c-40d7-8423-c2163d7e56be","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":188,"box":{"x":68,"y":730,"width":834,"height":11}},{"id":"a471a2d1-8311-4915-ade2-ee9739774ffe","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":188,"box":{"x":196,"y":745,"width":691,"height":11}},{"id":"7013738c-4f4a-4399-b892-f61c7db2f17a","block_type":"box","text":"payment of purchase price upon demand.","page_number":188,"box":{"x":197,"y":760,"width":294,"height":11}},{"id":"2b51c126-c2b2-422a-8268-38cd5a1ebeff","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":188,"box":{"x":68,"y":780,"width":768,"height":12}},{"id":"f51906ab-8b43-4214-95eb-e704afd831fe","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections","page_number":188,"box":{"x":196,"y":795,"width":697,"height":12}},{"id":"11552822-acf4-4ca6-bdb3-b416a2bd14e2","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":188,"box":{"x":195,"y":811,"width":457,"height":11}},{"id":"97ec08ea-d9db-49bb-90eb-9e0d63a7c859","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":188,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"0f16e077-b894-4d1e-b990-fcbcc07979b2","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":188,"box":{"x":197,"y":846,"width":711,"height":11}},{"id":"f363ebb6-4b24-40f0-b4a9-008d96333dfb","block_type":"box","text":"may lack the structural or legal protections necessary to ensure the timely payment of purchase","page_number":188,"box":{"x":197,"y":861,"width":684,"height":11}},{"id":"e4e3df37-9896-4d26-9dee-f79bac20b4f5","block_type":"box","text":"price upon demand.","page_number":188,"box":{"x":197,"y":876,"width":139,"height":11}},{"id":"3a77c482-ebb3-4d29-98b5-ec898c783ee0","block_type":"box","text":"A-3","page_number":188,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c01ef61a-091b-40b1-925c-117589afafd7","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0626f940-2e7a-44ba-b31b-46ab6f1576d3","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":189,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"c7c5015b-5eca-461f-b03e-d68b2a9fc538","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":189,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"137a2945-b6b6-41a6-9591-f9131de1c3eb","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":189,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"0eb85f3b-ec5e-456a-8caf-2519a642e155","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":189,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"e8e23415-4fa1-47ca-8f1b-d6726033fef2","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":189,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"8ded2654-70e1-4aa5-bf5f-2e33119e340c","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":189,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"241672c9-cc2e-461e-aa36-449081d87f56","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":189,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"b754f665-3f10-4c7c-81ef-9071ddcdd2a2","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":189,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"f900c3af-ad4b-4a6b-b2d7-3e5afd530edd","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":189,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"bef2ef41-d724-4271-9f3f-a2747fbcb93f","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":189,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"6e0d3559-fc02-44f9-b484-7a269f278bf0","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":189,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"0450c5cb-865e-431e-b8ee-df69847ee473","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":189,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"5c60d6fe-589d-43b2-83bf-9720670b78aa","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":189,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"12350fb5-cd8f-434c-8ad7-8b00e4c49786","block_type":"box","text":"from these guidelines based on market practices. Medium-term notes are assigned long-term ratings.","page_number":189,"box":{"x":68,"y":256,"width":724,"height":12}},{"id":"dc94167b-4436-4dfc-a98f-4f020cdef8f2","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":189,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"b30f577b-1310-43aa-aa7e-4978a17748e5","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"e389c8dc-9878-4c15-bffe-10510442cdaa","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":189,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"4d794816-4d83-46dd-9692-75f9d53cb5ca","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":189,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"ca4266ff-5034-4c19-ac51-61cdc01a1e64","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"cbb70829-fe57-4408-a822-1bbe5ee05814","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":189,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"6b1d7fee-9c0d-459b-8b78-fff5328580cc","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"7d674796-e82e-42e8-b9a7-a5902c3e37bc","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":189,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"064df464-b4ad-4937-9093-a56ec5315919","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":189,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"85874e89-6a30-455c-8422-393855b1f49c","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":189,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"2626ec0e-4d38-4d54-bfcd-36cf8b5181d4","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":189,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"3572ea93-7217-4f48-bef1-5d98cd3b0ca5","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":189,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"5385eeb5-d1fc-402b-aa9c-2a0676dda718","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":189,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"1727050e-51a3-43b2-b419-0996ef56dc76","block_type":"box","text":"obligations.)","page_number":189,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"4c5cd527-97e4-4210-a7c8-5446b7ffcb1b","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":189,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"2ac9b09d-7a51-45c4-b2cd-e0c6025f532f","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":189,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"cda83fb4-506a-48b2-8cac-bf21d53fc62d","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":189,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"7f145d83-4b71-4ca2-bde4-f41be8fa930c","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":189,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"69bb5474-371a-4e42-ba7e-804ad0ed255e","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":189,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"3a2c5477-93d9-431b-857e-15b26ad0e65a","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":189,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"a6330f6a-73c4-40d8-90bf-31b2e8001c49","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":189,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"3d425a0b-4b26-4490-b829-7381205b8bc1","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":189,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"fe24d44d-478e-4f48-b9b1-59b95926edc2","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":189,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"ab007573-1cff-481f-8b9b-482febad8cda","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":189,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"0328d391-aad8-49af-81f1-f4fa28d3e314","block_type":"box","text":"financial commitments on the obligation.","page_number":189,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"7181e55e-fea2-4535-a53d-19d5fc87e12f","block_type":"box","text":"BB,","page_number":189,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"e76e9216-4e21-4aff-9faf-c818be38e043","block_type":"box","text":"B,","page_number":189,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"60f7a820-7df9-4bc6-a50c-ae1740f1b801","block_type":"box","text":"CCC,","page_number":189,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"56b8cd5d-af88-49b2-8fe8-8489c626fe71","block_type":"box","text":"CC,","page_number":189,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"b46d84a6-dd02-4578-a329-920689e6d011","block_type":"box","text":"and C","page_number":189,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"69d2ac50-5a2c-493c-b7ad-338120700e92","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":189,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"68608e2d-023e-4cb1-9803-95f0f456152a","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":189,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"bdb02a92-d658-4332-8730-560bb3d4a646","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":189,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"5fa5e5c1-cd8c-4d7d-a605-d65c34baad26","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":189,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"dea4e1c6-e4ad-4ded-b9be-e7efc63f3a93","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":189,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"2300c09b-c7ab-4d1c-8808-aa56d7d232ff","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":189,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"a3e64cc2-0d3f-42cc-8e5e-c4b96a38d410","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":189,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"9310f707-df20-422f-84d1-350583985526","block_type":"box","text":"on the obligation.","page_number":189,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"05c84a84-8f75-4634-ad57-293383b2ef83","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":189,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"1eeb9b27-0c8f-4a9c-ab55-b26254cc01d2","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":189,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"29e17cf4-e373-49f3-9c80-14f7558026ca","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":189,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"6b8b9d91-f3e6-40f9-8c9f-7dac5be5f03f","block_type":"box","text":"financial commitments on the obligation.","page_number":189,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"de7a29c5-eb50-4678-8b9b-ca3f3014f3f8","block_type":"box","text":"A-4","page_number":189,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"7992f5d3-3020-4467-a0e6-3a182e045a77","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f76ff119-8d0b-4d2c-add9-e971ee792f84","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":190,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"70ea8a4f-d162-43b0-8d4f-54b9d1e293d2","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":190,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"76c0592a-ec82-4a1f-8a65-c3c1c059a468","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":190,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"3f92f9bc-3596-4e86-aae0-b74143fe8fd6","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":190,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"ee5e3e45-acd5-4b32-86cf-5a4f65a0902e","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":190,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"a013bb7b-404e-4082-b7e2-cd5ab54623ac","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":190,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"0693162a-65cd-479a-b3c3-1adf52d9009c","block_type":"box","text":"anticipated time to default.","page_number":190,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"3d91c885-fbe6-4fe6-b441-b234cf83fc52","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":190,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"b05ce761-445f-4ac4-8b9e-a7fd6a1ece00","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":190,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"1a799acb-c4ba-4b31-9b1a-f23228a6b9c3","block_type":"box","text":"higher.","page_number":190,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"67ee35a4-9cbe-4233-a8cc-24792a0e4f8d","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":190,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"baf039b2-b60e-458d-a4a4-003eb015b6e1","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":190,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"cd47e465-a7bb-49a1-b74b-289ce86584b4","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":190,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"9c830ee2-7899-4aee-9fe1-ae30522cb0cb","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":190,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"a337f30e-a594-4abe-af5f-27858341d239","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":190,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"c8a41e32-1496-469f-8c36-40af89e1447e","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":190,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"65ece9a1-eff7-4ee0-b082-686c8a7dc4a1","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":190,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"21bafc86-4108-4b42-8ad4-747a421564f3","block_type":"box","text":"restructuring.","page_number":190,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"3b7761e0-77be-4690-852f-10c1fc698979","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":190,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"ce032344-bc18-45a0-8cad-06ed5d73d10a","block_type":"box","text":"standing within the rating categories.","page_number":190,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"aebcbe2f-a095-4c7d-930d-5030707af410","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":190,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"eb03f211-20a4-4bad-959b-dce12eed5a85","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":190,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"e838b49e-a049-4d47-b5fa-47589eaca3ff","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":190,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"856c0cb6-6dde-478c-bdd2-6a8457eac6fa","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":190,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"969fe0c2-5eaf-4093-a26d-6df50a921edf","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":190,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"992e3968-a3d3-42d2-bae3-5bd766714936","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":190,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"3a12ef2f-1dc1-41c2-868b-aeb9bd4e2ff6","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":190,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"d7e173c3-f801-4f55-96fd-e7b0fe3e97cc","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":190,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"4f7329b3-8f70-446b-b0c1-a9954597d84f","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":190,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"751b89be-b24c-4345-995d-4a649f481edf","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":190,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"c53b1bdb-276e-4d0d-a055-e476fac5fa91","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":190,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"20f08cb5-f10b-4d76-87c7-4c90d3ea0b36","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":190,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"c65f49ca-974f-49c9-8d16-1dd601c6748b","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":190,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"886f5e91-0c03-46b4-8496-c5623b6daebe","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":190,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"2edfd1b4-62cf-43a6-9456-6182713ef364","block_type":"box","text":"financial commitments.","page_number":190,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"4a264186-305b-443c-9d35-8051b3111874","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":190,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"182b0c5d-30b6-4b7b-ab34-ce2317e0ef3c","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":190,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"0bb954a3-0b38-4086-9705-6255dcedc6a7","block_type":"box","text":"commitments on the obligation.","page_number":190,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"c0b81cd9-114a-4ac9-9fd0-bc2001fdd2d2","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":190,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"b7eea819-5678-451c-b730-27837bbf336a","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":190,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"ce884edc-db45-4bd1-8b52-6331d383c3e4","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":190,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"e83d1dfa-9a79-4649-89b3-bc335cac7ee5","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":190,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"b9f94c08-f51d-4c09-96ed-cab137b86b6f","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":190,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"de2a3e2f-a149-41fc-944f-2806e2764f4b","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":190,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"6dbda0f4-9e85-4410-99eb-63c334b706a8","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":190,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"e227f52d-82d1-44bd-8888-6be96cc8f86d","block_type":"box","text":"debt restructuring.","page_number":190,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"d3454e1d-82cf-46c8-b4e8-d06af87d3c95","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":190,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"58c2b59d-cc23-4b7e-97c9-e53396460a0c","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":190,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"507c4847-38cc-4861-ac67-ef406ca1442f","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":190,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"9be1a7e1-c7d5-4e6e-99d4-9e26766f1d39","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":190,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"7c985594-68f6-4399-8e58-3aad065cd84c","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":190,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"4f99b981-8ee7-47a5-a697-3a3b1febb5bd","block_type":"box","text":"A-5","page_number":190,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"6cb92fdb-5ab9-4fcc-8622-11ce0c28dae5","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85e7ea6b-3762-4d9e-b8ae-01147ba83b65","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"9b6b40d6-8b87-46b6-a7c7-223f389b893c","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":191,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"e4d7d9bb-8c32-4be6-a60a-462bb833b499","block_type":"box","text":"as a note; and","page_number":191,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"99fb3c8d-6f3b-4556-82be-147827c9ca07","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"ba388c84-9c12-4efd-b7a2-a6ea538a965c","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":191,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"26beb325-d472-4157-b812-35b895e70c42","block_type":"box","text":"treated as a note.","page_number":191,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"19e0c537-b4f4-4f99-9a65-21259171ddb8","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":191,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"9e1ea4a2-0f4c-4e10-9afe-32057a9c915d","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":191,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"095d1f75-d533-4238-8e93-0a9e03c00112","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":191,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"40d36ba0-6363-42a8-862a-8ead7e7ba32c","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":191,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"4ef80eb2-962e-4bc3-9fdb-5c691a218e05","block_type":"box","text":"economic changes over the term of the notes.","page_number":191,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"a9a4cb4a-da78-49cd-ab16-66d72fd128a8","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":191,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"3c4b68a6-d2d7-4225-9178-1112c0867f74","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":191,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"8063957a-c8a0-4ddc-8c84-f121729da616","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":191,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"806907ee-85f9-426e-b985-42eda672d6bf","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":191,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"d0d0aef9-a99f-47c3-ab1a-bc87459ae5ff","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":191,"box":{"x":69,"y":294,"width":455,"height":11}},{"id":"68035d2d-78e8-427e-8d99-9df518cf4539","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings, but the","page_number":191,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"c966ad02-9681-4d59-8710-55f857c40e8c","block_type":"box","text":"agency also publishes ratings, scores and other relative opinions relating to financial or operational strength. For","page_number":191,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"7ae3817c-8bfa-463c-843c-0101e9e7c67c","block_type":"box","text":"example, Fitch also provides specialized ratings of servicers of residential and commercial mor tgages, asset","page_number":191,"box":{"x":69,"y":347,"width":776,"height":11}},{"id":"1c41ff09-9147-4891-b180-6cc80b3db248","block_type":"box","text":"managers and funds. In each case, users should refer to the definitions of each individual scale for guidance on the","page_number":191,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"f8d60ab4-deff-4eea-ae40-bd47c0ae88bc","block_type":"box","text":"dimensions of risk covered in each assessment.","page_number":191,"box":{"x":69,"y":377,"width":344,"height":9}},{"id":"6af53170-e7f1-4017-8f30-fbe4c8a06662","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":191,"box":{"x":102,"y":400,"width":747,"height":11}},{"id":"17f266bf-b344-48a9-92de-4f38dc4276cf","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":191,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"1f6c6a4b-6777-4941-8e5a-e6990f94a24b","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":191,"box":{"x":69,"y":430,"width":793,"height":11}},{"id":"a116fad1-c768-4193-ba06-758c4074a9e7","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":191,"box":{"x":69,"y":445,"width":761,"height":12}},{"id":"44b83139-98ad-4cc2-a074-3b8bcfca32e7","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":191,"box":{"x":69,"y":460,"width":766,"height":12}},{"id":"00ade562-14c3-4d2f-befa-41290f3bb74e","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":191,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"2dd78144-2a5b-498e-8d67-f9b3ac012338","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":191,"box":{"x":69,"y":491,"width":779,"height":11}},{"id":"9af95a5c-0398-45da-96b8-62d848e233f3","block_type":"box","text":"receivables or other financial assets.","page_number":191,"box":{"x":69,"y":506,"width":262,"height":9}},{"id":"27c1b3d4-885a-4f88-836b-c11767334939","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":191,"box":{"x":101,"y":529,"width":794,"height":11}},{"id":"51500122-2d0d-4348-9f37-6d841c69977e","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":191,"box":{"x":69,"y":544,"width":826,"height":11}},{"id":"09c59811-ffb8-47d9-a4fc-87faaf982cf2","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":191,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"2ce405c8-2408-423b-94c2-a57dd7a06c80","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":191,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"c64f3123-2455-4ee5-b693-b8563598a124","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":191,"box":{"x":68,"y":589,"width":793,"height":11}},{"id":"2c4aabe4-746e-4208-b611-ef0369d4f9ee","block_type":"box","text":"occurred.","page_number":191,"box":{"x":69,"y":604,"width":65,"height":9}},{"id":"50194e5b-b102-463d-8d3d-00b8a2488591","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have","page_number":191,"box":{"x":102,"y":627,"width":788,"height":11}},{"id":"817ac90d-b3e1-437e-bd29-f314b36b9f24","block_type":"box","text":"not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":191,"box":{"x":69,"y":642,"width":506,"height":11}},{"id":"16b4a01c-5fd0-4ee9-91b8-b53b25230412","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":191,"box":{"x":102,"y":664,"width":797,"height":12}},{"id":"48f5b5e3-250c-422d-984e-cc1e95451ff1","block_type":"box","text":"not predictive of a specific frequency of default or loss. For information about the historical per formance of ratings","page_number":191,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"ddc0cf04-1b4a-48ce-b751-40c27c167b75","block_type":"box","text":"please refer to Fitch’s Ratings Transition and Default studies which detail the historical default rates and their","page_number":191,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"f6d485a7-2272-4a3d-9906-0b9bd40c5de5","block_type":"box","text":"meaning. The European Securities and Markets Authority also maintains a central repository of historical default","page_number":191,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"73548dce-1390-4f6a-9c3d-5c7cbaa9a975","block_type":"box","text":"rates.","page_number":191,"box":{"x":69,"y":726,"width":39,"height":8}},{"id":"56a10a9c-3049-4908-9c56-256a046f5b20","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":191,"box":{"x":102,"y":748,"width":798,"height":11}},{"id":"aaa4aed9-5a02-42a3-9ea5-920b618190f4","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":191,"box":{"x":68,"y":763,"width":780,"height":11}},{"id":"6a4e6e02-ee0c-4082-961b-c2dae729bcc6","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":191,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"85dbe637-c595-4d3d-9281-fcf2c6cd7780","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":191,"box":{"x":69,"y":793,"width":531,"height":11}},{"id":"ade1f8c6-62c7-4496-a1da-c3c1121631d1","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":191,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"0b579656-4124-4773-a8f2-2a3574d82cda","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":191,"box":{"x":68,"y":831,"width":639,"height":11}},{"id":"719c99c5-00d0-4acd-818b-a2add102250f","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":191,"box":{"x":102,"y":853,"width":799,"height":12}},{"id":"74c096f5-719b-4157-a994-eab76db781dd","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":191,"box":{"x":68,"y":869,"width":794,"height":11}},{"id":"973e284c-8da5-49e2-a25f-db821f83e5bb","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":191,"box":{"x":70,"y":884,"width":420,"height":11}},{"id":"ce031e3e-016b-4c2c-80a9-baeb2a44e852","block_type":"box","text":"i.e.","page_number":191,"box":{"x":492,"y":884,"width":20,"height":9}},{"id":"f8886b0f-9322-4586-b3da-b560f05660e9","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":191,"box":{"x":519,"y":884,"width":380,"height":11}},{"id":"4691067a-8a5e-446f-b694-25c855a07d0e","block_type":"box","text":"the obligation’s documentation).","page_number":191,"box":{"x":68,"y":899,"width":230,"height":11}},{"id":"daf5e775-f886-4a64-aee6-3771a9494d84","block_type":"box","text":"A-6","page_number":191,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"df201531-81b5-4a08-82f6-16a3cbc7bb36","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3c6ce3de-5c21-4070-96d6-7b125d4fe461","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":192,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"060ca052-0d1b-4d37-a739-c8c849c87b76","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":192,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"68ee7b32-364a-47f6-8213-694891de379c","block_type":"box","text":"agents in the form of a rating letter.","page_number":192,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"edbf5ebe-b777-4ff9-b255-7dcf0d6a90b3","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":192,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"1ee1683a-7305-493f-9edb-39d19fe94552","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":192,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"ac845ee2-8d12-4b62-83f0-075b5ee111d6","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":192,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"264f6d29-ae99-4150-b432-6b5b17bf6765","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":192,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"de12fe8c-5f60-46fc-8c7b-a9cabe44bff0","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":192,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"7448bffc-2827-4d37-ba36-0a7a906a94dc","block_type":"box","text":"e.g.","page_number":192,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"d1f048c0-97e2-44ee-bea0-6d5e4bd2a5f9","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":192,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"d7af5399-a35f-4487-85a8-eb2ff42118ad","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":192,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"720cad77-6608-465d-b18a-ec85eac9732e","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":192,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"09f88c7d-9eea-4943-b14d-d7bd983dde24","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":192,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"45298f3c-c908-4901-9ce9-eb9553e1257a","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":192,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"a138a4c5-6a1f-4e98-bed1-10882f9dd8e5","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":192,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"139e2980-d5ff-4d70-aa3b-40439543ad4a","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":192,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"a121c1e3-30fe-4126-9ac5-ae9c8d05f231","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":192,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"d6170791-c149-4084-a00f-ac965069eb11","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":192,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"4845385b-084a-40a1-9bfd-2dc08adfc223","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":192,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"8f5b72bb-db83-4af0-a919-eee3bb413b8e","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":192,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"4c3f9c16-0348-47c3-9418-d7ae62713231","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":192,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"14edf35b-59a9-4718-bb8b-c68cef5ba818","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":192,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"45f3b07a-4434-4033-9f71-eb6ce0137417","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":192,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"3235ee51-e51d-4770-afd5-389e03249638","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":192,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"699a8f46-8c40-4d49-8892-0a907fbcd057","block_type":"box","text":"Ratings.","page_number":192,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"6a589927-4315-4f2c-83e3-3505c99b35d4","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":192,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"6dcb74b4-aeb8-4f35-80fc-1dfcd1a93a9c","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":192,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"0f9f8814-b619-4ea9-92cc-dd576ab148a7","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":192,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"2a299ad4-7a4a-45f0-904a-2f63119beca9","block_type":"box","text":"obligation ratings.","page_number":192,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"86043bc4-a9bd-4a90-81aa-84becb13d35f","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":192,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"bbcbd0f0-8487-4480-b0f7-60e3cd8e147f","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":192,"box":{"x":68,"y":533,"width":833,"height":12}},{"id":"2330d3d9-fe2f-4084-855f-998df630362a","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity","page_number":192,"box":{"x":196,"y":549,"width":697,"height":11}},{"id":"1b7f032f-9051-4c1b-9648-54cbcf455c34","block_type":"box","text":"is highly unlikely to be adversely affected by foreseeable events.","page_number":192,"box":{"x":197,"y":564,"width":457,"height":11}},{"id":"b9e0b520-ecf7-46db-a624-4873164ebc05","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":192,"box":{"x":68,"y":584,"width":829,"height":11}},{"id":"ef2115c7-0189-4644-adb3-dcdae81e2573","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":192,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"6bc49cc4-4be7-4306-85fc-7bd7b0782b9d","block_type":"box","text":"to foreseeable events.","page_number":192,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"54c08ff8-edb5-401b-bd08-eab44923a6a2","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":192,"box":{"x":68,"y":634,"width":819,"height":12}},{"id":"f111702a-ec2b-4d76-8556-b4ece833ff92","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":192,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"8c5d03ac-cadc-48ff-b401-a6a3c560b122","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":192,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"21cfd46d-99a1-44f2-91df-e3033c715e0b","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":192,"box":{"x":70,"y":685,"width":805,"height":11}},{"id":"06b35878-e0e7-4130-b5dd-413eb44302e2","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":192,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"a353fa18-5c86-41bb-9ba8-25e8813c9d33","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":192,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"7db76c58-c7c2-453b-9455-5af26e831eb4","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, par ticularly in the event of","page_number":192,"box":{"x":70,"y":735,"width":830,"height":11}},{"id":"933f5f20-433b-450f-a88c-4fe1f7bfd7f2","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":192,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"3bb5dac3-005e-4b95-be5b-d32cdb9d5737","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":192,"box":{"x":196,"y":765,"width":511,"height":11}},{"id":"922a571d-bc4f-4205-97bf-886b3e9b103f","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":192,"box":{"x":70,"y":786,"width":650,"height":11}},{"id":"84a63b20-f5c8-46a3-a4f8-4e382ae14349","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":192,"box":{"x":69,"y":806,"width":727,"height":11}},{"id":"193d0824-9e85-41a7-9fd0-f90685382c13","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":192,"box":{"x":69,"y":826,"width":712,"height":11}},{"id":"9967c411-57a3-42bc-8dd8-b2ff55160667","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":192,"box":{"x":69,"y":846,"width":780,"height":11}},{"id":"a1ad96eb-3c73-411f-9cee-6c846b027efd","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":192,"box":{"x":101,"y":866,"width":808,"height":11}},{"id":"eaeb238d-f396-452a-9d39-629c540b9902","block_type":"box","text":"relative status within major rating categories.","page_number":192,"box":{"x":69,"y":881,"width":320,"height":11}},{"id":"0924a345-eedb-44fb-98da-7e9e1f9f82fd","block_type":"box","text":"A-7","page_number":192,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"ac7f2071-e05b-44a6-9ad7-f2b30b42f9bc","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32799481-68ef-417f-8924-6b4f2a271ddd","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":193,"box":{"x":102,"y":45,"width":761,"height":11}},{"id":"7348d7b3-930e-4a01-8c19-a633b5f8de02","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":193,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"1445675c-6444-42f6-b04a-51610a44104c","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":193,"box":{"x":69,"y":75,"width":289,"height":11}},{"id":"f7ec3d83-b4d6-459c-8291-041e84f78390","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":193,"box":{"x":69,"y":105,"width":568,"height":11}},{"id":"afad7c72-83f4-422a-bee1-75f1dc424fda","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":193,"box":{"x":101,"y":128,"width":806,"height":11}},{"id":"0bf5fe94-0d4c-4e41-bd80-77be0a565981","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":193,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"1f45393b-eefd-43b2-92cd-5d062eb47fb5","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":193,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"5cb18223-01f6-4722-9878-5af7016151eb","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":193,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"947ddd24-365e-4908-a421-bdcf56f444d2","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":193,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"b360473f-79a6-4eec-81d9-020133142693","block_type":"box","text":"finance markets.","page_number":193,"box":{"x":68,"y":203,"width":118,"height":9}},{"id":"7492d210-7e4d-41dc-bae0-012b91ce6acd","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":193,"box":{"x":102,"y":226,"width":273,"height":11}},{"id":"57448b3c-3560-46fb-bcde-115c034d817a","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":193,"box":{"x":70,"y":254,"width":816,"height":11}},{"id":"2ec628fb-a490-4404-8e46-044b90e52892","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":193,"box":{"x":196,"y":269,"width":692,"height":11}},{"id":"ed0fa236-96f7-41f2-8a13-915ea8646ab9","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":193,"box":{"x":70,"y":289,"width":734,"height":11}},{"id":"30301781-7a2a-4815-9392-998e6b34786c","block_type":"box","text":"commitments.","page_number":193,"box":{"x":196,"y":304,"width":100,"height":9}},{"id":"23c7e225-ed74-43c2-b954-2e570d386d19","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":193,"box":{"x":70,"y":324,"width":831,"height":11}},{"id":"5b3d309b-b9aa-46af-ba57-62cced0e4ec1","block_type":"box","text":"adequate.","page_number":193,"box":{"x":196,"y":340,"width":70,"height":10}},{"id":"f3270dd5-9bf3-48f2-b779-e95f98239ed5","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":193,"box":{"x":70,"y":360,"width":737,"height":11}},{"id":"fab38665-c009-4595-b015-a2831101b4ff","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":193,"box":{"x":196,"y":375,"width":641,"height":11}},{"id":"7263167b-ced9-4bba-89cc-32c3a96fa1cc","block_type":"box","text":"economic conditions.","page_number":193,"box":{"x":196,"y":390,"width":149,"height":9}},{"id":"daf601ae-6693-4e6a-9ad9-2807afa3fd36","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":193,"box":{"x":69,"y":410,"width":535,"height":11}},{"id":"4d5927b0-2d5e-4df9-aca6-f162885e11ee","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":193,"box":{"x":70,"y":430,"width":749,"height":11}},{"id":"5560a834-9b13-4e1b-9121-bbf0f891e421","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":193,"box":{"x":196,"y":445,"width":714,"height":12}},{"id":"b8c8cbb7-54a7-454e-8419-dfdf0b4d15d5","block_type":"box","text":"ratings only.","page_number":193,"box":{"x":197,"y":461,"width":83,"height":11}},{"id":"6759d49f-2874-47d3-8778-1ad2d8a0e4df","block_type":"box","text":"D Default. 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subject to the","page_number":194,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"b39a8e6e-8743-433b-afc1-ec97fa48ed3f","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":194,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"7ff795d9-3d48-4eff-aa00-ef87b965f846","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":194,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"4c0c9c93-fb81-44b0-a173-bdd3c801c846","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":194,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"307d468f-a792-4da8-add9-d5c56228d665","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed 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The Guidelines include “climate and decarbonization” guidelines which","page_number":194,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"5df04d68-7071-4c70-9ce5-7ada364701f6","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":194,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"77b8c610-1005-4c62-9bb9-091375e0cb05","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":194,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"50b0737d-c376-436e-85fe-d93dcedf049b","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":194,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"8aaabc92-0b7d-478e-a1e0-f26f7de4d60f","block_type":"box","text":"Conflicts Management","page_number":194,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"8741a517-0ac1-4204-821c-6e7f555d2e19","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":194,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"d741f268-0d98-4ba3-b754-0fa6ce373f15","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":194,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"5302ef97-0818-4fac-a223-964da5da2a4a","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":194,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"13dc8fb0-6771-42ef-8be6-85b6465380e3","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":194,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"2f1b1a74-0c26-4f4e-abd8-982047189ce5","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":194,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"6d3b33da-31d4-4d6d-ac42-5745384f2b84","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":194,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"73ebf03e-b0d8-4093-ae09-8154a39da45f","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":194,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"1c70a19f-3cb2-40bf-b8df-73a6d74f8ca8","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":194,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"e6303c11-9a08-4cd6-9a75-13b9c72c7ed0","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":194,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"d4331ca8-a7f1-4f5d-acfe-8cc361597272","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":194,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"62cd0aae-4239-4671-becc-310152e9f75b","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":194,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"9f459cde-9833-484f-af6d-ccba7bd2b619","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":194,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"0a5482a2-48d1-4211-b271-f3740a29a5f2","block_type":"box","text":"in clients’ financial interests. 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STRATEGIES","page_number":197,"box":{"x":74,"y":378,"width":339,"height":11}},{"id":"8f001b62-ba8e-409c-99f2-05e261d34802","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16","page_number":197,"box":{"x":422,"y":378,"width":482,"height":9}},{"id":"298c182e-0818-4944-a886-d8cce6c97ff6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8046dfd2-7a0f-4292-826b-f22043f021c3","block_type":"box","text":"Global Engagement and Voting Guidelines | 2","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"d9e2e426-bf3f-4f56-934a-4dc1e13c22ab","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0eae9a2b-fd9a-41db-afda-e7a9515b4528","block_type":"box","text":"OVERVIEW","page_number":198,"box":{"x":450,"y":45,"width":79,"height":9}},{"id":"d6a72e12-6c76-47c2-8c1e-19a5e64690a6","block_type":"box","text":"This document provides high level guidance on how BlackRock Active Investment Stewardship (BAIS) views","page_number":198,"box":{"x":101,"y":67,"width":760,"height":12}},{"id":"881d0873-8288-402d-b46e-ba2544b942b8","block_type":"box","text":"corporate governance matters that are commonly put to a shareholder vote, or on which investors engage with","page_number":198,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"49289bed-b84c-4341-aef3-c03e889e8ebe","block_type":"box","text":"issuers.","page_number":198,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"6bf432c4-2f0f-44a8-b681-551273242301","block_type":"box","text":"1","page_number":198,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"4fcb10bf-ee0b-446e-b247-ceb34e4af3b2","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":198,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"81bbc046-416d-4f61-894a-db3219cbf19c","block_type":"box","text":"2","page_number":198,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"e6ff5b4e-d4b4-430b-ad9b-4124048b917f","block_type":"box","text":", providing exper tise","page_number":198,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"3cdee7c5-2d73-4a0b-8cf7-993a2daff21b","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":198,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"c385ce12-4a6e-4240-9d65-2d3aaa5c15fa","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":198,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"3cc92218-b337-4d23-8c63-fe61c33d237d","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":198,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"ade4e036-6367-4ebc-808f-a31df9b99e39","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":198,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"8d6cb704-43e0-4b4f-91d6-f7c8e7b695fe","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":198,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"97d84569-e03c-48f1-b0f8-f041bc92950a","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":198,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"aa496f7a-0203-4cd4-8bba-add8658daf52","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":198,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"1f847442-a7b0-46c3-b060-b044cd87df7f","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":198,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"63957502-b40a-4e22-aeda-a76b987e74ed","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":198,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"e9a8b262-4ca7-48bf-b6b1-6ffe8876c75b","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":198,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"54be3f82-39d1-43f4-8fc3-3753120ebcd9","block_type":"box","text":"1","page_number":198,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"afde43f8-1de6-45f8-92c0-3b77f561dc7d","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":198,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"4f52bdf6-363a-4e30-ab50-2b5c5ee24a31","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":198,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"93ae2380-6126-4a7d-adb1-f86c20e85fc5","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":198,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"ddc4cbc4-4f1e-488b-9daf-aa5c82696972","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":198,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"5539872c-6f7c-4760-96be-b04a2c3cf820","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":198,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"e3c6e662-ab99-4ef6-80d4-b30a573c8983","block_type":"box","text":"2","page_number":198,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"3d78032a-6500-40ff-a842-a4ddc0d2e968","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":198,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"b62770e3-ff8a-4c7f-ac96-6eca656c07bb","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":198,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"c281d421-7308-429f-bf34-3cb316c66b88","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":198,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"b7a576dd-b9a2-4b57-8e09-0d94e9ab9f69","block_type":"box","text":"policies.","page_number":198,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"8f44a455-054d-40b5-8219-8c3153630668","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6251a170-b68b-44b3-80a7-2effe211951d","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"91cdbb20-56e1-446f-88d1-4c1b8e8624d3","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a4fa99d-2b47-4342-a1d2-203775cc4767","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":199,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"032e7b9d-137a-43d5-a406-4cc13b06eb5b","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":199,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"34836bfc-fbaa-4ed5-80d1-9dc222e1a27f","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":199,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"7d237d51-03d3-480d-a010-f8e42888597d","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":199,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"0e71979a-065d-41d7-b2da-f549021af276","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":199,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"d0f720d8-cbd0-47c5-a781-78d51de7a495","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":199,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"05d58fca-f954-48b1-b60c-2d2de267e598","block_type":"box","text":"this work with research, data and analytics.","page_number":199,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"c6743802-c436-4f7a-a461-8b833093fac8","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":199,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"5fff0a3f-db29-4299-93a4-0cbff287bc09","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":199,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"9d8f91bd-13e8-4f2d-9561-34ab921521f2","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":199,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"4771107a-3fba-4ceb-b933-5be1727999ca","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":199,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"e471c86e-9b75-476c-9688-5daf5dae387f","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":199,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"55f70260-ce04-4534-854a-b32dd2d11791","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":199,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"19697c9a-ca37-48c5-ac23-ceebcebfd2e1","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":199,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"e806b997-282a-4f1c-ae7b-e49215949eb0","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":199,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"43d57737-0966-4717-995f-9cebe2393f52","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":199,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"7d90b6ef-ac17-46df-9d00-ce60b12a935b","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":199,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"5a81f350-6b07-4a3e-a14b-7c0117ef3286","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":199,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"ac5a5b3d-7b75-42af-8b21-011aff41b244","block_type":"box","text":"shareholder meetings.","page_number":199,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"5cd2336d-5480-4931-925e-9554c52ed4e2","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":199,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"3e1bba32-3036-46f6-9832-f59bd537633f","block_type":"box","text":"investing.","page_number":199,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"44119a62-b5b6-4fe2-b60f-0ff4948cba55","block_type":"box","text":"3","page_number":199,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"fb5b63cf-e5d4-4533-ad3e-70c6e832023d","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":199,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"ac750e37-0457-47ab-aea2-ed9dba48e6b9","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":199,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"abcaacd3-7eaa-4cd7-b141-3fabecb2b580","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":199,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"8ca97a4e-fa05-47b9-b885-37dd6bc4f1a0","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":199,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"968c96ed-1143-400b-94a8-27810d2cd74c","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":199,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"4f705d89-7d7d-4876-9821-3db6feafe225","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":199,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"8584a2f6-039a-4354-8446-4ab80b60b1b7","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":199,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"3ebe98ec-3f05-4ac8-a32e-119486ee7ffc","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":199,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"b737977f-d478-4f73-8c73-91744e33122f","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":199,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"0035d22b-d41d-4d04-b88e-140cf452de2e","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":199,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"5e62a0c5-a65e-421e-82fb-c2bfb4f8653f","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":199,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"a7b76a4b-0e56-4376-90bf-bb6293b04a3c","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":199,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"7ca9cb02-44a6-4f1a-9a4f-58e0f98b3bcd","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":199,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"36098da5-1c6d-4cbb-8ff4-43c06a478335","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":199,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"15f5a329-76e0-4fe3-8f88-96d127566875","block_type":"box","text":"management teams and board directors","page_number":199,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"d7b3d81a-8f38-4b90-b3a4-c00d1193757b","block_type":"box","text":"4","page_number":199,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"87a1cb28-aff6-43f6-967d-9d286af289f2","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":199,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"a64fe42d-20cf-40f5-8c00-1e47bf541fc1","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":199,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"3fde2210-f19b-4cd8-8b3c-3831d1b474e7","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":199,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"ba5f6bad-4148-44ec-a3c6-8800c2ac6816","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":199,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"3d6f3ded-e717-46f9-918d-c7986c00178f","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":199,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"a7670d8f-1fe2-4755-9c97-0e54415e5a9b","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":199,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"48f913f6-b90a-48c0-958a-ffe89df39df5","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":199,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"bbcc8ea9-5a67-402c-9ea5-0fe85072bbbe","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":199,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"dcccced9-e3a9-4cfa-842f-10cbce67f873","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":199,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"ba33c4f3-0042-448c-b787-365476cab924","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":199,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"320569f1-5c47-4d26-951a-895f4ae25fef","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":199,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"9088c396-bac1-4c9f-8b5c-c322459fdf85","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":199,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"ce1de0a5-ecb5-4227-82be-49a7d8464720","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":199,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"8c80ea38-da82-42a1-a177-0326ad9b771f","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":199,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"3a01eaf4-4fd0-464e-b4b8-e6b93cd01333","block_type":"box","text":"3","page_number":199,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"c2b04fb4-997a-4fa1-b5bd-e4e914f24544","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":199,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"e64379d7-43f1-4b9a-b142-fb53ae60d64e","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":199,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"93a0fe81-643d-4c61-8cf7-8dec3a8c57b7","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":199,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"09906ee5-4b0e-440b-92ed-71ec369bf4ff","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":199,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"b187904a-4ba9-4892-9785-8b2a75f8f6d1","block_type":"box","text":"4","page_number":199,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"535c8503-e0e5-4213-b831-b06008801b0a","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":199,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"8b1d8507-4bcd-4980-bc0f-afc088577e1c","block_type":"box","text":"boards and their members, where relevant.","page_number":199,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"a8b545e4-5927-4e5b-bf42-e2f96e768a8b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"750ae8b7-57c4-413d-a045-a87a12ac1b3e","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1b9cc6d8-bd59-4840-996c-c6e314c30322","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"032ebdc9-9636-4277-80d3-a36dfcde7920","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":200,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"0161efa6-192c-40fe-93b5-1e5ceadba68b","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":200,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"aa931a2c-dbd3-49c5-bc08-56d4a62d8b73","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":200,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"59a9e714-51e9-46b4-807a-f039a6a543a9","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":200,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"d7070716-81cf-4b35-9d2b-f8f11fb581fe","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":200,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"c559ee54-1703-410d-8a14-788bca66518f","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":200,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"00c9e207-9159-4842-83ff-624ea8d2a5c3","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":200,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"adde7fe0-d1de-4184-8dd7-015b2f82dc53","block_type":"box","text":"5","page_number":200,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"1b5ffb51-2c10-4488-b71c-b71565e4f4fc","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":200,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"b3c8489f-0a14-4e12-8b24-1c9c501601d4","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":200,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"05b62609-63ce-41cd-8186-915cfe30f293","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":200,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"4d6febc6-e76b-4e6a-9210-82310003f05e","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":200,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"551f3d1e-551a-4a7d-b86f-a9b0952ff085","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":200,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"de33f0f1-477d-4698-899d-690db2184ab5","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":200,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"51f1c24c-cb28-48ea-9b9c-88f8e69b7854","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":200,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"1ad5c5e3-6a00-4c8d-9f74-eb9c78b74433","block_type":"box","text":"5","page_number":200,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"a818972a-36ad-41fb-9a18-2f09aac86cd3","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":200,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"a24fa6dc-672b-4c29-9744-7f2f6404a88d","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":200,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"04743644-c023-4de6-b464-2ff2ee137438","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":200,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"a5977d6e-8185-4ac8-b614-d0112896bd5a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cd224291-1605-4e91-a7d7-07f09598e98c","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"00412678-e181-46eb-bc64-32567beccba7","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"318cdedc-403f-42c3-97e4-8db698924e16","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":201,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"d78d2c3c-7eb5-4458-b375-5ced1053a51f","block_type":"box","text":"Roles and responsibilities","page_number":201,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"9aa51437-ccc0-4467-affe-09345b918f1f","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":201,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"0296d0e9-6511-4983-9f56-a0d9b294fe3c","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":201,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"099141dc-88fa-4362-aa0e-d24dfb786f80","block_type":"box","text":"6","page_number":201,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"ddc57d62-51ac-4b15-9be6-5dd3fd7b2f14","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":201,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"f383d019-6171-427f-9e6e-aa2d21e4e9dd","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":201,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"7d1a2cb7-dc73-40a1-8a84-bfa2971dc136","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":201,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"6fd999f6-3d2e-4e05-bdbe-bdc78392d3d6","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":201,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"5d1e0cc2-4107-4b65-a382-52b22bf43b5c","block_type":"box","text":"per formance over time.","page_number":201,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"bc83bd43-865f-4621-acbc-0c28d62d65bd","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":201,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"4316874a-0291-4387-a7ef-3f3844e1b153","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":201,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"4053382a-1104-43c3-837b-f905fcd5bd28","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":201,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"fbccbde5-6728-49b6-bb07-761c6b11f8b0","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":201,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"74daf0a1-81c8-4e44-baf0-7db8d88b6934","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":201,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"e24b4ac6-65da-4aa1-bcb3-023857c329df","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":201,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"e769a251-a8ab-4cbb-a247-8191c2e4c36f","block_type":"box","text":"Composition and effectiveness","page_number":201,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"5dc66618-db73-41f4-908e-617e0c88b676","block_type":"box","text":"Appointment process","page_number":201,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"01a87ff0-1f59-4e42-983d-ad8aa66b5a68","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":201,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"006e8486-4f85-48a3-b830-0bf1fda2791d","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":201,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"50a48ce6-3e60-4284-b2ac-154b8c1097c4","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":201,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"9f48c21e-1a53-478d-8f52-f626a1e9069e","block_type":"box","text":"e.g.","page_number":201,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"c680334f-5a06-43c4-ab3a-dcf75047c668","block_type":"box","text":", sector, maturity, geographic","page_number":201,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"de846c7b-74b0-4f95-af05-97a5e748b059","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":201,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"c0a71a4f-1303-442d-bebf-9a5e42ea67e9","block_type":"box","text":"e.g.","page_number":201,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"4ce6ef1c-3706-4d65-bbe5-4d32340b058b","block_type":"box","text":", financial exper tise, industry track record). To","page_number":201,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"e3d6d174-ad03-4849-8373-24dd6a642f68","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":201,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"f4068460-349d-477a-b4c7-5bcfa9f6319a","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":201,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"a18f5221-1d39-4984-bb50-9f841146a1c2","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":201,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"c0c5c5d6-0f15-4563-9833-27ea6a6b1707","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":201,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"45343710-7cdf-4067-8804-87f017fe51e6","block_type":"box","text":"and local market requirements.","page_number":201,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"42a8a836-d7ca-4e86-8120-675970517a81","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":201,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"0cd26908-fc87-459e-b085-b21c72fcb881","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":201,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"fb046111-e97a-4fcc-ab92-ddb1a68fea6d","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":201,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"3caec14d-df40-4dd1-aa94-f14859c641d2","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":201,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"1f4ce1a8-d2e5-4e55-9496-cd5a6d4b69b3","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":201,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"e4dd2ac5-c0c1-4328-a893-ae5f0a6f7097","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":201,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"8789551e-af7c-45d8-bf12-43a27a4bb14b","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":201,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"d8e1e5bf-b4d3-4fd4-8e38-9d8d451fc230","block_type":"box","text":"Independence","page_number":201,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"4e687584-e1ee-4b9e-9de7-01d7d62aa294","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":201,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"e213935b-b9db-4bf1-a144-b08ccfc08e1d","block_type":"box","text":"e.g.","page_number":201,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"b4eb9d0c-2b68-4410-a530-ff8ce8282fe3","block_type":"box","text":", government or","page_number":201,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"a9492f77-df65-4d26-b830-ff48afb07a67","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":201,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"180374e2-b958-4b58-9971-95df7d2cb838","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":201,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"bfb6de1c-cd04-41dd-a761-5efb62fc8b5a","block_type":"box","text":"conflicts of interest or undue influence.","page_number":201,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"dc10ceda-801f-445f-b494-2f8cad594de3","block_type":"box","text":"7","page_number":201,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"91df7571-d6f2-432e-882a-550ab5d44ca3","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":201,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"0c9dc7d8-2ba5-4e7d-83ba-2718daf82400","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":201,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"db7b7fea-b94f-4ff9-ab5c-8854a1a27d61","block_type":"box","text":"independence should meet those local requirements.","page_number":201,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"c9a22e2d-6c51-41a1-80dd-76ccc954d3ee","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":201,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"1073323e-17bd-423a-8cd7-0def37f7bc6c","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":201,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"959f2bca-16f2-4331-b72c-9d417e6a5a88","block_type":"box","text":"composition if this is a perennial issue.","page_number":201,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"20ca63b6-9ed9-4ade-b2b3-028e8aaf0a19","block_type":"box","text":"6","page_number":201,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"4a11867f-cce2-4a7d-aa25-c26b2a0e7352","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":201,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"0d4a2295-0e5e-4870-8b8d-e483eab145c1","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":201,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"24fe9ca8-fc9b-4425-af86-b1f4d699a8e6","block_type":"box","text":"7","page_number":201,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"63702989-ec6e-4c21-9e3f-c89c7f88cb12","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":201,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"afceb245-f2ff-4955-8d11-1ca0cdfdb44d","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":201,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"640531b5-a76a-45c1-bf21-f883d5fd15a0","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":201,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"3dce8b43-3915-4d4f-8fa0-52c081b8bf95","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":201,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"ddcd6904-d2b5-431c-83d8-c1ae577f748c","block_type":"box","text":"of the company and shareholders.","page_number":201,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"7682fccf-44f3-4917-a691-a14f05bf14be","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2abdecb3-1669-43aa-8b19-0b38ccdb7a18","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2dd685a0-5e6d-4de9-9fe5-cd860fbed615","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cac43549-c28b-44dd-8f1f-b85d0eb53f08","block_type":"box","text":"Independent board leadership","page_number":202,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"a24b38aa-838d-4301-8638-bf5bdd9ceba4","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":202,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"ba0f1fde-e34a-48e4-858e-9eb6bb56c915","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":202,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"130b3099-a458-43a0-80e7-8d6889a5d16c","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":202,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"14b9bdb5-fc15-4c6c-b705-6e330113aa50","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":202,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"4da2cdea-784a-4cec-8d6d-ac64c5b9c977","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":202,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"854912a5-c418-4cd3-a22d-9346d8a269d9","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":202,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"f2b82a1a-92a4-4b5d-bcc1-59c4a0ae590f","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":202,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"7374ca45-5bd3-4bfb-b572-546b8bcf8115","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":202,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"fa97b914-e6c5-4458-a42b-2b3d907e7331","block_type":"box","text":"how it serves the interests of shareholders.","page_number":202,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"9253aafd-4bc7-488c-ba92-5231cc4b66fd","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":202,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"f3873286-0001-4dcf-8fbc-ec6aeb8f1548","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":202,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"b181681e-67b1-4f9f-b87d-00abccebaf9b","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":202,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"ed38c31a-0f1f-443a-8956-1b38dd11b26a","block_type":"box","text":"Tenure and succession","page_number":202,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"2297d2c3-b245-448b-885d-b4a2a7c21aea","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":202,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"c0c1001d-d926-4564-b8d4-305eb1fffea4","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":202,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"93736e38-c905-41c8-9889-faf8d8ca81ed","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":202,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"4895ff44-92e2-4ba4-a570-881bca184789","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":202,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"0bd01924-705c-4663-9f0c-736dea94208f","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":202,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"9b6cb6d9-9c25-4700-81d9-e432bff1904d","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":202,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"995d4458-77a9-4cf8-804c-4f50e5e9570d","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":202,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"3b7d792b-26be-463b-a311-5a0910c8c468","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":202,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"05f11b79-8d09-46c0-8b3e-814aa07b9ad5","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":202,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"de0aaa42-8070-4012-bb8a-8dab25c10bbf","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":202,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"2968ed21-0df1-4294-9f75-f6ed19a9fcf7","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":202,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"e8b2d86d-81d7-413b-9712-ec4f4960d6ae","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":202,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"7f2486af-130b-4dfb-9562-2f94501fac35","block_type":"box","text":"for their continued service is not evident.","page_number":202,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"846e74d3-ad28-422e-9041-9bb0c50fc919","block_type":"box","text":"Capacity","page_number":202,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"55ba135c-602b-400c-97a3-53754783b4df","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":202,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"baf840e9-445d-4336-a2d7-71ca7ffad396","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":202,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"6659187e-3f31-41fb-b0e6-5d531b338271","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":202,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"070a2393-de3b-49de-b713-ebe0b3d38487","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":202,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"ba517d1f-8fe5-4033-9e9f-5c21ae7af0f7","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":202,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"8f21e73d-e1d9-4ffd-9212-7a4eb43721b9","block_type":"box","text":"determinations across markets.","page_number":202,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"b4b33e75-7991-4c86-a0da-64e3842e6323","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":202,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"829dab1a-a3c5-4260-ab78-a5d7eb403f5e","block_type":"box","text":"their duties to the board and company.","page_number":202,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"9b3dcbf5-7680-421e-95c1-59e6351f0c14","block_type":"box","text":"Director elections","page_number":202,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"d45ca8ca-8947-45fd-af38-58f1dc8932ca","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":202,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"6ff15a33-d4c2-4dd6-b06e-fe712c39dcc5","block_type":"box","text":"structure","page_number":202,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"3d04e28a-2ecf-4095-9ead-27d5a583eb05","block_type":"box","text":"8","page_number":202,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"01befcbb-13b4-42d8-8de4-879f859979c7","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":202,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"e7cbd5bd-d996-447f-bdb9-20ceedf4cf66","block_type":"box","text":"basis of its business model (","page_number":202,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"bc61f4c5-5210-4d77-87c4-89a2fdf2a8d6","block_type":"box","text":"e.g.","page_number":202,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"d5708dd7-783c-4b62-bede-857a196964d9","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":202,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"5405a32c-1b83-4118-a53b-dab8b41b6c6a","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":202,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"9be7ba21-6228-4536-b049-c41b009d4f51","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":202,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"2c427938-a709-4886-923e-bfadd79a5046","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":202,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"3cc8cc9d-d426-4d81-b726-ff5031bc4232","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":202,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"35d25bf4-0d66-4cee-a132-7b0837067a29","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":202,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"d9987470-6c7d-494c-afcb-8dc0c36717f6","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":202,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"06c61a04-d7c4-4e4f-a117-1dbb3ec97da7","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":202,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"f9944d27-d864-42b8-ad68-93c379f36cbc","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":202,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"ec0f8576-3a3a-40e8-a170-6807176f1b35","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":202,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"79df80f3-564a-4660-a0b9-eeb4ee0c4250","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":202,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"dfac4fda-3784-4152-94d5-da8d92951e9c","block_type":"box","text":"8","page_number":202,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"c4be0e3a-04e1-43c7-807e-d1a72ae8c6e6","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":202,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"60206835-f55f-49f3-ae48-24ac1d5eadf3","block_type":"box","text":"directors stands for election in any one year.","page_number":202,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"cba24ad5-44a7-4f1d-b2d3-1d9fcf24356e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"557f7c47-819c-48c2-980e-92d4b84dfe26","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"86554725-b631-4c70-85ac-0b774d8ce704","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5845d6ba-4360-4c8f-b33a-172b1b4dac6b","block_type":"box","text":"Committees","page_number":203,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"e42ed257-dd97-41df-822a-7943242666af","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":203,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"d4f9b39e-2886-490b-b6e1-33fe6e5630c3","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":203,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"c88c0c0f-622b-4523-99b2-18c5113f3d59","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":203,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"518f2e50-6a4f-4775-9e6d-3bda71650c9e","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":203,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"769f16e4-a184-4925-aa55-83790eb95d8f","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":203,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"dd0d9aee-1fb1-4395-bf63-2d5407b93221","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":203,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"0b048e68-0552-4d68-ac0a-9ade80a27d94","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":203,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"79d87e88-f030-4d09-a382-bd0f41b2cf4d","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":203,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"64021cdb-6e9a-490d-8ad4-d5b863379d11","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"b8494dbd-557d-46ff-a29e-cb9a6c1cf47e","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":203,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"47c7f046-dbeb-4ced-bff5-f57d2e768bc7","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":203,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"26c3c440-583d-4836-bc3a-15a9be29e1dc","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":203,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"9c5d9209-cf8b-4ee1-b0c4-2d9d06bac050","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"542cf95f-2673-4d79-9b38-6a61e3fc2950","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":203,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"01e6a53b-c04b-496d-b73a-78600ffcf95e","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":203,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"28063cbf-e2aa-4544-85d9-9647a3b52198","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":203,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"8a16bff8-8791-4809-9dd4-638895d69d16","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":203,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"5472a0d0-310a-44fb-9e62-153a55968408","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"f5ec5083-3b09-46e3-8018-0e9664b907a0","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":203,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"0c00d060-5420-428a-956b-4303dc57a126","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":203,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"95324dc5-05e8-411f-b8c3-760f3c3ed3f3","block_type":"box","text":"firm-wide compensation policies.","page_number":203,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"32dc2c9c-e5ac-4429-b3ec-ab205dda1205","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":203,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"4c4d237b-667e-4985-851d-97a2fda453db","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":203,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"021ded17-ba77-4a07-9a7d-3f1488177ea9","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":203,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"f07d8900-0dae-48a4-b987-88bbb610b1d0","block_type":"box","text":"Board and director evaluation","page_number":203,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"22dbd048-85da-4e4b-a9e0-be88c4a30ea5","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":203,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"6741813d-6c80-47f7-8560-a09ea15f1c96","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":203,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"cbe07bbf-b649-450c-8589-8225bc8269c3","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":203,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"a94d387d-f6d9-4b84-b8ed-f8410a6adcf9","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":203,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"6e1286d7-1a47-4676-94a6-34c7a61bc489","block_type":"box","text":"a result.","page_number":203,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"c4a2856d-3f53-4014-84b6-9766b431e3db","block_type":"box","text":"Access to independent advice","page_number":203,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"8b5e21bd-2e31-46a4-9c10-64ac2d07db82","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":203,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"e76ce47b-08fd-4e90-a84d-87c1f7ea5a57","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":203,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"2dbcaf3c-e782-407a-a078-791344ce5b62","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":203,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"567f3915-5543-42c9-8af5-49aec4e552fe","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":203,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"9235f664-47c3-454c-97e6-12c34d05df2e","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":203,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"c9e9d944-0006-4a37-a9c1-569d10b9dac4","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":203,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"2b78bae5-df34-4a0d-83d3-b6aba504e0e9","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":203,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"4dfd5e8a-05e6-46a0-a599-85b2687cc6a5","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":203,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"3341866e-e01d-40bd-b3fd-a66d546fc037","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":203,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"1abd5c50-b447-45aa-a4f0-46dfb3f6c4ba","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":203,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"dd66da1d-1475-4f73-9035-be7786674e74","block_type":"box","text":"per formance.","page_number":203,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"5bca3305-3fdc-4dcd-8683-966704b7cb09","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":203,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"507ff33e-a163-4465-8f28-c0266eddb48a","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":203,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"ed40fea3-e845-490d-9b80-6b0bbefa17f3","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":203,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"fe2052c3-5f27-48d7-91be-6f23e876ef72","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":203,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"c710a168-1a19-4eee-acdc-91a34b4bcaf0","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":203,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"850cafb5-d526-4f42-bca6-3aa66c5f92d4","block_type":"box","text":"recruit and motivate.","page_number":203,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"c23e5c95-a7d0-4b43-9a77-842c8e4dbbf3","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":203,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"4d3fd4da-c061-492f-a041-c631ad007843","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":203,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"49ee78be-1db1-4c02-9a61-9eb27a521ae8","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":203,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"165b863f-805f-448e-b5a2-4664300e8871","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":203,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"be16ded8-e601-40f6-8010-7e603d340c69","block_type":"box","text":"arrangements include:","page_number":203,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"fd03770b-8a31-4b33-9f0d-c5228f13ee31","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"1fca8d1a-f4b8-4cd0-bf29-9d472dae6eee","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":203,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"889cb3f8-9270-4536-94e9-d39eb27b425b","block_type":"box","text":"the company’s size, sector and market.","page_number":203,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"55e78784-6942-404f-8d38-ee9a7046d68a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"014e262a-95d6-40f1-a6b2-74789cffbfeb","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":203,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"151e54eb-3c13-4b72-a47e-0452650fa56a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d9e7db1-e2a9-4bfb-8069-1615890717d2","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"a796cf2e-a25b-4266-ac8c-a7b2b6f2315e","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":204,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"adf2538a-1370-4002-9d5c-71a0a438f3e6","block_type":"box","text":"strategic objectives.","page_number":204,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"73327f20-2a72-483b-8b23-b2c8154338b5","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"40ca17a5-9c6b-4771-98d1-24aea7c42506","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":204,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"af33a14a-9d6e-4dc4-a8f1-034c4e2c62d2","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"d7054118-f02a-4886-8943-1e01c7324c2d","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":204,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"190195f0-e395-44f5-b709-380f3fa3389e","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":204,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"9617c99f-34c6-49eb-a67b-bf30e1ea33c1","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"9e8d7e39-8a00-44e2-854c-ee4059beb974","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":204,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"c5e22ea9-51ff-40e3-a666-fa11e98094a3","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"8ae565ce-5545-4f10-93ea-4ce4fd02d013","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":204,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"44000d0a-1708-4c41-85f2-11f9a1e17cd8","block_type":"box","text":"transparently.","page_number":204,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"2ee1c5cf-209c-48b1-a8ef-28ca8dfd9b34","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"5c479495-a179-490c-a35c-a58fea316766","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":204,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"2531b15e-239a-489a-b355-ba66c812e972","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":204,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"d895056d-d2cd-46a6-b837-c28dc9fd4d7e","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"69d59e36-6604-48f5-84c6-06ce20e98857","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":204,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"c5f0398f-4eb3-4f81-a060-9cf8b8d1b771","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"d628da10-0a84-444e-9dde-b5144b3c27f5","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":204,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"0a097fbe-172e-4092-b226-60655fd69733","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":204,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"164bf1e8-9214-4040-85e1-e2033a42b496","block_type":"box","text":"misconduct.","page_number":204,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"3697672d-aad6-43d5-bbc6-f5b903dd3a66","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"10cbb962-5732-485c-b4e6-febfb9e9a5e7","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":204,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"9670040e-93af-4793-80b9-bb6eb6969df6","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":204,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"8882805c-9914-4dcf-a893-b9f8f07a59ea","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":204,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"0423adce-85f8-46b2-ad05-eda3fefd0fdb","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":204,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"e498083d-cf72-4df5-9836-2f2f61a43ac8","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":204,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"77077401-5e7b-4e31-b16a-21ae5d46f8a1","block_type":"box","text":"committee, or the most senior independent director.","page_number":204,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"213b7f3e-1cfd-405e-9bf1-415569f5e3be","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":204,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"1785bdd1-7262-4d31-834f-f3783f06815c","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":204,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"7a3b46f1-6a82-4cee-8c0e-8246e5bc3c78","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":204,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"49678183-121f-4e99-9426-65bc979df343","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":204,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"98b515d7-86b6-4ce2-9e18-c2a18e3e7f6e","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":204,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"11f0d229-c00f-46a7-b94e-838af1c2877d","block_type":"box","text":"CAPITAL STRUCTURE","page_number":204,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"60632a23-79f0-46dc-8f69-99dfea23aa4c","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":204,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"b9bfd915-4e39-4957-98f2-b0f19623e0cf","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":204,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"728ddbe0-32e9-4471-af08-60c20e77b614","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":204,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"766dc223-6750-452e-9b70-011713631c9c","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":204,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"2cbb8a86-3560-413f-88a3-d153e36e3744","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":204,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"bc1c6cd2-2069-42de-a681-11c22f81dbdc","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":204,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"5574e089-a929-4e33-94c5-ce23aaac5400","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":204,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"5ed83961-f0e6-4e5e-b3f9-a49e830ce69a","block_type":"box","text":"Share issuance","page_number":204,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"ddb6c38a-6a40-49ca-9a27-a4a0371aa8ea","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":204,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"84a0c474-0f0d-4a49-8214-3812cca8cce8","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":204,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"b523154a-ccf8-4afd-8047-29d41c80a7a1","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":204,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"5ec22cca-a3ee-4360-8fbd-9ce459a27de9","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":204,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"ce16cdba-f226-40ce-a02a-be3886018339","block_type":"box","text":"market environment.","page_number":204,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"07648314-d48c-4f5d-83b3-493c8c14eae9","block_type":"box","text":"Share buybacks","page_number":204,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"92952156-6c70-43f9-ad77-50f2f6865c8d","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":204,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"c3b497c7-109a-4e72-8087-f6516ee98a9d","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":204,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"78148ef5-97e0-4235-8613-08bd4f0fe322","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":204,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"a24808ad-c504-40f7-93e9-2519101a6e1f","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":204,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"a556e64f-f5ed-4fbf-b1c7-69c7711e35fa","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":204,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"f616948c-d417-4440-9e45-b78991a54652","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":204,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"8f5966db-1a8e-493f-bb27-ab8cdf69d980","block_type":"box","text":"of the company and the market environment.","page_number":204,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"45680117-ab63-4d2b-86d9-72961ad2c2da","block_type":"box","text":"Dividends","page_number":204,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"faae515f-9e00-4d11-ae14-4546c84ff190","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":204,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"9c16f3b7-eaec-4dfe-a441-d872ae0cbc6f","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":204,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"94e3bcd6-994c-4617-9668-500c0415851c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6f0cacd3-4f17-4563-924a-56f9a12e3074","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":204,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"713f651f-eea7-4f5d-8b9d-2d661502bbea","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"133aa589-9f4a-4d8a-81b6-abcaef495bb7","block_type":"box","text":"Differentiated voting rights","page_number":205,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"45719730-5e4f-4113-91e1-6ce777e18195","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":205,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"695b8f10-1d36-4352-82d4-1c5b529e1a24","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":205,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"fb3ebe1b-8402-4a23-94ff-c6f0822305d2","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":205,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"20a08c21-3f0c-4f01-bf3d-a353359e14d0","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":205,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"cce8ed14-a34f-4469-b0d3-3dc6a01681f4","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":205,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"84721049-f2ad-4bf6-9648-67b0d49976ca","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":205,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"615abd01-6e13-4bc4-88b0-429a0e550fd9","block_type":"box","text":"analyses of proposals.","page_number":205,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"69e151cd-b1ab-481e-9da9-b07081110fb1","block_type":"box","text":"Mergers and acquisitions","page_number":205,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"ff65dc7d-2649-4e18-b675-5d1965d0d2f2","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":205,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"88d1ca92-862a-43ea-a992-f8929da58dee","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":205,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"27607cd3-d808-480b-aa43-94cbcd20c10b","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":205,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"585f7b34-eb64-4645-b760-d29364796a83","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":205,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"43c7aa2f-830f-4d96-a4f4-478c404a222c","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":205,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"fa364e3c-2196-4da1-a243-c2cd23f1f023","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":205,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"50835783-0e5c-4eb2-8e13-20a5cf7199cb","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":205,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"63674a33-e5e7-41ce-b6dd-7ac69a496ce2","block_type":"box","text":"Anti-takeover defenses","page_number":205,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"d1393dfa-0852-4173-9712-f635219c80a1","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":205,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"1a4714dd-7d8f-4875-bbc3-386209cb4128","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":205,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"5e3a4178-21ae-4638-8631-a3549a4b8a9f","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":205,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"5a770c17-f84d-4690-8192-675592a2cbbd","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":205,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"77c8ce4f-6e44-49cb-a85e-a27717dfb8d0","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":205,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"1056cc4b-1f58-48e6-b46e-0551438d03de","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":205,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"79e4d758-f44c-4a42-a628-9defe78fc683","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":205,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"d0e52809-31db-4074-819c-3fc4a440417b","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":205,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"02565908-ec59-4834-be42-db7c97cdb4fb","block_type":"box","text":"Shareholder activism","page_number":205,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"05f7cb6c-a796-4e68-8772-cc3e4c207636","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":205,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"f67ab2ba-694b-430f-a3d6-0ecc3fe4e014","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":205,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"02c1d3af-e4de-4554-ac04-d8f2ac8b1b5a","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":205,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"5501f679-80b5-4578-bf73-143f192fc273","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":205,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"7b095c5b-4abd-46a7-8d41-0c827ae70645","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":205,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"8cfaa15a-fff7-4ac4-ab3b-60a06a1c0748","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":205,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"87141fc5-9d6a-4cfe-8a60-278a5b523c7d","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":205,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"30f6f3a2-1157-4c2c-92a2-0a3301a5dbc1","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":205,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"0fbd3c9b-35c3-481b-b9ac-acf075815c9f","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":205,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"a2ef171f-6c1a-4231-a9e1-bd30da5f406b","block_type":"box","text":"protecting shareholders’ interests.","page_number":205,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"261cab52-419f-42b5-a109-88ab497eeaf7","block_type":"box","text":"Significant shareholders and related party transactions","page_number":205,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"9d5f67d7-3e86-47b8-8944-afe950fe21c1","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":205,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"ec16792e-e311-4ce0-adf3-6c2d6cbed655","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":205,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"94fa43d2-68c0-4fd4-bbbc-4b90db426d01","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":205,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"bf4aea05-82b6-487b-a6c5-f97507d64d60","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":205,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"26b0dd5b-7369-4e3b-8ddb-f920b0c7a528","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":205,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"fb756af3-4dd4-40a0-85cf-2a6f2f26bfa1","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":205,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"86a4a989-8fca-43b7-bf88-cae254869a42","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":205,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"6a040f2c-f2b9-48cd-94fb-dd9140e6813e","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":205,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"6684b793-39f3-450f-b99b-8c0baffbf27b","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":205,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"2c02d32f-d619-4002-816a-7b0abe805caa","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":205,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"79eca490-519c-4d61-ab53-03c2a1b9c015","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":205,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"ab86cfd3-866e-44d1-8541-ea946c36a763","block_type":"box","text":"audit.","page_number":205,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"b05f902f-e95c-4314-bc83-4dfcab7a0556","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":205,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"57eff0bf-2a0f-443a-ad6d-a4b48027b2a4","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":205,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"698be38a-4114-4a05-8daf-55f60adb48f5","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":205,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"c61739de-3ccf-4788-959b-95ce8df82ed5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"577fec60-dae0-4210-8e08-5fdb3a152c9e","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"635962f0-77bd-4235-8272-f0f3bceae8e1","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f9eb3b6-b75f-46b2-b870-9e89162dc816","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":206,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"ebbf5aae-1f52-4908-9e97-b287ac1be149","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":206,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"ede4589a-db9c-4148-82b7-75a303967beb","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":206,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"6733961d-0412-4473-a4db-f658d6b2d29e","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":206,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"eea0654c-8da8-4594-aeb0-5cfef310a54f","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":206,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"e1a03019-3d79-4d75-9b7c-de0a66bf46c9","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":206,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"e6569eb9-81b2-4bdd-8c2f-579f4086b233","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":206,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"108b12c4-8ec7-4237-83a8-566a6fe3fdef","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":206,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"5f5692f5-4a39-4249-9621-1639ef37babc","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":206,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"f20f99a8-e10d-419e-87b2-ee253d375335","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":206,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"039ff5ea-5b58-47ce-98ba-2a177a8bb3b3","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":206,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"6f03d632-adfd-48d5-b459-9d5ef10d5d3d","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":206,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"348c8244-0c4f-4fea-afab-78024b25eaa4","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":206,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"c0cfdcc6-96fa-42f4-8a4e-881d8294fe9f","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":206,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"8be616c5-8e30-4af0-a1fa-720ae0c570b8","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":206,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"8ea6c3f5-c5c5-44c0-9518-227a264de97a","block_type":"box","text":"9","page_number":206,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"f1c2fbfa-30fc-4624-9ba6-5a04a8085cd4","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":206,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"61aa9601-0993-4530-934b-bd95e7777e02","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":206,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"6d9bb046-795a-4efa-b26d-ce2dc0b304ef","block_type":"box","text":"standards specified by policy makers.","page_number":206,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"844ca1a5-0188-460a-86f3-04abf5ee5224","block_type":"box","text":"10","page_number":206,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"d6801fc0-6fc2-4141-8e38-425f998fa9ea","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":206,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"b4cc42a6-9749-437b-8c41-91e43cc1e52c","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":206,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"9a5d3707-14a2-4b47-8265-94e8a53de5b6","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":206,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"daf5d6ac-a9b2-49a1-b835-566bff25cf75","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":206,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"5b682c92-24aa-48ee-8420-cde9c458480f","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":206,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"336da4aa-b900-426e-859c-dd259e31525a","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":206,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"8799de99-7fe6-4523-857a-b495b4665b7d","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":206,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"8aa3dc6c-77c5-4a80-98d8-4d4937194ba3","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":206,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"9d51b6ea-f38f-4790-8ccf-2a973d0f0f73","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":206,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"00734cc6-9663-433c-a2ee-fe65c77023c0","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":206,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"96b89a7d-3d68-4ad3-9883-17c8ef9b2b75","block_type":"box","text":"remained independent.","page_number":206,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"a158f7ee-bc06-4d8e-99e3-32c52cdbc8b9","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":206,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"591907b8-f83c-4998-a14d-cb3c3e60d121","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":206,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"512bf959-82b2-4666-a222-fda776727261","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":206,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"5f5bcc7f-def0-4162-a484-ae7b4159a3d7","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":206,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"3865dbb4-88f9-4340-a717-76465ea562a1","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":206,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"2dc08e2d-f359-40f1-9ed2-c65ed15badc9","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":206,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"87d706c7-f644-49f6-89c9-ceb5ad156d34","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":206,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"3d979203-9f84-45fd-b51b-2416e437ad36","block_type":"box","text":"General shareholder meetings","page_number":206,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"e1e52f00-619f-4d7f-8e81-60d1d8a43bcc","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":206,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"22f1af73-1468-49c2-8e86-efb299965863","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":206,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"74f1c26c-7b09-4b7b-8983-65443bb17a4c","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":206,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"085f324f-2206-414b-829a-73ccd0c117bd","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":206,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"17b54060-ec46-41f2-b19a-cfb35b0e6100","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":206,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"c41221df-ac64-4517-9f03-bab1ef91cd50","block_type":"box","text":"an in-person meeting.","page_number":206,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"e1b2ef0b-4e47-41a0-b035-8b157ba71ee4","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":206,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"cee0f7df-a78f-42c6-8f16-b441b1b7a530","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":206,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"0e3f9914-9a77-4f80-b2bd-541b5807f163","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":206,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"a70243e6-17c6-4e9f-9e73-41c2d8bd9d17","block_type":"box","text":"par ticipation.","page_number":206,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"3a0134c3-f1f5-4440-8d9c-b0f8331bf944","block_type":"box","text":"9","page_number":206,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"14652231-f9a5-417a-854e-0b367d39c963","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":206,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"a7be6cc4-f0a4-4b5b-bc58-13b249ef107b","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":206,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"3cf3876e-4d6a-4b00-93c1-df5fa34ab4a2","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":206,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"48029378-17fd-46d4-a438-2113244f8023","block_type":"box","text":"Disclosures.”","page_number":206,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"4908f480-6055-4187-96a3-67782158b0b6","block_type":"box","text":"10","page_number":206,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"7cdb91af-d36b-4bb4-a619-368f797d9149","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":206,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"154ddc29-a4b1-4997-a0f0-057a2013bf91","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":206,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"34c2a64a-3f90-4917-bac4-b20ccbf65201","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":206,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"e6fd65da-382a-462d-8b9b-b51a5e2aa559","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f2c38d20-2e48-4906-b27b-2219a5479fdd","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"bc5bb059-c074-4ae6-be35-e0ae8507a4c2","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3a726ab-90b2-4538-8a05-f9597f78401b","block_type":"box","text":"Bylaw amendments","page_number":207,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"52acc29a-dc86-4447-8572-bfe00b06f1e5","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":207,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"4a8a982f-f457-4fdf-9c67-7729b260865c","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":207,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"3d05950b-4eb3-4343-986a-a77e538ec3fa","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":207,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"f0bde0c8-b96d-47c0-850d-8fdd5de6e615","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":207,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"3affe0e2-4ff3-4135-a5dd-b5906f940707","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":207,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"68e265c4-d47c-46a8-8de0-84751526362c","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":207,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"67b0970e-c111-4bbe-b7d2-680090c20be1","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":207,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"0b5aa805-1300-4f8e-8fcd-6f0c32d247d0","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":207,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"d07887c1-1a11-4409-a9fa-8b1f2dd371f8","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":207,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"8eb42d86-008d-42a6-9aff-f00871476ec1","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":207,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"4076eddb-3560-45a1-b6e5-617b4c20b754","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":207,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"fe7fc9e5-e3a9-431e-a992-71c757839185","block_type":"box","text":"nomination process.","page_number":207,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"cf3d16b6-3809-421a-a102-0298d8983c0f","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":207,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"76a84c8b-a48c-4226-a62d-3bbb2f55bdc3","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":207,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"c9f28b6d-6186-4cb5-b0fd-ab05738e6c54","block_type":"box","text":"Change of domicile","page_number":207,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"9c315a38-b34c-4bfd-a36a-1e6b8921d1c1","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":207,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"08583528-db10-4225-8005-1bbf5ce01c75","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":207,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"d867fb77-ab2d-4d9b-a2a6-25d588180156","block_type":"box","text":"immaterial.","page_number":207,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"150c24da-9199-4f88-b3f8-0f150a4d6568","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":207,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"febba9f4-0dcc-47e9-aab7-5accf686b7a2","block_type":"box","text":"with our clients’ financial interests.","page_number":207,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"44c2f200-6e1b-44b9-93b2-28b4f007b4cc","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":207,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"d2dde570-e93f-4af5-a35a-09d5c331f11b","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":207,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"af9fd859-052e-4dac-962e-144135676b97","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":207,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"05371756-e9dc-4268-a067-83e936c9996e","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":207,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"d8c85b91-83c1-450d-ba60-44328a98eed8","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":207,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"d77d79c5-eaab-4329-95be-5360af47a966","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":207,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"45f48555-2f5e-4496-9e14-3cdfb90e159a","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":207,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"01933ed6-baf2-46ad-843e-6cf680caafb6","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":207,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"4aa94e2c-4dcd-4d9e-9a0a-a97936cb4e9f","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":207,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"1830e37a-eb83-48e4-ae6f-a23f6c9f4381","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":207,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"bdbe3055-d913-4fc0-a1d3-aec7af1d5e15","block_type":"box","text":"relevant to a company’s business.","page_number":207,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"524c1413-c5b4-4a1f-848a-8f1a73be00b1","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":207,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"22411b5d-5b65-428c-af81-dc8b999bb991","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":207,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"655ba431-7b60-4a58-ba38-cb65f87f81e5","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":207,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"b6ae1275-8789-4f98-a3b2-076bb8917a09","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":207,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"921f46a1-3ac9-461c-ba44-ec3404dfaba3","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":207,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"93f8c127-bf20-4ce4-bec1-1b66c806588d","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":207,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"0413de11-1d9c-461e-987e-8d5489413bb3","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":207,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"3b0c6925-c8fa-4a9f-b308-3ec2e9c48daa","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":207,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"00ae8385-9dc5-4c21-9e1a-41fd3b7c7666","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":207,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"4d663e4c-42bf-48ac-a5bb-24a96824f2e3","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":207,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"44003b3f-20fd-48bb-bd75-cf57540e3985","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":207,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"35c1c14f-1719-435b-9f23-66bb1d92f665","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":207,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"1a55d2e9-0aec-4526-95d4-fd7812474a4f","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":207,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"5165e1ee-e9ef-410a-9d2e-c8b5001cec5b","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":207,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"b3dc646b-aac7-4bf4-860a-2ee5f5cc1cac","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":207,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"1bb04beb-99c1-4a52-ab67-608f1f1093df","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":207,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"0c609458-1ab1-46c2-9e02-4d35f0ca88b8","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":207,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"377b63a0-750d-4026-ac28-1d2ef34f53a7","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":207,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"63a9c487-313e-4edb-8ae5-28c850a69b33","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":207,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"88d405a4-3950-48ab-9d4b-d920388f95ef","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":207,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"7f66f8ba-c791-4da6-a752-42d1f5c7e85d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1302cbdd-94e1-4008-bc0d-1de4d817dcba","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"5f7cffcc-1a00-466f-8984-9ae449fe06bf","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0bfbf9e-3f3e-4492-b073-8b3aeb3ecb87","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":208,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"ab3a5966-c486-4b56-a907-ce42038e2dbe","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":208,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"d93f0d7d-439c-4140-81b3-c1ae304fd4ae","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":208,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"11506d74-3143-48ed-994b-57d6ee36177a","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":208,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"f244edb3-4d01-4c9c-9547-fecb3f1cbbee","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":208,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"cced8b0b-8a96-407c-9c1a-2bbf949c85ae","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":208,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"030cbf6a-3c64-4bce-b85b-e3486b476998","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":208,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"a951a141-d6f3-428d-ad7c-12369ffcd257","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":208,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"38763f0c-4452-4529-8965-2ee9c83dcf55","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a97afb11-c7eb-42f6-930a-0b81efca9e01","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"d56341b5-edfa-4afc-9edc-ac0cc08dbd05","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac460f4a-d439-411c-bf37-f97d3b80532f","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":209,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"ec98cb7c-97ac-4360-a9fd-6d642b38d460","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":209,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"c1141913-34e2-4f12-95f2-5dbdf3c884dc","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":209,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"242b0d66-d237-433a-8471-8ff587768906","block_type":"box","text":"11","page_number":209,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"fb7fc287-d79c-4c09-9ffa-8c4e6ce368da","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":209,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"c975b888-13c0-4111-bc38-66233526a1bd","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":209,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"4cae8dc0-4fb0-4c3d-857d-164e96f1540e","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":209,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"3a7e2f3b-2289-42e7-863b-98b76e45aea0","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":209,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"23aacbae-4c13-4c02-b8c9-960de294ce96","block_type":"box","text":"regulatory requirements.","page_number":209,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"f29ea915-710f-4b2d-b912-6dcd76af4959","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":209,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"c7765147-f511-45e0-90fc-2445a18eb170","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":209,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"8b6648cc-cbae-4093-b4f6-03e66dba04b8","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":209,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"62ed0f79-6bf4-400d-831d-81452eb1cb9a","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":209,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"70df36a8-6f24-40d6-a293-58d84a269e5a","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":209,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"faff7a91-0b0b-4ba0-b538-6fa98d27cb0e","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":209,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"b371844d-3aff-4825-bf38-f96b9a4aa4e8","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":209,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"d99a7ad9-cac1-4915-aac2-f93acf75fa43","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":209,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"21f9361f-4cbc-414a-a2bc-2f5b880a4aaf","block_type":"box","text":"returns.","page_number":209,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"ca5257d3-2635-4f3e-8bf3-e3b8683266ea","block_type":"box","text":"KEY STAKEHOLDERS","page_number":209,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"fd180ecf-1cc0-48e8-9f37-73abb99f067d","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":209,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"c39435db-34d8-4307-b41e-093451c804c1","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":209,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"fc6028b8-d993-49e3-9eaa-c5239b7ec7ad","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":209,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"ff54fd6d-1deb-4a9c-9233-c62df85f57af","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":209,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"8db16b53-5219-4783-91ab-4d89dfc7c33a","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":209,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"7d9fd0b6-6621-460a-a6aa-fc40310c138a","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":209,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"77f4d8eb-169c-4141-84af-d2996f3fafe9","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":209,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"ba191727-9870-445c-80ab-1feae6a03b09","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":209,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"a5333ee6-4206-45c3-9d67-968d4e388c1d","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":209,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"c5a99e57-3a3a-479c-b89a-a103e78a4b74","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":209,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"3ffb0475-2087-4a8d-a1e1-9a8e4a919364","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":209,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"c85a6ace-f8a7-44b9-a0e0-eec09a054fe4","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":209,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"e7e4d8cc-3245-4125-b9b6-11f63f4ddbf9","block_type":"box","text":"i.e.","page_number":209,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"7e8546c7-0a99-4bfb-b049-f9d8e789b7e0","block_type":"box","text":", one in which global","page_number":209,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"81b79908-a411-49b9-b7d9-c3c6262323a0","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":209,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"48c7c78c-22ae-4932-925e-b5c1c38db4a1","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":209,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"aee01b00-bb4b-42af-b318-20c5c6973020","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":209,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"1ae27c63-66b1-433a-b0bf-300f6ec94120","block_type":"box","text":"client.","page_number":209,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"e63bc720-6dbc-409a-b596-a4687cc21669","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":209,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"23c5dff4-326d-46e4-a642-0b8b2f8b3c93","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":209,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"91bc7875-1171-49ac-b909-1e928d9fb1b3","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":209,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"6d91d527-bc3e-48cd-a239-ec218401940f","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":209,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"1397d8b3-500c-4b85-b65e-5c85d461787f","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":209,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"19eff20a-d4c5-4528-b7a8-c4d30f970e90","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":209,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"eaa8bb3d-6404-48e4-afb8-55ced696dada","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":209,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"1613d661-0b2a-41d1-9a9f-cd40778b5c4d","block_type":"box","text":"1 and 2 emissions.","page_number":209,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"59f2a442-b98e-49eb-86b5-6a21c333c12f","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":209,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"e85a8aea-5274-465d-979b-f8c2ec5a7ffe","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":209,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"081e6b51-73c8-4160-ab51-a90e847d3519","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":209,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"909c18b0-f4ab-4383-a6bc-c4a1d52ea277","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":209,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"33d4de08-ae89-4eb6-9b86-8e56e1183f5b","block_type":"box","text":"11","page_number":209,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"caea321a-78e9-42a5-b68b-3dd4bb67c36a","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":209,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"7e18c3b9-a03d-4ddd-984f-8733dd286b67","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":209,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"717cb66c-7001-4adb-b807-9452e7631f8c","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":209,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"3f797ae0-a386-40c4-9b2e-eb5a1d789763","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":209,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"cfab2564-bc9e-4270-8e65-955ca4b18a46","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":209,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"80c7d3a1-5457-4d69-82b1-5966076621e3","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":209,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"3467c2f2-5792-4cea-a6a9-5dfd1a0082c7","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":209,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"8af75836-5eea-4928-9919-a86bca323276","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":209,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"e271b4c3-5b13-4b0b-a1e3-eb1bf33da8e7","block_type":"box","text":"sound governance framework.","page_number":209,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"ddb07ea5-7d10-43a1-a6f9-9ea96f13840a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7c8fbde9-3017-4fb0-8814-5962efdaa605","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"283cd007-ca7b-4d6b-b7c8-ac402d2f45b3","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"705819c6-bb8e-4aa7-9a7d-eb2be64b541c","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":210,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"ac06d772-eebb-4528-8989-209a3970d4bd","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":210,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"a6cacd25-442a-47be-8c7e-d934281cd1ad","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":210,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"6270476a-3b67-44bf-8c14-09c8152658ca","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":210,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"de974fe2-7f51-49d0-a27e-3cce1dc94bc4","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":210,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"520e43e8-37a1-4fae-b769-d8837de15c7d","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":210,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"b3589e48-0109-423e-91e3-09a97efda86b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"36cb0224-b8b5-41e6-bbd8-50394920a495","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":210,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"fb708334-c0e0-48b9-b50e-3f80dc7c16b3","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a7c18d1-a182-4f2a-9e60-38e36d95a530","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":211,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"60d266a2-4677-4b78-8911-e3732a80046b","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":211,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"2637aa43-d177-47db-af82-1168157a0830","block_type":"box","text":"Oversight","page_number":211,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"1d589011-bee5-458d-96d4-804ad2f4c821","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":211,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"572b1373-e19a-4464-9753-f080f7a1ba3f","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":211,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"62c30104-1c95-4947-b042-e6b4bf65047b","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":211,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"46be45b7-2e7b-4cf0-9efc-e484ede64159","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"3651396a-e165-48fa-972a-34fbd7da346b","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":211,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"47b504b5-dc00-4f7d-8c7f-bbf5ba1031b8","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":211,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"433f5bc0-306b-4c90-b520-8236f5c91fe5","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":211,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"be56736d-d240-44a9-8fb8-b6b941ec80ba","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":211,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"3013b8d4-a081-465d-9272-606155cb406c","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":211,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"e638e359-b80f-4054-b287-cc4b1649dfd7","block_type":"box","text":"relevant active equity investors.","page_number":211,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"a643b9a7-2a0a-4ccf-8af1-0eabff129dbb","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":211,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"18ad4240-3416-4440-8fda-f3670126aeaf","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":211,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"70fc43f4-bb25-4d40-9501-c0182fb37a47","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":211,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"618bfd08-e3f2-4332-afec-3809c586455d","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":211,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"205dcd54-e220-4c10-bf1d-098426013218","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":211,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"3737115a-7b47-4125-be19-738d4ecad491","block_type":"box","text":"third-par ty vote services providers” below).","page_number":211,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"4103a602-110b-4fb4-bc54-8f9ff1cbd6de","block_type":"box","text":"Voting guidelines and vote execution","page_number":211,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"1bc1e4f8-2549-4760-8304-5e62bc4aee4f","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":211,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"ff6a2590-3295-4f95-b489-1151ea335cd5","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":211,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"e9c26d77-3243-42a3-a310-7959f9288617","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":211,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"508d46bf-7253-4478-bf7d-beca21897402","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":211,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"b5f12c82-eaee-46a4-afa6-1a91760ef397","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":211,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"78328a4a-5cc2-475a-a007-661877a35934","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":211,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"bbd22ed6-19d0-41b2-a918-fdd2afa5415f","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":211,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"14651640-6782-4fa3-a568-27e2a088c21d","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":211,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"d7119d23-1cfc-4689-a2a5-d61d75157c91","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":211,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"c942fcde-00e1-4d2f-b062-04dd1db316a3","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":211,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"2ba3c120-1172-42b8-8587-801f09342c52","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":211,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"b01116fc-d8e2-49f0-a7e4-a415c3166e84","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":211,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"30c78656-1d18-496b-ad75-22b97183adf9","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":211,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"c27f6010-99ae-47e6-a348-ba35a5f4cf29","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":211,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"9c139019-3063-42fd-a087-5aa7abd20a11","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":211,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"a6556521-39e7-45c8-b118-b2c3144c2917","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":211,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"d5e015b9-8425-4465-9321-ac43daca3b59","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":211,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"f3dc59eb-1a46-4711-9bd4-ac7e613e38ed","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":211,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"26f79097-529b-41f4-ac10-3d0730f06a5f","block_type":"box","text":"well as the desirability of voting such proxies. 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We are not suppor tive of impediments to the","page_number":211,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"c185010f-15df-4616-a0f3-0922de6a61fc","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":211,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"ab6105f7-8961-4ca2-b638-7c643ad4d8d6","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. 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In addition, institutional clients in","page_number":212,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"959c984c-85dc-4359-83ee-80c487dc762b","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":212,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"72a894de-83af-45f8-8b2f-ade794b5dda9","block_type":"box","text":"strategies.","page_number":212,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"ee460f37-3df7-40bb-ad2f-9c067f5f72af","block_type":"box","text":"12","page_number":212,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"68eff5b8-6cce-4e9c-abbc-5ace1b32a54a","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":212,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"b50c0717-964e-4c8e-accc-58669972462b","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":212,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"4839a5d3-30d1-46e2-bdba-e2cbcb205e1c","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":212,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"c483241c-4916-4124-987b-7b2c41d894d4","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":212,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"1ccae3f3-25c1-4986-b280-23b9d5c92550","block_type":"box","text":"13","page_number":212,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"51903681-6f05-4c65-ad90-32d1d96ca723","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":212,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"7ad6e45e-5285-4c67-9019-42453ce65780","block_type":"box","text":"Third-par ty vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":212,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"fb3d6029-315a-403a-b740-5cf06d4e4f7d","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":212,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"833c9de5-9b95-4f42-8831-4a9dbec33862","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":212,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"1fac5d15-5ec1-4fa4-aedd-33e1159488da","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":212,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"014c661f-a415-4c42-b881-9ab771b6624f","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":212,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"63548044-e850-47b0-b158-5599330c78dd","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":212,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"2bd52e93-15cf-40a8-9a1f-69a749cea5c7","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":212,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"ebead786-b497-43ee-a827-46ccafc7c08c","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":212,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"d9eb87f9-846f-4381-9b36-7c77ba34b521","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":212,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"4559b533-17ae-4062-b93a-1b6eb1b1956d","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":212,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"39941942-7d77-4194-aabe-d619751450b9","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":212,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"a7e1233e-c8f8-4c10-ad31-282f57b1d8e3","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":212,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"4f27a806-f084-41e7-9bb4-a329cc001003","block_type":"box","text":"monitor securities filings, research repor ts, company announcements, and direct communications from companies to","page_number":212,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"d6702141-974e-4b82-9c51-5dc3d7229613","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":212,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"94538eb6-2f65-4701-bcef-1212cf51e671","block_type":"box","text":"BAIS closely monitors the third-par ty vote services providers we contract with to ensure that they are meeting our","page_number":212,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"18dec479-9784-4e72-857f-81f12df2c691","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":212,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"893cf3d7-7176-4d58-9d1a-ad8700413d39","block_type":"box","text":"interest. 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BlackRock","page_number":212,"box":{"x":102,"y":689,"width":163,"height":11}},{"id":"fc105e8c-237d-436d-aeb3-d73ca58a3e36","block_type":"box","text":"BlackRock has taken cer tain steps to mitigate perceived or potential conflicts including, but not limited to, the","page_number":212,"box":{"x":102,"y":707,"width":785,"height":11}},{"id":"ac11d0db-b75f-466f-bcb6-c123159ff63f","block_type":"box","text":"following:","page_number":212,"box":{"x":68,"y":722,"width":66,"height":11}},{"id":"74ae1aa9-f55c-41db-b5dc-95b8ea69a9d4","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":742,"width":6,"height":5}},{"id":"6bf15478-bd46-46ba-8241-b08ef8bd6f0c","block_type":"box","text":"Adopted these Guidelines which are designed to advance our clients’ long-term financial interests in the","page_number":212,"box":{"x":101,"y":739,"width":741,"height":11}},{"id":"91881a77-26d1-4a3e-86c2-703b44d1cba1","block_type":"box","text":"companies in which BlackRock invests on their 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In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":215,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"20dfd3ab-6f7a-4ce2-98b1-ed0d5bb46935","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":215,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"6d6a5e7b-b74a-4893-9d71-8ea3b9cd7d66","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":215,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"e5def346-7f30-43f0-83d2-b2e9629f20c1","block_type":"box","text":"Appendix A.","page_number":215,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"7292a095-527e-4bfd-a0e8-9b44e55d9f26","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":215,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"8bdcb5b4-c189-4284-a52a-9ee77e04a4c8","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":215,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"b8659d4c-9c6b-445d-bafa-a978d91ba914","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":215,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"80a42ec4-1796-4a3d-bccd-9522dedf6bd8","block_type":"box","text":"Conflicts Management","page_number":215,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"16ab797c-9f83-4ed9-9d52-33263a3368bd","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":215,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"1c426299-af05-4a8e-89d6-7077f16e5360","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":215,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"7e88a465-6da3-4486-af97-395e5717a3d2","block_type":"box","text":"proxy voting responsibilities. 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In mitigating conflicts,","page_number":215,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"82b9ccac-cf88-4782-ae2d-f2df5ef32c35","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":215,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"96d54344-b5e2-4091-a225-717dccbf7ac6","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":215,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"68022431-a35a-40fd-be7f-e8609f2eb327","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":215,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"e1b3cc0b-d674-40c7-b966-e15a597659ae","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":215,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"7e608955-832c-4e0c-91a0-a7b65a561c29","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":215,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"b6552cba-0a0b-4426-bca7-35ed99405eea","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":215,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"adb1a96b-fd83-459a-befc-87732109cc5d","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":215,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"2126d8bd-31dd-4ba0-a2c3-29d010581401","block_type":"box","text":"connection with proxy voting.","page_number":215,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"d949774d-c534-445d-a163-8dba8579a359","block_type":"box","text":"Reports to the Board","page_number":215,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"45aecbab-60b3-43b8-abd9-8b0f923c59fc","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":215,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"229a29d0-b6e9-450f-b4b7-8eb6ed770ad4","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":219,"box":{"x":69,"y":171,"width":451,"height":11}},{"id":"f93a6b0d-3dfb-4534-a427-6481b4adae80","block_type":"box","text":"in which clients are invested to deepen our","page_number":219,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"66866b78-2153-42c5-8580-f1fc37aca5d0","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":219,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"1f2cc62a-065f-4485-a090-30c68f7b1609","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients.","page_number":219,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"3416ee61-75f7-4189-ae5e-eb81b9046944","block_type":"box","text":"1","page_number":219,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"8439fe28-c854-456d-b5a3-5869cff59d3a","block_type":"box","text":"2. Voting at shareholder meetings","page_number":219,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"9a5f02bf-19f5-4606-b416-a69b46c87d97","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":219,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"37d4579a-b64a-48cb-be5d-ffa978d7c6cf","block_type":"box","text":"to vote on their behalf.","page_number":219,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"edb3e867-d2b3-438a-baff-5a711a432050","block_type":"box","text":"3. 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Reporting on our activities to inform clients","page_number":219,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"8effda3e-b7f7-4f0e-bbfd-58233a942dc8","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":219,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"f8631f7e-62e9-4f8f-bbaa-b3f92dc2d895","block_type":"box","text":"publications on our website and direct client communications.","page_number":219,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"4ee4a4aa-09e3-481c-a919-596c93ceec62","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":219,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"e8d3173d-eaee-412e-973b-5432c600471f","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":219,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"66e7d45a-1baa-434f-bbdd-2b3fca206e0f","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":219,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"563635a5-9bd1-421e-9156-ec1097284aea","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":219,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"5d8f5582-f8a8-4ee6-b981-e69305ad432f","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":219,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"7ce4c7e9-703a-45a3-9214-e544de0bcc8d","block_type":"box","text":"2","page_number":219,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"663004f4-5836-4f54-912e-3a44f355bf57","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":219,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"48dd2682-2b33-48ec-90f6-104841f7a7a6","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. 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Our role, on behalf of clients as long-term investors, is to better","page_number":219,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"15a3cdc9-1e6b-4736-81c4-2efb0fd2db8e","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":219,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"4bd7fccb-dcf1-443f-852e-9966ee5808ec","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":219,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"21cf8cad-87cb-4776-ba76-1d26a46ae58a","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":219,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"beb3befd-940a-4f96-bf64-82f90e19a07a","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":219,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"6fc7dce9-f230-47ea-8692-9892671e4c61","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":219,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"975c38e7-0c01-4f5b-8f8c-5969046255c1","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":219,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"0c2ef93e-1fc8-401b-87e2-71660a626c10","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":220,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"5a36ddc1-020f-48b6-8e65-d90e6011ce83","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":220,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"ab6b0f99-cf06-4448-9b26-792d05113c1a","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":220,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"d838106f-7a9e-4ef3-bb03-f7f20a40a432","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":220,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"4ae7e7d9-2e6b-44c2-9fb0-ebf5df216f04","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":220,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"6e3c3bee-54fa-4d2f-bd9a-b63f5c3cc46e","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":220,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"180b1cbc-460a-4124-acf8-0d6233e53205","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":220,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"e7362420-91a8-47a8-b074-be2649c9903b","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. 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These are topics that shareholders may have","page_number":220,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"e31b455c-f2f0-4c9b-baed-8e35daefa42f","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":220,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"2db578de-2b9d-41d5-ad4c-b3238262563f","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"7db55af7-cb17-48ea-9dd6-cc9ee330c161","block_type":"box","text":"Boards and directors","page_number":220,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"bc7ac9e4-a37c-4261-b2a0-1a1942c533ef","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"3ae2222c-ae92-4673-85e7-104d50191b98","block_type":"box","text":"Auditors and audit-related issues","page_number":220,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"5d1223a0-b774-4aed-8534-93eb59c57eb1","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"6add8d6a-a8c2-4cd4-8071-1145fcd83c47","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":220,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"7cc17841-0ce6-4f05-a115-15ff8d6da489","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"56cd8da9-c88b-4ea9-92fd-2313f4c7ec99","block_type":"box","text":"Executive compensation","page_number":220,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"58a5302a-a2f4-4b10-b735-aa0efd58da6a","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"0be77b68-5ed8-450c-b8a8-0a6ac1213d33","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":220,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"0d5ac0d0-9204-429a-98e7-0a894b5e6054","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"7e29b72f-1e22-4032-8308-06a139fda14d","block_type":"box","text":"Shareholder proposals","page_number":220,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"016f3238-0620-44c0-ba30-4a90d7de7335","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":220,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"7da67540-55b6-471e-a393-aad04410778c","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":220,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"62f125c7-a120-4da2-83a8-e24d7c845d73","block_type":"box","text":"which companies operate.","page_number":220,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"ac8d402e-c0a0-40d6-92ec-4afbdf81c32b","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":220,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"f207d515-1ec4-453e-99ca-d60adb1e3e3c","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":220,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"190ff2ce-a9b7-40a1-bcb0-d407ce980289","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":220,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"b2134052-5ae9-4a00-96bf-0e3aeede1c17","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":220,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"f8194cbe-1291-4c27-bedf-5c32820f6a2b","block_type":"box","text":"4","page_number":220,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"da1f8433-5b3f-4383-b406-92cf12edfba3","block_type":"box","text":"3","page_number":220,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"0fe152d8-f3ae-4d35-9557-b47bedae80f0","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":220,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"5b13f584-bdd6-487a-bc38-ca359f1e5321","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":220,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"d24aadd8-91f0-4f23-8e91-323627aab568","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":220,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"71be94aa-ed66-4f32-b50b-56df6e68a649","block_type":"box","text":"4","page_number":220,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"499d7825-d4ec-4ef0-9d3a-cf39a4242573","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":220,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"405fca11-acea-45b6-82e7-cd2a60acadc7","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":220,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"2c55696a-651f-40c2-a7fa-01d48025f06d","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":220,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"781f09b2-c4fd-413a-9722-b53ea5a98f4b","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":220,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"f458b23b-6047-4e82-b184-fe71cc18b6c7","block_type":"box","text":"guidelines.","page_number":220,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"9b87365d-5f07-41ed-ab0e-8e4bbe4c4325","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1e7266d5-e498-4bc4-b5ce-8a8ed4161979","block_type":"box","text":"Global Principles | 4","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4760ebb4-dcf4-4f32-8a2d-1191aa195730","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93449cc0-4d52-4475-8933-56413f5421f7","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":221,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"417e56e4-1753-4a47-abe0-be614e91b234","block_type":"box","text":"Oversight role of the board","page_number":221,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"015b4765-61bf-4be5-81c2-524c6c92e5c3","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":221,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"74b12ffc-2641-4e8c-bc69-f3998b39d663","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":221,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"06bb3b33-2335-47ce-8d25-e7423fa88679","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":221,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"45fd5862-6def-4f9a-a7b0-0bad716f95c1","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":221,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"f1f0a27f-8942-4161-ab37-143705c8e085","block_type":"box","text":"long-term financial per formance.","page_number":221,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"65afecf2-37cf-4a1b-8c8e-9cc6f2308810","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":221,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"222a2979-1069-414d-8d7d-0cd8b2ff3293","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":221,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"0a2b8976-a94e-409a-a691-04af4ad5acd6","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":221,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"f95e849b-c14f-447c-9b8f-072b645de9b4","block_type":"box","text":"the business environment in which a company is operating.","page_number":221,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"db023c4c-00e5-49f5-b0dd-bc8c1a5f2e23","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":221,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"3cb6d3e1-3ae0-47a6-91de-0beab129c3e2","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":221,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"504c96b3-0925-4883-927c-9854c9e6b3b2","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":221,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"e9241327-0f5b-40ef-b69e-c528a2e8b798","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":221,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"5ad0a0bd-42a1-4823-99dc-27955737a5c1","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":221,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"be2440de-40ae-4fee-95d5-834324c73d49","block_type":"box","text":"mitigating such risks.","page_number":221,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"40138881-b3f6-40a1-aed1-4c7b658a9048","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":221,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"93b0b5c4-475d-4687-af61-07e164a5d9d1","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":221,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"74837505-29aa-4293-81da-29d0396f06b4","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":221,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"c44bb6a1-a8e8-4d6d-bfcf-a910713c5175","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":221,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"ee0d380b-6bba-4641-b69c-b25c4af4d00d","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":221,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"0c6c45e0-64a9-485f-b295-9cc28520ae4f","block_type":"box","text":"strategy.","page_number":221,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"973b23f5-0ed4-4c6f-b415-41694ffa5d9e","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":221,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"a5408657-473b-4692-93ab-745e6f9c6944","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":221,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"9ff89bf3-4802-4346-a5ae-afc653902760","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":221,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"ff78ca89-c393-4128-865e-a8107c4deb90","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":221,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"9fb98349-9566-4d4c-8b4d-73d12f63e456","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":221,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"53bef9bd-ca9e-4cc2-bb52-d532f21a516d","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":221,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"d9f5c5de-955c-4449-8379-d4ffd05d6937","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":221,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"a8e47b09-4d41-446d-a2e8-582cbc411286","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":221,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"1afb8714-da20-4913-8866-71e447f59f8c","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":221,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"b75caeff-2ee6-4dea-a7f6-b6560867e82a","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":221,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"5228ea2f-3a85-43bf-93fd-c1d20107f1fa","block_type":"box","text":"Regular accountability through director elections","page_number":221,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"1c52ccd3-c313-4f0e-8295-4a4fa21e8b1c","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":221,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"458d32dc-bf77-44f0-9b26-f4f4c0537b53","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":221,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"5cfe160c-26c6-4a27-b4a0-a1cd16a816f8","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":221,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"aec3a106-4559-429f-a99a-0c4a9ffec2d3","block_type":"box","text":"5","page_number":221,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"82a04e5b-1ec6-4682-b5f3-8c1b8e784cbc","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":221,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"c282c387-a6f4-49e4-9f7f-90d8c77cdc0e","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":221,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"131f7ad8-833f-4654-a1c7-c6080629b23e","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":221,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"d6155870-f3cc-48ee-95da-ad65df700ba6","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":221,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"2a071f1b-19b3-4c9a-987f-3dba7051549c","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":221,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"de5d9a9d-61c2-47d8-bc4e-4d9512288d0a","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":221,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"ae0e171d-f791-4a2e-be5a-d3b51343dcf2","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":221,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"09f83574-4557-4b7e-b69b-f80e6e3dcae1","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":221,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"fe4c4161-8fc2-428f-afe9-80a7b8755dc8","block_type":"box","text":"5","page_number":221,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"17218c58-2f79-40b9-95b0-3473e4973d54","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":221,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"8dbec46e-696a-4ec1-bfc6-28c62820a3a5","block_type":"box","text":"market regulation or voluntary best practice.","page_number":221,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"fdc2bd4e-9205-4b86-b912-4cc7779aff41","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f8c719d5-f851-4384-98ac-990aff1cb587","block_type":"box","text":"Global Principles | 5","page_number":221,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"e425d70b-d5a0-4a62-86e6-e72fd58d445c","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b40ecbfa-5e0e-49d5-9ccd-d633aca97de5","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":222,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"57cb4c4f-dd1a-4cd2-94a9-5eadf7bef33a","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":222,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"d9ad9a83-d5c9-44b3-b900-a41db46c66c2","block_type":"box","text":"recently.","page_number":222,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"d4b2600e-be31-44ed-b858-5e9e1115f57c","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":222,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"bd5b3854-d585-41f8-bc68-cf46643d2414","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":222,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"ff4d768a-1e94-416e-8ec7-157cf0dffc32","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":222,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"67b8e635-b33f-4c2e-a212-63ad90a1eb86","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":222,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"24b3cdfc-d6d9-4869-9c2a-f7b6c4dbfe7a","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":222,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"174bb14f-20f6-4eb4-ba46-2d4bbef2e96c","block_type":"box","text":"Director independence","page_number":222,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"560fb18d-e7f3-4afd-9d61-9390d55e98f6","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":222,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"5796dbe4-f1c8-440b-b89d-b9b31db97f19","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":222,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"de4bbc72-312c-49c7-934d-796cc683c1ee","block_type":"box","text":"6","page_number":222,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"a0a55588-109e-43bb-b516-508dcb4338cd","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":222,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"bd4d4bd4-4c05-4460-952e-7f28325d5147","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":222,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"69bc9310-250a-465d-9e64-93ca9cb00d4b","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":222,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"a794ee03-89c3-4b8f-881f-b6b3185d2230","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":222,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"a5ae6a39-dd2b-4599-aa58-e0ea4071f32a","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":222,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"faaa715e-c610-4142-ab6c-dd09722be595","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"d99da580-4b65-4ca2-9183-d63b078665ae","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":222,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"ea82996a-4760-4f7d-9c8f-20208c508374","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"d82d02c3-d4d2-46b0-a0a6-2106db6c7b83","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":222,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"9d0d2958-1a34-4100-98d5-57b0f1e1250e","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"4a4ab404-d3db-431f-bd53-a259ee383978","block_type":"box","text":"Interlocking directorates","page_number":222,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"be63d858-43d2-4581-9bf3-cbd825c44538","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"7ec766c1-f900-4953-b4a9-fd9e0ea59abf","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":222,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"3a55c544-0495-4ad9-93c2-0f076d8d7b75","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":222,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"45494ec3-ad63-4c3f-8c37-fd15e03c0f00","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":222,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"d8ca5f26-5616-4dd0-993d-f59c4e806893","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":222,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"3cef1aa2-d986-4d99-97b2-6fa4ecdb9925","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":222,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"e3ca8c0c-0d11-4868-a36b-c8118f46b404","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":222,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"a0d969cf-bc53-40c8-ad90-d7ac8532e97c","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":222,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"21b1a26a-be08-4591-8d2e-4ab511610876","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":222,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"58dfddd6-8a4d-4525-b881-cd8333d7bb08","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":222,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"b7593e6d-0461-488b-94c3-5e746809807d","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":222,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"ddec6869-9caf-4580-a74d-8911e5112c0d","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":222,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"8496223c-dd25-4bef-8ba3-3fd0b761f3c3","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":222,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"02a1a3a2-d18e-45e8-921f-8d6d001d8f5e","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":222,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"eb38be73-ea39-4756-8c09-e106bc336fcf","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":222,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"1176e38a-be3b-41e9-8e41-9629edc731a4","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":222,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"c44b27c5-4617-4d68-b74c-eab01c588b22","block_type":"box","text":"Sufficient capacity","page_number":222,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"a9b1e302-c39e-49d8-ac6b-fc444077a9f3","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":222,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"6373d052-e1be-4d81-934b-94a99449bc2e","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":222,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"776d1d50-8fc6-4b23-8a0e-8540716f3118","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":222,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"16d6af4f-0955-4b96-93cd-f83c0858eb2b","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":222,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"ceabb544-9106-4b83-be9d-44485fcc849d","block_type":"box","text":"Board composition","page_number":222,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"b3597ebe-0d68-475b-8e57-f42ba2e754cf","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":222,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"2aafa48a-8fef-4b5a-b0fe-e72ec0258114","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":222,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"fa25e4a0-9656-4891-ab93-b2cd4b085621","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":222,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"b69fcaf8-5d5a-48a3-b32d-d8810652fc02","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":222,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"cd77fc98-c365-4f26-a21e-fc0fbd2d96bc","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":222,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"d8982523-336e-49c2-a939-caf9ed214d20","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":222,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"1570f360-efe1-4678-b1f3-3c96701b5456","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":222,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"4c77855e-637b-498a-9857-bbf299e23c9d","block_type":"box","text":"6","page_number":222,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"1845fa67-9249-4f91-9638-74be83c159b9","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":222,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"d326301b-13cd-41c6-96da-83d2114eeba6","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":222,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"67447569-d11c-4d18-a9aa-1f7ee42cc0ba","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3a2b3da1-f90a-4b13-8403-61ef44a840dc","block_type":"box","text":"Global Principles | 6","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"8e9fa73f-1445-4719-96e8-212a92533225","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e82a2473-5158-4beb-b729-9205a382690e","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":223,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"fc58a1b6-c4f7-4397-878c-39506458b4a9","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":223,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"90a02c7f-2c72-4d0f-b9e4-65d1a2123c4e","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":223,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"4c6a4d2e-6df4-47f8-ac39-03490e5dd176","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":223,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"92af8dc7-1fea-4bd3-b49c-215fe964d1e8","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":223,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"8c8240ea-5ed9-49af-a92a-5c0871e24002","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":223,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"98ec159e-46d4-4a50-b28b-b716821422e3","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":223,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"171afb4b-c7de-4e5e-b3af-15aad47f4403","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":223,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"9164e32f-341b-42e1-988b-aa464356a1d3","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":223,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"5c5f701a-490c-4e54-96cf-ff772c6739b0","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":223,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"0fb28272-009a-4340-b3bb-5c4151f00f2b","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":223,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"6aa1ec0b-d69a-4f60-91d2-6899eb9a94d0","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":223,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"3bb37157-2d0e-4a44-980a-299ba2d564f3","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":223,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"fc7f0dbd-dc95-44a8-8c73-585905008abc","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":223,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"5b080225-c886-4c03-92a4-b8d80f387a35","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":223,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"a9a74267-de49-452c-946e-bb53a0393167","block_type":"box","text":"systems.","page_number":223,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"664c8389-91da-4e05-85d8-05e778ab02f9","block_type":"box","text":"7","page_number":223,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"dcf6cae2-1c46-4a3c-844b-dad6153353b1","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":223,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"2930835b-7be2-4e91-8261-4bcd25677bd6","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":223,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"0068cf2a-281c-4536-a273-079114657d1b","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":223,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"2d0a00d9-be51-41c6-916e-58e9fdd019c8","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":223,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"ffdcc018-d61f-4aa1-bbb1-e324effacebe","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":223,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"4788aecc-5aca-444f-8d85-083784ef15a0","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":223,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"42b497a9-da9a-4ab3-81da-5aafda0fd7cf","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":223,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"7766d270-052f-4159-afb9-eb351a3f18ac","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":223,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"53b94769-9df8-402d-9e4e-37c55533d2c6","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":223,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"3a879112-2761-47df-90dc-14b8986d6a98","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":223,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"9e6ecf6c-bdc4-4ad8-81fc-53121599ea36","block_type":"box","text":"or internal audit function.","page_number":223,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"ccdd744a-74c9-4658-9867-47fb0d41cf5b","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":223,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"d4661a40-2e96-48e8-a84b-b24041cbc049","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":223,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"3465f895-fcd1-4838-a811-73ed7cf3e530","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":223,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"94642c2e-630b-4091-8dbc-44fb7d3a5536","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":223,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"9ca91e16-a126-4a89-9adb-2b65c58bae8f","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":223,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"bc8909c3-d800-45bf-a2ae-b89ca79cb581","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":223,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"6f1dc164-f49f-4595-98a0-e8f890aa7844","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":223,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"bc7a70b4-19a2-4d0c-8b03-78dafbd50db4","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":223,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"57e0db40-5f00-42f2-b96c-a49f7e7ab9e5","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":223,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"df95b4bc-99f7-4e06-823f-d5b50da05aa6","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":223,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"1a9260e8-ba47-451b-abdd-cac7e92ce74f","block_type":"box","text":"risk.","page_number":223,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"944f091a-289c-4fb9-87fd-241b0e3cb73c","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":223,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"093b83f8-3b01-4598-ba8c-17b909c66762","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":223,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"82fab1bb-a321-4ea1-98f7-ad13efdbf73b","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":223,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"e9e2966e-19a0-4b6b-9837-a90333545ba3","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":223,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"37a06aa8-6065-4968-b581-2acaf9e938f2","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":223,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"44013fb6-2d93-4842-b689-b7317b85bfbe","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":223,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"2fa23420-09f3-4dbe-92ea-301d4c4ed080","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":223,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"9d86fc93-e455-4b76-9d2c-01a096b46403","block_type":"box","text":"7","page_number":223,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"e77c4aef-2633-4312-b5b0-f973a577c494","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":223,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"ad60a849-2436-4225-88d7-f5a706391019","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":223,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"5bf4eb85-f66a-4fc2-a82f-046093231818","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":223,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"b694c19a-0607-4b1d-8ed6-ac1d9726e8e7","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":223,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"560a3f0e-6065-4930-a4e9-92ae8200bfad","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":223,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"f3e6fc04-d41d-4eaa-bc4f-54803500db7e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"81aadd27-a5aa-4fd2-8b50-28f786c06c97","block_type":"box","text":"Global Principles | 7","page_number":223,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"3d101c55-7e02-423f-a923-b6d644cfbeee","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"067bdd23-a464-4c90-ae60-b7c5098c08b8","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":224,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"cf797f00-70cc-48a1-a63f-b1665a46992b","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":224,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"75ba7049-ddb3-4204-86af-e4cc19a241d2","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":224,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"77d363dc-01fd-4bdf-aa7d-2e1af8f1c0b6","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":224,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"ba59c9f8-6234-48b4-9576-e67e4b6b9b8e","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":224,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"30b83f17-de99-411d-9e4e-3b446d74f5cf","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":224,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"0ff88cca-6eb4-4aa0-b7d9-0cc69e8fe966","block_type":"box","text":"minimizing costs to shareholders.","page_number":224,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"e46d518e-b2c7-4cdc-a14d-45de6f0c64ed","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":224,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"93270b15-1b97-4c60-bccd-a7d7d9d3424f","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":224,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"6ba9ddb9-c5cd-4b37-a239-ffea7afa47a9","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":224,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"cdd9f11a-670c-42b5-a60c-adef639b4ede","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":224,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"aecc013d-0251-45e2-a7d1-4347e18529f7","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":224,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"422fc2f9-0f2d-4790-bb03-6fe7f564ec16","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":224,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"e352cec1-a0ee-49e7-8ca5-f7c6c1fec8c5","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":224,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"bcf15dbb-ceb9-4297-8fc4-9ebaa8c44d54","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":224,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"79649241-9aa7-4f01-a830-061fd0f0cb9c","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":224,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"61d98aa0-e7e7-4ecc-a445-2f80c6fc12c9","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":224,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"fc1bf5fb-9e77-4936-a2c9-04380cd2d668","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":224,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"ec52b6a8-5413-47d8-b165-398e3ce78c60","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":224,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"22e531a3-82ae-4d7a-9864-17327d006601","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":224,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"6dc33c62-8ad5-40c2-958d-c4a04326726e","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":224,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"8003003f-5777-45a7-86cd-fade12c96105","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":224,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"0ee0ec8f-e03f-4889-ba3d-1b299c3e1d16","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":224,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"ab61135f-490d-4bcf-a500-89e13446763d","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":224,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"e2b4978b-d92e-4dfd-ac33-a02dd5068ab7","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":224,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"ff86f647-85e6-4c39-a2ef-47ac64eb7f38","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":224,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"c283aa1b-e884-4e1f-8b7f-cdfbb09d31d4","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":224,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"0196a332-b1eb-41d7-8550-1dbd2a73e210","block_type":"box","text":"ownership.","page_number":224,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"d24dc018-ee4b-468c-b80a-8dd3b18f7fe8","block_type":"box","text":"8","page_number":224,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"793c7c93-37ba-4926-a99a-1f9df53d79f1","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":224,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"ec869752-9905-4d18-b9ce-b5c65d881094","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":224,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"8c69761b-ec83-4c3c-8eb3-c474ec8e4a20","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":224,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"9681e857-0502-4a17-b0a4-53dc400151bc","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":224,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"23b86df6-3c7b-499c-91d0-143f7d6526de","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":224,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"d3dfb393-68d8-4aaa-b2f7-9330fa6f8990","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":224,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"0069d231-0505-420d-83d9-105bae13c379","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":224,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"46b46330-0477-492b-b9c4-cd125aabcd09","block_type":"box","text":"results over a period of years.","page_number":224,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"bfba7436-088c-4ed4-9ae7-226be349804f","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":224,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"2992202a-1239-4903-b8cb-12aeeafa683d","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":224,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"542f2668-46ff-4f6c-a28c-8ec97c1dc5ab","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":224,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"b8a3abb7-da91-499a-b65b-8a70ad5e1aad","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":224,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"5dd440d8-a27c-47d1-9a6b-627b32084bb2","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":224,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"909cfd84-eb53-4ccb-b932-392254dfcdd2","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":224,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"3113c5ba-bd33-4587-8c47-36fcba9cdec2","block_type":"box","text":"executive compensation strategies.","page_number":224,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"bf3eaf20-56b6-49e2-9797-5a51773ab039","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":224,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"89d77d16-ffd7-496e-b52a-956f28920f7a","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":224,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"6e6104d3-565d-4e7f-a15d-4336c7a140ac","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":224,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"1abee5a2-cc88-4d5e-a877-94800910d068","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":224,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"f84a2a3d-1ef7-46a4-86e7-1d7b4e8663e2","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":224,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"89eed50e-0944-41ec-bc8d-b174c81a0e53","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":224,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"56921480-57e8-4ad3-9786-4cc9863bf177","block_type":"box","text":"8","page_number":224,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"39595f26-997c-471b-b059-c795be9f9f61","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":224,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"aa3cd50b-01b9-4c15-a4be-5da61b8b891d","block_type":"box","text":"different markets.","page_number":224,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"8e164340-87b7-4eee-9af3-75a6d8934bf4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ced00f32-8d76-4400-a1eb-08132f2e2618","block_type":"box","text":"Global Principles | 8","page_number":224,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"82aae76e-935a-4919-b67b-346998c0b801","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2096f09-77e5-4d4a-9407-ec5fbdcb2cd5","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":225,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"832b20d9-533b-49a3-a61b-e681ca412c0c","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":225,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"59b8fefb-ef85-49e9-a18e-28ae5e56813a","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":225,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"b46ed647-d3ad-4e71-949f-93d5aa2cf0ec","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":225,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"9942bfcd-31a0-4e40-9bcf-93ead10e14dd","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":225,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"27c4588e-c9d5-4c1c-b79c-9699e08745ba","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":225,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"6f3b4040-f276-49d1-a401-bdb27b9b2b5a","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":225,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"9c1f1e0a-e922-48ee-a1e7-afe3b8a9ed0a","block_type":"box","text":"whom they are charged with overseeing.","page_number":225,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"d5f82cf8-acfe-426c-94e4-05bd71cefe06","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":225,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"7aeb16fe-cce6-4c37-8086-00c9190974f0","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":225,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"ed3283c3-2fc9-4121-9467-910a8c94d93e","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":225,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"e9fadebf-9e42-46a5-a3b4-ad94e48ef9a8","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":225,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"34d98f7d-ad12-4d4c-9027-1905ee79342b","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":225,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"56eab981-2543-4b85-867b-902c6aa43620","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":225,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"c203ce39-154d-4f1b-a4b3-4176cddeda38","block_type":"box","text":"structures.","page_number":225,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"b9b8bebe-029a-41c3-97d9-1e0754def60d","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":225,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"a740218f-5266-43c1-86c0-961c78db61bd","block_type":"box","text":"Corporate form","page_number":225,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"e151e6d8-545f-4cd3-b6ad-86873d7dc02d","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":225,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"6a5cb104-d5bb-4303-93fd-3816a67481d6","block_type":"box","text":"the company’s purpose and business model.","page_number":225,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"24dc430d-526a-4833-a310-63317dd53758","block_type":"box","text":"9","page_number":225,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"e5622b49-1667-401f-b18a-f8d69def9ae3","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":225,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"26f0703e-ac31-43c5-a71f-23b6ae4a3f3c","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":225,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"57df1847-3747-438e-a6cd-973c19695ca5","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":225,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"4aa9df47-e9c7-4b78-a3bd-17212898d295","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":225,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"da7cfc77-3111-479e-a6d9-53e84038e79d","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":225,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"64b7379c-4da8-4a48-8f81-265c66f6f749","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":225,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"163808b5-84f3-4050-bb8b-4942bb002896","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":225,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"4a4cd1e0-e1fd-4242-90e5-622d18e0aded","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":225,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"4a3561f7-748b-42d7-ac9d-9d5d58073e4e","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":225,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"179085bc-8475-477c-8585-7c328c8011db","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":225,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"291e0d76-647a-40d4-ac1a-298ee2b704b5","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":225,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"366a8395-df6a-4fc9-ba30-8c51baaddc88","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":225,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"ca9543f0-253e-4b69-b7eb-eb2da2f6a2b1","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":225,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"827ee508-601a-4e49-ab26-006323d16bff","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":225,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"4a7b4bf3-478e-4803-8968-f117b1822f76","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":225,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"c35edff5-d39e-4f2c-8210-bb706772b57d","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":225,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"425b8e40-349c-410f-9130-6dd9ac93db62","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":225,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"d0a630f4-34af-44dd-ba16-dd1034452a37","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":225,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"b7d2aeb1-97b6-45a3-8c44-3cd6a745ca97","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":225,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"60fb761e-348c-45e9-86e8-48b2c824c194","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":225,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"9a913c19-3d12-4563-b689-bd34a4ef22b4","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":225,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"a979355c-64c7-4296-aa5f-694878adc0e8","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":225,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"801f77af-d04e-4515-bfb7-fafcdfd3bbc7","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":225,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"f59e178f-a69c-422b-a9e9-af14fecf3993","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":225,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"e25460fe-4aa9-4344-8406-76082e3a3a04","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":225,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"1f590f29-1d2a-469e-9929-c624abc8950b","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":225,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"9c8058a3-2967-4c48-84f4-eba35c3be623","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":225,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"c609327d-f9ab-4cbe-a54a-946e9d2b964e","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":225,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"32a45f76-fc85-4ab4-93eb-4ce28c510576","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":225,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"2e06a908-c15c-48fd-8e25-9248a29b1d90","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":225,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"a8bf37f8-9615-4f1e-be98-afad7279e278","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":225,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"5cb2af25-2a8e-431c-9dd4-e199935c20e5","block_type":"box","text":"9","page_number":225,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"25323d24-71ab-48f1-80da-915d367b85c5","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":225,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"1445969d-f962-48fe-9ff8-c6f1d591a255","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f5ac9485-e685-453c-8d09-32cc527ef010","block_type":"box","text":"Global Principles | 9","page_number":225,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"5f7a1c7b-c386-4659-b40e-0cb69c031189","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8436852f-f48b-4280-87c3-031c81b78a82","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":226,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"0fafba6f-bc55-4696-98ee-266d6cf655ec","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":226,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"3a9a26b6-6d12-4b50-a20c-096b1b189cc5","block_type":"box","text":"long-term financial interests.","page_number":226,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"6247ffba-5dc6-43b7-8d5f-d4c00412b350","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":226,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"a38ac348-f203-4f9f-b418-5323d51d342c","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":226,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"12a86b0c-027e-43cf-be17-95475fa07246","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":226,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"b1fc602e-a00a-4b4d-b188-43d548a9d52d","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":226,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"054a8df1-37d8-45da-b2e5-0349c3d2b686","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":226,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"eea128aa-7f6a-4d8c-8596-858e0f570260","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":226,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"b9dc99a2-580f-4573-b3bb-ed209ce3d02a","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":226,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"88c65500-6e5e-4cb7-a638-205b6b1f986c","block_type":"box","text":"term financial value creation.","page_number":226,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"c87cfb28-b5f1-4bf9-bc7e-48a2927ef856","block_type":"box","text":"10","page_number":226,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"9ad94a1e-9789-4ad5-af8c-928e40deafa6","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":226,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"d3aadf3f-e153-49db-885e-877cf4547377","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":226,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"8116835f-8060-468e-ab22-aa3ca897b564","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":226,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"26a7d7c2-70b7-409e-ad18-b947439ef5be","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":226,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"38a85d5a-4f36-48a7-9068-66f1682bb4fa","block_type":"box","text":"industry-specific metrics.","page_number":226,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"1f5a36dd-2008-4240-885b-29085dddcdc7","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":226,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"83bf14db-8953-41a4-b7a9-67357ee1efba","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":226,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"a25c11a5-3547-40cd-8d07-9ec4e64346a2","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":226,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"af95df64-5a2f-4779-88d0-64bbd54b8500","block_type":"box","text":"11","page_number":226,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"5d4d9dd6-1b3c-422b-a000-cb0c1bbe3390","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":226,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"baf3f36e-44d3-47aa-8aab-7d3cd5edbbbb","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":226,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"e1594232-3605-4a1f-ab57-31cea77cb917","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":226,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"bc404b48-c218-4adc-8044-82b54714271f","block_type":"box","text":"specific.","page_number":226,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"ae7ce753-e627-47ee-9b90-5e1474fff2bd","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":226,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"8e76dc05-0552-4a30-ab9f-46c6463a1012","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":226,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"905c4c01-7455-4b60-a833-2fa5b32915c0","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":226,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"b65d97cf-5031-4f13-ad83-0b0686408638","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":226,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"556e7980-d196-4b09-8c2f-85a77ec4dc1e","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":226,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"d394280c-71a4-4b9e-bdbe-fe9a949f8eb7","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":226,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"49e44175-5dbe-4243-8ab1-5c9dfe18e1a2","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":226,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"77a97516-073b-4bb7-b3d3-d5604077c7c8","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":226,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"4acda3f6-478e-4ce6-81ee-984af5f28bb1","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":226,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"54b0a0df-616b-4549-b238-1e70203987f9","block_type":"box","text":"10","page_number":226,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"a8d5574f-988c-46d0-a9f9-daa5c772fd57","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":226,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"a483bce2-6fe9-4aea-a32e-ef0cfa65b538","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":226,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"83cf81d1-d95a-41be-bdbe-88043547d79a","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":226,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"400f7646-b022-419c-b01d-5f7ce57fe560","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":226,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"4ba15770-b43f-4a37-a900-0eb87c5b9ca7","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":226,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"a3492792-1173-40f0-bb22-6b161f6eb08f","block_type":"box","text":"11","page_number":226,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"a6ddcec2-dbe2-42f9-a8a3-cf8437b38c43","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":681,"width":744,"height":11}},{"id":"f3f51cc6-1465-4363-81a0-2394b26153cc","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":226,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"5df02c6d-eeaf-4364-a764-79940eb313fc","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":226,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"093493d9-2197-4275-9985-12d1ca142337","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":226,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"5ae01730-2392-47ee-94f2-ac956900aa95","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":226,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"97be42f7-c4a0-4c52-9b3d-276fa96bda43","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":226,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"b450b102-f843-4182-ae43-eca7476a8295","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"96924d7f-30b6-492a-987d-04da02435e70","block_type":"box","text":"Global Principles | 10","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0cc9f37c-ac45-47e2-afa2-e0f2e54eb913","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f2a516d-5b31-49fe-9bdd-903b5d7464d2","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":227,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"94a29352-0d27-4965-879b-d80987383709","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":227,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"d6400f72-c226-4df4-a372-71b44e7e21e4","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":227,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"c8870eef-386e-40e2-9898-d8738ad08c66","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":227,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"eb82069d-9731-4afa-90ba-4b002eb30c9c","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":227,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"eb26297f-95a9-46a2-b3c9-47254bc96972","block_type":"box","text":"12, 13","page_number":227,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"1f038c16-992a-43a9-8e98-2f94fb01506c","block_type":"box","text":"From company disclosures and","page_number":227,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"d7687eca-d090-4418-8704-89c311345f26","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":227,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"7b39948b-3004-45cf-b87c-834333bfdb34","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":227,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"c4162f68-e8f1-46be-b77d-df4d3fd03dac","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":227,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"6466e850-8ba6-4441-ac52-f43beb2de6ab","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":227,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"a4e4ab0d-1763-4504-a003-283d4d71ed76","block_type":"box","text":"viewed as best practice in the market.","page_number":227,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"a44a3094-4381-4d43-b5c4-d1053f3e7dbe","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":227,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"c688106e-30fb-4c33-98c6-72601016bdf9","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":227,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"0f4951f4-5163-4e9e-92a8-561eb4979b0f","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":227,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"f598b211-3317-4a51-b241-2f5923e39853","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":227,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"42212a86-8ca3-4b2c-a190-9f5534422a3f","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":227,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"07b957d2-a25b-4127-b71a-a90b06dc411d","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":227,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"127e6967-d184-46d1-896b-93fabf281a0b","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":227,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"aa4bb09e-476b-4345-8978-1acb4c91152c","block_type":"box","text":"interests of their investors.","page_number":227,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"9da19ca8-a845-4bc7-8f93-fedcbefaccb2","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":227,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"b54db4ec-c557-417c-9daa-f332e1fc4205","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":227,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"0ae2b171-310d-403e-af20-8224602a93c2","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":227,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"f36c4063-a736-426f-877e-0958076893b6","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":227,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"624a5714-0d36-4bbc-8737-2c2daae4fe48","block_type":"box","text":"good-faith basis as methodology develops.","page_number":227,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"980350a0-cf4f-4581-96fb-b2d9f3b9c3b5","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":227,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"d01d5908-ba19-42c2-904b-4790224ec897","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":227,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"5bd2eff3-7760-49a1-a5e3-e7a96690f21f","block_type":"box","text":"generate long-term financial returns.","page_number":227,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"e2fd4fa7-b8dc-44cc-ac30-e2b0c85720c5","block_type":"box","text":"14","page_number":227,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"60b4a17b-8b81-4c6a-8e89-9dea8b787750","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":227,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"24e244ba-845c-4423-be1c-9979f715d0c3","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":227,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"f79180e2-70a8-4f3f-96f3-ac2f76ca6f5e","block_type":"box","text":"15","page_number":227,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"8bdcab69-154f-4727-9975-0aa1dd7a39b8","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":227,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"8e388766-c230-4aff-937d-a21a3d1f29e2","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":227,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"7f3371a2-fbea-4ff9-9029-523e672051db","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":227,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"94c8a9b0-590c-49d1-82f1-64bbd67e1484","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":227,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"bff701b2-7440-4408-8580-b4dc39875041","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":227,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"86b25ff8-2ce6-4d26-9dee-aee941f8ba8c","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":227,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"13cdfb6b-b792-4c17-983f-63c19818855f","block_type":"box","text":"12","page_number":227,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"0e4208e6-11a5-4d95-9f2e-d866c3de453f","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":227,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"31b9ddbf-057b-4418-bdcc-6c837e097436","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":227,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"a585cc18-83ab-471e-b49d-33a2f493c7a2","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":227,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"d425ace6-d6db-4b3c-b45a-b4f0eb68f422","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":227,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"af287e09-e150-4d43-8135-27076df3000a","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":227,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"c97ee354-fce0-4300-925f-9091ac30d9be","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":227,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"8039c12b-baac-4fe2-bed2-ec24e49771f9","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":227,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"3302f1fd-3684-4a26-8ddf-fede4f8e09e9","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":227,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"6c75aa31-8724-46d7-85b3-ba5ea59d8d84","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":227,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"49da3874-d7e3-442f-9e7b-d3de0ba646fb","block_type":"box","text":"13","page_number":227,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"d1fab4ff-a92e-48e4-a2a0-21ef4ff772e9","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":227,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"20c56ab6-231f-48c6-961d-28d9b98cafa2","block_type":"box","text":"2025.","page_number":227,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"875ba692-edec-4b05-8dcb-59e8233a00f4","block_type":"box","text":"14","page_number":227,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"29654c13-e9e0-48d0-9622-c733d2ca2800","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":227,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"caac2292-9932-4b82-8245-f69b016ac6fd","block_type":"box","text":"2025.","page_number":227,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"533b183e-26c0-46b6-98d8-b60810335bfd","block_type":"box","text":"15","page_number":227,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"e5e11400-d6fb-47a4-944d-2565a6473fb5","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":227,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"3de37b64-d464-4a5d-9cc0-233c867b38de","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":227,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"7e76f2f2-e635-4003-9870-8ca2715a03aa","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":227,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"90d987f6-faf2-45b6-bdaf-be719fb4183e","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":227,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"a93d8fcc-509a-459c-a73f-749fd97f44a9","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":227,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"1cd18879-a169-481c-afef-b97e6b94238a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"eb7945c9-3ffb-4194-8bbb-073ee37aa351","block_type":"box","text":"Global Principles | 11","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"658a67d1-64ca-4769-9154-3168262a53ee","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31555198-2993-4f23-8a19-81690c522134","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":228,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"bcd430ac-9635-4dba-b26e-ec83899b0d56","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":228,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"a80bc090-10d7-46a3-ac33-9d94c164ca1f","block_type":"box","text":"16","page_number":228,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"a4329a8b-7bf9-4f1b-bbdf-aee13d48b12d","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":228,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"1f16dd2b-899f-48e2-b579-faba26845aa3","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":228,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"8a99c3b6-94f9-4dfa-8366-a8d6be6d476d","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":228,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"9bc45cd6-5a64-4804-b687-a893aeb3bab1","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":228,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"10dcbc9c-efe3-41b2-8a7b-3de334a9de12","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":228,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"78f751b4-d428-4dd0-937e-2ed7d6902553","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":228,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"a515d69a-8a72-495f-980f-7805b31557f9","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":228,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"b063ca4b-bd24-49f7-af04-621784f6916c","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":228,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"4bc186e2-7d33-494b-92aa-81e807444b32","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":228,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"0ce3c359-d69e-41c3-8c4c-a6d94949728e","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":228,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"de2c1163-ca2e-4b8f-88d5-d2568f636a13","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":228,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"317db7eb-6802-4b11-996a-f27973c0d27a","block_type":"box","text":"impacts.","page_number":228,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"5277df79-1d2a-47e1-af0f-5ba8c5125e4f","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":228,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"c77bab11-a377-424d-84d3-4da8748e9583","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":228,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"3bce3872-6d67-4049-b60c-18a5b11a45b5","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":228,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"d57066bf-9aae-481e-b10d-1cd3d3e3c287","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":228,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"740800c8-3633-4598-90c6-af136c673b33","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":228,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"d2dd90d6-d933-4549-b156-61a1aa20eb40","block_type":"box","text":"clients at the global and regional level.","page_number":228,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"55e4c20b-d290-4bdc-860c-809eddc657c1","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":228,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"7500a051-2fdd-4631-aa20-18cc0a820811","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":228,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"1bb2d048-7d5d-4e7f-851f-dc6f8d94efcf","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":228,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"9e500a16-285d-45c5-bfac-bb6a9c2aab93","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":228,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"b7ce13dd-0e49-4787-960a-334ca5004613","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":228,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"3a892ca5-65a3-49ba-a213-3ae69293d71b","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":228,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"b2b27b48-bf09-4727-9979-4c8e1d7d2b5e","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":228,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"2e411f11-5776-4bdb-82ea-aaf6e040d8ae","block_type":"box","text":"are independent from the investment stewardship function.","page_number":228,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"afb530a0-3fed-49dc-8f3c-2b0a4a2dd30e","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":228,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"b380e39a-4d0f-4007-993d-4bd605ff8f53","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":228,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"01b72339-b1cc-4d75-aa85-d8d23fd38b47","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":228,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"edef9a81-f3d7-4338-8e46-0b87a77d3c68","block_type":"box","text":"VOTE EXECUTION","page_number":228,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"da970514-7ee6-4d5a-be8a-f48159d810df","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":228,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"29aecfd4-715a-49c9-8c78-64abc7b2a394","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":228,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"c76f463c-e768-4775-91c6-6f1d2f3cefe6","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":228,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"c1d031b2-3fbb-4c2c-a7a5-3c4895007ea6","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":228,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"0b10a168-6e86-49f2-86d7-4d0d6be8bf43","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":228,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"1d585401-1429-44eb-8125-242c43a39bd9","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":228,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"59e80ea2-e315-484b-b743-eeb545e9eaa8","block_type":"box","text":"management policies and procedures,” below).","page_number":228,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"97d0b6ad-38a7-4c64-af7c-6ac9ec8b0ccd","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":228,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"5db41cfc-7849-4c2d-aefe-d9f3729322e8","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":228,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"233042ae-80d4-4b12-af65-f54fbf872c1d","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":228,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"9ee938d5-2c65-419d-bfb1-124afdb8ee7b","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":228,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"3d6586e6-e6c6-442a-b977-c841f5583328","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":228,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"5b3f1214-d7f3-4794-9574-e7f3b42c77a0","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":228,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"10cf5c8f-f736-46f5-93f3-b0371cf2ac1e","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":228,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"883112f5-9ca4-4032-8cc4-41c38a4edcb7","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":228,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"aeb10195-5e9c-4678-9964-a738f91d8418","block_type":"box","text":"16","page_number":228,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"ca9bfcdc-87fd-4d2e-b592-96f6bb979bb9","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":228,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"11b1c70f-2dfd-409c-8fdf-68aef28edc47","block_type":"box","text":"December 2025.","page_number":228,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"f63adbec-d9ae-46a4-b688-edf7fc2ff71b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"419c547b-2e10-4956-9541-a633e2611641","block_type":"box","text":"Global Principles | 12","page_number":228,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"1a4dcb71-7a87-43d6-9163-392bd23e6e06","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ac8d704-619f-42c4-8909-aff96b079fcd","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":229,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"9f4fe370-9ce9-4ba8-b203-3abbe4e0f24f","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":229,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"f4d452fc-e69a-467d-9704-58784fd63173","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":229,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"81b843ca-abbc-412e-b6c8-e9a7d933b8ef","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":229,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"f3d6efb7-0ca2-44fa-b795-7b67f8386855","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":229,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"30957d56-8dde-4696-9b9c-1c3d5218fc7c","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":229,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"9ecc2cc5-4f16-4000-8946-9347f3623206","block_type":"box","text":"enterprise-level vendor management activities.","page_number":229,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"a16acf91-ea7f-4881-bcb1-a7d725f43021","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":229,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"b3975f13-e1d5-42a2-b337-e94ae830edba","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":229,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"c55162cb-1e08-4a2c-ad0f-b17829407b81","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":229,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"d06e9200-98e1-4cbb-93ff-75d10023f10a","block_type":"box","text":"BlackRock employees.","page_number":229,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"540a3216-6f0f-4fa5-a00c-c31866fe409e","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":229,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"03860851-bfcd-44ee-868e-1917252a8e88","block_type":"box","text":"SECURITIES LENDING","page_number":229,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"01621fa4-4db2-4269-9f37-62ffbe34e5c0","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":229,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"740b5c2c-e656-412d-a510-f941c4c4aac7","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":229,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"c807aa0e-b201-4e94-a3e0-4c1979461c98","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":229,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"b7d5d3d6-001d-4557-a8d9-d783ac14c55e","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":229,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"08bde581-ca96-4cb4-8e62-765ac4dcb588","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":229,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"b3f525ea-45ca-423e-a7a7-29f3235154c0","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":229,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"b9e71a19-6268-417f-a100-8b84c318b0c7","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":229,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"fcd056da-9664-4535-b9fc-afca4f8b3f9f","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":229,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"db030c6b-779a-4f8a-b826-efe18204de03","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":229,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"8c5c8db0-4663-4eec-ab8f-3addbb415820","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":229,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"2031538f-ba35-42f7-a1bb-23e91eb5ca21","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":229,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"3428deb2-3a47-4c7e-b6e1-4d5b44b280f2","block_type":"box","text":"of recall consideration).","page_number":229,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"6e9614fa-9030-44da-8373-91149edc74eb","block_type":"box","text":"17","page_number":229,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"dae724d0-6c04-4f71-9660-90a41cd42950","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":229,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"cc0b30ae-f72a-4504-88b8-45a16e8e02ee","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":229,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"fb658348-377c-468e-abe6-3bfc2b49f16e","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":229,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"c5b8795c-ddca-41f1-941d-98488fbe37cb","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":229,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"3ec6ede0-db69-495a-851f-c3bc4f857714","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":229,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"c7424b8a-27ed-4814-a3e3-1c50bb5e6590","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":229,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"f9e17634-fdec-43e7-a4e8-6a5fd05891d1","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":229,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"fb1aa8b7-c94f-4a04-b21d-36dbee299213","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":229,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"a597c59a-87a0-4f15-beb3-c5934852acf3","block_type":"box","text":"and may modify it as necessary.","page_number":229,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"cf196865-b0d5-48e1-9b30-fd53a9899733","block_type":"box","text":"VOTING CHOICE","page_number":229,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"6c1b633e-da73-460b-83eb-1112eb9dc276","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":229,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"2c273e19-08aa-47e3-ba39-446f46d8a8a7","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":229,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"754bdd18-c6bc-4c92-acfd-3e5348d072ab","block_type":"box","text":"18","page_number":229,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"4bec3b83-c113-494d-8235-7de394fe7a36","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":229,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"d7989450-e58b-4f2f-982a-9e555f283d4c","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":229,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"353e60d6-87cb-488a-ac0a-dce2ff0c0f8b","block_type":"box","text":"17","page_number":229,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"cdc196c4-587c-48cb-a8c6-4e8e9798ba31","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":229,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"26eb1a40-667a-485a-a8aa-7c14f72ef525","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":229,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"7da9082c-85fa-4e86-9860-684461b3d5aa","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":229,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"54026ac5-3fbb-46f3-bc84-32456f0ace97","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":229,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"13c34a33-230b-425d-b3b5-97c44d2e0c12","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":229,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"fa31dd3c-b1ae-4e91-82f5-e32566670182","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":229,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"303c3112-6460-46fe-bd0a-439cedc97e1f","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":229,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"db379daf-8c37-4d54-a184-59cb76b02b90","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":229,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"27b3ca28-4f01-47a3-8054-d40be9517ca4","block_type":"box","text":"18","page_number":229,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"526daa3e-09c0-469b-a9f2-8bd5dde1459a","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":229,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"02a89d88-3fc4-4384-b283-c221e911b8b4","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":229,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"7f4cd011-5aaf-4efb-8fca-204d50c83871","block_type":"box","text":"including the decision to lend securities.","page_number":229,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"2fc2060e-7ac4-40b7-93b7-29138a4a2395","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4d4989e1-52ad-4dbb-9e55-64f26902ca74","block_type":"box","text":"Global Principles | 13","page_number":229,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"3dd51570-c086-448f-8fea-01de10a1cd2b","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0fe810d3-04c2-4ba8-afb0-8faafdd2d8cd","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":230,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"7bffd5ed-838c-4d9b-ab74-f7a514c50885","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":230,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"641ce3fb-6fde-4665-9742-e20e2a436c7b","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":230,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"21fb534e-daf1-4a76-ad07-b360d639c550","block_type":"box","text":"19","page_number":230,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"6785f2d3-7cc6-46b5-b89b-e7beed69ee15","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":230,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"d0a785da-88b5-4bfe-a474-c4858bbfb99b","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":230,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"c4d48dea-3cfd-4f79-847f-58cb566c7fc8","block_type":"box","text":"20","page_number":230,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"3648357e-ac3a-4588-a028-7ff3baa51288","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":230,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"f2cefa69-6c61-4779-b42c-57f0122ab70e","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":230,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"c9515688-9102-47d6-b79a-349b89cb0888","block_type":"box","text":"accordance with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":230,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"d9c7eff4-4402-424d-b348-77da069a5b89","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":230,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"517e0c79-1573-42f4-ba1a-1140b87122f6","block_type":"box","text":"21","page_number":230,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"cbd4d128-3f95-45bc-b4e0-d49073a98c7b","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":230,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"8f761d53-2391-46ba-a910-47e15ef02ed5","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":230,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"6419de1b-c050-4708-b10b-c5d2955194a7","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":230,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"1420916e-b92d-4eeb-8370-adf96a3813a4","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":230,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"d152b488-0253-45db-8f6c-71c88337d649","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":230,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"14cc18f9-6791-4388-a509-c88011616c13","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":230,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"b565f479-668f-4cae-913e-33ceb1a911f5","block_type":"box","text":"19","page_number":230,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"94f9173b-dc16-4ba4-b6f0-cee65327a46d","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":230,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"b1454c95-c72d-4089-a958-be8f7568f4cb","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. 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Fur ther, the Guidelines consider the","page_number":236,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"efef492c-b187-4ce1-93ea-b75583055a2f","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":236,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"3d6979ff-0692-4a9e-bb1d-ee897c87f19a","block_type":"box","text":"does not.","page_number":236,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"9a473e78-9024-4364-8e29-a8ea55c0e458","block_type":"box","text":"•","page_number":236,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"0f680333-72ef-45eb-b87d-dd7b75034eb3","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":236,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"ad977648-3546-46ec-8488-e5e460a6216f","block_type":"box","text":"limitations:","page_number":236,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"f63b6b15-98f6-4e4b-b388-d27b3f172336","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":236,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"facb6702-586c-4155-bf9a-fc534ec2265b","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":236,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"c526df4b-c53d-43e5-b9d6-746b00d35e1b","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":236,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"eafea69f-f2cd-43ec-9f12-b29bc7488924","block_type":"box","text":"•","page_number":236,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"efd5e08c-5b89-4f9b-90c2-55d85d406d24","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":236,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"693c4fae-1b7b-4354-beb5-b3c35dc28486","block_type":"box","text":"The boards and executive leadership","page_number":236,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"38d01799-234c-4ed5-8a51-5a8e60e6d967","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":236,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"2a878645-f167-4982-b327-5449ee4f6771","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":236,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"ed3bd576-5dba-4c41-a703-f14d42c768ca","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":236,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"4d623408-f91e-494d-8276-287407338bbf","block_type":"box","text":"Voting approach under the Guidelines","page_number":236,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"8d2815dd-4558-4a8b-87e7-af1e9155cb09","block_type":"box","text":"12","page_number":236,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"cb6bd730-fbfe-467b-a028-382475a25ad2","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":236,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"5a8f2e8b-b97c-4094-bc72-61a2581b6848","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":236,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"5b0073a7-f681-4e49-b2f6-43ed13b86c35","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":236,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"49217665-03db-44ff-92c9-f95044612913","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":236,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"fc4e0303-9054-4dba-816c-c09eed927480","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":236,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"6e0b7be9-46df-422a-bc1f-b652ed6bd059","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":236,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"44290dc4-e3f8-4896-9512-12d464c9f412","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":236,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"4f63de46-2587-4538-9ba4-a9390e69c7d6","block_type":"box","text":"Corporate Disclosures","page_number":236,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"169b1690-6eec-4028-aea2-4153534de6ce","block_type":"box","text":"13","page_number":236,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"83cc84ce-34ae-4bbb-aeb2-0cd1e2dfa1f7","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":236,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"ce438f8a-aecc-49bd-b3cf-9e8ca8488aa8","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":236,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"57f7519a-4ff7-4b30-bd05-4f542ddffcb0","block_type":"box","text":"to companies that are impor tant to the transition to a low-carbon economy to explain the strategy and governance","page_number":236,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"b1814399-000d-4b52-b21e-320ead8c004d","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":236,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"b2effe43-6959-4c73-a83c-6e9b00600c12","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":236,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"6984f55e-199e-4314-822e-f35be0e76e93","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":236,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"1cb8ffe9-d4c4-4c13-b0b7-99801c8442fb","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":236,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"b04438e6-c6fb-4b08-abb0-ca9280aef10b","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":236,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"e18227db-2f42-4def-95f7-9ef1fa5fefba","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":236,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"de2b5b8f-7288-4575-8af9-08c85b59a435","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":236,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"11bb9a7a-ba73-4546-a273-d2f77ad5cc9c","block_type":"box","text":"14, 15","page_number":236,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"3275ef3c-7bf7-498d-a4f8-71b8de7856d3","block_type":"box","text":"IFRS","page_number":236,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"178fbc2f-bd0f-40c5-bfbf-08bd0105c0f6","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":236,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"e6ebf825-8ce5-48fe-a75a-128a808780df","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":236,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"6f559cb6-64f8-4f19-aebd-33319f958851","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":236,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"059b27a4-07a9-4ebf-9a46-625ac9f1648d","block_type":"box","text":"and assurance standards are developed.","page_number":236,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"11a41c0d-5d3a-4fe7-a763-446197d0cd8b","block_type":"box","text":"12","page_number":236,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"8ae06089-91d2-477a-ae01-65abca6bcd48","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":236,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"1252f6c5-4b46-4467-862a-f2b52e929adb","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":236,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"f6f148a0-16ea-43ae-afc9-dc8c3e08fdd0","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":236,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"b11a9ff3-b1a2-402b-9e75-f71ed0a3f233","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":236,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"7b0e194c-b19f-4784-bf43-f8250fe275a7","block_type":"box","text":"13","page_number":236,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"bce4703b-06c4-46c7-8bcc-264c92c81449","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":236,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"e7e05aa8-3b11-4b24-b151-165b8faa3f4f","block_type":"box","text":"repor ting methodologies are nascent. In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":236,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"2f8faf4e-d367-4ae2-ae6e-798e2900ed76","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":236,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"a941f04a-2e2d-4151-9f6b-3730cdcfa586","block_type":"box","text":"14","page_number":236,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"ede0c0cc-6861-480b-9dce-80a46f6e6ea9","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":236,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"ebc7d8bb-4084-4584-83bc-a181e0e6157c","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":236,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"eddc5b11-7502-485f-996d-362a1e1b4c2c","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":236,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"793da9af-b3f6-4e03-9083-a1077cf11a49","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":236,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"e3185dbc-80c0-44f0-b8b2-501d629a3958","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":236,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"74b3156a-ae86-4aec-b6b2-32e3d80298ac","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":236,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"986041aa-ecf3-4419-8ae6-1bcefc9469d3","block_type":"box","text":"15","page_number":236,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"4e23bcd8-a78b-4f11-a9bf-39a6bfad14f1","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":236,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"db2cd2bc-ff03-44f4-9fb2-73b67ffcb046","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":236,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"f0ec814c-561c-4cbc-9422-a7833cf5988c","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":236,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"e2ab2bf6-c8cd-4a9a-a405-03138b0eba93","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":236,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"47d2d964-30fb-48f9-ae76-d7dbbe3180d0","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":236,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"dfa83761-f479-42a0-aac6-5c947ce2e488","block_type":"box","text":"BlackRock Investment Stewardship","page_number":236,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c0697fae-9700-4be3-b194-aee0b668a132","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":236,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"4495952c-a2e3-48d1-9daa-e822c34fde0a","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":236,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa542b96-a725-4c2b-bd24-e478c39df465","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":237,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"cd7273ef-ee44-4b3a-9ee0-77024c222403","block_type":"box","text":"16, 17","page_number":237,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"c2ced8dc-4640-44a4-a55c-c44612a1575f","block_type":"box","text":"In addition, the dedicated team looks to","page_number":237,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"98f5354c-103f-44e9-9829-476e42b3bf3b","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":237,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"f7815e14-5848-45a1-bb77-d35477edac3f","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":237,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"4c38db2a-4b06-4c53-9a82-34117c21068f","block_type":"box","text":"scope 3 emissions reductions. 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For some companies that play an impor tant role in the low-carbon transition, scope","page_number":237,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"56c84343-356f-4342-9771-0ce5dcf71ad2","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":237,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"600af43d-ad73-4a38-b75c-720a3120cf54","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":237,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"59df3fb7-6966-460a-b964-208eaafe21b7","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":237,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"18a283c3-e99c-426d-8b9e-4429d19e8afd","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":237,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"af0ad5fc-fc36-4c21-a00d-7abceed8b39c","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":237,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"27d92737-7521-4b87-9505-dc872aeb9bb9","block_type":"box","text":"transition risks.","page_number":237,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"b16b607c-c4a8-45f6-b21f-36de1001973a","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":237,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"894daca6-98ea-40f4-9300-6c475660eda3","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":237,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"a67d632e-fc6a-4241-a748-64daceabff10","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":237,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"71944b5d-6bda-4f19-ae13-ecf4be679e93","block_type":"box","text":"Transition plans","page_number":237,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"ec1e5daa-8bcd-42df-bd9e-b372864546b4","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":237,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"1c8aec58-cfe6-41c6-947e-d300629d2f12","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":237,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"58838a6c-6d52-4ab3-b657-8597a2bbce11","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":237,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"f5baaf98-c7cc-4375-b1f4-cda29e444532","block_type":"box","text":"(see Appendix 1).","page_number":237,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"f8061513-04a1-4c51-b325-26f03a3ff2bd","block_type":"box","text":"19","page_number":237,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"bb0ac8d1-38fe-4ca8-ac64-ade2a7a930e3","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":237,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"2aa66823-64b2-4e02-aa84-877cb6f2ca98","block_type":"box","text":"transition plans.","page_number":237,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"25e0809b-55d3-4287-b036-4eadc8ec9e50","block_type":"box","text":"20","page_number":237,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"8a0dd184-0339-4b7a-bc34-d259d54920ca","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":237,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"3b4d4455-ef49-4b4e-8092-882f55c5d0fd","block_type":"box","text":"repor ting approaches.","page_number":237,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"67e615b4-5521-4242-9b0b-407b3746a133","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":237,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"9cbfc217-5e2c-4acf-9044-8c4c6115c76d","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":237,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"40deb960-aeb1-49d1-bf56-14308a7e0402","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":237,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"c3777462-ff34-466e-bbfe-3e04a8e22772","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":237,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"30c0bab2-099c-4721-9b20-9c1b34dc0fd5","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":237,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"fd04c4de-8455-4924-8fb0-8f59e19d01bc","block_type":"box","text":"informed voting decisions.","page_number":237,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"64e9cd14-f5a2-462e-a803-49cf493f4f55","block_type":"box","text":"16","page_number":237,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"bf96ff11-d6c4-444c-9012-5282cd73f3dd","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":237,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"d37c8d62-e790-4be6-9961-c06e3ccdee5b","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":237,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"938ff386-1be8-4aec-8f4d-352c60b78ec9","block_type":"box","text":"December 2025.","page_number":237,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"7f1d5e02-da03-4f23-81bb-0504a9d354a5","block_type":"box","text":"17","page_number":237,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"f0acf336-f2d5-4495-8246-3efc2383c1ed","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":237,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"1bd63c2e-f0e7-40c6-b9af-ece24d0790d9","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":237,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"f0217e68-ba11-453a-9091-a5a5e522bfbc","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":237,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"d79a8277-613b-4f50-8901-e7b9c6b3d91e","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":237,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"8279045a-d739-4921-afe5-dead80948ebe","block_type":"box","text":"18","page_number":237,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"ecdf5da4-e6f0-485e-b85c-df628a59cc57","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":237,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"888c0596-48a9-4561-9e49-912ce3516efc","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":237,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"4d1feda9-0dda-499a-aa99-a819820726ec","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":237,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"6c644f4f-9ef8-4803-aa98-f5cc9481652f","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":237,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"9e8a767a-4e82-4424-9b93-8810558e8e86","block_type":"box","text":"material to their business models.","page_number":237,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"2fb3de9f-bc19-437d-9205-e9baf38eb723","block_type":"box","text":"19","page_number":237,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"943b0dc0-50dd-44db-a8ed-1abead1cbf5f","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":237,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"d04571a2-1482-4e4f-8dbf-9d93f642a8d5","block_type":"box","text":"December 2025.","page_number":237,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"f6f136c1-a2e8-4969-a223-b86e003dbef1","block_type":"box","text":"20","page_number":237,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"8a7cfc00-139f-4a98-b01f-d4080a2f5ba5","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":237,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"913673cc-34df-4bb9-b5fc-f85180d97315","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":237,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"e3b509ae-8be9-4c47-919c-51054e7c2c43","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":237,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"0cc109bd-0b1f-4df3-b78a-4b095769e77b","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":237,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"19040465-9a3a-41b1-92b2-252a202d8644","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":237,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"576358d9-68ee-46e5-ac82-77c6ffd7a642","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Where the dedicated team","page_number":238,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"a595bf8c-5d5a-425e-9bf9-cf51f7652eb6","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":238,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"034ed627-90fc-4eb9-9201-7a661e0bf732","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":238,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"38c9d0cb-3095-49ae-b51d-afc77af96bec","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":238,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"8c0ecb87-917d-45d1-9016-239e4d4cd153","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The research uses a definition of materiality from the GHG Protocol,","page_number":238,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"b91179ca-f505-4100-8aa7-ca9e375a1df3","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":238,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"2ddafd04-fb72-42fa-b68b-232a0dc85cbd","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":238,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"8d6e327c-f45c-437c-8c47-e5336e50480d","block_type":"box","text":"Website accessed in December 2025.","page_number":238,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"8ed3ea51-ce35-4306-915e-693c0fc2190e","block_type":"box","text":"22","page_number":238,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"cd32af3e-dbef-46c5-b0ec-cf1ac498ed85","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":238,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"4a3314a6-a0b6-4eda-ad9b-e3e45404a9b6","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":238,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"b0c0e22d-fd14-42af-beae-30c2bb259e92","block_type":"box","text":"23","page_number":238,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"9536245c-06bc-481c-ae6b-82b4db40011d","block_type":"box","text":"Board repor t votes are generally advisory and relate to repor ts issued by the board of directors that may contain","page_number":238,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"0b0cad46-7165-42b0-a548-5fed0ca02896","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":238,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"52ed3372-4c75-469e-932e-e5cccf743a2f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":238,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"293023f9-3516-4d66-a597-b920a20a0ad5","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":238,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"a57b72d2-5b24-4055-ae92-887ab1d18b39","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":238,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1925bc1-55b7-4fe7-81eb-1ba0d1843722","block_type":"box","text":"Where the dedicated team has not suppor ted director elections over climate concerns in a prior year, and the","page_number":239,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"9390b253-74a2-4bcb-ad42-7a0e7f34a485","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":239,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"fef5c7eb-5b54-4b22-80bf-26ca0a52e91e","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":239,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"9c00aea1-244a-4034-b601-7023f1b23f3b","block_type":"box","text":"24","page_number":239,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"97533d6c-5eb9-4c69-b7f2-1289db259d55","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":239,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"dd6d9a2f-4fed-4c88-8254-aea9a41797f6","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":239,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"5a5cdae0-bf65-4ea2-8746-54a5c6acf93e","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":239,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"8892cd44-0d94-422a-a3bb-03fb45c0f741","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":239,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"b622bd07-e6f1-4b67-b91f-6357bcfda750","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":239,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"6a6985c4-d8c5-46cb-9a53-531ff08460bf","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":239,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"25ad75c4-c390-46b0-8665-3908fd39fa61","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":239,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"d36368de-8377-42b2-9773-c5028f4f5367","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":239,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"b5fa5b7b-86a1-41d4-8ac0-3da5d8b7476d","block_type":"box","text":"transition plan and targets.","page_number":239,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"378efab5-65c0-43a8-8633-ab6bae177c0d","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":239,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"550fb677-7179-408b-9910-521c334eea7d","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":239,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"13d53b45-434f-4719-ae85-99a823d72468","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":239,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"05b3ad0d-0313-44b4-bb3d-8c4aba79c1c4","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":239,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"8eebceee-7f5e-4eb4-b7af-d63d37678c17","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":239,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"bab121bb-0c70-4a41-9132-80e37cbd549f","block_type":"box","text":"company’s individual circumstances. 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The dedicated team assesses the implications for, and the relevance to, the","page_number":239,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"1fbb39bf-5d92-48ec-9670-54acfe92b855","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":239,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"d7c3d26f-99f1-43fa-a37c-a0c24c78739e","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":239,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"e9c3ba42-1a7b-4b9b-93ef-0a2037d2852e","block_type":"box","text":"•","page_number":239,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"b09aa5fe-380a-4b09-9153-3373682ac262","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":239,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"a64db2b0-f8c2-4f79-b2af-f30fcd16fd20","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":239,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"122f5c93-29e4-4db4-ac6c-3f804f9bd06c","block_type":"box","text":"•","page_number":239,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"cf521adb-ac67-4321-a942-b49e611a0700","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":239,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"9d64c903-0f5e-4f62-b4e3-c2f693ce0460","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":239,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"c1001815-d064-46fb-8a8f-dfbcc4f201fc","block_type":"box","text":"•","page_number":239,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"285d5f53-e05f-44c7-99c3-9a34fe83077a","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":239,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"087020ed-5ea4-4644-b4a5-d1017871ea39","block_type":"box","text":"•","page_number":239,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"9320c77e-8af9-4076-a15e-917ba06ca314","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":239,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"c868f4e0-b82d-40c2-ad65-18e746f0c5b7","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":239,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"7a5a9f65-7fac-400e-9110-aef38812c57b","block_type":"box","text":"25","page_number":239,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"574b3e15-78cb-427e-88be-1bcec2775e08","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":239,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"42abecf3-1590-4afe-9a6e-5e4dbd8e3e05","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":239,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"fedfa35f-4c78-468e-b25f-76bf4c25662e","block_type":"box","text":"RELATED MATTERS","page_number":239,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"075b6d5c-2f39-4503-b17f-31cdc3fea4e4","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":239,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"8bbd81ec-64e0-4ef9-b664-ec6b6721e4ce","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":239,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"7502fa7d-96c2-446b-bfd6-4ef379f9ec5d","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":239,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"1215b09e-7260-4d4e-a253-cb9fc36ad104","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":239,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"f4d6a80a-8274-4cc4-a3ba-b94303f256c3","block_type":"box","text":"Executive compensation","page_number":239,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"6c827105-306b-4db1-9fef-62e5587932e8","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":239,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"17969e6d-9d09-46c6-b6d8-2d31aef188f3","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":239,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"d7898b24-1055-4363-bcd7-889e739ed33c","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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The team notes that assurance of corporate disclosures related to climate risk and the","page_number":240,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"f83e323b-16f1-479b-baae-bb9e90a1f72c","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":240,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"af571ded-3dab-468f-9928-9d8d7ce1fdf9","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":240,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"534dfb91-7ebb-49d8-bbd9-218ab63b8cf2","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":240,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"1e5115bd-f313-44ef-98c0-6fe79bd5bef1","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":240,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"91eea228-b4a0-4344-9ae0-f1b65a20cb69","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":240,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"dd2e3271-8d4e-485b-bdcd-62897b097446","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":240,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"91931ce0-2d16-4958-9b97-ca96831dab62","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":240,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"b382a2fb-3e1a-4040-9fbc-6988202bbb4c","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":240,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"40ee210b-9ccb-43b1-866c-fb4af72456b8","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":240,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"1e7f3af7-6c92-4245-a1fa-f2c05fd67e0f","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":240,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"91789490-bf9c-4c12-9946-ef279399b5f4","block_type":"box","text":"stakeholders.","page_number":240,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"ff8999e1-3d46-4ac6-b044-9a0291434d5a","block_type":"box","text":"26","page_number":240,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"9caf5dcc-7e20-4fb1-9912-ce2506bb4d4c","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":240,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"46475ab6-64c9-4d01-876f-ee3a6b918e63","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":240,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"f435304c-b1fc-4bca-89ae-4d70a2aa72a1","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":240,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"21c84523-9193-4c15-bf34-2b7b0c78eae4","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":240,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"7fa6fc5f-4247-4560-9c5c-dca20b036e96","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":240,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"d0aa42f8-0869-49ae-8d6b-d7aab799b008","block_type":"box","text":"26","page_number":240,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"30186eaa-eac1-4fe7-81ea-ed3f185cb492","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":240,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"2dbe9b30-0075-4c24-9df6-a48d58ab4d12","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":240,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"b942f68e-a256-4ca9-972b-423ed67e0f11","block_type":"box","text":"BlackRock Investment Stewardship","page_number":240,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d6b2f564-e5af-404e-984f-ef34c4ea9130","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":240,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"8a996f6b-41fe-4af9-8246-fa2fcd2d2c73","block_type":"box","text":"BNM1026U-6033397-19205815","page_number":240,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba1869ea-4d59-423c-880e-b2b43064068f","block_type":"box","text":"Appendix 1","page_number":241,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"a9519627-eaa1-4652-b041-4272c08e00db","block_type":"box","text":"Terminology","page_number":241,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"9eefdb44-f024-4cf1-83c9-8b1d3fff5511","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":241,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"ec98e0bc-ad2c-4906-b667-dcf8716dd51a","block_type":"box","text":"Climate risk:","page_number":241,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"ba458264-3b64-42c4-8efe-15ceb70252a7","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":241,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"b6aae759-59ac-4837-a35c-3e77c220459a","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":241,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"d21c22ec-4177-4e92-b3bd-30ca38457a5c","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":241,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"7fbf49c2-d8c6-4198-a450-d07beed92f21","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":241,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"073429bc-88d6-48ab-8631-3c6e10269e5b","block_type":"box","text":"The global economic shift toward lower","page_number":241,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"fb0d48d4-10a3-44ac-9b4c-9f65ddb4efa2","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":241,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"cd56f79a-5bb0-4c7c-96f4-0dd0c6da96f1","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":241,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"6383932c-709e-4adf-8bf0-6dec1ccf8ae8","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":241,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"918df10d-9b92-47c8-98dd-90aa966364f6","block_type":"box","text":"Decarbonization:","page_number":241,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"6592b14e-683c-4202-9e22-7b621fb6d7d9","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":241,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"f96ba2f6-eea1-455e-b42e-f0d40a1f2f4a","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":241,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"99ab7c8a-253a-4f8e-8bc3-6c61b675e8c8","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":241,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"9a833c44-c550-4c60-8d6e-f56745882042","block_type":"box","text":"e.g., methane.","page_number":241,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"850efcb0-afd6-4524-9a98-adc886384495","block_type":"box","text":"Climate-related risks and opportunities:","page_number":241,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"4632246a-c452-4a72-9bba-f4f765d44302","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":241,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"4aacebd3-1420-43a4-9902-625633bc86d1","block_type":"box","text":"to a low-carbon economy, including transition risks and oppor tunities and physical risks and oppor tunities in adapting","page_number":241,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"3592e190-31ab-4252-9f77-f49037dac204","block_type":"box","text":"to physical climate change.","page_number":241,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"e13921d4-0939-4f00-9c6e-2c0304aa39aa","block_type":"box","text":"Climate-related transition plan:","page_number":241,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"a9c36455-6f7e-4914-9acb-64bc8b345507","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":241,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"0d8c7649-8c75-4e0d-9bc0-907eb108fccf","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":241,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"6749619a-e33e-4274-931e-0a23e5f93b4f","block_type":"box","text":"greenhouse gas emissions.”","page_number":241,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"a4741814-5846-436b-818a-d99e0762d5d4","block_type":"box","text":"27","page_number":241,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"129eed47-9e4b-4009-ada3-4d1b7c7b29f7","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":241,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"266eea1a-bb96-4266-8767-5fccc5bb71ce","block_type":"box","text":"Targets that “","page_number":241,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"cbe2b1c0-7dfb-4983-b9a4-43b0f12e64e9","block_type":"box","text":"are in line with what the latest climate science","page_number":241,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"6155f22a-5945-475a-a53e-87642fe45a23","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":241,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"d9feb4d6-f8c5-4a41-a467-e6f323299ba1","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":241,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"e010d7e2-6cfd-4690-ae7d-f9ffbb7d3845","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":241,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"f248f2b7-b2e8-4b5a-a422-388d2aa37adc","block_type":"box","text":"with the Paris Agreement goals.”","page_number":241,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"a6e74e39-bcc1-48fe-8cc5-8fedf18b467d","block_type":"box","text":"28","page_number":241,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"49e0071c-6ae6-467b-8670-0355cce55bd2","block_type":"box","text":"Scope 1:","page_number":241,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"bdbf3c4a-e955-424e-bc99-f617555ab5a9","block_type":"box","text":"Direct GHG emissions. 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[It] is defined as electricity [steam,","page_number":241,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"b51bd5e5-721e-413a-888b-d0534b99345e","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":241,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"a8bd99e8-879b-4594-a333-35a3a4898caa","block_type":"box","text":"30","page_number":241,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"5245c860-3e58-4781-b3fc-268b11716ebb","block_type":"box","text":"Scope 3:","page_number":241,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"c5c13e19-1bcd-41ec-9893-de7bfc3c9161","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":241,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"4928c27e-f3b8-4b5d-ae21-1e328b4c02e6","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":241,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"b2b2f163-3a89-4724-9b01-232cd064fb2d","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":241,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"781c87e4-6c48-420d-a872-8a4ad7cbdd86","block_type":"box","text":"31","page_number":241,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"e1cb9a81-c94f-4944-bec6-7372b208b08b","block_type":"box","text":"27","page_number":241,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"e8d2d177-180e-4d88-bdc8-f416ac26b9eb","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":241,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"58759040-2673-44ef-b4a4-a4e1c392c337","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":241,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"f3a26d1d-d43c-4a85-bc80-10569bb26af5","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":241,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"2b258e52-52cf-49b4-a930-98527e90811b","block_type":"box","text":"28","page_number":241,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"2dc83d0c-aaaf-46c2-bfc9-1fa603f27519","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":241,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"4762ae6d-1a15-42f3-b719-8a2ecbbca767","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. 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