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Unless otherwise","page_number":15,"box":{"x":102,"y":211,"width":767,"height":9}},{"id":"22265d9d-3e85-41b0-b561-9d86c80db563","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":15,"box":{"x":70,"y":226,"width":664,"height":11}},{"id":"bd9a75fd-ac1b-46bd-9746-f216b10fc936","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":15,"box":{"x":102,"y":249,"width":463,"height":11}},{"id":"f3832ff3-2c67-4113-8cc2-a3fa54835773","block_type":"box","text":"(1) Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":15,"box":{"x":102,"y":271,"width":733,"height":12}},{"id":"5286238f-6d74-49ab-911f-e418eef61630","block_type":"box","text":"Investment Company Act.","page_number":15,"box":{"x":70,"y":287,"width":178,"height":11}},{"id":"5e04be4f-6ebd-4e8c-8a2f-e9c83a0802be","block_type":"box","text":"(2) Invest more than 25% of its total assets, taken at market value at the time of each investment, in the","page_number":15,"box":{"x":102,"y":309,"width":750,"height":11}},{"id":"7fa4ba2c-2a9f-4d5b-9c54-866e6ea3349c","block_type":"box","text":"securities of issuers in any particular industry (excluding the U.S. Government and its agencies and","page_number":15,"box":{"x":69,"y":324,"width":709,"height":12}},{"id":"34b32969-19ea-4e5c-9486-b54a7ee918aa","block_type":"box","text":"instrumentalities).","page_number":15,"box":{"x":70,"y":340,"width":127,"height":10}},{"id":"81ceab65-0b7e-4386-87dd-83d5e24e1c2d","block_type":"box","text":"(3) Make investments for the purpose of exercising control or management.","page_number":15,"box":{"x":102,"y":362,"width":537,"height":11}},{"id":"4b0df6bf-ffb7-409f-a8e7-63cf5546189e","block_type":"box","text":"(4) Purchase or sell real estate, except that, to the extent permitted by applicable law, the Fund may invest in","page_number":15,"box":{"x":102,"y":385,"width":778,"height":11}},{"id":"9bdb515f-fdc0-4b15-8ad1-c3d09ce2e587","block_type":"box","text":"securities directly or indirectly secured by real estate or interests therein or issued by companies which invest in real","page_number":15,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"92d2b711-89e9-40d4-929d-322fa4098402","block_type":"box","text":"estate or interests therein.","page_number":15,"box":{"x":69,"y":415,"width":190,"height":9}},{"id":"7bde1541-7a06-4251-ba8e-642cef4799e1","block_type":"box","text":"(5) Make loans to other persons, except (i) that the acquisition of bonds, debentures or other corporate debt","page_number":15,"box":{"x":102,"y":438,"width":774,"height":11}},{"id":"d58497b6-01e6-4769-884d-fab9381711ef","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates of","page_number":15,"box":{"x":69,"y":453,"width":810,"height":11}},{"id":"2b5de999-8a3b-450d-ae09-164c137fcd67","block_type":"box","text":"deposit, bankers’ acceptances and repurchase agreements or any similar instruments shall not be deemed to be the","page_number":15,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"90e6cd2b-ea2b-41ae-ac9e-0e15531e67a9","block_type":"box","text":"making of a loan; (ii) that the Fund may lend its portfolio securities, provided that the lending of portfolio securities","page_number":15,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"8c161120-8bab-437c-a99a-16f3152f868a","block_type":"box","text":"may be made only in accordance with applicable law and the guidelines set forth in the Prospectus and this","page_number":15,"box":{"x":69,"y":498,"width":767,"height":11}},{"id":"3a7cf12c-a881-4fbb-ba95-7541cb751947","block_type":"box","text":"Statement of Additional Information, as they may be amended from time to time; and (iii) as may otherwise be","page_number":15,"box":{"x":69,"y":513,"width":787,"height":11}},{"id":"94333bfb-a251-4ea3-b9b7-7fc517d99c77","block_type":"box","text":"permitted by an exemptive order issued to the Fund by the Securities and Exchange Commission.","page_number":15,"box":{"x":70,"y":529,"width":691,"height":11}},{"id":"733e2bfb-032f-45c1-b9c4-298a2a070a53","block_type":"box","text":"(6) Issue senior securities to the extent such issuance would violate applicable law.","page_number":15,"box":{"x":102,"y":551,"width":594,"height":11}},{"id":"cd6d5579-4333-4048-8615-160524e2d1ab","block_type":"box","text":"(7) Borrow money, except that (i) the Fund may borrow in amounts up to 33","page_number":15,"box":{"x":102,"y":574,"width":535,"height":11}},{"id":"a347b02b-ef6e-43ad-a95a-79237c95c56a","block_type":"box","text":"1⁄","page_number":15,"box":{"x":639,"y":574,"width":6,"height":5}},{"id":"41c8ce89-8ba6-4366-9b69-c23f284445ee","block_type":"box","text":"1⁄3","page_number":15,"box":{"x":642,"y":574,"width":8,"height":9}},{"id":"7955111b-9719-42bd-a900-21f3bbe24155","block_type":"box","text":"⁄3","page_number":15,"box":{"x":648,"y":577,"width":6,"height":6}},{"id":"fcdccae0-9156-412a-876b-68c3f0891185","block_type":"box","text":"% of its total assets (including the","page_number":15,"box":{"x":655,"y":574,"width":242,"height":11}},{"id":"dd654bce-8187-4413-b266-66356b775745","block_type":"box","text":"amount borrowed), (ii) the Fund may, to the extent permitted by law, borrow up to an additional 5% of its total assets","page_number":15,"box":{"x":69,"y":589,"width":831,"height":11}},{"id":"02c5dc61-f13b-40ae-880d-c171aa660c97","block_type":"box","text":"for temporary purposes, (iii) the Fund may obtain such short-term credit as may be necessary for the clearance of","page_number":15,"box":{"x":68,"y":604,"width":814,"height":11}},{"id":"2c4d8d5c-1b5c-491c-ab5d-29eb26ccfc0d","block_type":"box","text":"purchases and sales of portfolio securities and (iv) the Fund may purchase securities on margin to the extent","page_number":15,"box":{"x":70,"y":619,"width":779,"height":11}},{"id":"d1578363-f6af-417c-8ac9-b7e54fca6966","block_type":"box","text":"permitted by applicable law. The Fund may not pledge its assets other than to secure such borrowings or, to the","page_number":15,"box":{"x":70,"y":634,"width":797,"height":12}},{"id":"11dfb4c3-5e7c-42d8-9183-ff874b30a067","block_type":"box","text":"extent permitted by the Fund’s investment policies as set forth in the Prospectus and this Statement of Additional","page_number":15,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"f9f08a10-f609-49c9-bfaa-417c1ef5d42f","block_type":"box","text":"Information, as they may be amended from time to time, in connection with hedging transactions, short sales, when","page_number":15,"box":{"x":70,"y":664,"width":831,"height":12}},{"id":"8bd7eaad-b125-4577-a858-2de5ec16fd23","block_type":"box","text":"issued and forward commitment transactions and similar investment strategies.","page_number":15,"box":{"x":70,"y":680,"width":569,"height":11}},{"id":"de582d9e-d7a8-4dba-bddd-e9fc42c5f229","block_type":"box","text":"(8) Underwrite securities of other issuers, except insofar as the Fund technically may be deemed an underwriter","page_number":15,"box":{"x":102,"y":702,"width":798,"height":11}},{"id":"502ef49c-b657-462f-b970-28ec056736c4","block_type":"box","text":"under the Securities Act of 1933, as amended (the “Securities Act”), in selling portfolio securities.","page_number":15,"box":{"x":69,"y":717,"width":703,"height":12}},{"id":"bd57f7bb-ba08-46e8-9754-f45e83e6b23b","block_type":"box","text":"(9) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so in","page_number":15,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"eaf4b779-bf1f-48af-9d8b-4439d9ec1b38","block_type":"box","text":"accordance with applicable law and the Fund’s Prospectus and Statement of Additional Information, as they may be","page_number":15,"box":{"x":69,"y":755,"width":824,"height":11}},{"id":"9fffc412-bc52-44d7-818a-d1c731e2ba58","block_type":"box","text":"amended from time to time, and without registering as a commodity pool operator under the Commodity Exchange","page_number":15,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"5fd229be-66f9-4d4b-b36a-f4fd5009cb19","block_type":"box","text":"Act.","page_number":15,"box":{"x":68,"y":786,"width":26,"height":8}},{"id":"c537b6e5-573e-4ee1-a915-5246fe37cedc","block_type":"box","text":"Under its non-fundamental investment restrictions, the Fund may not:","page_number":15,"box":{"x":102,"y":808,"width":493,"height":11}},{"id":"2da41bcc-8689-4c60-bfbe-2f5d04c306dc","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":15,"box":{"x":102,"y":831,"width":747,"height":11}},{"id":"eaa97ac6-1320-42c7-94c3-33de05a83fd0","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":15,"box":{"x":69,"y":846,"width":759,"height":11}},{"id":"d19e050b-883f-4538-86d0-bc489a095b17","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":15,"box":{"x":70,"y":861,"width":829,"height":11}},{"id":"f866b306-75e0-448c-b054-6b624d806451","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":15,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"10c34f9c-d5ba-4f94-ab9b-150b48c74dfb","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":15,"box":{"x":69,"y":891,"width":763,"height":12}},{"id":"51e6c918-c93a-4788-947a-7505217ea813","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"56ec81a1-8c54-44b1-8673-81030156788e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2ee7608d-238b-4166-b9f6-29668feeb186","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":16,"box":{"x":102,"y":45,"width":770,"height":11}},{"id":"c8ebc637-84e3-46bd-a4b6-736df5ecd817","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":16,"box":{"x":69,"y":60,"width":741,"height":11}},{"id":"1fa50353-d2a3-4fb3-8316-617462f3a239","block_type":"box","text":"In addition, as a non-fundamental investment policy, which may be changed by the Fund’s Board of Directors","page_number":16,"box":{"x":102,"y":82,"width":772,"height":12}},{"id":"f5c55729-e37b-486d-b91a-a1de4c6151c4","block_type":"box","text":"without shareholder approval, and to the extent required by the Commission or its staff, the Fund will, for purposes of","page_number":16,"box":{"x":68,"y":98,"width":841,"height":11}},{"id":"96ac4b86-6427-4c09-8263-80697b5466e8","block_type":"box","text":"investment restriction (2), treat securities issued or guaranteed by the government of any one foreign country as the","page_number":16,"box":{"x":70,"y":113,"width":828,"height":11}},{"id":"4c65c9d8-c707-4efd-aa1d-02e74597df76","block_type":"box","text":"obligations of a single issuer.","page_number":16,"box":{"x":69,"y":128,"width":207,"height":11}},{"id":"f560d0fe-360f-416a-9f43-97ef606a976b","block_type":"box","text":"For purposes of investment restriction (2) above, with respect to the Fund’s industry classifications, the Fund","page_number":16,"box":{"x":102,"y":150,"width":778,"height":12}},{"id":"8ca9505f-4abd-4243-bfd4-d201f921fca6","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":16,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"03952405-35ad-4711-a498-f7bea301cdc4","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":16,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"1ed96787-ca97-49c6-ab7f-cf99583a5c12","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":16,"box":{"x":69,"y":196,"width":597,"height":11}},{"id":"c5a04803-1374-4caa-9044-1e18c53bb429","block_type":"box","text":"Except with respect to restriction (7) above or with respect to policies adopted pursuant to Rule 35d-1 under the","page_number":16,"box":{"x":102,"y":219,"width":799,"height":11}},{"id":"b30dada0-5132-4627-8acc-8a5524015a5c","block_type":"box","text":"Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions","page_number":16,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"1fc985d5-eeb1-4901-9399-75954f10354c","block_type":"box","text":"apply only at the time that a transaction is undertaken. Any change in the percentage of the Fund’s assets invested","page_number":16,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"f414b473-dafb-42f9-adde-b013165b6b80","block_type":"box","text":"in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":16,"box":{"x":70,"y":264,"width":797,"height":11}},{"id":"cbd8e318-515a-4f81-b8b3-74a8a736503c","block_type":"box","text":"assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell","page_number":16,"box":{"x":69,"y":279,"width":823,"height":11}},{"id":"6eb5122a-8ac0-42d2-9f11-0cfd0b19ff33","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":16,"box":{"x":69,"y":294,"width":511,"height":11}},{"id":"1119c954-53d8-455c-94a3-d9344b69fb7f","block_type":"box","text":"III. Information on Directors and Officers","page_number":16,"box":{"x":69,"y":324,"width":294,"height":9}},{"id":"6ea07598-3c2f-40b7-a516-eb3c27f98179","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thirteen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":347,"width":790,"height":11}},{"id":"b66a2e85-cbc0-4e2e-b2e0-a4931baee63e","block_type":"box","text":"the Fund as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":16,"box":{"x":68,"y":362,"width":780,"height":11}},{"id":"7c5dff72-1eb0-4437-8c2b-19bd27b8e34c","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":16,"box":{"x":69,"y":377,"width":837,"height":12}},{"id":"53658e84-d483-4243-a7e1-95c2672a49f3","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":16,"box":{"x":70,"y":392,"width":793,"height":11}},{"id":"17a24afe-f99c-41a0-823e-ca9425140be0","block_type":"box","text":"Complex”). The Fund is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":407,"width":820,"height":11}},{"id":"7c5245d1-2eeb-428b-8cb7-fa8961cc42f1","block_type":"box","text":"The Directors also oversee as board members the operations of the other open-end registered investment companies","page_number":16,"box":{"x":68,"y":423,"width":839,"height":11}},{"id":"e15e83cd-7889-40dd-b2eb-5dac969b0039","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":70,"y":438,"width":335,"height":11}},{"id":"a642f98f-99c7-4eb3-a5cc-106986df9ca5","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board is an Independent","page_number":16,"box":{"x":101,"y":460,"width":764,"height":12}},{"id":"56b0b9ca-0290-48f8-b5eb-0d85adb20b0d","block_type":"box","text":"Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director. The Board has","page_number":16,"box":{"x":70,"y":475,"width":815,"height":12}},{"id":"64aefe9d-c5cc-4f5f-8ae0-b8956f39187c","block_type":"box","text":"five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee,","page_number":16,"box":{"x":68,"y":491,"width":832,"height":11}},{"id":"e5a4c797-578a-49fe-a1aa-736b252f0091","block_type":"box","text":"a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board is to","page_number":16,"box":{"x":69,"y":506,"width":784,"height":11}},{"id":"8f97b6dd-8a1c-47dd-9115-1e8b5df851f4","block_type":"box","text":"preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":16,"box":{"x":70,"y":521,"width":793,"height":11}},{"id":"10c5478d-6b91-433d-aa6a-dd3e8fa7319c","block_type":"box","text":"Directors generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":16,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"55d658f2-f0cf-456e-b28e-dcf530ef5148","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":16,"box":{"x":69,"y":551,"width":810,"height":11}},{"id":"df4c3bb8-6d15-46fb-a578-addbe40b9819","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Directors meet regularly outside the","page_number":16,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"f37e2407-b5c9-4f09-ba1c-44f5b46dbdc7","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":16,"box":{"x":70,"y":581,"width":794,"height":12}},{"id":"bd5ba9f1-1a76-419a-8110-2cee8b9c7c7c","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":16,"box":{"x":69,"y":596,"width":816,"height":12}},{"id":"b63010c0-6356-4f59-890e-fe5840d73a28","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":16,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"e51e12d0-513f-405d-bf8e-c43f733ffa76","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":16,"box":{"x":70,"y":627,"width":811,"height":11}},{"id":"01edf05b-d00f-4c62-bd5a-94ef959f152f","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":16,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"69898358-2ec2-431d-97ad-e4c0bb1751c3","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":16,"box":{"x":69,"y":657,"width":825,"height":11}},{"id":"5a3c3e00-0a67-4558-9581-9bc3d5355dec","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":16,"box":{"x":69,"y":672,"width":441,"height":11}},{"id":"c5ed8a02-ed09-421d-a13c-8b5b395fef8a","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":16,"box":{"x":101,"y":695,"width":777,"height":11}},{"id":"34f089e7-7480-4e10-8fbb-8b91fae26aee","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":16,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"0309aec0-b00e-4a7b-8995-842a88a24868","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s charter, and the Fund’s","page_number":16,"box":{"x":68,"y":725,"width":819,"height":11}},{"id":"6e440f00-65da-464f-a578-070255b1c106","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":16,"box":{"x":70,"y":740,"width":812,"height":11}},{"id":"15771340-a7b5-4732-9a5b-21e45d4360f5","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":16,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"7c2f1612-c105-409b-b363-69c01ea08f6b","block_type":"box","text":"the operations of the Fund.","page_number":16,"box":{"x":68,"y":770,"width":192,"height":11}},{"id":"3e53cb7e-8366-4585-95a2-d9066842917c","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":16,"box":{"x":102,"y":793,"width":785,"height":11}},{"id":"87d183b1-c25c-4489-b5f1-679b60221a19","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":16,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"2a72e753-d3c2-42bb-8275-a6c4674c7cd4","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":16,"box":{"x":69,"y":823,"width":832,"height":12}},{"id":"a2105f0a-0ee0-4a04-ba76-ccfba3aefabd","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":16,"box":{"x":68,"y":838,"width":820,"height":12}},{"id":"a85e5a1c-e749-4682-be7a-9f4a2140922a","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":16,"box":{"x":70,"y":853,"width":811,"height":12}},{"id":"d8723da1-ba29-4e26-899e-fb1c65074314","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":16,"box":{"x":70,"y":869,"width":767,"height":11}},{"id":"72d5b1b1-b304-4906-bb8b-d90579de036b","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":16,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"28eb8bd8-a69e-4b0f-9ab1-0b5be7461108","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":16,"box":{"x":70,"y":899,"width":803,"height":11}},{"id":"05aafd54-b104-4222-9f7e-308c805fdbe3","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"5576f144-a04b-48fb-81f1-4af9257fc782","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1b5a47fa-80ca-46a9-b596-21b72912fd6e","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":17,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"daaf1b3a-dd22-4295-b009-df06aada51d4","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":17,"box":{"x":69,"y":60,"width":814,"height":11}},{"id":"3b2435ac-95d4-4019-93b1-b2c61a9313d6","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":17,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"db812c06-24fc-4c8a-b5f3-0818d27bc28b","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":17,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"f5fae56e-ae00-46f6-80af-3df1eb11556a","block_type":"box","text":"testing of the Fund’s compliance program and reports to the Board regarding compliance matters for the Fund and its","page_number":17,"box":{"x":68,"y":105,"width":840,"height":11}},{"id":"f084f74c-7583-4de8-beff-916dac4c13d6","block_type":"box","text":"service providers. The Independent Directors have engaged independent legal counsel to assist them in performing","page_number":17,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"94a7c588-7595-48f8-a54d-8d9ee53c68c6","block_type":"box","text":"their oversight responsibilities.","page_number":17,"box":{"x":68,"y":136,"width":218,"height":11}},{"id":"9f0b314a-ad03-4bf8-b792-f2ed9839797e","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":158,"width":122,"height":9}},{"id":"b8c4541a-657f-4d40-aac1-0b8f28f8ba02","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":158,"width":673,"height":11}},{"id":"c6098e6f-129d-4d16-9b35-64be4c23e536","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":17,"box":{"x":68,"y":173,"width":834,"height":11}},{"id":"7463356d-61ef-45a5-8ec0-9ebc798dbfd1","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":188,"width":820,"height":11}},{"id":"51444a8a-9b69-44b5-a06c-f224d1c4d4c8","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":17,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"76ecc713-3d52-4d27-b6fd-e1b8047131a3","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":219,"width":830,"height":11}},{"id":"55da8a68-5058-446d-bea6-29635ac84eaf","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":17,"box":{"x":70,"y":234,"width":825,"height":11}},{"id":"e9bcee03-4336-4105-b659-65065e3d2dbe","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":17,"box":{"x":70,"y":249,"width":807,"height":11}},{"id":"40de4382-1173-402e-a438-ed7abcb07fd8","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":17,"box":{"x":68,"y":264,"width":781,"height":11}},{"id":"3be24ac7-568e-4265-ba6e-c497149f2d87","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":17,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"2b899e1b-25fb-42fd-9059-bc243db9128f","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":17,"box":{"x":69,"y":294,"width":838,"height":11}},{"id":"7f43e631-20cc-466d-a852-4677ff6dc298","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":309,"width":825,"height":11}},{"id":"7a52d207-6cb0-4b98-9a68-29438eba1559","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":17,"box":{"x":70,"y":324,"width":809,"height":12}},{"id":"1a0e036d-3f77-457a-b3e3-244776c717b3","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":339,"width":815,"height":12}},{"id":"80af9abd-c039-47b9-8b95-7ca60e200540","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":17,"box":{"x":69,"y":355,"width":774,"height":11}},{"id":"56182ac5-0c39-40a8-8dbe-b4bae4f36fc6","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":17,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"16010976-50ee-4947-9b20-1e9ed3f1c2cd","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":385,"width":819,"height":11}},{"id":"821f2813-7aca-4acf-90c3-a91132bf5c73","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":17,"box":{"x":69,"y":400,"width":812,"height":11}},{"id":"26c1ccc3-0afb-4826-ba38-9adc0711c35a","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":17,"box":{"x":70,"y":415,"width":574,"height":11}},{"id":"ddcb8112-edb9-4b23-a85b-7d2605801e70","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":438,"width":286,"height":11}},{"id":"9d4e7125-01eb-4f8e-9ffb-0a3ed7ffd5aa","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":438,"width":464,"height":11}},{"id":"36cc5354-14fa-43bd-9f4a-3c277e7d37af","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":17,"box":{"x":70,"y":453,"width":838,"height":11}},{"id":"894ff098-f6ce-4b0e-b306-20db4ed1d415","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":17,"box":{"x":70,"y":468,"width":786,"height":11}},{"id":"23619caf-2e29-4f93-ae85-799d4e5e71b4","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Fund and","page_number":17,"box":{"x":69,"y":483,"width":804,"height":11}},{"id":"979415ae-e077-4196-bff9-1b1707ed5ca1","block_type":"box","text":"recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":17,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"fee503d2-71a8-4399-bf61-5585d35f58d7","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":17,"box":{"x":70,"y":513,"width":828,"height":11}},{"id":"68404d5e-4344-4c28-acfc-db42b76ac957","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":17,"box":{"x":70,"y":528,"width":809,"height":11}},{"id":"a013b26b-3de9-4919-9bbc-72f608222b1d","block_type":"box","text":"and make recommendations regarding Independent Director compensation; (5) monitor corporate governance","page_number":17,"box":{"x":69,"y":544,"width":780,"height":11}},{"id":"f460ffea-c45c-4193-8c15-d0b128f27c68","block_type":"box","text":"matters and develop appropriate recommendations to the Board; (6) act as the administrative committee with","page_number":17,"box":{"x":69,"y":559,"width":782,"height":11}},{"id":"9805e510-e954-477f-850a-3460e62925c7","block_type":"box","text":"respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee) and","page_number":17,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"7c39a8a9-29c6-471e-a878-a1a8bad55235","block_type":"box","text":"codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities as","page_number":17,"box":{"x":69,"y":589,"width":827,"height":11}},{"id":"075e8e47-e61b-4b1a-88ef-b4f27473f800","block_type":"box","text":"may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":17,"box":{"x":69,"y":604,"width":809,"height":11}},{"id":"ba8582cc-efc4-4e63-af85-5a00c8f45324","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the Fund’s","page_number":17,"box":{"x":69,"y":619,"width":796,"height":11}},{"id":"6eea8f1d-c1cd-4bf0-b86a-15a6b1338310","block_type":"box","text":"Amended and Restated Bylaws, shareholders must follow certain procedures to nominate a person for election as a","page_number":17,"box":{"x":68,"y":634,"width":828,"height":11}},{"id":"a337eb87-bbba-47f8-a1b4-a1f406a76b70","block_type":"box","text":"Director at a shareholder meeting at which Directors are to be elected. Under these advance notice procedures,","page_number":17,"box":{"x":70,"y":650,"width":795,"height":11}},{"id":"9617ef94-f7a6-45e2-9a42-86c4e18e777e","block_type":"box","text":"notice of the proposed nominee to the Secretary of the Fund must be delivered to or mailed and received at the","page_number":17,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"84983c67-ca07-4857-8f7c-f89587cd2039","block_type":"box","text":"principal executive offices of the Fund not later than the close of business on the fifth day following the day on which","page_number":17,"box":{"x":70,"y":680,"width":831,"height":11}},{"id":"eaeec4a5-af04-4609-806a-b03cf522b1b3","block_type":"box","text":"notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever","page_number":17,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"e38a93b6-577c-4f57-ba3f-2780b7b0f0ca","block_type":"box","text":"first occurs. The Fund’s Bylaws provide that notice of a proposed nomination must include certain information about","page_number":17,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"7579c65c-470d-4b96-981d-8f4e79cdc83b","block_type":"box","text":"the shareholder and the nominee, as well as certain other information, including a written consent of the proposed","page_number":17,"box":{"x":68,"y":725,"width":820,"height":11}},{"id":"ec675227-f70e-418c-8ad5-bb1b3854fccc","block_type":"box","text":"nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details. The Board has adopted a","page_number":17,"box":{"x":69,"y":740,"width":799,"height":11}},{"id":"f0c6b8f6-4a6e-4746-bf9e-cd972d073f2e","block_type":"box","text":"written charter for the Governance Committee. During the fiscal year ended May 31, 2026, the Governance","page_number":17,"box":{"x":68,"y":755,"width":765,"height":11}},{"id":"11e569cb-ec83-463f-828e-e0f20fa3a9a0","block_type":"box","text":"Committee met ten times.","page_number":17,"box":{"x":69,"y":770,"width":185,"height":9}},{"id":"a56b486f-e01b-477d-b642-4c8c2dded26c","block_type":"box","text":"Compliance Committee.","page_number":17,"box":{"x":102,"y":793,"width":168,"height":11}},{"id":"0a7ab182-1707-4e6b-9b02-36cfbd6b3d1e","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":17,"box":{"x":276,"y":793,"width":629,"height":11}},{"id":"e24dcfac-23ca-43d9-936a-179384ab6e40","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":17,"box":{"x":68,"y":808,"width":828,"height":11}},{"id":"4151330c-b5e7-472f-b9ad-1137f8e9766f","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":17,"box":{"x":68,"y":823,"width":773,"height":12}},{"id":"32d75a81-d2c6-4422-91cc-42ffea404604","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":17,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"e553aae1-070e-4ebb-8c04-6f3473d30d72","block_type":"box","text":"BlackRock and any sub-adviser and the Fund’s third-party service providers. The Compliance Committee’s","page_number":17,"box":{"x":70,"y":854,"width":753,"height":11}},{"id":"403ff9fd-5e34-4751-abc7-138d9f43d1ed","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Fund and its","page_number":17,"box":{"x":69,"y":869,"width":832,"height":11}},{"id":"eff51a5e-5cc5-4f55-80ea-07d5aefbcb0c","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":17,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"b54c64ac-10b7-4ee4-8a63-4ef2d5cd086a","block_type":"box","text":"and, where appropriate, recommend policies concerning the Fund’s compliance with applicable law; (3) review","page_number":17,"box":{"x":69,"y":899,"width":784,"height":11}},{"id":"244a8d5c-136e-483f-8e08-a41a528eed56","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"70a601cb-2307-4858-8576-cfd32d09daba","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82234189-515f-4bf8-8406-d2dbc3d1131e","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":18,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"be3f67f3-1264-4cd5-9c05-e3db21edc6dc","block_type":"box","text":"regarding the Fund’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":18,"box":{"x":69,"y":60,"width":811,"height":11}},{"id":"9def8641-52eb-40ce-905e-b1c9fbf65193","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":18,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"2392169d-6fd8-458e-8fbd-d5138b5e5ddf","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":18,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"9091356d-f01f-4be5-bb65-7dd04eb8c337","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":18,"box":{"x":69,"y":105,"width":811,"height":11}},{"id":"6e0f7ddd-043f-46a8-806b-b8633adb8f9d","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":68,"y":120,"width":502,"height":11}},{"id":"bfa15313-17f9-40e1-8b50-70d50cda63e1","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":143,"width":248,"height":11}},{"id":"2949f792-0f17-418e-aa31-56b29877ab0e","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":18,"box":{"x":356,"y":143,"width":531,"height":11}},{"id":"3f8a1278-a2b5-46a4-b760-27bec36d2dc8","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"e2835b3e-414c-472f-bb8d-e4fee757054f","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"2562db61-6e53-40c1-a289-70fa3f255776","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":18,"box":{"x":68,"y":188,"width":832,"height":12}},{"id":"b1cd78d1-eb34-4585-ac85-11b6bad43ce1","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":203,"width":818,"height":12}},{"id":"566a1d57-7c60-4a10-8cf0-98d409428275","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":218,"width":782,"height":12}},{"id":"272b661d-4d39-4d3c-903e-d718661724df","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":18,"box":{"x":70,"y":234,"width":829,"height":11}},{"id":"1b3c6dcb-78ca-4871-b3e2-15bfe8f5b793","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":249,"width":816,"height":11}},{"id":"a650bf8b-da40-4c83-9b21-869dc43d51dc","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":18,"box":{"x":69,"y":264,"width":803,"height":11}},{"id":"79718bb4-d451-4437-85bb-24c867785120","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":18,"box":{"x":69,"y":279,"width":827,"height":11}},{"id":"9a8025af-f43c-42cb-8078-ce27e50e465d","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":294,"width":811,"height":11}},{"id":"61f87b87-d282-4925-9c3f-b1f1b83de02a","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":18,"box":{"x":69,"y":309,"width":757,"height":11}},{"id":"47b30e3b-b758-4917-a7fa-7705763951cc","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":18,"box":{"x":70,"y":324,"width":835,"height":11}},{"id":"e7d67aaf-d8c5-42a4-a27a-4db8235f8f8e","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":18,"box":{"x":68,"y":339,"width":800,"height":12}},{"id":"c8dfedb6-257e-4c39-8ff6-e2da14aaa555","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":18,"box":{"x":69,"y":355,"width":780,"height":11}},{"id":"3465d1cd-5be4-433f-b869-b9bc26cfe875","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":18,"box":{"x":69,"y":370,"width":838,"height":11}},{"id":"31ad1dfc-e6e5-4367-8122-3c8108f7e115","block_type":"box","text":"ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":385,"width":544,"height":11}},{"id":"a69a8fc7-3a8f-46a2-9ab5-f6f170204569","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":408,"width":186,"height":10}},{"id":"6e85a3f4-1a9f-485c-9eb6-c9979e7ce179","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":18,"box":{"x":293,"y":407,"width":598,"height":11}},{"id":"fa4a4fdd-f9d8-4591-b6fa-0cf77add503a","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":423,"width":819,"height":11}},{"id":"aa76ec94-fb8b-4b8f-9636-32aa86aa3b2d","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":18,"box":{"x":69,"y":438,"width":796,"height":11}},{"id":"e7fb6fd1-e671-49be-9268-96e87a1c5318","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":18,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"048fd7f5-93bc-4503-86d0-561952c98aa5","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":18,"box":{"x":69,"y":468,"width":813,"height":11}},{"id":"d0dac393-9bdf-4e7c-86b0-eec7ff9ee1f4","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":18,"box":{"x":68,"y":483,"width":816,"height":11}},{"id":"54ca6652-5eee-4f09-a881-e3a5f472c20b","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":18,"box":{"x":68,"y":498,"width":575,"height":11}},{"id":"b47d4ac5-12bf-4454-b89d-54a0b95ed2cc","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":18,"box":{"x":101,"y":521,"width":771,"height":11}},{"id":"a69f31ba-74b2-42a4-a5fd-50bbb0453c9a","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":18,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"3e0ad01a-dfa4-4806-b434-160a3c34937b","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":18,"box":{"x":69,"y":551,"width":833,"height":11}},{"id":"c55b9028-8be6-40be-b40b-b9e219fd542d","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":18,"box":{"x":69,"y":566,"width":827,"height":11}},{"id":"d62bdba1-0915-4bc7-84cc-5c1a61eac82f","block_type":"box","text":"in determining that a particular Independent Director was and continues to be qualified to serve as a Director, the","page_number":18,"box":{"x":70,"y":581,"width":811,"height":12}},{"id":"9072cd37-83e8-4ddb-b2c3-0408dea9f037","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":18,"box":{"x":70,"y":596,"width":787,"height":12}},{"id":"ab95948d-4b03-469a-810f-6553dc2ff5a5","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":18,"box":{"x":69,"y":612,"width":807,"height":11}},{"id":"a6d6e2b5-232b-4dab-818c-15251bb56409","block_type":"box","text":"which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.","page_number":18,"box":{"x":68,"y":627,"width":792,"height":11}},{"id":"ea1868b0-7ce7-4378-a038-19cdbb8762ed","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":18,"box":{"x":68,"y":642,"width":832,"height":11}},{"id":"7b53ba2e-6d02-4ca7-b086-b76805e29c10","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":18,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"55e5c165-bcc0-43cc-a259-24e9cdb916a0","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":18,"box":{"x":69,"y":672,"width":771,"height":11}},{"id":"71df8b72-49d3-4577-b0bc-7464ec20ac01","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":18,"box":{"x":69,"y":687,"width":475,"height":11}},{"id":"a81fe015-07ed-42f4-b94e-6a2a8aec8a82","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":18,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"12316021-e917-43d6-8d7f-1c1cafef30a1","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":18,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"bf8ce83e-f880-4252-9517-0bfd38baa782","block_type":"box","text":"board member of the Fund and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":18,"box":{"x":69,"y":740,"width":835,"height":11}},{"id":"c7ba6e0c-fcce-4118-8f2f-cb12ec632d70","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":18,"box":{"x":70,"y":755,"width":759,"height":11}},{"id":"cdc67eea-9637-4d76-846f-b994fc7d2bc0","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":18,"box":{"x":70,"y":770,"width":685,"height":12}},{"id":"ab88de22-49cc-4e21-917e-66cef996d327","block_type":"box","text":"ad hoc","page_number":18,"box":{"x":762,"y":771,"width":47,"height":8}},{"id":"babf84c1-0585-42d5-b3bd-000dc2075787","block_type":"box","text":"committees","page_number":18,"box":{"x":814,"y":771,"width":82,"height":8}},{"id":"e93d7e57-f2ea-40da-aff1-0cedadb1a52a","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":18,"box":{"x":68,"y":785,"width":395,"height":12}},{"id":"c7e359ee-8609-4782-a97b-2479ac22763e","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"d7fd4d72-10ed-4a3a-bbdc-f57a24a48e3d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7c31a14f-966f-4273-9fb8-2de5aebb483a","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":19,"box":{"x":101,"y":45,"width":754,"height":11}},{"id":"5bdcb6af-ffb8-40e5-8b2e-04e2a81d2c35","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":19,"box":{"x":69,"y":60,"width":494,"height":11}},{"id":"bd0e2aab-7d88-4536-b2fc-0816f723d1d6","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":19,"box":{"x":69,"y":88,"width":408,"height":9}},{"id":"9313c9bc-a090-4400-8577-0f3516d2a0e6","block_type":"box","text":"Independent Directors","page_number":19,"box":{"x":70,"y":105,"width":156,"height":10}},{"id":"62a9301d-e1d4-4fa7-9cb0-d06d881f8b3c","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":120,"width":781,"height":11}},{"id":"04835e26-5abd-476b-aeeb-8adc7e911f85","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"8ff40e1a-904b-4ba3-b932-9aa843b24ec8","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":150,"width":623,"height":11}},{"id":"2f8b689d-9c6c-47f2-895f-0c336c8fe1d4","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. 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These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"e958b842-01d5-47e4-9bac-7e71287df23c","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"6582dae8-c17c-449b-a4c4-5f4dc4806290","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":256,"width":640,"height":11}},{"id":"b4deeef7-dec8-4e49-ab25-e58ee17d0a8f","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":19,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"a0241288-6563-47dd-b600-423312ea3eaf","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":19,"box":{"x":69,"y":293,"width":806,"height":12}},{"id":"cfcddc7c-7d64-460a-91ea-1d4164d5cad0","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"26c53209-e3ba-4ac8-b41a-4b18b6e10d55","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"39c7b273-650c-4901-b9f5-5ea4c8e0d6a3","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":19,"box":{"x":265,"y":339,"width":562,"height":9}},{"id":"89206672-fa66-4abe-929c-6e0a3151c82a","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"5afe3a22-b83b-49e3-ba37-4dbe3d4d97b2","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"b9d9e1ec-acce-45ef-8871-3aba642d1e90","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":19,"box":{"x":265,"y":384,"width":641,"height":11}},{"id":"4be87d01-0d16-4fb1-bc09-5ccb73fd85be","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":19,"box":{"x":264,"y":399,"width":638,"height":12}},{"id":"c99f8dfc-23d5-41bc-b615-16d7c31591f4","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":19,"box":{"x":265,"y":414,"width":584,"height":12}},{"id":"e3f894e2-6d99-42b1-ad6c-652907b169c8","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"904a2832-0c0b-4075-aa2a-6e976ab5d9cb","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"00e23d54-c0d8-42ec-9dd5-5e937e482619","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"878a476d-adb8-4efc-817a-aa0db381a1ca","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"44e129b2-a278-43be-96c5-5b6a2512eb71","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":19,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"4d87c509-27a4-44f7-a4d3-ccce1e6c3551","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":19,"box":{"x":265,"y":513,"width":638,"height":11}},{"id":"e84850c5-a7da-4e63-8d2a-2c3ac73e475e","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":19,"box":{"x":265,"y":528,"width":642,"height":11}},{"id":"3ef837dc-5068-444b-ae3a-3c686f2fd215","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":19,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"d84844f6-5fd0-46ee-86ad-5a9427d0bd25","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":19,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"d56d32ce-21c4-4ddc-b09d-6f67a7fe2772","block_type":"box","text":"perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"f8952703-7080-48f5-a122-eeaef4ae405e","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":19,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"97623a76-bc5c-489f-b996-3001440029c1","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":19,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"c72ded68-7d27-446c-982a-2c008406d718","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":19,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"a76bb656-92bb-4f7a-9db0-76fbf0a29129","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":19,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"1c86c3cd-ff5a-4ab8-a43c-ffdb30eb2652","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":19,"box":{"x":265,"y":656,"width":596,"height":12}},{"id":"1e862b0b-0601-4d9e-9247-68542e03afcd","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":19,"box":{"x":265,"y":671,"width":616,"height":12}},{"id":"b4501277-791f-4567-87d4-eb32e5ba2a06","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":19,"box":{"x":264,"y":686,"width":368,"height":11}},{"id":"739df970-c616-483d-8e7e-1bf564179624","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":19,"box":{"x":69,"y":709,"width":777,"height":11}},{"id":"91fe500f-f64a-48c1-86b7-cd6e9b112a0e","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":19,"box":{"x":265,"y":724,"width":613,"height":12}},{"id":"eeb938dc-1f56-4e79-94d5-942483b47d87","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":19,"box":{"x":265,"y":739,"width":563,"height":12}},{"id":"d4ddaa57-4e28-44b6-8377-3aeea718274b","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":19,"box":{"x":265,"y":755,"width":607,"height":11}},{"id":"34d39c8f-dff0-44e5-8322-fe5b1de60414","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":19,"box":{"x":265,"y":770,"width":638,"height":11}},{"id":"39f450e3-295f-4fd1-bc5d-d3c7477691f7","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":19,"box":{"x":265,"y":785,"width":626,"height":11}},{"id":"78646882-04f2-4ffb-9a28-5f54961402ac","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":19,"box":{"x":265,"y":800,"width":563,"height":11}},{"id":"b08b9c98-1614-458c-92d8-06ff7d2d6129","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Directors prior to becoming an","page_number":19,"box":{"x":265,"y":815,"width":627,"height":11}},{"id":"8477e038-4efb-4c50-b494-aee29b82db59","block_type":"box","text":"Independent Director. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":19,"box":{"x":265,"y":830,"width":627,"height":11}},{"id":"6c20cd0f-4145-4bd9-8f3f-70aab4e460c4","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":19,"box":{"x":265,"y":845,"width":623,"height":11}},{"id":"f96380ab-79ea-4be2-9967-9c19ee502fd6","block_type":"box","text":"rules.","page_number":19,"box":{"x":265,"y":861,"width":38,"height":8}},{"id":"6f6c310e-ddf5-4828-96e4-1f124ac16c46","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"16dcf94a-f617-4bbe-ae0d-8fbbd2f70fe1","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"403b51ea-5582-46a0-87a4-78458c37338f","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":20,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"9fe2d2b4-e166-4f95-8425-ea2ab71be927","block_type":"box","text":"Henry R. 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Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":141,"width":642,"height":11}},{"id":"809c5304-13db-49bc-8174-7683c1ecd861","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":156,"width":626,"height":11}},{"id":"121f4878-6be9-46bd-a7af-3e2b330ceeed","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":171,"width":630,"height":12}},{"id":"5809d319-7c52-48c5-855b-1ff5a53cfbf1","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":186,"width":602,"height":12}},{"id":"099fd2f7-254e-4ab7-ae70-88e7c94b66ed","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"30a96bbf-da1c-4488-8fcf-47334ae4a90c","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":217,"width":639,"height":11}},{"id":"284b2050-ffd3-4081-8ddb-d44ba8c33bb1","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":20,"box":{"x":264,"y":232,"width":641,"height":11}},{"id":"11bbe0b6-158b-4d96-b1c9-f7882dce7ae0","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":247,"width":208,"height":11}},{"id":"921bf093-cc16-4fd8-bf0a-a008f58531e3","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. 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The Board benefits from Ms. Montgomery’s more than 20","page_number":20,"box":{"x":265,"y":315,"width":641,"height":11}},{"id":"c52dbae5-f4f3-4a1a-bac8-e094305b90ec","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":330,"width":602,"height":11}},{"id":"31b4d48b-7159-4425-86d7-e75f31859702","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":345,"width":617,"height":11}},{"id":"015da41d-3422-4fa5-bba1-1607fc3373b0","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":360,"width":629,"height":12}},{"id":"478f091a-6632-493a-bb0e-da306855cda2","block_type":"box","text":"the corporate boards of a variety of public companies. 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Opatrny has more than 40 years of business, oversight and executive","page_number":20,"box":{"x":70,"y":413,"width":764,"height":11}},{"id":"973a530f-61ff-4bd5-80e1-335e10b26e07","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"e295687d-65e8-4f0f-99e8-535e8eeecff6","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":20,"box":{"x":264,"y":443,"width":593,"height":12}},{"id":"32822d53-bdfb-477a-a6c3-224c9444906b","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":20,"box":{"x":265,"y":458,"width":603,"height":12}},{"id":"8845596d-371e-4fa6-99a1-50d2210f2b22","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":474,"width":629,"height":11}},{"id":"5729a95d-9716-4187-b89d-38fcae79cf98","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":496,"width":804,"height":11}},{"id":"6260e619-924d-48c9-969d-f43185b851a4","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":20,"box":{"x":265,"y":511,"width":552,"height":12}},{"id":"cd315b08-3629-4f47-9bab-9bc2ad7ccef9","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":20,"box":{"x":265,"y":526,"width":636,"height":12}},{"id":"de9a21be-5236-4c8b-ae0e-bed3a8ea52d9","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":20,"box":{"x":265,"y":542,"width":639,"height":11}},{"id":"2ef22dc5-8665-4401-8d0f-3b691be7f1c6","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":20,"box":{"x":265,"y":557,"width":576,"height":11}},{"id":"69704aef-4ab5-4960-addd-11dd1b23fc59","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":20,"box":{"x":265,"y":572,"width":626,"height":11}},{"id":"c493aab5-2531-4cb2-bc99-d44a41c355c7","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":20,"box":{"x":265,"y":587,"width":592,"height":11}},{"id":"39caabc5-e7a3-4a7b-8885-103227c7ccb3","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Arthur","page_number":20,"box":{"x":265,"y":602,"width":629,"height":11}},{"id":"0b20f232-18b8-476b-aab7-5ac64b5b4020","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":20,"box":{"x":265,"y":617,"width":626,"height":11}},{"id":"d505bf75-76a2-4d95-9f86-3b410930254a","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":20,"box":{"x":264,"y":632,"width":608,"height":12}},{"id":"679459fa-fdd1-495e-86c0-8114834bc2ce","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":20,"box":{"x":265,"y":648,"width":575,"height":11}},{"id":"39512a60-5512-4865-af89-5088bc05a27e","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":20,"box":{"x":264,"y":663,"width":591,"height":11}},{"id":"6539a576-88fb-43b9-b432-b6f940b8b1bf","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":20,"box":{"x":265,"y":678,"width":627,"height":11}},{"id":"00b25200-8bd8-43e1-9bb7-4099f8fecc64","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":20,"box":{"x":265,"y":693,"width":578,"height":11}},{"id":"728ca3dd-eecb-4245-a63f-18691e5e80e6","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":20,"box":{"x":265,"y":708,"width":607,"height":11}},{"id":"c7ca2b2e-f3d5-405d-854d-ac0ac9f140ff","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":20,"box":{"x":265,"y":723,"width":615,"height":11}},{"id":"e170573c-709e-4341-ad59-16f26fd95618","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":20,"box":{"x":265,"y":738,"width":638,"height":11}},{"id":"420ec034-ce3c-4e25-91d9-2c5404f2e1e0","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":20,"box":{"x":265,"y":753,"width":635,"height":12}},{"id":"87646ab0-099b-4a1c-b555-aa0e6e47145a","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":20,"box":{"x":265,"y":768,"width":642,"height":12}},{"id":"8729d560-01e1-4391-8842-ebcde28bec0b","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":20,"box":{"x":265,"y":784,"width":627,"height":11}},{"id":"da7036c7-0870-4348-8ae5-97225385438d","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":20,"box":{"x":265,"y":799,"width":628,"height":11}},{"id":"3abc6a2e-b2c4-4dda-8247-941f4fb81557","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":20,"box":{"x":265,"y":814,"width":460,"height":11}},{"id":"ec153e8a-8c60-48b4-adcf-4f017fda459c","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0e0f506a-836a-4288-ac7a-426c24d4c66e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56ac27f1-c4af-4025-b3b8-cf3886affa74","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":21,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"eea58a6a-e32e-4469-9bc1-14747204f2e4","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":65,"width":818,"height":12}},{"id":"2b5f8bcd-3588-451b-ba52-edcfd65f24f2","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":81,"width":603,"height":11}},{"id":"ff507b6a-d74c-4d7a-a7aa-1e7c91eb1368","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":96,"width":606,"height":11}},{"id":"66ae0936-4f20-47f0-a31c-a14babc603a7","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":111,"width":608,"height":9}},{"id":"fd925b7c-ee31-471a-9780-5618380851f5","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":126,"width":626,"height":11}},{"id":"84d7250f-4fa2-42d2-93d9-81619c600e99","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":141,"width":591,"height":11}},{"id":"587f1ece-cba2-4111-8ec9-5305e2b4622e","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":156,"width":265,"height":11}},{"id":"25de1cf7-2193-41da-93c3-ce58eb63dd13","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":179,"width":833,"height":11}},{"id":"a756619e-f51c-4177-b4d9-ceabba46c0bf","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":194,"width":638,"height":11}},{"id":"9956120a-90ba-4c99-9e01-ca59f8cac6d1","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":209,"width":608,"height":11}},{"id":"d1c8c295-3bfc-473b-b29f-88c3815055c7","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":224,"width":645,"height":11}},{"id":"87157a0b-260b-4dca-a7e6-937188720cf4","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":21,"box":{"x":264,"y":239,"width":639,"height":9}},{"id":"1a1bb762-33d3-45ab-b19a-5ac4dbdbd022","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":254,"width":573,"height":12}},{"id":"eec165bd-ac0a-4396-a663-f48dc0cc55e2","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":269,"width":625,"height":12}},{"id":"691ad5a0-4739-4568-bdad-8dbcd5c54e58","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":285,"width":610,"height":11}},{"id":"ab74f7e6-69db-4fe6-bdbe-0072e214351f","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"a2faa8f5-bf35-4f4b-b436-c8be44784c06","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":315,"width":583,"height":11}},{"id":"73786c1b-03f1-4916-aa49-25f88c7939da","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":21,"box":{"x":265,"y":330,"width":372,"height":11}},{"id":"a763d5f1-2125-44cb-94d3-348ed5d3843c","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":21,"box":{"x":70,"y":353,"width":807,"height":11}},{"id":"4f437524-5c54-4651-8584-371b6e9ed365","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":368,"width":641,"height":11}},{"id":"b8f1707c-386f-4814-9919-b8c44b8f38e2","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":21,"box":{"x":265,"y":383,"width":618,"height":11}},{"id":"f8bc04f6-6591-47d4-a304-cddada19e3be","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":21,"box":{"x":265,"y":398,"width":594,"height":11}},{"id":"5ded7a28-a6f4-4350-a9e2-4ecbb391f23b","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":21,"box":{"x":265,"y":413,"width":639,"height":11}},{"id":"996d3778-7403-4dbb-a7c0-56a033c882c9","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":428,"width":575,"height":11}},{"id":"fc01a7d3-3e39-41b8-8ff6-460bc6798857","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":443,"width":131,"height":9}},{"id":"38784eb4-9070-4395-b342-91f88d20ec07","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":21,"box":{"x":69,"y":466,"width":808,"height":11}},{"id":"97afa57d-304b-452b-ba0a-c28eb3c0b1cf","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":21,"box":{"x":265,"y":481,"width":630,"height":11}},{"id":"9b24ecb8-6027-4d95-aa42-bf9dcdace1a2","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":21,"box":{"x":265,"y":496,"width":627,"height":12}},{"id":"e5de03cc-e403-43e2-813e-2a5f3756e53f","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":21,"box":{"x":265,"y":512,"width":632,"height":11}},{"id":"360d1b13-1604-4dea-a2db-6797b2943487","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":21,"box":{"x":265,"y":526,"width":615,"height":12}},{"id":"7c1fb5fb-7705-40df-9dcc-486498a636fc","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":21,"box":{"x":265,"y":542,"width":608,"height":11}},{"id":"936bd3a0-59ac-4eef-b6c7-28855e2c7507","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":21,"box":{"x":264,"y":557,"width":620,"height":11}},{"id":"8648f742-3ab6-4983-b722-fd5e6e8f1efe","block_type":"box","text":"economy. 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Amounts shown may include shares as to which a Director has indirect","page_number":26,"box":{"x":69,"y":467,"width":776,"height":11}},{"id":"15114c91-62b4-4067-977b-0759914e5c9a","block_type":"box","text":"beneficial ownership, such as through participation in certain family accounts, 529 college savings plan interests, or","page_number":26,"box":{"x":69,"y":482,"width":833,"height":11}},{"id":"972aaf1c-b3f3-4af7-a11d-61564e5ac679","block_type":"box","text":"similar arrangements where the Director has beneficial economic interest but not a direct ownership interest.","page_number":26,"box":{"x":69,"y":497,"width":778,"height":11}},{"id":"59d03585-0118-43d9-b74a-618a9c19963f","block_type":"box","text":"Name","page_number":26,"box":{"x":69,"y":566,"width":32,"height":7}},{"id":"a8a10024-53e4-4877-8e19-271358982ba4","block_type":"box","text":"Dollar Range of","page_number":26,"box":{"x":677,"y":545,"width":89,"height":9}},{"id":"2c6cf1fd-701e-4e44-9ee0-0a556d826401","block_type":"box","text":"Equity Securities","page_number":26,"box":{"x":672,"y":555,"width":98,"height":9}},{"id":"2ded6b57-9ccf-40bf-a312-87d27b657435","block_type":"box","text":"in the Fund","page_number":26,"box":{"x":689,"y":566,"width":64,"height":7}},{"id":"02d0546f-b8b3-4805-8028-b828d24abbe0","block_type":"box","text":"Aggregate Dollar","page_number":26,"box":{"x":805,"y":525,"width":99,"height":9}},{"id":"15ab4a4d-690b-4432-855e-c3051d03fc9c","block_type":"box","text":"Range of Equity","page_number":26,"box":{"x":809,"y":535,"width":91,"height":9}},{"id":"833d89a7-2ddb-4cf2-94dd-129da3318db4","block_type":"box","text":"Securities in","page_number":26,"box":{"x":818,"y":545,"width":72,"height":8}},{"id":"8a745552-ccaf-491e-a630-5bf179bdffd4","block_type":"box","text":"Supervised","page_number":26,"box":{"x":822,"y":555,"width":64,"height":9}},{"id":"95ab2baa-8e3e-4c7c-9d37-cfdf87f5ae95","block_type":"box","text":"Funds","page_number":26,"box":{"x":838,"y":566,"width":33,"height":7}},{"id":"4c221a05-ce6d-4abb-af68-a98e5598637f","block_type":"box","text":"Independent Directors","page_number":26,"box":{"x":70,"y":583,"width":156,"height":11}},{"id":"065cfd80-78af-48af-9b47-ebdea6a19b10","block_type":"box","text":"Christopher J. Ailman","page_number":26,"box":{"x":79,"y":598,"width":149,"height":11}},{"id":"b22e6fc7-3473-4b06-ac62-6e7b566734ba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":231,"y":598,"width":600,"height":9}},{"id":"146e3b8f-c79d-46c9-9dd9-8d0fd8e9ac44","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":598,"width":72,"height":11}},{"id":"e7e97636-cf7a-4954-a3a3-fe5b4569f783","block_type":"box","text":"Susan J. Carter .","page_number":26,"box":{"x":79,"y":614,"width":121,"height":8}},{"id":"f30d91d9-1575-4d04-8be8-5226cbed9676","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":207,"y":614,"width":624,"height":8}},{"id":"c8f7db6b-6bf9-4781-a7da-d5b8bb78d546","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":613,"width":72,"height":11}},{"id":"2645c447-3424-41e8-8605-bbb57144b514","block_type":"box","text":"Collette Chilton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":79,"y":629,"width":752,"height":9}},{"id":"3ffc391a-259f-4cea-9009-94a07770023c","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":628,"width":72,"height":11}},{"id":"a2a9fd84-62fb-428f-b71b-70cfe4e93b1a","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":79,"y":644,"width":752,"height":11}},{"id":"8cbbad6e-8d58-41cd-bba1-e9dbbb7ddc17","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":643,"width":72,"height":11}},{"id":"5b87c9f1-a330-4731-b842-e38eaa185dd8","block_type":"box","text":"Jeffrey Jarczyk* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None","page_number":26,"box":{"x":78,"y":659,"width":794,"height":11}},{"id":"263e6204-cf52-4fd6-bdff-28b90d296c50","block_type":"box","text":"Henry R. Keizer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":79,"y":674,"width":752,"height":11}},{"id":"81b2c532-5a1a-46e9-ba5c-f28dea2bb9ff","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":673,"width":72,"height":11}},{"id":"bf37a889-ad64-4522-976b-50819d931d07","block_type":"box","text":"Cynthia A. Montgomery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":79,"y":689,"width":752,"height":11}},{"id":"844e85f3-d7a5-44ec-9459-10be1bf465c3","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":688,"width":72,"height":12}},{"id":"ebdec82e-aa1b-4b79-b221-a3b70b28155a","block_type":"box","text":"Donald C. Opatrny","page_number":26,"box":{"x":79,"y":704,"width":129,"height":11}},{"id":"c35fce93-e30b-4194-8990-9dea4db35284","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":215,"y":704,"width":616,"height":9}},{"id":"033e8795-4e0c-47dc-b743-87ab0502816a","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":704,"width":72,"height":11}},{"id":"32487635-c8d9-4711-a1cb-f7d6fdce541e","block_type":"box","text":"Lori Richards. .","page_number":26,"box":{"x":79,"y":720,"width":105,"height":8}},{"id":"e8351d4c-f936-47dd-a9fc-9adc52ed56fa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None","page_number":26,"box":{"x":190,"y":720,"width":682,"height":8}},{"id":"f7e763df-8072-4d55-ac6f-36dfb994d552","block_type":"box","text":"Mark Stalnecker","page_number":26,"box":{"x":79,"y":735,"width":115,"height":8}},{"id":"fba52431-37f0-4670-a188-c9e43d10ff37","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":198,"y":735,"width":633,"height":8}},{"id":"1e71c45a-c656-47aa-8c36-ee0f72140306","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":734,"width":72,"height":11}},{"id":"b5d18379-b443-4bf4-b5c4-29e4549af48c","block_type":"box","text":"Marc D. Stern*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None","page_number":26,"box":{"x":79,"y":750,"width":793,"height":9}},{"id":"9773bddf-0961-4d14-96e7-ff9c7ea4a4d7","block_type":"box","text":"Kenneth L. Urish .","page_number":26,"box":{"x":79,"y":765,"width":129,"height":9}},{"id":"e92bf72b-31fe-4ea5-8bcd-235b5504aa5b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":215,"y":765,"width":616,"height":9}},{"id":"0d11a739-eaa5-4822-afb2-76a4584205e9","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":764,"width":72,"height":11}},{"id":"23f8c177-7814-4bd7-8485-8d70f6be7688","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":79,"y":780,"width":752,"height":9}},{"id":"490ca6f0-b45b-4353-bf85-6a7268b40fd3","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":779,"width":72,"height":11}},{"id":"e2d82746-9aa7-4299-92ff-350a576457ee","block_type":"box","text":"Interested Directors","page_number":26,"box":{"x":70,"y":795,"width":140,"height":9}},{"id":"6698a4eb-7193-4cda-9d66-a5764101a452","block_type":"box","text":"Robert Fairbairn","page_number":26,"box":{"x":79,"y":810,"width":113,"height":9}},{"id":"cf36e251-7579-4a17-a532-f022e58f66c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":198,"y":810,"width":633,"height":9}},{"id":"abea5259-7170-45ce-b2e0-a7df697dacd2","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":809,"width":72,"height":11}},{"id":"f0d9cf0d-f194-4238-bff5-89edd9d2ffd0","block_type":"box","text":"John M. Perlowski","page_number":26,"box":{"x":78,"y":825,"width":127,"height":9}},{"id":"e8100e90-4661-4536-98a2-d39814768224","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":26,"box":{"x":215,"y":825,"width":616,"height":9}},{"id":"f250c280-2c58-40ba-a732-d4f9d4d28f00","block_type":"box","text":"$100,000","page_number":26,"box":{"x":837,"y":824,"width":72,"height":12}},{"id":"1c61965c-1e5f-4f30-9684-56912b9ab417","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Directors.","page_number":26,"box":{"x":70,"y":850,"width":784,"height":8}},{"id":"2c463c03-6d9a-4591-94be-40ad2809c78b","block_type":"box","text":"As of September 3, 2026, the Directors and officers of the Fund as a group directly or indirectly owned an","page_number":26,"box":{"x":101,"y":870,"width":756,"height":12}},{"id":"c21aec62-a4b2-40d2-88df-fb61fd627730","block_type":"box","text":"aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025 (and, with","page_number":26,"box":{"x":69,"y":886,"width":820,"height":11}},{"id":"f9a44e68-f47a-4438-8829-eef0d8d681a1","block_type":"box","text":"respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Directors of the Fund or their","page_number":26,"box":{"x":69,"y":901,"width":802,"height":11}},{"id":"4781354d-f465-48b6-808f-9199a83a801e","block_type":"box","text":"I-17","page_number":26,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"52ec252b-77fc-46f0-9b7a-df358c660a7d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"75a3b875-d844-4619-a9a1-4fd1d251ad5e","block_type":"box","text":"immediate family members owned beneficially or of record any securities of the Fund’s investment adviser, principal","page_number":27,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"edc6c4ec-3466-4c5b-b1a0-6bcd1113f107","block_type":"box","text":"underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such entities.","page_number":27,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"812f140e-431c-4668-bb70-45442b0f5cd7","block_type":"box","text":"Compensation of Directors","page_number":27,"box":{"x":69,"y":90,"width":194,"height":11}},{"id":"bc978957-a2c2-4b06-845d-5422f9004103","block_type":"box","text":"Each Director who is an Independent Director is paid as compensation an annual retainer of $375,000 per year","page_number":27,"box":{"x":102,"y":112,"width":796,"height":12}},{"id":"cd3f9492-885b-4430-9444-ef23b14501e7","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":27,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"cb103eac-17aa-4dce-ad13-7f03a178f117","block_type":"box","text":"including the Fund, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":27,"box":{"x":70,"y":142,"width":837,"height":12}},{"id":"88c8be20-67ce-4e2a-8f53-fa54bfa03159","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":27,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"48b24ff5-817c-4179-9ddd-97a52c97e432","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":27,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"012e1390-037c-40d2-987f-1e9b329e2855","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":27,"box":{"x":68,"y":188,"width":786,"height":12}},{"id":"81825178-a028-40a1-abdd-d7715857fa82","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":27,"box":{"x":69,"y":203,"width":769,"height":12}},{"id":"b6a79a50-826e-4bf5-9ba7-bbd16a65fdba","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":27,"box":{"x":69,"y":218,"width":778,"height":12}},{"id":"e99706b2-e3ac-4dcb-807c-c3f6c3bdb6a6","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":233,"width":689,"height":12}},{"id":"ca065c71-45b0-49f7-8974-65276f903f79","block_type":"box","text":"The following table sets forth the compensation the Fund paid to the Directors for the fiscal year ended","page_number":27,"box":{"x":101,"y":256,"width":736,"height":12}},{"id":"1afce9a4-032b-4d99-8388-64d5cb9e0413","block_type":"box","text":"May 31, 2026, and the aggregate compensation paid to them by all BlackRock-advised Funds for the calendar year","page_number":27,"box":{"x":70,"y":271,"width":819,"height":12}},{"id":"2bfd3138-ef56-4ee4-8e56-ae2976c4b12a","block_type":"box","text":"ended December 31, 2025.","page_number":27,"box":{"x":69,"y":287,"width":197,"height":10}},{"id":"74ac4647-ab52-46d9-bcb7-505016a1341a","block_type":"box","text":"I-18","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"87581d9e-c1a9-4416-a24c-77c66e93a1cb","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"688bd04f-a2f3-4ec3-9518-58f64b1a187f","block_type":"box","text":"Name","page_number":28,"box":{"x":69,"y":108,"width":32,"height":7}},{"id":"b6cd3ada-be6b-4f8d-aee1-bcf23ec0e7be","block_type":"box","text":"Compensation","page_number":28,"box":{"x":577,"y":98,"width":82,"height":9}},{"id":"fc2c10c6-5769-4d4b-96b3-36c3bdd4d848","block_type":"box","text":"from the Fund","page_number":28,"box":{"x":577,"y":108,"width":81,"height":7}},{"id":"a3af431e-2bdc-46b0-bfd2-2c2042fd0365","block_type":"box","text":"Estimated Annual","page_number":28,"box":{"x":690,"y":88,"width":101,"height":7}},{"id":"223475fa-cfe6-4771-b2f2-edff8afac508","block_type":"box","text":"Benefits upon","page_number":28,"box":{"x":701,"y":98,"width":79,"height":9}},{"id":"c5842077-0cc0-476b-8ad1-79a894d88f51","block_type":"box","text":"Retirement","page_number":28,"box":{"x":709,"y":108,"width":64,"height":7}},{"id":"2d9b5c7c-9ac0-425d-9dac-2596397c3c80","block_type":"box","text":"Aggregate","page_number":28,"box":{"x":835,"y":58,"width":61,"height":9}},{"id":"7277f8b1-950d-4fa7-a178-867a11e2c16e","block_type":"box","text":"Compensation","page_number":28,"box":{"x":824,"y":68,"width":83,"height":9}},{"id":"90a263ed-00c0-4ee5-b1f5-960f75ace4b9","block_type":"box","text":"from the Fund","page_number":28,"box":{"x":825,"y":78,"width":80,"height":7}},{"id":"fd42c763-129f-4c05-81d8-806ca76fcdcb","block_type":"box","text":"and Other","page_number":28,"box":{"x":837,"y":88,"width":57,"height":7}},{"id":"0f762ee3-a803-402a-9258-462d147b2c81","block_type":"box","text":"BlackRock","page_number":28,"box":{"x":833,"y":98,"width":66,"height":7}},{"id":"e7928971-ac04-40df-a16f-4a8623d22329","block_type":"box","text":"Advised Funds","page_number":28,"box":{"x":821,"y":108,"width":84,"height":7}},{"id":"6a1a7e39-9ab8-43b7-a495-8c02c8056811","block_type":"box","text":"1","page_number":28,"box":{"x":906,"y":108,"width":4,"height":4}},{"id":"08148f42-53d9-4666-b5c8-ffcca77f40ac","block_type":"box","text":"Independent Directors:","page_number":28,"box":{"x":70,"y":126,"width":161,"height":11}},{"id":"991716bb-1795-4924-90e9-240e60ddae3c","block_type":"box","text":"Christopher J. Ailman","page_number":28,"box":{"x":79,"y":141,"width":149,"height":11}},{"id":"53268017-e78c-4da9-94eb-88c1927c09c0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,552 None","page_number":28,"box":{"x":234,"y":140,"width":524,"height":12}},{"id":"7fe40987-3bc8-442d-939d-74ecc6be7091","block_type":"box","text":"$445,000","page_number":28,"box":{"x":830,"y":140,"width":72,"height":12}},{"id":"260512b0-c0bf-4ba9-a2fe-c89f67edc012","block_type":"box","text":"Susan J. Carter","page_number":28,"box":{"x":79,"y":156,"width":110,"height":9}},{"id":"06c65705-c78d-48e3-887e-71121944c219","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,552 None","page_number":28,"box":{"x":193,"y":155,"width":565,"height":12}},{"id":"07e74c6f-e561-4c02-95f4-244623b87fb3","block_type":"box","text":"$445,000","page_number":28,"box":{"x":830,"y":155,"width":72,"height":12}},{"id":"85585810-4e24-4bf0-b770-b519b247b7f7","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,552 None","page_number":28,"box":{"x":79,"y":171,"width":679,"height":11}},{"id":"122d354b-11c1-48dd-92d8-dd7e17afc377","block_type":"box","text":"$445,000","page_number":28,"box":{"x":830,"y":171,"width":72,"height":11}},{"id":"340916d7-60ba-4b71-9663-0d870f906259","block_type":"box","text":"Neil A. Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,611 None","page_number":28,"box":{"x":79,"y":186,"width":679,"height":12}},{"id":"e1bf7f55-002c-4685-9603-206139051dee","block_type":"box","text":"$467,500","page_number":28,"box":{"x":830,"y":186,"width":72,"height":11}},{"id":"b090bda6-549b-483a-a365-afbe0662cfbf","block_type":"box","text":"Jeffrey Jarczyk","page_number":28,"box":{"x":78,"y":201,"width":103,"height":12}},{"id":"58997e0d-2668-4895-a1f7-785cf751d1fe","block_type":"box","text":"2","page_number":28,"box":{"x":181,"y":202,"width":4,"height":4}},{"id":"40669037-4f8c-45bd-bb0b-dc0b870844f3","block_type":"box","text":"............................................","page_number":28,"box":{"x":193,"y":209,"width":352,"height":1}},{"id":"3c2e857e-8cd0-4fb1-b8b7-4d741b39c8c7","block_type":"box","text":"$378 None None","page_number":28,"box":{"x":599,"y":201,"width":284,"height":10}},{"id":"b23b0467-4c28-4ccb-8754-c11491e156b4","block_type":"box","text":"Henry R. Keizer","page_number":28,"box":{"x":79,"y":217,"width":109,"height":11}},{"id":"08cfc99e-8c06-4c25-93a8-b65b5be14f65","block_type":"box","text":"3","page_number":28,"box":{"x":189,"y":217,"width":4,"height":4}},{"id":"42a36b94-13b3-4ba4-aa04-da0d4c0cd44e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,717 None","page_number":28,"box":{"x":201,"y":216,"width":557,"height":11}},{"id":"51af88dd-0c6b-4487-ade2-08aed195d339","block_type":"box","text":"$490,000","page_number":28,"box":{"x":830,"y":216,"width":72,"height":11}},{"id":"4a97b6bd-9e2c-48c1-a1e2-a4cb6c723c86","block_type":"box","text":"Cynthia A. Montgomery","page_number":28,"box":{"x":79,"y":232,"width":164,"height":11}},{"id":"fe21d9c6-091c-471d-8f59-e22dd5f836a5","block_type":"box","text":"4","page_number":28,"box":{"x":244,"y":232,"width":4,"height":5}},{"id":"a321ef73-52e2-4b2b-bf52-af535d76f15c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,668 None","page_number":28,"box":{"x":250,"y":231,"width":508,"height":11}},{"id":"106be64f-906b-4881-abfc-9d377fe088a5","block_type":"box","text":"$490,000","page_number":28,"box":{"x":830,"y":231,"width":72,"height":11}},{"id":"9175cc91-7608-47d7-9f0c-986884d1ed31","block_type":"box","text":"Donald C. Opatrny","page_number":28,"box":{"x":79,"y":247,"width":129,"height":11}},{"id":"0873f82f-4a8d-4dab-9afd-57c1c2cfb708","block_type":"box","text":"5","page_number":28,"box":{"x":208,"y":247,"width":4,"height":5}},{"id":"a8403572-5fae-4337-a709-d6d185d253ad","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,668 None","page_number":28,"box":{"x":218,"y":246,"width":540,"height":11}},{"id":"75e410a6-db0a-44ea-b4f3-aabba50da736","block_type":"box","text":"$490,000","page_number":28,"box":{"x":830,"y":246,"width":72,"height":11}},{"id":"6a2d73e6-7bbd-468c-a279-9d678b14daaf","block_type":"box","text":"Lori Richards . . .","page_number":28,"box":{"x":79,"y":262,"width":116,"height":9}},{"id":"ff3f7bf6-65c6-44a1-a1fa-275f0c0200b3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,552 None","page_number":28,"box":{"x":201,"y":261,"width":557,"height":11}},{"id":"713994bf-b53a-42ff-9032-944c835166c8","block_type":"box","text":"$445,000","page_number":28,"box":{"x":830,"y":261,"width":72,"height":11}},{"id":"93a97a42-7333-4d48-a435-57d893b8ac52","block_type":"box","text":"Mark Stalnecker","page_number":28,"box":{"x":79,"y":277,"width":115,"height":9}},{"id":"1a3985ae-d516-46bb-8be3-0b2973ecf8b6","block_type":"box","text":"6","page_number":28,"box":{"x":194,"y":277,"width":5,"height":5}},{"id":"f7c046c6-d528-4fb0-8ff2-53e29a377273","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,939 None","page_number":28,"box":{"x":201,"y":276,"width":557,"height":12}},{"id":"c9a979b2-6ed5-4ba2-b8c7-ca38a561edbe","block_type":"box","text":"$595,000","page_number":28,"box":{"x":830,"y":276,"width":72,"height":12}},{"id":"b9e129ea-f199-4114-9cbc-51feb27a0f93","block_type":"box","text":"Marc D. Stern","page_number":28,"box":{"x":79,"y":292,"width":97,"height":9}},{"id":"7564a5db-b127-4329-9731-9e18d5fdd6fd","block_type":"box","text":"2","page_number":28,"box":{"x":178,"y":293,"width":4,"height":4}},{"id":"7ebaea71-8f38-498f-ae76-46fe78cd3359","block_type":"box","text":".............................................","page_number":28,"box":{"x":185,"y":300,"width":360,"height":1}},{"id":"09f57242-cc80-4609-a557-da5ed5d81fe6","block_type":"box","text":"$378 None None","page_number":28,"box":{"x":599,"y":292,"width":284,"height":10}},{"id":"cfd23077-a136-45f3-885a-e083f2742bb8","block_type":"box","text":"Kenneth L. Urish","page_number":28,"box":{"x":79,"y":308,"width":117,"height":8}},{"id":"d4153eed-2932-4415-b731-0a262e0cf692","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,552 None","page_number":28,"box":{"x":201,"y":307,"width":557,"height":11}},{"id":"28010ab8-d16b-4151-bb15-b3a356d7803e","block_type":"box","text":"$445,000","page_number":28,"box":{"x":830,"y":307,"width":72,"height":11}},{"id":"ef14d827-39be-457a-868c-df005e64a6c3","block_type":"box","text":"Claire A. Walton","page_number":28,"box":{"x":79,"y":323,"width":111,"height":8}},{"id":"8da63985-ff62-4c55-9fd8-197d3040f253","block_type":"box","text":"7","page_number":28,"box":{"x":192,"y":323,"width":3,"height":4}},{"id":"ab72088e-a961-4390-bcc1-eb23b7be69cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,668 None","page_number":28,"box":{"x":201,"y":322,"width":557,"height":11}},{"id":"fe33c55a-aa61-495a-826b-4a7c28fbc0b5","block_type":"box","text":"$490,000","page_number":28,"box":{"x":830,"y":322,"width":72,"height":11}},{"id":"373ce1d7-0781-4a0b-9db9-d87a5aac98ee","block_type":"box","text":"Interested Directors:","page_number":28,"box":{"x":70,"y":338,"width":145,"height":9}},{"id":"ece5f76f-c922-45c9-aa56-4f5420d9b599","block_type":"box","text":"Robert Fairbairn .","page_number":28,"box":{"x":79,"y":353,"width":124,"height":9}},{"id":"db9ca47e-5566-4f16-b50e-21f3fa341642","block_type":"box","text":"..........................................","page_number":28,"box":{"x":209,"y":360,"width":336,"height":2}},{"id":"5237f97e-97a8-44c2-8889-6ec94a45b8ab","block_type":"box","text":"None None None","page_number":28,"box":{"x":601,"y":353,"width":282,"height":9}},{"id":"7674776c-0e3e-4d17-a29e-205c25e2711d","block_type":"box","text":"John M. Perlowski","page_number":28,"box":{"x":78,"y":368,"width":127,"height":9}},{"id":"c998135a-182f-44f3-af6b-31a01296799c","block_type":"box","text":"..........................................","page_number":28,"box":{"x":209,"y":375,"width":336,"height":2}},{"id":"115d1957-b998-4a4e-a5fa-0e2c393b7d9d","block_type":"box","text":"None None None","page_number":28,"box":{"x":601,"y":368,"width":282,"height":9}},{"id":"552e4cf9-aee3-4a55-9f7a-5d3e9889a748","block_type":"box","text":"1 For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":28,"box":{"x":69,"y":392,"width":813,"height":9}},{"id":"a1f46fae-cd90-46fc-a06c-88a0b0dccb55","block_type":"box","text":"page I-13.","page_number":28,"box":{"x":94,"y":402,"width":55,"height":9}},{"id":"7e1a0163-13ed-4963-91a1-beb9b061d06e","block_type":"box","text":"2 Compensation includes $378 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":28,"box":{"x":69,"y":414,"width":750,"height":10}},{"id":"360d39a4-1625-4917-a6ec-8844487fccc4","block_type":"box","text":"3 Chair of the Audit Committee.","page_number":28,"box":{"x":69,"y":427,"width":192,"height":8}},{"id":"9357e3fd-04f1-4ef9-bb36-80c5fcd5c645","block_type":"box","text":"4 Chair of the Governance Committee.","page_number":28,"box":{"x":69,"y":440,"width":230,"height":7}},{"id":"bc883e00-6ca4-4d24-9c75-fd68b3e7a878","block_type":"box","text":"5 Chair of the Performance Oversight Committee.","page_number":28,"box":{"x":69,"y":453,"width":293,"height":9}},{"id":"7dfedc91-0668-4068-bff1-aeeb487a88bd","block_type":"box","text":"6 Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":28,"box":{"x":69,"y":465,"width":376,"height":9}},{"id":"a443b3d8-de23-4c75-86ad-1ab35338d319","block_type":"box","text":"7 Chair of the Compliance Committee.","page_number":28,"box":{"x":69,"y":478,"width":229,"height":9}},{"id":"12d104ac-e6b5-4aa7-81cc-d62285d85712","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":28,"box":{"x":69,"y":506,"width":432,"height":11}},{"id":"71171207-6f70-48cc-88e5-ba46b66947bd","block_type":"box","text":"The Fund has entered into a management agreement with the Manager (each a “Management Agreement”).","page_number":28,"box":{"x":101,"y":529,"width":768,"height":11}},{"id":"6b46997b-dc5e-438d-ac6d-cdd4bd1f12c4","block_type":"box","text":"Pursuant to the Management Agreement between the Manager and the Fund, the Manager receives as compensation","page_number":28,"box":{"x":69,"y":544,"width":836,"height":11}},{"id":"dffa00a2-256b-4ed1-9966-6bb5b14e2528","block_type":"box","text":"for its services to the Fund an annual fee with respect to the Fund at the end of each month.","page_number":28,"box":{"x":68,"y":559,"width":662,"height":11}},{"id":"d6920c77-bc62-4e91-8fb4-1aa924d24a20","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":28,"box":{"x":102,"y":582,"width":762,"height":11}},{"id":"e9a02d1c-e3be-4934-9b40-3b4ba77b4f60","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and ETFs managed","page_number":28,"box":{"x":69,"y":597,"width":832,"height":11}},{"id":"2748279f-bf2c-4875-a927-7a3ceb29c5f0","block_type":"box","text":"by BlackRock or its affiliates that have a contractual management fee through June 30, 2028. BlackRock has","page_number":28,"box":{"x":69,"y":612,"width":781,"height":11}},{"id":"000cce69-b294-450b-ac70-4139a72f9254","block_type":"box","text":"contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to","page_number":28,"box":{"x":69,"y":627,"width":795,"height":12}},{"id":"bfc59d59-7c7e-4adf-8c34-d1246d7497d9","block_type":"box","text":"BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through","page_number":28,"box":{"x":70,"y":642,"width":815,"height":12}},{"id":"310dc83f-00d8-4f25-be58-d2b20c671ee6","block_type":"box","text":"June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non","page_number":28,"box":{"x":69,"y":658,"width":785,"height":11}},{"id":"ef1aad29-3fab-41a6-92ec-df5c7c302938","block_type":"box","text":"interested directors of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":70,"y":673,"width":749,"height":11}},{"id":"30b2012d-cd30-42f4-9f7b-9fa0f32e0389","block_type":"box","text":"Pursuant to the Management Agreement, the Manager also provides certain administrative services to the Fund.","page_number":28,"box":{"x":102,"y":696,"width":802,"height":11}},{"id":"36c7bacd-df3e-42a2-bb56-6afd98b3dd00","block_type":"box","text":"The Manager does not receive separate compensation from the Fund for providing investment management or","page_number":28,"box":{"x":68,"y":710,"width":786,"height":12}},{"id":"4ee1920a-f60d-447e-b8aa-d5b02e4488d2","block_type":"box","text":"administrative services. Under the Management Agreement, the administrative services provided by the Manager to","page_number":28,"box":{"x":69,"y":726,"width":825,"height":11}},{"id":"1fb5cb44-9e03-4150-962d-f59e76d08abe","block_type":"box","text":"the Fund include, but are not limited to, the following: maintaining office facilities for each entity; furnishing each","page_number":28,"box":{"x":68,"y":741,"width":804,"height":11}},{"id":"a0d599b2-2c19-4d39-8c9b-f902ccd796f8","block_type":"box","text":"entity with clerical, bookkeeping and administrative services; overseeing the determination and publication of each","page_number":28,"box":{"x":69,"y":756,"width":817,"height":11}},{"id":"cb6745c9-d8ba-47f3-95ed-97ddf866dc4e","block_type":"box","text":"entity’s net asset value; overseeing the preparation and filing of Federal, state and local income tax returns;","page_number":28,"box":{"x":69,"y":771,"width":770,"height":11}},{"id":"3b53712d-b8fd-432a-9fb8-c8d0c6a55618","block_type":"box","text":"preparing certain reports required by regulatory authorities; calculating various contractual expenses; determining the","page_number":28,"box":{"x":70,"y":786,"width":839,"height":11}},{"id":"da5a4887-b558-409a-bdad-5533ac4bc594","block_type":"box","text":"amount of dividends and distributions available for payment by each entity to its shareholders; preparing and","page_number":28,"box":{"x":69,"y":801,"width":775,"height":11}},{"id":"e627d541-f598-479d-b3df-94bc53cef899","block_type":"box","text":"arranging for the printing of dividend notices to shareholders; providing each entity’s service providers with such","page_number":28,"box":{"x":69,"y":816,"width":799,"height":12}},{"id":"0f669f9a-a3f7-43db-9df5-04b785fa9467","block_type":"box","text":"information as is required to effect the payment of dividends and distributions; and serving as liaison with each","page_number":28,"box":{"x":70,"y":831,"width":795,"height":12}},{"id":"ea1f4111-64f5-4851-bfd0-76bedba80393","block_type":"box","text":"entity’s officers, independent accountants, legal counsel, custodian, accounting agent and transfer and dividend","page_number":28,"box":{"x":69,"y":846,"width":801,"height":12}},{"id":"128ae873-f597-4770-9ad0-189fce080d93","block_type":"box","text":"disbursing agent in establishing the accounting policies of each entity and monitoring financial and shareholder","page_number":28,"box":{"x":69,"y":862,"width":793,"height":11}},{"id":"ff7ef7d3-f9fd-47f4-90c5-1f11e59861c1","block_type":"box","text":"accounting services.","page_number":28,"box":{"x":69,"y":877,"width":145,"height":11}},{"id":"4901c027-9cf8-4c0b-9239-d10289c98157","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"a0952308-17c4-4df7-ace4-f553dbb5bacb","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6b46eaa-5fbf-4143-b304-0978212af26e","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":29,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"aac7018e-77f6-41d4-a73c-2e200dd85956","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":29,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"e7a48202-4ba8-4c6e-b1cc-42b005a84490","block_type":"box","text":"to perform management services with respect to the Fund. In addition, the Manager may delegate certain of its","page_number":29,"box":{"x":68,"y":75,"width":796,"height":11}},{"id":"62b6a578-0eef-486c-8cd9-219b39ad1f83","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":29,"box":{"x":70,"y":90,"width":779,"height":11}},{"id":"45bc0418-7f60-4f99-9542-58822e5a92ad","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":29,"box":{"x":70,"y":105,"width":823,"height":11}},{"id":"ab4737e3-5141-46c1-a0c2-4dd5981ef4c6","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":29,"box":{"x":70,"y":120,"width":508,"height":11}},{"id":"3530e9b7-1094-4702-a98d-06e8712b23fa","block_type":"box","text":"The Manager has entered into a sub-advisory agreement (the “Sub-Advisory Agreement”) with BlackRock","page_number":29,"box":{"x":101,"y":143,"width":746,"height":11}},{"id":"f5c407ca-bd96-49b3-a47f-158d52e0a3bc","block_type":"box","text":"International Limited (“BIL” or the “Sub-Adviser”) with respect to the Fund pursuant to which the Manager pays BIL for","page_number":29,"box":{"x":70,"y":158,"width":839,"height":11}},{"id":"45fe4508-3580-4164-98e5-97f12d268fce","block_type":"box","text":"the services it provides for that portion of the Fund for which BIL acts as sub-adviser a monthly fee at an annual rate","page_number":29,"box":{"x":68,"y":173,"width":833,"height":11}},{"id":"edf931a4-9bb5-473b-9b9d-299cccbd4ce9","block_type":"box","text":"equal to a percentage of the management fee paid to the Manager under the Management Agreement with respect to","page_number":29,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"1c808a4a-2cad-4ddc-86a1-142444127e62","block_type":"box","text":"the Fund.","page_number":29,"box":{"x":68,"y":204,"width":66,"height":8}},{"id":"6c0d5e63-2152-43ab-8f07-d198f54517fe","block_type":"box","text":"Set forth below are the management fees paid by the Fund for the periods indicated:","page_number":29,"box":{"x":102,"y":226,"width":603,"height":11}},{"id":"efa7a14b-40d4-4b3c-b048-4784c60203e2","block_type":"box","text":"Fees Paid","page_number":29,"box":{"x":638,"y":254,"width":56,"height":7}},{"id":"6c4a3aac-39f6-43c8-a5d2-6ddf098453c2","block_type":"box","text":"to the Manager Fees Waived by the Manager","page_number":29,"box":{"x":621,"y":264,"width":288,"height":9}},{"id":"e6ce42ad-707a-4a25-86c4-c84805b19adf","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":29,"box":{"x":70,"y":282,"width":230,"height":11}},{"id":"90724509-26d8-4b1c-acf2-ff6dc0c33f4b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,","page_number":29,"box":{"x":303,"y":281,"width":342,"height":12}},{"id":"354deaf7-f4bd-405f-916e-ddbd07ed222f","block_type":"box","text":"190,696 $128,329","page_number":29,"box":{"x":648,"y":281,"width":213,"height":12}},{"id":"e4a8ddbf-4bf8-4993-978a-90c9ca76b55b","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":29,"box":{"x":70,"y":297,"width":230,"height":11}},{"id":"68e68b63-a26b-4b6f-b1f7-3a1058bc90b3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,","page_number":29,"box":{"x":303,"y":297,"width":342,"height":11}},{"id":"2db41374-6262-404c-840f-f47465c1db91","block_type":"box","text":"802,412 $142,987","page_number":29,"box":{"x":647,"y":297,"width":214,"height":11}},{"id":"0c04eb4b-f840-4dc5-8a40-ffc27a9f4868","block_type":"box","text":"Fiscal Year Ended May 31, 2024","page_number":29,"box":{"x":70,"y":312,"width":230,"height":12}},{"id":"d59d5bb6-edbb-4c15-814b-8d3651483f24","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,","page_number":29,"box":{"x":303,"y":312,"width":342,"height":11}},{"id":"e1473b46-027c-4b0d-972a-d4fb8ecf05c4","block_type":"box","text":"430,967 $176,802","page_number":29,"box":{"x":647,"y":312,"width":214,"height":11}},{"id":"f8e7c37b-718b-4a2c-a793-b891181744a4","block_type":"box","text":"Information Regarding the Portfolio 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table sets forth information about the funds and accounts other than the Fund, for which the","page_number":29,"box":{"x":101,"y":450,"width":758,"height":11}},{"id":"585711a1-93de-4ed5-8d84-c5b278716455","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of May 31, 2026.","page_number":29,"box":{"x":70,"y":465,"width":755,"height":11}},{"id":"d4398c9d-8264-4cfc-ac14-11053eb936a1","block_type":"box","text":"Number of Other Accounts Managed","page_number":29,"box":{"x":344,"y":493,"width":211,"height":9}},{"id":"7ee9dc6c-64c5-40ac-ab72-8039c6d19085","block_type":"box","text":"and Assets by Account Type","page_number":29,"box":{"x":367,"y":503,"width":165,"height":9}},{"id":"8e75f165-15b7-4e7f-9dae-02515036beb7","block_type":"box","text":"Number of Other Accounts and Assets","page_number":29,"box":{"x":645,"y":493,"width":222,"height":7}},{"id":"b06b3109-ecea-4b05-bcf8-bee3ad824266","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":29,"box":{"x":623,"y":503,"width":265,"height":9}},{"id":"ee37c42f-3047-432f-a639-6c82786701fa","block_type":"box","text":"Name of Portfolio Manager","page_number":29,"box":{"x":74,"y":546,"width":157,"height":9}},{"id":"c673b464-aa9d-44e6-a758-b95ba4061274","block_type":"box","text":"Other","page_number":29,"box":{"x":333,"y":516,"width":31,"height":7}},{"id":"78b20481-27c1-4bd0-9e5b-0a44f8083040","block_type":"box","text":"Registered","page_number":29,"box":{"x":317,"y":526,"width":63,"height":9}},{"id":"91752b70-8c04-4f38-aeb4-404324632058","block_type":"box","text":"Investment","page_number":29,"box":{"x":317,"y":536,"width":64,"height":7}},{"id":"02f0ddca-979a-4f9c-97d9-15fa0ab301a6","block_type":"box","text":"Companies","page_number":29,"box":{"x":317,"y":546,"width":63,"height":9}},{"id":"09e82717-145d-49d3-afdb-3ed37397c581","block_type":"box","text":"Other 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Billion","page_number":29,"box":{"x":308,"y":572,"width":582,"height":8}},{"id":"efeb2814-1fae-4bcd-9c51-1715e1800bf8","block_type":"box","text":"Philip Green 28 56 16 0 6 6","page_number":29,"box":{"x":74,"y":585,"width":783,"height":9}},{"id":"1c21a9ab-326d-426c-a237-476846c68ab6","block_type":"box","text":"$21.49 Billion $33.75 Billion $14.00 Billion $0 $3.09 Billion $6.74 Billion","page_number":29,"box":{"x":308,"y":597,"width":582,"height":8}},{"id":"52589d36-c5e8-47f6-907f-873a4d81a906","block_type":"box","text":"Anna Hawley, CFA 25 424 42 0 5 8","page_number":29,"box":{"x":73,"y":610,"width":784,"height":9}},{"id":"dcaf4877-3d42-4637-a8d1-6866ccfa5518","block_type":"box","text":"$13.94 Billion $43.27 Billion $70.13 Billion $0 $3.46 Billion $15.73 Billion","page_number":29,"box":{"x":308,"y":622,"width":586,"height":9}},{"id":"3b8286f3-2697-4352-8994-f40d99f33c0b","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":29,"box":{"x":74,"y":635,"width":783,"height":8}},{"id":"1252d3ed-93b8-468f-9805-086d39cc5301","block_type":"box","text":"$43.13 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":29,"box":{"x":308,"y":647,"width":586,"height":9}},{"id":"fdffaded-d451-49b9-9de0-19e565a256f4","block_type":"box","text":"Jasmita Mohan 12 16 10 0 3 3","page_number":29,"box":{"x":73,"y":661,"width":784,"height":7}},{"id":"c4b60072-d1a5-407e-947c-e9e4a39976af","block_type":"box","text":"$11.09 Billion $5.25 Billion $6.96 Billion $0 $1.38 Billion $1.12 Billion","page_number":29,"box":{"x":308,"y":673,"width":582,"height":8}},{"id":"32eef13b-3d43-4bac-9683-7268970e4776","block_type":"box","text":"Michael Pensky, CFA 27 65 6 0 8 0","page_number":29,"box":{"x":74,"y":686,"width":783,"height":9}},{"id":"452891fc-6789-4f92-85ec-845718533775","block_type":"box","text":"$21.30 Billion $26.61 Billion $1.18 Billion $0 $3.67 Billion $0","page_number":29,"box":{"x":308,"y":698,"width":553,"height":8}},{"id":"b67a67cf-70e0-4731-b248-0308995bb3e5","block_type":"box","text":"Scott Radell 11 53 6 0 1 2","page_number":29,"box":{"x":74,"y":711,"width":783,"height":7}},{"id":"886474de-41f8-4a73-8164-6eb26ca1210e","block_type":"box","text":"$29.03 Billion $20.26 Billion $5.10 Billion $0 $155.42 Million $425.21 Million","page_number":29,"box":{"x":308,"y":723,"width":591,"height":8}},{"id":"ec28c30b-c9ed-4dff-b344-8fc3f3cdf649","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":29,"box":{"x":74,"y":736,"width":783,"height":7}},{"id":"a80ba971-070c-466a-bdae-0f735428b8d9","block_type":"box","text":"$54.23 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":29,"box":{"x":308,"y":748,"width":582,"height":9}},{"id":"fa3d5e5c-8d81-45c7-a92f-cf74fa8d97a0","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":29,"box":{"x":69,"y":783,"width":304,"height":11}},{"id":"f02d03e3-9bcc-4e07-9fb0-03ca713375df","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":29,"box":{"x":101,"y":806,"width":656,"height":11}},{"id":"e033cd31-927d-4e07-9dee-3bd423aaa229","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":29,"box":{"x":102,"y":828,"width":774,"height":12}},{"id":"d5361e52-2fd6-4ab0-b902-52ae4ff8d581","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":29,"box":{"x":70,"y":843,"width":837,"height":12}},{"id":"dcb03ad0-6c5d-40a6-9642-762ef36c79ca","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":29,"box":{"x":69,"y":858,"width":823,"height":12}},{"id":"3887f7d4-cefc-4487-92e8-7e43105e6ef0","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":29,"box":{"x":69,"y":874,"width":799,"height":11}},{"id":"ab2978af-19b3-433e-a483-4ee7df2f3a08","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":29,"box":{"x":70,"y":889,"width":670,"height":11}},{"id":"39b25354-7025-4819-9994-64a8ecee63b4","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ad0df3f3-2034-482e-ac48-3a1f8ef922ba","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da8680e6-ce09-4d8e-a947-778387ce5f1d","block_type":"box","text":"Base Compensation.","page_number":30,"box":{"x":102,"y":45,"width":148,"height":11}},{"id":"b8637904-b4fe-4369-bddf-c4ad5dada5a8","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":30,"box":{"x":257,"y":45,"width":640,"height":11}},{"id":"3215492d-8917-47bd-8a18-7cfd7a1ab353","block_type":"box","text":"firm.","page_number":30,"box":{"x":68,"y":60,"width":32,"height":9}},{"id":"91e97f86-437c-422a-90e5-45b6e7626214","block_type":"box","text":"Discretionary Incentive Compensation — Messrs. Mathieson and Savi and Ms. Hawley","page_number":30,"box":{"x":69,"y":90,"width":631,"height":11}},{"id":"a8eec91e-32db-470c-a4f7-0542db27b18c","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":30,"box":{"x":102,"y":113,"width":792,"height":11}},{"id":"0a81343f-7e55-49d4-a42d-ed72027ce310","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":30,"box":{"x":68,"y":128,"width":800,"height":11}},{"id":"0ec099f9-f23a-4a33-8a55-5b9767efb280","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":30,"box":{"x":69,"y":143,"width":777,"height":11}},{"id":"4266c66e-28b7-43c8-aa24-fcb9a44086df","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":30,"box":{"x":70,"y":158,"width":817,"height":11}},{"id":"a63abbc6-edfb-4db7-84c6-23cc22038114","block_type":"box","text":"portfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":30,"box":{"x":70,"y":173,"width":741,"height":11}},{"id":"5b8c25bb-f1cf-47fa-bbd9-cff67df60f63","block_type":"box","text":"determination with respect to each portfolio manager’s compensation based on the performance of the Funds and","page_number":30,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"01d426b2-c44f-4ebd-8731-5ed9595697ce","block_type":"box","text":"other accounts managed by each portfolio manager relative to the various benchmarks. Performance is generally","page_number":30,"box":{"x":69,"y":203,"width":806,"height":12}},{"id":"f9ed46b6-49de-4dac-b7a3-0e33b0963291","block_type":"box","text":"assessed over trailing 1-,3-, and 5-year periods relative to applicable benchmarks. The performance of Messrs.","page_number":30,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"833af84b-d7fd-4edf-a1d1-3f967f1b8c03","block_type":"box","text":"Mathieson and Savi and Ms. Hawley is not measured against a specific benchmark.","page_number":30,"box":{"x":70,"y":234,"width":595,"height":11}},{"id":"4e598a14-7034-4a30-8470-d020429cfe52","block_type":"box","text":"Discretionary Incentive Compensation — Messrs. Felder, Green and Pensky","page_number":30,"box":{"x":69,"y":264,"width":552,"height":11}},{"id":"dfa5ccfd-41e5-4663-aab8-cde563f1b91e","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the commercial performance of","page_number":30,"box":{"x":102,"y":286,"width":762,"height":12}},{"id":"0abf2b84-3633-4bdf-9f1c-99fec12765d1","block_type":"box","text":"BlackRock, Inc., the commercial performance of the portfolio manager’s group, client investment performance","page_number":30,"box":{"x":70,"y":302,"width":787,"height":11}},{"id":"763e7328-c7cb-44e4-b034-2ac6335e67be","block_type":"box","text":"relative to predetermined benchmarks for which the portfolio manager’s group is responsible, and the individual’s","page_number":30,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"87e82067-6668-4e21-92eb-b11f3559001e","block_type":"box","text":"contribution to the overall performance of these portfolios and BlackRock. Commercial and investment performance","page_number":30,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"1192296e-eb1e-4e8c-a374-11ec56098a23","block_type":"box","text":"is generally assessed over trailing 1-,3-, and 5-year periods. The relative benchmarks for these portfolio managers","page_number":30,"box":{"x":70,"y":347,"width":811,"height":11}},{"id":"910518d4-ff24-46bb-b262-cdf043fae096","block_type":"box","text":"are a combination of market based indices (Russell 1000, MSCI All Country World Index, Bloomberg Global Agg","page_number":30,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"e39abe72-f859-4486-81d9-0edc37b5a7e0","block_type":"box","text":"Treasury Index, Bloomberg US Agg Index, ICE BofA 3-Month US T Bill), certain custom indices and certain fund","page_number":30,"box":{"x":68,"y":377,"width":788,"height":12}},{"id":"f9c4b213-474d-4e62-ac25-ced3ededd836","block_type":"box","text":"industry peer groups.","page_number":30,"box":{"x":70,"y":393,"width":149,"height":11}},{"id":"d18c83eb-0e89-4067-a947-dd82e9528093","block_type":"box","text":"Discretionary Incentive Compensation — Mr. Radell and Ms. Mohan","page_number":30,"box":{"x":69,"y":423,"width":495,"height":11}},{"id":"2c046330-4f5e-46c4-aeb9-b02fac6b53b3","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":30,"box":{"x":102,"y":445,"width":792,"height":11}},{"id":"cd14d3da-87e0-494d-9c4f-074a51a23b6e","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":30,"box":{"x":68,"y":460,"width":800,"height":12}},{"id":"4dbd9c9e-e03f-4145-afc8-30d0c76e7186","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":30,"box":{"x":69,"y":475,"width":777,"height":12}},{"id":"7e15162e-840b-4448-86e9-566b0d1a5359","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":30,"box":{"x":70,"y":491,"width":817,"height":11}},{"id":"a04f38ec-19af-4bad-ab80-c33a04dc5369","block_type":"box","text":"portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against","page_number":30,"box":{"x":70,"y":506,"width":830,"height":11}},{"id":"df3a3e56-ada5-42b5-bcd1-c6fb0eb69d9f","block_type":"box","text":"which the performance of the Funds or other accounts managed by the portfolio managers are measured. Among","page_number":30,"box":{"x":68,"y":521,"width":809,"height":11}},{"id":"bfad88fb-bce7-46ca-b51e-0c62bf29f0a1","block_type":"box","text":"other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio","page_number":30,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"43ac5569-225b-4288-8170-7bdc94a87513","block_type":"box","text":"manager’s compensation based on the performance of the Funds and other accounts managed by each portfolio","page_number":30,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"9c2fe81b-296b-4925-9b25-0d4c3371669a","block_type":"box","text":"manager relative to the various benchmarks. Performance of fixed-income funds is measured on a pre-tax and/or","page_number":30,"box":{"x":69,"y":566,"width":807,"height":11}},{"id":"30644aac-50eb-4c9a-98d4-0c1f7f234634","block_type":"box","text":"after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these","page_number":30,"box":{"x":69,"y":581,"width":803,"height":12}},{"id":"dded60f6-e790-4336-9497-127f204d445a","block_type":"box","text":"portfolio managers, such benchmarks for the Fund and other accounts are:","page_number":30,"box":{"x":70,"y":596,"width":534,"height":12}},{"id":"f7667b32-6129-452e-89bc-b0160fcecbe2","block_type":"box","text":"Portfolio Manager","page_number":30,"box":{"x":69,"y":625,"width":105,"height":9}},{"id":"95100ff7-2d42-4c26-9a17-628453abf7a9","block_type":"box","text":"Benchmarks","page_number":30,"box":{"x":706,"y":625,"width":71,"height":7}},{"id":"6fd2ae9e-57be-4cf2-b932-ff0c813bb943","block_type":"box","text":"Scott Radell. . .","page_number":30,"box":{"x":69,"y":643,"width":107,"height":8}},{"id":"92363496-8c3c-4f48-b197-cc032b1e3db4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A combination of market-","page_number":30,"box":{"x":182,"y":642,"width":578,"height":9}},{"id":"aef5ad26-f72c-489a-9da1-371cae59f926","block_type":"box","text":"based indices (e.g.,","page_number":30,"box":{"x":761,"y":643,"width":138,"height":11}},{"id":"ea804904-5a8f-4950-b2ac-8b4a5bfc9a5b","block_type":"box","text":"Bloomberg U.S. Aggregate Bond Index, the","page_number":30,"box":{"x":591,"y":657,"width":302,"height":11}},{"id":"5f754d7c-738b-4569-8a7c-7094c0dbe08d","block_type":"box","text":"Bloomberg U.S. TIPS 0-5 Years Index), certain","page_number":30,"box":{"x":579,"y":672,"width":325,"height":11}},{"id":"8448affd-9a71-4470-893e-54ca117f641f","block_type":"box","text":"customized indices and certain fund industry","page_number":30,"box":{"x":582,"y":686,"width":320,"height":11}},{"id":"81f127b7-79bd-4e6b-9b76-7d23a5a4e5a2","block_type":"box","text":"peer groups.","page_number":30,"box":{"x":698,"y":702,"width":87,"height":10}},{"id":"6906b06e-ca1b-4f5a-acf8-3f5f1403934b","block_type":"box","text":"Jasmita Mohan . . .","page_number":30,"box":{"x":69,"y":716,"width":131,"height":8}},{"id":"ad0f8478-47cb-4b91-9fb0-a37d0f69e9e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A combination of market-","page_number":30,"box":{"x":207,"y":715,"width":553,"height":9}},{"id":"0db5d66b-891c-4bda-9ae1-26a9c67680dd","block_type":"box","text":"based indices (e.g.,","page_number":30,"box":{"x":761,"y":716,"width":138,"height":11}},{"id":"03dc7fc7-57d6-4152-9f0b-ba9c565f53fc","block_type":"box","text":"Bloomberg U.S. Aggregate Bond Index), certain","page_number":30,"box":{"x":575,"y":730,"width":334,"height":11}},{"id":"a6b57b5a-2179-454f-b5a0-ec9a44c4ca7b","block_type":"box","text":"customized indices and certain fund industry","page_number":30,"box":{"x":582,"y":744,"width":320,"height":12}},{"id":"fe8f7bde-5f0c-4d8d-83d3-f1d7ff5f9968","block_type":"box","text":"peer groups.","page_number":30,"box":{"x":698,"y":760,"width":87,"height":10}},{"id":"005a71c4-a548-4be8-90c1-63f5c193f73a","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":783,"width":389,"height":11}},{"id":"d2ca258c-54a3-4278-9a3e-a8e8e9688f0b","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":30,"box":{"x":499,"y":783,"width":383,"height":11}},{"id":"0e8a88c1-beb6-4ea9-ba35-61ddc4689506","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":30,"box":{"x":70,"y":798,"width":815,"height":11}},{"id":"52452aa7-0d58-4a8b-97b7-47b4860cac68","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":30,"box":{"x":68,"y":813,"width":522,"height":11}},{"id":"3dc0d9c3-7de2-4d80-9a82-d530b0f98d6e","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":30,"box":{"x":102,"y":836,"width":760,"height":11}},{"id":"c86b27b4-554a-436c-a928-5dac8adc0bfd","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":30,"box":{"x":69,"y":851,"width":795,"height":11}},{"id":"5017203f-2c87-4556-91f9-ee80b9cfbd07","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":30,"box":{"x":69,"y":866,"width":805,"height":11}},{"id":"a8e89abd-936a-4bc3-ba9f-a4b244bc0156","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":30,"box":{"x":69,"y":881,"width":822,"height":11}},{"id":"a09e1dfd-f00e-4a20-b576-aa17954bed4e","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":30,"box":{"x":68,"y":896,"width":839,"height":12}},{"id":"d4133212-137e-4637-a4c8-c4422d68bc08","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":30,"box":{"x":69,"y":911,"width":802,"height":12}},{"id":"03f25e7f-943a-4246-b9c4-cc7f0881c2bb","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4a844e7e-67ed-41f3-bd30-1b59cbf56e5f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b8311cf-0265-4963-9372-771ebae6b995","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":31,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"91e961bf-a738-46b0-8a75-268fcd19df49","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":31,"box":{"x":70,"y":60,"width":801,"height":11}},{"id":"19c9a5e9-6876-45ad-9583-404aa772ae30","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":31,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"136201b5-4c2c-4c36-9d91-848766ff1cf7","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":31,"box":{"x":69,"y":90,"width":479,"height":11}},{"id":"eb084ae0-c618-4584-a6e0-38601a04f5f7","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":31,"box":{"x":102,"y":113,"width":785,"height":11}},{"id":"716dc255-af8c-4b4e-82f8-16cb330330f0","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":31,"box":{"x":68,"y":128,"width":836,"height":11}},{"id":"0051ab09-8fed-4e58-8634-edbd3a2ceb93","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":31,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"b539344a-9fa7-4e1f-962e-86d4a2822ff9","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":31,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"230a4fa4-8e03-4b8c-a603-418b48921b72","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":31,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"4302ab46-b70b-4a49-a51a-838274eb52e6","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":31,"box":{"x":69,"y":188,"width":414,"height":12}},{"id":"7c5d4783-b6ed-480d-bcfb-7a6f71312659","block_type":"box","text":"Other Compensation Benefits.","page_number":31,"box":{"x":101,"y":211,"width":218,"height":11}},{"id":"3225503d-6dc4-471e-aff6-524588ad0689","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":31,"box":{"x":327,"y":211,"width":552,"height":11}},{"id":"dee2663b-27b8-49a8-bd0d-eb78e8fbd74c","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":31,"box":{"x":69,"y":226,"width":582,"height":11}},{"id":"3909a9ba-70e5-41e0-91d3-58314ca12733","block_type":"box","text":"Incentive Savings Plans","page_number":31,"box":{"x":102,"y":249,"width":167,"height":11}},{"id":"d5c9f994-81e6-4b2e-a461-16d73f198576","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":31,"box":{"x":274,"y":249,"width":614,"height":11}},{"id":"1a3509b2-030a-4d52-9fc7-2fa9f7d06504","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":31,"box":{"x":69,"y":264,"width":831,"height":11}},{"id":"8aac50f0-3147-40a8-bae6-88134108cf3b","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":31,"box":{"x":70,"y":279,"width":785,"height":11}},{"id":"bce33224-4569-4742-9d54-3ae4db8b9e65","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":31,"box":{"x":69,"y":293,"width":830,"height":12}},{"id":"77adf444-394f-413c-a424-381bcb251113","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":31,"box":{"x":69,"y":309,"width":799,"height":11}},{"id":"e3d1adbe-ed09-4e28-91c7-ca8cff166c06","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":31,"box":{"x":69,"y":324,"width":831,"height":12}},{"id":"e15da86a-665f-484d-8fa8-cbedd005feed","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":31,"box":{"x":69,"y":339,"width":798,"height":12}},{"id":"98923189-787f-447c-945c-b19c2337bc05","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":31,"box":{"x":70,"y":355,"width":809,"height":11}},{"id":"bf64d917-75c8-4f70-b4f5-b0c9c429f139","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":31,"box":{"x":68,"y":370,"width":793,"height":11}},{"id":"92d7cabf-fcfc-4cae-86af-22d0b1371889","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":31,"box":{"x":70,"y":385,"width":832,"height":11}},{"id":"0f7658c0-aff0-4ee2-8921-db747f1f0133","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":31,"box":{"x":68,"y":400,"width":805,"height":11}},{"id":"f3fe49e6-b961-4666-8956-5ec0f97fdbe7","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":31,"box":{"x":69,"y":414,"width":808,"height":12}},{"id":"5c53db15-780d-4ba0-a29d-9e3ae2de29cf","block_type":"box","text":"participate in these plans.","page_number":31,"box":{"x":70,"y":430,"width":185,"height":11}},{"id":"a239c730-59a0-4eee-840d-d9d6383aa1ef","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":31,"box":{"x":69,"y":460,"width":268,"height":12}},{"id":"773443d2-8dfc-4fec-86ae-c5803781861a","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":31,"box":{"x":101,"y":483,"width":731,"height":11}},{"id":"009985ec-d83d-4d20-9c26-7e6a1c9341ac","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":31,"box":{"x":69,"y":498,"width":519,"height":11}},{"id":"4f44f8b4-2b3e-4004-ac1e-aa64a5375ae2","block_type":"box","text":"Portfolio Manager","page_number":31,"box":{"x":69,"y":537,"width":105,"height":8}},{"id":"557647bd-885b-4497-9269-b9315f28bce1","block_type":"box","text":"Dollar Range of Equity","page_number":31,"box":{"x":759,"y":526,"width":129,"height":9}},{"id":"cbf42722-cfb0-49ee-800a-a075388b3992","block_type":"box","text":"Securities Beneficially Owned","page_number":31,"box":{"x":736,"y":537,"width":173,"height":8}},{"id":"020f3cde-ef62-49af-8658-0d769481d265","block_type":"box","text":"Philip Green","page_number":31,"box":{"x":69,"y":554,"width":84,"height":11}},{"id":"34dd9f2c-5e9c-4747-9fb4-12a4bf7ec961","block_type":"box","text":"....................................................................","page_number":31,"box":{"x":157,"y":562,"width":548,"height":1}},{"id":"25e961fc-46a2-45dc-a3eb-57c90737c989","block_type":"box","text":"$500,001-$1,000,000","page_number":31,"box":{"x":741,"y":554,"width":164,"height":11}},{"id":"4659f57c-3ac1-41f4-a957-022a7a9ba06e","block_type":"box","text":"Michael Pensky, CFA","page_number":31,"box":{"x":70,"y":569,"width":144,"height":12}},{"id":"36929207-87cb-4f57-94d4-2168862d0293","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,","page_number":31,"box":{"x":223,"y":569,"width":575,"height":11}},{"id":"7e4c1917-23d7-4c5f-9995-28abb5f9c596","block_type":"box","text":"001-$100,000","page_number":31,"box":{"x":800,"y":569,"width":105,"height":11}},{"id":"c5e3920f-d6c7-47e6-9694-ad75d7f5d387","block_type":"box","text":"Daniel Felder, CFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,","page_number":31,"box":{"x":70,"y":584,"width":728,"height":11}},{"id":"3a8be500-d640-4953-9e82-3a906c838990","block_type":"box","text":"001-$100,000","page_number":31,"box":{"x":800,"y":584,"width":105,"height":11}},{"id":"a1186a29-d6c9-4950-aef5-791728dee946","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":600,"width":635,"height":9}},{"id":"f57fb67b-7857-44f8-a0b5-3c19571d6d25","block_type":"box","text":"None","page_number":31,"box":{"x":870,"y":600,"width":35,"height":9}},{"id":"98faffba-cf5e-44aa-8274-fec830150c5b","block_type":"box","text":"Richard Mathieson 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10,","page_number":31,"box":{"x":223,"y":629,"width":584,"height":11}},{"id":"99f68db5-9678-4296-9972-c2d0a8af3f9f","block_type":"box","text":"001-$50,000","page_number":31,"box":{"x":809,"y":629,"width":96,"height":11}},{"id":"6bf0cede-117f-46c8-8e29-fffc01c37179","block_type":"box","text":"Scott Radell","page_number":31,"box":{"x":69,"y":645,"width":84,"height":9}},{"id":"12893b62-427b-4595-84ea-0fc37e9dd51d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1-$10,000","page_number":31,"box":{"x":157,"y":644,"width":748,"height":11}},{"id":"f3b23c02-9a5d-4eac-b167-856beb32ed08","block_type":"box","text":"Jasmita Mohan","page_number":31,"box":{"x":69,"y":660,"width":107,"height":9}},{"id":"595d6516-829b-4f19-9c6a-36ff4a8173fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1-$10,000","page_number":31,"box":{"x":182,"y":659,"width":723,"height":12}},{"id":"2894c746-948b-47fc-9e98-2154349601da","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":31,"box":{"x":69,"y":692,"width":403,"height":11}},{"id":"76c8adf3-8800-43c9-9a7f-55b653bda906","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":31,"box":{"x":102,"y":714,"width":727,"height":12}},{"id":"6ae8c1e5-61b9-40c2-8cc3-7c52f0b58eab","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":31,"box":{"x":70,"y":729,"width":814,"height":12}},{"id":"e631817f-79fe-4a6a-9fa1-0aa96aa8ed6d","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":31,"box":{"x":70,"y":744,"width":837,"height":11}},{"id":"9bfa7964-fb04-476d-8762-476c47f0d250","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":31,"box":{"x":70,"y":760,"width":810,"height":11}},{"id":"d8ee649e-60f4-4028-91f2-392af78eea4f","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":31,"box":{"x":69,"y":775,"width":782,"height":11}},{"id":"68784f7c-f62f-496a-a946-2bb0d00d1e66","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":31,"box":{"x":69,"y":790,"width":830,"height":11}},{"id":"de30c4f4-26bb-47f8-a647-dcb0b345fa48","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":31,"box":{"x":69,"y":805,"width":828,"height":11}},{"id":"1d57c2be-51c6-49e1-aa74-1d3af19a1c0b","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":31,"box":{"x":68,"y":820,"width":834,"height":11}},{"id":"642461e8-6865-4d63-b04e-c287db104236","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":31,"box":{"x":70,"y":835,"width":777,"height":11}},{"id":"fa7d073b-d305-4691-aec3-b28fef6a2ac3","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":31,"box":{"x":70,"y":850,"width":821,"height":12}},{"id":"e35812a1-da32-4970-a695-0924cfef94c7","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":31,"box":{"x":69,"y":866,"width":819,"height":10}},{"id":"9ad9be3a-8195-48d0-ba52-c5e81ef15aeb","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":31,"box":{"x":69,"y":881,"width":832,"height":11}},{"id":"3f6ae8cc-e06e-4c6c-bc42-ab560f81b0d4","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":31,"box":{"x":68,"y":896,"width":804,"height":11}},{"id":"4aff5315-70db-46b3-9378-227cced0f8b2","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":31,"box":{"x":69,"y":911,"width":760,"height":11}},{"id":"1577f041-bf27-4cde-9009-f80561fff279","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"dce25ca0-e0f0-45c4-867e-a34fd22c35dd","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06664ba4-a171-4273-a133-42684e016f66","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":32,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"35d3675d-0933-4e44-94d3-80ee7ae46374","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":32,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"0f1a236b-fb4e-4994-9c0d-f6832ecc3798","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":32,"box":{"x":69,"y":75,"width":822,"height":11}},{"id":"ec2e236a-336d-4e84-babc-1b15aa07cde9","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":32,"box":{"x":70,"y":90,"width":835,"height":11}},{"id":"fcfd263d-8f28-4b79-8aa2-06ab76dc7240","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Green, Mathieson, Radell and","page_number":32,"box":{"x":69,"y":105,"width":824,"height":11}},{"id":"b58851ee-d01a-4fc9-b1c6-458c1cfac78e","block_type":"box","text":"Savi and Mses. Hawley and Mohan may be managing hedge fund and/or long only accounts, or may be part of a","page_number":32,"box":{"x":69,"y":120,"width":801,"height":12}},{"id":"d3461560-e648-43f1-815c-c75c2ad9aafa","block_type":"box","text":"team managing hedge fund and/or long only accounts, subject to incentive fees. Messrs. Green, Mathieson, Radell","page_number":32,"box":{"x":68,"y":135,"width":822,"height":12}},{"id":"7b3cef96-5ffe-44ab-b036-40810abef3c0","block_type":"box","text":"and Savi and Mses. Hawley and Mohan may therefore be entitled to receive a portion of any incentive fees earned on","page_number":32,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"f676ff98-8968-48e1-8626-741c5a94f0e4","block_type":"box","text":"such accounts.","page_number":32,"box":{"x":69,"y":166,"width":106,"height":9}},{"id":"ebbd53ed-0f7b-4179-aa95-154e5a0bcf06","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":32,"box":{"x":101,"y":188,"width":788,"height":11}},{"id":"da7a5e62-4470-4310-98b9-53af17c295ae","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":32,"box":{"x":70,"y":203,"width":839,"height":11}},{"id":"2758db7b-b3e4-4bc8-8fad-38316fbe632c","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":32,"box":{"x":68,"y":218,"width":823,"height":12}},{"id":"2662659f-7366-40bd-b6a4-bfd8dc437917","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":32,"box":{"x":68,"y":234,"width":812,"height":11}},{"id":"e5d226c6-9942-4c69-b534-b54014b94419","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":32,"box":{"x":69,"y":249,"width":777,"height":11}},{"id":"cdc04391-d99d-4613-8292-d5b650a08188","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":32,"box":{"x":70,"y":264,"width":826,"height":11}},{"id":"9d164e64-f5ad-4d10-bd0b-662f85f4bf74","block_type":"box","text":"Accounting Services","page_number":32,"box":{"x":68,"y":294,"width":150,"height":11}},{"id":"685a056e-1ae3-4381-941e-9bd9abe92868","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”) provides certain accounting services to the Fund. BNY Mellon","page_number":32,"box":{"x":101,"y":317,"width":763,"height":11}},{"id":"43f94058-842b-4306-b45e-7dfdd6ed5b61","block_type":"box","text":"records investment, capital share and income and expense activities; verifies and transmits trade tickets; maintains","page_number":32,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"5d91c320-45c9-4166-98ef-1d228f4d8e83","block_type":"box","text":"accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports","page_number":32,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"eb84930b-42ee-4ce0-9e54-a586b47d35c3","block_type":"box","text":"cash balances to the Manager; prepares certain financial statements; calculates expenses, gains, losses and","page_number":32,"box":{"x":69,"y":362,"width":785,"height":11}},{"id":"944f630c-1c3f-49d7-a2bd-9602b375acc2","block_type":"box","text":"income; controls disbursements; works with independent pricing sources; and computes and reports net asset value.","page_number":32,"box":{"x":70,"y":377,"width":837,"height":12}},{"id":"30398fb0-86a7-4e4f-afc7-e77cd0eb89a5","block_type":"box","text":"In connection with its accounting services, BNY Mellon also provides certain administration services.","page_number":32,"box":{"x":70,"y":393,"width":719,"height":11}},{"id":"62b14ae9-eded-48c9-be8b-4b01097df48a","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon and the Manager for accounting services for","page_number":32,"box":{"x":101,"y":415,"width":806,"height":11}},{"id":"a35e264c-6335-4ccd-8ea3-7b1ff3fd75e3","block_type":"box","text":"the fiscal years shown:","page_number":32,"box":{"x":68,"y":430,"width":163,"height":11}},{"id":"c7344c47-d7cd-4b24-8c37-fcac795aec31","block_type":"box","text":"Fees Paid","page_number":32,"box":{"x":720,"y":458,"width":56,"height":8}},{"id":"a4a8d08d-43fd-4df5-bd60-a62ff1235839","block_type":"box","text":"to BNY Mellon","page_number":32,"box":{"x":706,"y":469,"width":83,"height":7}},{"id":"6fae08b0-415b-46b2-b32e-a6e251368ca1","block_type":"box","text":"Fees Paid","page_number":32,"box":{"x":837,"y":458,"width":55,"height":8}},{"id":"5ff29148-a48f-4c8b-b9cf-272ff5fdeb06","block_type":"box","text":"to the Manager","page_number":32,"box":{"x":819,"y":469,"width":90,"height":8}},{"id":"460cb69d-7d29-47c2-afc8-438e8bc3eb9f","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":32,"box":{"x":70,"y":486,"width":254,"height":11}},{"id":"c819bb7d-e45b-4397-a74d-4d86f8cd8fe3","block_type":"box","text":"...........................................","page_number":32,"box":{"x":331,"y":494,"width":344,"height":1}},{"id":"822c3607-dacf-4ce2-b1be-90fc053c4fc7","block_type":"box","text":"$129,641 $0","page_number":32,"box":{"x":712,"y":486,"width":162,"height":11}},{"id":"eba25278-f5ba-4026-9d28-93e806f7de43","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":32,"box":{"x":70,"y":501,"width":254,"height":11}},{"id":"44e4ac07-b880-4413-bc79-32777ddeaa96","block_type":"box","text":"...........................................","page_number":32,"box":{"x":331,"y":509,"width":344,"height":1}},{"id":"3e6f431b-338d-4887-be39-14639e2bd3ef","block_type":"box","text":"$125,466 $0","page_number":32,"box":{"x":712,"y":501,"width":162,"height":11}},{"id":"b6d725bd-8efa-4677-9a04-9c10e15ff120","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":32,"box":{"x":70,"y":517,"width":254,"height":11}},{"id":"920495e6-3f1b-48d9-8f7b-592e917598b8","block_type":"box","text":"...........................................","page_number":32,"box":{"x":331,"y":524,"width":344,"height":1}},{"id":"af91369e-ec37-43b9-a699-a224611bfa1d","block_type":"box","text":"$119,868 $0","page_number":32,"box":{"x":712,"y":516,"width":162,"height":11}},{"id":"dd4e2aeb-538c-4955-8f27-5206878be8d8","block_type":"box","text":"Custodian","page_number":32,"box":{"x":69,"y":548,"width":72,"height":9}},{"id":"191046e9-b81e-4096-b68c-bb5c7d44b1bd","block_type":"box","text":"BNY Mellon, which has its principal offices at 240 Greenwich Street, New York, New York 10286, serves as the","page_number":32,"box":{"x":102,"y":571,"width":794,"height":11}},{"id":"e0d1337f-3aee-4c4f-a292-b25873935bf8","block_type":"box","text":"custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a custody account","page_number":32,"box":{"x":69,"y":586,"width":828,"height":11}},{"id":"29a5cd0d-8a83-4ec4-a5eb-e4f916178b96","block_type":"box","text":"or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon sale or","page_number":32,"box":{"x":69,"y":601,"width":820,"height":11}},{"id":"b011a826-9026-4a47-87ca-07029dc1f702","block_type":"box","text":"maturity, and collects and receives all income and other payments and distributions on account of the assets of the","page_number":32,"box":{"x":69,"y":616,"width":825,"height":11}},{"id":"d83d7fcc-fbfa-4357-b399-6186fe1a5ab3","block_type":"box","text":"Fund.","page_number":32,"box":{"x":70,"y":631,"width":36,"height":9}},{"id":"d3f1cfb8-3f5b-448f-9546-f6d4f6629f1a","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":32,"box":{"x":68,"y":661,"width":432,"height":11}},{"id":"50d81002-20df-4bbe-b8ab-2d2f11d7f925","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":32,"box":{"x":102,"y":684,"width":764,"height":11}},{"id":"27bb5bf5-dfbc-4a07-80da-92bd7a7ddbdd","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the Fund.","page_number":32,"box":{"x":68,"y":699,"width":771,"height":11}},{"id":"779a7cf6-7a0a-48aa-ae15-f7c8bca91f5c","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides certain shareholder","page_number":32,"box":{"x":102,"y":722,"width":762,"height":11}},{"id":"ae708401-a18d-43f2-8d91-8bd94fe2ab1f","block_type":"box","text":"liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager for its costs","page_number":32,"box":{"x":70,"y":737,"width":834,"height":11}},{"id":"8f96421f-32ea-4653-8712-9218c95d8007","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":32,"box":{"x":70,"y":752,"width":823,"height":11}},{"id":"ccbca72c-a7dd-41fe-98ef-ec91364cd9fe","block_type":"box","text":"and other out-of-pocket expenses which are a component of the transfer agency fees in the Fund’s annual report.","page_number":32,"box":{"x":69,"y":767,"width":807,"height":11}},{"id":"21cf8c31-bda6-4264-b710-766ac03a3eff","block_type":"box","text":"For the years shown, the Fund reimbursed to the Manager fees for shareholder liaison services pursuant to such","page_number":32,"box":{"x":102,"y":790,"width":803,"height":11}},{"id":"569a9254-0548-4a6d-b3e1-d867931082b4","block_type":"box","text":"agreement as follows:","page_number":32,"box":{"x":69,"y":805,"width":156,"height":11}},{"id":"a08a1f4b-f084-4040-aa7a-134ed1e61cd8","block_type":"box","text":"Fees Paid","page_number":32,"box":{"x":717,"y":833,"width":55,"height":7}},{"id":"ffdcd903-2c47-493b-a40e-b30f467ac191","block_type":"box","text":"to the Manager","page_number":32,"box":{"x":699,"y":843,"width":90,"height":9}},{"id":"5059177d-84d0-4df2-8379-9e94533ffe01","block_type":"box","text":"Fees Waived by","page_number":32,"box":{"x":820,"y":833,"width":89,"height":9}},{"id":"15403e47-c1ef-421e-a5c2-6891c89c8bd5","block_type":"box","text":"the Manager","page_number":32,"box":{"x":827,"y":843,"width":74,"height":9}},{"id":"5c534e3f-f368-4953-9014-00d5dba4309b","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":861,"width":329,"height":11}},{"id":"56bc7188-0064-484f-bf15-29e20028d051","block_type":"box","text":".................................","page_number":32,"box":{"x":406,"y":868,"width":262,"height":2}},{"id":"dbcf6187-4a84-4c3b-96a8-44f1683c7a4f","block_type":"box","text":"$60,072 $0","page_number":32,"box":{"x":713,"y":860,"width":160,"height":12}},{"id":"cb73961e-6332-48cd-948a-1c00fb03c6c7","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":876,"width":329,"height":11}},{"id":"6bd1abf7-c8c0-4544-8e63-e1acde2ece48","block_type":"box","text":".................................","page_number":32,"box":{"x":406,"y":884,"width":262,"height":1}},{"id":"e2d50d58-483c-4999-af12-0dd798016061","block_type":"box","text":"$55,333 $0","page_number":32,"box":{"x":713,"y":875,"width":160,"height":12}},{"id":"6d8fc49f-c613-4c46-9bff-a5103930244d","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":891,"width":329,"height":11}},{"id":"9c472a92-859e-47cf-a7ac-0e2dfe23daef","block_type":"box","text":".................................","page_number":32,"box":{"x":406,"y":899,"width":262,"height":1}},{"id":"7685ff39-1381-4471-8462-5b4d1c701fe9","block_type":"box","text":"$84,020 $0","page_number":32,"box":{"x":713,"y":891,"width":160,"height":11}},{"id":"6aaa48cc-f4e5-4864-996a-a12aee480ada","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"012ba097-2718-49d7-b5c8-c06ba7c2349c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82ae2f66-0517-4be1-aa8d-281808becc0c","block_type":"box","text":"Credit Agreement","page_number":33,"box":{"x":70,"y":45,"width":123,"height":11}},{"id":"d4808d54-fddb-4757-8572-5f779f3142a5","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a","page_number":33,"box":{"x":101,"y":67,"width":797,"height":12}},{"id":"6f9a4b68-71d8-491e-9008-a7b95b70d68f","block_type":"box","text":"party to a 364-day $2.4 billion credit agreement with a group of lenders, which facility terminates on April 8, 2027,","page_number":33,"box":{"x":70,"y":82,"width":818,"height":12}},{"id":"e6be767a-5487-4bcb-a691-18fba28d9311","block_type":"box","text":"unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated for certain","page_number":33,"box":{"x":69,"y":98,"width":796,"height":11}},{"id":"2a3d5217-e23f-4385-9753-2e795d3d4160","block_type":"box","text":"Participating Funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount","page_number":33,"box":{"x":69,"y":113,"width":830,"height":11}},{"id":"c45811c2-9343-4d99-a5f6-e1113687d7b8","block_type":"box","text":"of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the Credit","page_number":33,"box":{"x":69,"y":127,"width":811,"height":12}},{"id":"9869c413-8d31-4d56-9f47-319600a993fc","block_type":"box","text":"Agreement. The Fund may borrow under the Credit Agreement to meet shareholder redemptions and for other lawful","page_number":33,"box":{"x":68,"y":143,"width":825,"height":11}},{"id":"8db31e91-6c34-44fe-ae42-490dd4a2d4ae","block_type":"box","text":"purposes. However, the Fund may not borrow under the Credit Agreement for leverage. The Fund may borrow up to","page_number":33,"box":{"x":70,"y":158,"width":813,"height":11}},{"id":"fc3db850-8442-43a4-8ac2-acd2385394c9","block_type":"box","text":"the maximum amount allowable under its current Prospectuses and SAI, subject to various other legal, regulatory or","page_number":33,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"29483b4f-fa11-4818-b808-3513bf982a4b","block_type":"box","text":"contractual limits. Borrowing results in interest expense and other fees and expenses for the Fund which may impact","page_number":33,"box":{"x":69,"y":188,"width":834,"height":12}},{"id":"03ae255d-4d02-4a33-af2d-ab8f6573f939","block_type":"box","text":"the Fund’s net expenses. The costs of borrowing may reduce the Fund’s return. The Fund is charged its pro rata","page_number":33,"box":{"x":68,"y":203,"width":800,"height":12}},{"id":"8129e6f9-7f22-4268-b4f9-93473548207e","block_type":"box","text":"share of upfront fees and commitment fees on the aggregate commitment amount based on its net assets. If the","page_number":33,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"e1fc6302-1454-46b7-8ae6-8b2954a76623","block_type":"box","text":"Fund borrows pursuant to the Credit Agreement, the Fund will be charged interest at a variable rate.","page_number":33,"box":{"x":70,"y":234,"width":710,"height":11}},{"id":"510077db-1f7e-49b7-8a70-7633ceb7222c","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":33,"box":{"x":68,"y":264,"width":491,"height":11}},{"id":"4476084e-56cd-4f03-b714-f5a55a2ccd82","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":33,"box":{"x":102,"y":286,"width":773,"height":12}},{"id":"88fb386c-d9ee-461f-b764-828792abb024","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“Affiliates”) for the periods shown.","page_number":33,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"983f013c-689e-4d06-af7c-7ed9873fdeaf","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of the Manager, acts as the Fund’s sole","page_number":33,"box":{"x":70,"y":317,"width":779,"height":11}},{"id":"5bf3bc97-0b3f-4b58-a7c2-c8f601fd000e","block_type":"box","text":"distributor. Institutional Shares are not subject to a sales charge.","page_number":33,"box":{"x":69,"y":332,"width":465,"height":11}},{"id":"334b3553-3944-4125-9596-0b18a3d3530e","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":645,"y":360,"width":102,"height":7}},{"id":"cb2674ce-3001-4a1b-9ce3-d8e5cf0f31b6","block_type":"box","text":"Gross Sales","page_number":33,"box":{"x":484,"y":386,"width":69,"height":7}},{"id":"0a6c83ec-3f88-4eef-a87c-f1256de53723","block_type":"box","text":"Charges","page_number":33,"box":{"x":495,"y":396,"width":47,"height":9}},{"id":"8df47815-5b0d-484d-b197-c06883dc12a6","block_type":"box","text":"Collected","page_number":33,"box":{"x":491,"y":406,"width":55,"height":7}},{"id":"d37a65e5-a249-4dd9-aa3e-558aa4130882","block_type":"box","text":"Sales Charges","page_number":33,"box":{"x":585,"y":386,"width":84,"height":9}},{"id":"4dfc2335-ea03-4f00-b68c-dbd5186987be","block_type":"box","text":"Retained by","page_number":33,"box":{"x":593,"y":396,"width":69,"height":9}},{"id":"e34f9470-448e-4935-85af-b1b75ff73d41","block_type":"box","text":"the Distributor","page_number":33,"box":{"x":585,"y":406,"width":84,"height":7}},{"id":"dfed88ce-5a36-4046-8b1e-ada3c03e7333","block_type":"box","text":"Sales Charges","page_number":33,"box":{"x":699,"y":386,"width":83,"height":9}},{"id":"0f1d72c0-534a-47df-83ea-5640fd64f984","block_type":"box","text":"Paid to","page_number":33,"box":{"x":721,"y":396,"width":40,"height":7}},{"id":"aea20ffd-1228-4a9f-955f-20e262a851b2","block_type":"box","text":"Affiliates","page_number":33,"box":{"x":715,"y":406,"width":51,"height":7}},{"id":"58628ea5-ef3e-46ef-bc3c-a1582897389e","block_type":"box","text":"CDSCs Received","page_number":33,"box":{"x":812,"y":376,"width":97,"height":7}},{"id":"80168e1f-693c-4813-8b14-1ccdbe736594","block_type":"box","text":"on Redemption","page_number":33,"box":{"x":817,"y":386,"width":87,"height":9}},{"id":"7e09e3ad-cd19-4e56-81d2-e74865eda068","block_type":"box","text":"of Load-Waived","page_number":33,"box":{"x":817,"y":396,"width":87,"height":7}},{"id":"e22066fe-21b6-4d1a-8359-99c610823e3f","block_type":"box","text":"Shares","page_number":33,"box":{"x":841,"y":406,"width":39,"height":7}},{"id":"1e4eda75-c682-4a2a-ad8b-07a52abc3d5f","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . $279,045 $18,029 $18,029 $16,757","page_number":33,"box":{"x":70,"y":423,"width":821,"height":12}},{"id":"8c575b45-4bcd-4cf3-8abf-235e3fc557fc","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . $220,791 $14,024 $14,024 $15,368","page_number":33,"box":{"x":70,"y":438,"width":822,"height":12}},{"id":"3171f376-3c96-4519-8f25-19f713ed1e06","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . $217,084 $13,597 $13,597 $22,270","page_number":33,"box":{"x":70,"y":453,"width":822,"height":12}},{"id":"f640b76f-0763-4c18-ba40-8196e5444d4c","block_type":"box","text":"Investor C Shares","page_number":33,"box":{"x":775,"y":484,"width":102,"height":7}},{"id":"e730eee2-31ee-4f93-974f-867a9ce508cb","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":764,"y":499,"width":40,"height":8}},{"id":"ff636dbb-6902-4704-8e1e-c6e8241ee667","block_type":"box","text":"Received by","page_number":33,"box":{"x":750,"y":509,"width":69,"height":9}},{"id":"97d15b58-a2af-4deb-8964-1e3848340604","block_type":"box","text":"the Distributor","page_number":33,"box":{"x":742,"y":520,"width":84,"height":7}},{"id":"c65381a8-cc6c-4010-83a3-90e033b00a54","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":863,"y":499,"width":39,"height":8}},{"id":"891a3fa2-0c19-41c2-9d79-0735818a06d5","block_type":"box","text":"Paid to","page_number":33,"box":{"x":863,"y":509,"width":40,"height":8}},{"id":"fdbf0283-8821-4e20-b7e2-71f613c8e0af","block_type":"box","text":"Affiliates","page_number":33,"box":{"x":856,"y":520,"width":52,"height":7}},{"id":"d195992a-ce8a-492b-a037-309f40de375b","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":33,"box":{"x":70,"y":537,"width":230,"height":11}},{"id":"12a3c350-fecc-4aba-884c-00bb1e195acf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,766 $7,766","page_number":33,"box":{"x":310,"y":537,"width":599,"height":11}},{"id":"1bd351cd-f02f-4581-99b1-7fc3c2b34fc6","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":33,"box":{"x":70,"y":552,"width":230,"height":12}},{"id":"cd666c87-01fd-432e-9fe4-854d9f082e09","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,049 $6,049","page_number":33,"box":{"x":310,"y":552,"width":599,"height":11}},{"id":"6abd676d-56b5-4ae4-862b-95977648cfb0","block_type":"box","text":"Fiscal Year Ended May 31, 2024","page_number":33,"box":{"x":70,"y":568,"width":230,"height":11}},{"id":"5bb672b3-4701-4075-936e-31d7c6971f7c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,598 $9,598","page_number":33,"box":{"x":310,"y":567,"width":599,"height":11}},{"id":"93cf582b-75e7-457f-a318-147d2e2e3aad","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":33,"box":{"x":101,"y":591,"width":805,"height":12}},{"id":"f3fc735a-ccbb-44e1-b518-d51c58a7bb87","block_type":"box","text":"to the Distributor under the Fund’s 12b-1 plans. A portion of the fees collected by the Distributor were paid to","page_number":33,"box":{"x":68,"y":606,"width":782,"height":12}},{"id":"edcd7d9f-5fc7-40ca-8257-f945d9e7fd2a","block_type":"box","text":"affiliates for providing shareholder servicing activities for Investor A Shares and for providing shareholder servicing","page_number":33,"box":{"x":69,"y":622,"width":818,"height":11}},{"id":"381d4d7c-9880-4eeb-bba7-d60ecb68275d","block_type":"box","text":"and distribution-related activities and services for Investor C and Class R Shares.","page_number":33,"box":{"x":69,"y":637,"width":579,"height":9}},{"id":"f451779f-b61c-4df6-ac1b-34dc02a4efb3","block_type":"box","text":"Class Name","page_number":33,"box":{"x":69,"y":675,"width":68,"height":7}},{"id":"5838cef0-93ca-47ba-b9d5-e735d20b5963","block_type":"box","text":"Fees Paid","page_number":33,"box":{"x":831,"y":665,"width":56,"height":7}},{"id":"98a5360c-d035-461c-8448-01b6eb45ffa9","block_type":"box","text":"to the Distributor","page_number":33,"box":{"x":809,"y":675,"width":100,"height":7}},{"id":"d87e54ec-9a1a-46e6-8f0a-249e73a7fa1a","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":70,"y":693,"width":124,"height":9}},{"id":"5bf20150-989a-491c-b2e0-178af21384c6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":33,"box":{"x":198,"y":692,"width":640,"height":11}},{"id":"d581526d-df2d-40b3-8ccf-5b2ba4c6a298","block_type":"box","text":"377,310","page_number":33,"box":{"x":840,"y":693,"width":63,"height":10}},{"id":"1d932c52-e5bf-4353-b45a-395d3425853f","block_type":"box","text":"Investor C Shares. . .","page_number":33,"box":{"x":70,"y":708,"width":146,"height":9}},{"id":"49d88958-a298-4eb5-b19a-94c08f52e4fd","block_type":"box","text":"..................................................................... $","page_number":33,"box":{"x":222,"y":707,"width":602,"height":11}},{"id":"6be484e0-cff4-486e-9d3c-c0a5a0c3426c","block_type":"box","text":"799,196","page_number":33,"box":{"x":841,"y":708,"width":62,"height":10}},{"id":"050ef13d-c011-4da3-a36d-f75fc487ee81","block_type":"box","text":"Class R Shares. . .","page_number":33,"box":{"x":69,"y":723,"width":130,"height":9}},{"id":"73485340-2091-44f6-b66e-8adb595c326d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,544","page_number":33,"box":{"x":206,"y":722,"width":697,"height":12}},{"id":"101366a8-9b51-40a0-843e-441f03d32a1a","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0c48f1de-a64a-4210-9331-788bb96e2578","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51819735-ea10-4966-88ce-7803d7cf78f2","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":34,"box":{"x":68,"y":45,"width":318,"height":11}},{"id":"d1722d6e-5b82-4a0b-93f6-3ec35bac9f0c","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund based on the","page_number":34,"box":{"x":101,"y":67,"width":790,"height":12}},{"id":"b1da8192-f403-4355-a300-2e2d4e5aa6e2","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and number of Investor A Shares outstanding as of May 31, 2026,","page_number":34,"box":{"x":68,"y":82,"width":833,"height":12}},{"id":"5f7531c7-9e3c-4336-8663-61c08709290f","block_type":"box","text":"is set forth below.","page_number":34,"box":{"x":70,"y":98,"width":126,"height":9}},{"id":"270ca57e-0b78-4774-93f0-26f0de70a5b4","block_type":"box","text":"Investor A Shares","page_number":34,"box":{"x":798,"y":126,"width":102,"height":7}},{"id":"f5455a11-1c13-4958-be91-99954133ae0f","block_type":"box","text":"Net Assets . . .","page_number":34,"box":{"x":70,"y":144,"width":100,"height":9}},{"id":"e991e3a6-bc71-406c-b484-4bce8b8b10bf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000,","page_number":34,"box":{"x":176,"y":143,"width":669,"height":11}},{"id":"80039c6c-a911-4287-936e-1e2d58317a91","block_type":"box","text":"502,314","page_number":34,"box":{"x":847,"y":144,"width":62,"height":10}},{"id":"8251921f-af4f-4258-a18e-dd415de656c4","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":34,"box":{"x":70,"y":159,"width":320,"height":11}},{"id":"d8bf252f-dd9a-4a16-baf2-6b7d5d007bc9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,","page_number":34,"box":{"x":396,"y":159,"width":449,"height":10}},{"id":"690db374-f9a5-45c8-b619-3070561e6a67","block_type":"box","text":"810,799","page_number":34,"box":{"x":847,"y":159,"width":62,"height":10}},{"id":"114d7283-048b-425f-a4ae-adc771a9e6aa","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":34,"box":{"x":70,"y":174,"width":571,"height":11}},{"id":"96adcf91-3f0b-4512-bcf9-b4f9b720acd5","block_type":"box","text":"..............","page_number":34,"box":{"x":649,"y":181,"width":108,"height":2}},{"id":"c41a3875-2a6f-4ba9-bde7-37f5061375a3","block_type":"box","text":"$29.59","page_number":34,"box":{"x":857,"y":173,"width":52,"height":11}},{"id":"70b6ebe4-0e22-4201-9d73-abafe85b0fd4","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":34,"box":{"x":69,"y":189,"width":534,"height":11}},{"id":"b8245118-8883-4cf3-8c91-aee17799c9f7","block_type":"box","text":"1","page_number":34,"box":{"x":604,"y":189,"width":4,"height":5}},{"id":"08c02d00-a223-44f6-bddd-51010d764fd9","block_type":"box","text":". . . . . . . . . . . . . . . . . . $1.64","page_number":34,"box":{"x":616,"y":188,"width":293,"height":11}},{"id":"d82eb2d2-c456-4c8f-b76e-125fb9ec74c7","block_type":"box","text":"Offering Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":69,"y":208,"width":687,"height":12}},{"id":"3f057b17-dd18-4b72-99ee-42be4e620abb","block_type":"box","text":"$31.23","page_number":34,"box":{"x":857,"y":208,"width":52,"height":10}},{"id":"690a00cf-b1b4-4586-b0e9-6ecc1b35e4eb","block_type":"box","text":"1","page_number":34,"box":{"x":69,"y":241,"width":3,"height":3}},{"id":"44829d81-3b99-4315-97e5-811aa39862dc","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":34,"box":{"x":94,"y":241,"width":541,"height":8}},{"id":"6868d5bb-1590-4e92-a40e-e2bc3d4a31ea","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":34,"box":{"x":101,"y":261,"width":787,"height":12}},{"id":"aae3b320-d1e2-477e-bb7e-cec491e6083c","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":34,"box":{"x":69,"y":276,"width":833,"height":12}},{"id":"7ec89ab6-fa00-4353-a8f2-736299706e83","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":34,"box":{"x":69,"y":292,"width":813,"height":11}},{"id":"6552c38d-9827-4315-8f21-c5d3181534fa","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this Statement of Additional Information.","page_number":34,"box":{"x":69,"y":307,"width":607,"height":11}},{"id":"cc4544c8-0920-45d3-a09f-26b9b6c8eb6d","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":34,"box":{"x":68,"y":337,"width":302,"height":11}},{"id":"c149cbf4-d767-4246-9f94-372eb52bf08c","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this Statement of Additional Information for more","page_number":34,"box":{"x":102,"y":360,"width":750,"height":11}},{"id":"9f8b48ea-76b9-42c5-a09c-73b28a393955","block_type":"box","text":"information.","page_number":34,"box":{"x":70,"y":375,"width":83,"height":9}},{"id":"6fac4e95-ff33-4682-b251-b96fc891d8ab","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to Affiliates, for the","page_number":34,"box":{"x":102,"y":397,"width":801,"height":12}},{"id":"6a1a746c-aad5-43e9-b88c-af155d12669e","block_type":"box","text":"periods shown is set forth in the following table:","page_number":34,"box":{"x":70,"y":412,"width":342,"height":12}},{"id":"80653bae-50b2-43e7-889c-dce6e7ab7ded","block_type":"box","text":"Aggregate Brokerage","page_number":34,"box":{"x":613,"y":441,"width":125,"height":9}},{"id":"2c990271-f40d-4d5d-9c0e-ae5b32f2f8f1","block_type":"box","text":"Commissions Paid","page_number":34,"box":{"x":623,"y":451,"width":106,"height":7}},{"id":"a65ae944-df9e-443a-bea5-21d92f60fc37","block_type":"box","text":"Brokerage Commissions","page_number":34,"box":{"x":769,"y":441,"width":140,"height":9}},{"id":"97cc9196-a7cc-4cb3-aec8-2494a20a5f93","block_type":"box","text":"Paid to Affiliates","page_number":34,"box":{"x":791,"y":451,"width":96,"height":7}},{"id":"0341eb67-3a20-4eda-8ab2-7e2184d6dbc9","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":34,"box":{"x":70,"y":469,"width":292,"height":11}},{"id":"5d9efa7f-bf46-4dc0-a967-e7fd6d96abe4","block_type":"box","text":"...........................","page_number":34,"box":{"x":369,"y":476,"width":213,"height":1}},{"id":"e8365fe5-d068-45a2-8f52-b20566767aac","block_type":"box","text":"$250,725 $0","page_number":34,"box":{"x":640,"y":468,"width":208,"height":11}},{"id":"dac08fd5-38c8-430d-af62-15ba5382c3e4","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":34,"box":{"x":70,"y":484,"width":292,"height":11}},{"id":"1911bf5d-856f-49b8-929d-928d01164a8b","block_type":"box","text":"...........................","page_number":34,"box":{"x":369,"y":491,"width":213,"height":2}},{"id":"4a341d60-37e5-4f51-a1fd-a6e15edac23e","block_type":"box","text":"$260,684 $0","page_number":34,"box":{"x":640,"y":483,"width":208,"height":11}},{"id":"9247ce2b-fc97-4a0a-a560-aa753cbfd7f2","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":34,"box":{"x":70,"y":499,"width":292,"height":11}},{"id":"7840ebed-44fa-47b2-b5f3-836a42fd0eb6","block_type":"box","text":"...........................","page_number":34,"box":{"x":369,"y":506,"width":213,"height":2}},{"id":"4aba83e9-ed97-47e2-a1b6-388d1837ffd9","block_type":"box","text":"$287,290 $0","page_number":34,"box":{"x":640,"y":498,"width":208,"height":11}},{"id":"524e8194-860c-40d8-a76b-ab67c36a349c","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":34,"box":{"x":101,"y":523,"width":770,"height":11}},{"id":"2e159902-744b-4d87-97ec-6c3dee768338","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":34,"box":{"x":69,"y":538,"width":814,"height":11}},{"id":"095effba-609e-4e6b-83e2-be67fcd7fc98","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":34,"box":{"x":68,"y":553,"width":829,"height":11}},{"id":"eccee567-a076-444c-b4e7-af81133aadb4","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":34,"box":{"x":69,"y":568,"width":822,"height":11}},{"id":"340d9dda-2d19-461d-af3f-3eed78d0cef6","block_type":"box","text":"with such brokers.","page_number":34,"box":{"x":68,"y":583,"width":130,"height":9}},{"id":"25317c83-e970-4f97-9914-48f8f60d29ed","block_type":"box","text":"Amount of Commissions","page_number":34,"box":{"x":264,"y":611,"width":141,"height":8}},{"id":"f2cfd7a7-e234-4aec-bcd0-e6051d79752c","block_type":"box","text":"Paid to Brokers for","page_number":34,"box":{"x":280,"y":622,"width":110,"height":7}},{"id":"bfd94b66-774a-45aa-a649-d29e0718652f","block_type":"box","text":"Providing 28(e) Eligible","page_number":34,"box":{"x":267,"y":632,"width":136,"height":9}},{"id":"09cbe051-b2e4-44fa-aab5-014e35831b5b","block_type":"box","text":"Research Services","page_number":34,"box":{"x":281,"y":642,"width":108,"height":7}},{"id":"13d24205-8626-4dce-aadd-c5932e38c5e5","block_type":"box","text":"Amount of Brokerage","page_number":34,"box":{"x":588,"y":632,"width":124,"height":9}},{"id":"53f0ee8f-8d0c-43c2-b04f-0a4da3330de4","block_type":"box","text":"Transactions Involved","page_number":34,"box":{"x":587,"y":642,"width":126,"height":7}},{"id":"61d2f5d9-ac85-4436-b30d-6878011b7a8a","block_type":"box","text":"$73,007 $337,946,379","page_number":34,"box":{"x":304,"y":659,"width":400,"height":11}},{"id":"b1adf6d8-0e30-473d-9b0c-5ac0d057b409","block_type":"box","text":"As of May 31, 2026, the value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers","page_number":34,"box":{"x":101,"y":683,"width":807,"height":12}},{"id":"6eecdad7-d42b-4b52-96f7-96c9b9238718","block_type":"box","text":"(as defined in Rule 10b-1 of the Investment Company Act), if any portion of such holdings were purchased during the","page_number":34,"box":{"x":69,"y":698,"width":832,"height":12}},{"id":"6156f994-01f9-4f6e-812d-7bacb5f65a6f","block_type":"box","text":"fiscal year ended May 31, 2026 is as follows:","page_number":34,"box":{"x":68,"y":714,"width":326,"height":11}},{"id":"044137f9-8c01-497c-94fb-460954677088","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s)","page_number":34,"box":{"x":69,"y":742,"width":840,"height":9}},{"id":"c1db8bc6-ca2a-4667-b3e7-bc420016eb68","block_type":"box","text":"Morgan Stanley & CO. LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $9,476","page_number":34,"box":{"x":70,"y":759,"width":786,"height":12}},{"id":"827bbfd3-6cce-4406-89f4-7246788cea6c","block_type":"box","text":"Morgan Stanley & CO. LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $8,100","page_number":34,"box":{"x":70,"y":774,"width":786,"height":12}},{"id":"1ae09560-2832-4e0e-b684-0f5a4829cecd","block_type":"box","text":"BOFA Securities, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $8,344","page_number":34,"box":{"x":70,"y":789,"width":786,"height":11}},{"id":"6fbd55ae-4154-4715-b757-26281a71fff1","block_type":"box","text":"BOFA Securities, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $4,943","page_number":34,"box":{"x":70,"y":804,"width":786,"height":11}},{"id":"0c09c7d2-9bc5-4048-8f56-a26724eb7b8f","block_type":"box","text":"J.P. Morgan Securities LLC . .","page_number":34,"box":{"x":69,"y":820,"width":209,"height":11}},{"id":"3ca4a9c4-2bab-47fb-8e0b-1791d9c4bae1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $7,857","page_number":34,"box":{"x":284,"y":819,"width":572,"height":12}},{"id":"d56237ba-6d8e-4f07-bc2e-f0e0757a4488","block_type":"box","text":"J.P. Morgan Securities LLC . .","page_number":34,"box":{"x":69,"y":835,"width":209,"height":11}},{"id":"e22d3544-083c-4da5-85da-c2ae6052ab6f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $6,141","page_number":34,"box":{"x":284,"y":835,"width":572,"height":11}},{"id":"c865f300-df1f-48ba-9d80-4e46d99b29ff","block_type":"box","text":"Citigroup Global Markets, Inc. . . . . . . . . .","page_number":34,"box":{"x":69,"y":850,"width":282,"height":12}},{"id":"23e124f0-fc6f-4e74-a9bf-27cd5ddeb561","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . D $4,849","page_number":34,"box":{"x":357,"y":850,"width":499,"height":11}},{"id":"e28f3a35-7ae9-45ba-b9dc-6d0411646993","block_type":"box","text":"Citigroup Global Markets, Inc. . . . . . . . . .","page_number":34,"box":{"x":69,"y":866,"width":282,"height":11}},{"id":"3775db82-69e2-4648-8746-4a910d7dc410","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . E $3,428","page_number":34,"box":{"x":357,"y":865,"width":499,"height":11}},{"id":"ee0ab3e7-a40f-4e85-b281-a3eb56208595","block_type":"box","text":"Goldman Sachs & Co. LLC.","page_number":34,"box":{"x":69,"y":881,"width":192,"height":9}},{"id":"35528439-8ef6-4cb8-b9f8-eaa99b5c8da6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $5,871","page_number":34,"box":{"x":268,"y":880,"width":588,"height":11}},{"id":"e84e88d3-4b67-48c8-9094-0cd0110439b1","block_type":"box","text":"Goldman Sachs & Co. LLC.","page_number":34,"box":{"x":69,"y":896,"width":192,"height":9}},{"id":"aaf87851-6374-4012-bdab-a667cf75c0a3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $3,226","page_number":34,"box":{"x":268,"y":895,"width":588,"height":11}},{"id":"e0f40d4f-249a-423e-934d-4f43ad8a1703","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ff2c3087-14d3-4435-bb03-899295b27cb8","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cb2211a2-0f17-419e-bf42-3bea32e6833f","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000s)","page_number":35,"box":{"x":69,"y":49,"width":840,"height":9}},{"id":"16111db3-6a96-43ad-a8ae-9b4db044eac9","block_type":"box","text":"MacQuarie Capital (USA), Inc. . . . . . .","page_number":35,"box":{"x":70,"y":67,"width":256,"height":11}},{"id":"add07c82-8a2a-418f-8f1b-b67104a0250a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $4,506","page_number":35,"box":{"x":333,"y":66,"width":523,"height":11}},{"id":"4cc1120e-d770-41e5-bd49-b8670e6bdeec","block_type":"box","text":"BNP Paribas Securities Corp. .","page_number":35,"box":{"x":70,"y":82,"width":216,"height":11}},{"id":"e33c944e-1416-4b43-9b29-02422c24ae6a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $2,655","page_number":35,"box":{"x":292,"y":81,"width":564,"height":11}},{"id":"dc3592f6-c114-4004-83c4-2489ea24e4b6","block_type":"box","text":"Mizuho Securities USA LLC","page_number":35,"box":{"x":70,"y":97,"width":190,"height":9}},{"id":"27d1ad53-f424-4bfc-8d08-52b72d2df798","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $2,199","page_number":35,"box":{"x":268,"y":96,"width":588,"height":11}},{"id":"cd36fbb4-0f6d-406a-a034-a74608932c00","block_type":"box","text":"Credit Agricole Securities (USA), Inc. . . . .","page_number":35,"box":{"x":69,"y":112,"width":290,"height":11}},{"id":"e7ccb533-b876-4080-abeb-64ba82899747","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . E $1,636","page_number":35,"box":{"x":365,"y":111,"width":491,"height":12}},{"id":"ac171d0f-721f-447d-909c-bfc86c531463","block_type":"box","text":"Barclays Capital, Inc.","page_number":35,"box":{"x":70,"y":127,"width":147,"height":11}},{"id":"6bf594e1-504e-4725-90b3-e871ca84ad02","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 578","page_number":35,"box":{"x":227,"y":126,"width":629,"height":11}},{"id":"18507f35-dec6-4ae9-ae4d-fd38faa96957","block_type":"box","text":"Barclays Capital, Inc.","page_number":35,"box":{"x":70,"y":142,"width":147,"height":11}},{"id":"69a5a09c-1174-4229-b38a-613688e135c0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 406","page_number":35,"box":{"x":227,"y":142,"width":629,"height":10}},{"id":"a941ffa1-963a-473d-b3d3-b6488ac5065a","block_type":"box","text":"Securities Lending","page_number":35,"box":{"x":68,"y":174,"width":135,"height":11}},{"id":"cb15029f-4f43-49d4-a126-8b0e8d1e98ad","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":35,"box":{"x":101,"y":197,"width":807,"height":11}},{"id":"31cb8ecd-7e41-4565-b193-4d8df376f55f","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":35,"box":{"x":69,"y":212,"width":817,"height":11}},{"id":"7bb35cb1-3441-4e75-9a89-26a99b8e9a7f","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":35,"box":{"x":69,"y":227,"width":813,"height":11}},{"id":"f36ab0e4-7628-4c7e-bf6a-8feee0216ca5","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund subject to the","page_number":35,"box":{"x":70,"y":242,"width":834,"height":11}},{"id":"e5125937-e5d0-4bf2-8ce2-a479c8804008","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":35,"box":{"x":69,"y":257,"width":813,"height":11}},{"id":"2e9d1bbf-fbfd-4c61-8252-ee9f0851fd26","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board of Directors.","page_number":35,"box":{"x":70,"y":272,"width":734,"height":11}},{"id":"dc9d5b1e-2fdf-4897-b46b-4e6f5f8b14f5","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":35,"box":{"x":101,"y":295,"width":735,"height":11}},{"id":"d65cc031-7363-406f-960b-3a119c6e1dca","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":35,"box":{"x":69,"y":310,"width":834,"height":11}},{"id":"d3e63a1a-328d-4d48-9485-0c071bc691ee","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":35,"box":{"x":70,"y":325,"width":822,"height":11}},{"id":"9a177ca7-61e2-4a28-8752-c093b55d02ef","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":35,"box":{"x":69,"y":340,"width":787,"height":11}},{"id":"5052b8fe-5287-4cce-a7cc-436f4c74af6a","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":35,"box":{"x":69,"y":355,"width":783,"height":11}},{"id":"edd2b2a9-b643-4862-a6e4-411c973b8b70","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":35,"box":{"x":70,"y":370,"width":800,"height":12}},{"id":"f0cc501e-9561-4fda-9457-0beea99bb8a5","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":35,"box":{"x":70,"y":385,"width":813,"height":12}},{"id":"3b414b4e-eb79-45f4-b8aa-900beb47f3d6","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees a Fund bears to an annual rate of","page_number":35,"box":{"x":70,"y":401,"width":836,"height":11}},{"id":"d1ee6aed-95f0-4d20-afc4-25fefa5b8984","block_type":"box","text":"0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":35,"box":{"x":69,"y":416,"width":755,"height":11}},{"id":"1635ec3b-2f6f-4334-b3db-a358ea174699","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":35,"box":{"x":101,"y":438,"width":776,"height":12}},{"id":"f4de9aff-c518-4989-b7e0-7c4bd11d4e7d","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":35,"box":{"x":69,"y":453,"width":831,"height":12}},{"id":"b6197153-1634-4d59-abd0-909e5b6aca19","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":35,"box":{"x":68,"y":469,"width":812,"height":11}},{"id":"3c447c72-e0ed-4694-ab33-bde28fc56c7b","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":35,"box":{"x":69,"y":484,"width":799,"height":11}},{"id":"a1ad8aa2-22d6-4f05-8901-39298d7598a4","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":35,"box":{"x":68,"y":499,"width":835,"height":11}},{"id":"6004f6c9-1150-439e-ad4d-7662d4c84930","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":35,"box":{"x":69,"y":514,"width":818,"height":11}},{"id":"35fc66c0-bf21-4665-a941-0bebcb5d9c15","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":35,"box":{"x":68,"y":529,"width":789,"height":11}},{"id":"4cf8dc29-6394-49d1-aa2a-1726f489abc7","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":35,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"11d28b58-693b-41ec-b2ea-ae2e5c31e23a","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":35,"box":{"x":69,"y":559,"width":839,"height":11}},{"id":"15fc7529-29f8-4f45-abfd-d4d6e84acb28","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":35,"box":{"x":69,"y":574,"width":802,"height":12}},{"id":"053bca33-d1b8-408e-9385-457eb2241759","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":35,"box":{"x":70,"y":589,"width":830,"height":12}},{"id":"c341f311-f2d3-4972-8d27-dff023a71e78","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":35,"box":{"x":69,"y":605,"width":838,"height":11}},{"id":"489bd58a-735f-4d40-b378-697a01e84411","block_type":"box","text":"Fund’s returns on securities lending.","page_number":35,"box":{"x":70,"y":620,"width":258,"height":11}},{"id":"055637a6-3cb5-46a7-b2e7-f05146c0bd32","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":35,"box":{"x":102,"y":642,"width":774,"height":12}},{"id":"7b0202a1-f303-4387-bb03-51441797b140","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":35,"box":{"x":69,"y":658,"width":790,"height":11}},{"id":"3ddc21a8-5a9f-4590-ac13-9698ca1e5869","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":35,"box":{"x":68,"y":673,"width":809,"height":11}},{"id":"3f32d91d-54db-479c-a203-53a40064fc6e","block_type":"box","text":"Fund and BIM.","page_number":35,"box":{"x":70,"y":688,"width":100,"height":9}},{"id":"8d27edbd-b73f-4572-bf19-0460802dcc6b","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":35,"box":{"x":102,"y":710,"width":783,"height":12}},{"id":"8d9bfa4a-5569-4e4e-b7d5-f0f755e55a2d","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":35,"box":{"x":70,"y":726,"width":815,"height":11}},{"id":"0cfed677-3790-460d-ad08-52dc0070d440","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":35,"box":{"x":69,"y":741,"width":463,"height":11}},{"id":"82e7254e-48b8-455f-9a6d-ad4351588110","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":35,"box":{"x":102,"y":763,"width":753,"height":12}},{"id":"cd50dadb-f40a-4145-a72b-67bacf4d64e4","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":35,"box":{"x":69,"y":778,"width":778,"height":12}},{"id":"c46e3e98-964f-4bdd-9000-07861f561345","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":35,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"b5556544-c04d-4ca7-b94f-49218a0da88b","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees); and","page_number":35,"box":{"x":70,"y":809,"width":794,"height":11}},{"id":"184b9bd4-ab1d-4c3c-9ecc-a55a8a8aa046","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":35,"box":{"x":69,"y":824,"width":825,"height":11}},{"id":"27552d1b-96d3-4df3-86a4-6c31144a3062","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":35,"box":{"x":102,"y":846,"width":683,"height":12}},{"id":"91f186ba-4bec-4859-b092-bd2619c92b5b","block_type":"box","text":"I-26","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"d010b1f6-455e-48aa-adb2-359e31e296b7","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e09c818-49c7-40c8-ab7d-93dc85f24cdb","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026 primarily included","page_number":36,"box":{"x":101,"y":45,"width":798,"height":11}},{"id":"b21e4d4f-79b6-4a4f-9c26-542e9a690217","block_type":"box","text":"the following:","page_number":36,"box":{"x":68,"y":60,"width":93,"height":11}},{"id":"e8545956-e1bc-42a9-ae3d-b4c8dc3945b9","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":36,"box":{"x":69,"y":80,"width":818,"height":11}},{"id":"514cd4a9-a46d-432e-a74d-671035d32459","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":36,"box":{"x":102,"y":95,"width":333,"height":11}},{"id":"36f9f9f1-0be2-4387-b23c-bc555b489bb4","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":36,"box":{"x":69,"y":115,"width":538,"height":11}},{"id":"6e2a526f-2bb8-4817-b50c-678776f2c48d","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":36,"box":{"x":69,"y":135,"width":330,"height":12}},{"id":"9e68f34f-7395-4a37-ba4c-e5834f181347","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":36,"box":{"x":69,"y":155,"width":834,"height":12}},{"id":"c1f2e508-da76-437e-9925-8949025ae874","block_type":"box","text":"of excess collateral, as necessary;","page_number":36,"box":{"x":102,"y":171,"width":246,"height":11}},{"id":"4a1fc6ca-92b5-49db-8684-204ff5161598","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":36,"box":{"x":69,"y":191,"width":562,"height":11}},{"id":"1a2ad0ea-ad7c-475a-a049-f569485fd8cd","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":36,"box":{"x":69,"y":211,"width":665,"height":11}},{"id":"b5f8e65d-5e7f-494c-8231-8db4c30a1802","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":36,"box":{"x":69,"y":231,"width":822,"height":11}},{"id":"9325f836-c0b4-4eab-9f6b-509e4d9c40a9","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":36,"box":{"x":101,"y":246,"width":803,"height":11}},{"id":"8cb015d3-4b3e-47af-9ae6-f81a9f87058e","block_type":"box","text":"of the loaned securities; and","page_number":36,"box":{"x":102,"y":261,"width":203,"height":11}},{"id":"107a3a81-6154-4c41-a89e-a784e664e8b0","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":36,"box":{"x":69,"y":281,"width":808,"height":12}},{"id":"f5c87fb6-e05c-4a44-a424-c3c7ce3ad44d","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":36,"box":{"x":101,"y":304,"width":805,"height":11}},{"id":"d892a6ae-fb7a-4fcb-b149-f6291c0fef9d","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":36,"box":{"x":69,"y":319,"width":546,"height":12}},{"id":"b50ccf16-3841-4662-a637-f7146aeb6301","block_type":"box","text":"Gross income from securities lending activities","page_number":36,"box":{"x":69,"y":347,"width":343,"height":11}},{"id":"cfbadb02-a2c3-4519-8d01-08697180deb0","block_type":"box","text":"...................................................","page_number":36,"box":{"x":416,"y":354,"width":409,"height":2}},{"id":"2acb5c5a-bf23-4ce3-ab80-93e9de024fea","block_type":"box","text":"$79,245","page_number":36,"box":{"x":847,"y":346,"width":62,"height":12}},{"id":"4474cd54-c30c-4385-8f0a-db3571f61703","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":36,"box":{"x":70,"y":366,"width":565,"height":12}},{"id":"63ae1552-7b2e-4768-8dc1-a01cbacecffc","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":36,"box":{"x":79,"y":382,"width":599,"height":11}},{"id":"194b9583-0844-45ff-a376-a89c81625830","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 2,851","page_number":36,"box":{"x":685,"y":381,"width":224,"height":11}},{"id":"16adc7f1-b4d1-4741-ba74-db251858a037","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":36,"box":{"x":79,"y":397,"width":673,"height":11}},{"id":"64a20c56-f564-483f-b3c2-17fe8b2c72ca","block_type":"box","text":". . . . . . . . . $ 711","page_number":36,"box":{"x":758,"y":396,"width":151,"height":11}},{"id":"95fcf746-8c14-492b-b6ad-3662a3c32265","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":36,"box":{"x":78,"y":412,"width":551,"height":11}},{"id":"9c82668f-a4cd-4d87-9ec2-aeb1c5406276","block_type":"box","text":"........................ $ 0","page_number":36,"box":{"x":636,"y":411,"width":273,"height":11}},{"id":"202e6131-dda4-4110-be7b-7513b33bdef5","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":36,"box":{"x":79,"y":427,"width":567,"height":11}},{"id":"4d5c9ca8-a055-46f9-b540-3130106fe5ea","block_type":"box","text":"...................... $ 0","page_number":36,"box":{"x":652,"y":426,"width":257,"height":11}},{"id":"6b846f8d-18a2-467d-a3e6-0a6a123d5ff1","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":36,"box":{"x":79,"y":442,"width":289,"height":11}},{"id":"5090b540-ce34-4d33-a30d-15e4042f811b","block_type":"box","text":"........................................................","page_number":36,"box":{"x":375,"y":450,"width":450,"height":1}},{"id":"d284f97b-ea04-4e86-83cd-60f344ed7791","block_type":"box","text":"$62,060","page_number":36,"box":{"x":847,"y":441,"width":62,"height":12}},{"id":"b1259905-8ef0-4ba7-8a73-9d224430fc13","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":36,"box":{"x":79,"y":457,"width":542,"height":12}},{"id":"89bdce98-2c0f-407f-aff5-23339c88d7b7","block_type":"box","text":"......................... $ 0","page_number":36,"box":{"x":628,"y":457,"width":281,"height":10}},{"id":"255ddb6d-2cc8-46fb-93c3-b55cda0725ba","block_type":"box","text":"Aggregate fees/compensation for securities lending 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In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":39,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"c9f0d43b-6174-44c5-80ac-34a8e93b939b","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":39,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"0d9e18ae-2cc4-48fc-8224-954dc135e6b7","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":39,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"5a5113d8-7197-4a58-9a67-63eb4398fbc0","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":39,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"9911c276-bb94-44aa-a014-5cbd717a6658","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":39,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"768099c4-4661-4dcb-8319-31bf266bea57","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":39,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"dc6fa2bc-d083-423d-9f9e-02fecab6b2a1","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":39,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"cbe292c3-5707-4e98-b326-db8e2c74c189","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":39,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"c84b6098-caa1-4242-8b11-41dfaa573ac2","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":39,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"fee22f12-2604-45f0-800e-5efd9312cb9a","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":39,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"640d86d0-d383-4d11-9cd0-6000695e66ef","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":39,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"6a54d18b-8e88-4dbe-9894-da24afc73354","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":39,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"3e96f89f-23dc-441a-82a4-418a623dfb22","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":39,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"a25214dc-4599-4d11-ab87-cccbce8c883a","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":39,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"4ce79032-541d-49e7-bb98-8c70116c6537","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":39,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"e4415f27-1ec0-4ae3-a004-7fb2a28ae779","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":39,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"dca30e5e-eb1a-4525-a897-8d7d1fcc3865","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":39,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"213c5e13-6846-4130-b3cc-94205cc6454d","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":39,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"15bf8352-fb5c-4905-82a4-a5a881c31304","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":39,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"52b26a4c-9edd-46ac-ad27-e722391625c6","block_type":"box","text":"particular Fund.","page_number":39,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"40eaf3ef-ca5d-4cd1-a00c-537802e1f705","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":39,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"b4d4266e-1389-4b50-9545-dd7ef671daf0","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":39,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"06695a32-675c-4730-8431-54c0a4486b38","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":39,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"f3433203-1edc-417e-9276-f184ac5188d6","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":39,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"a39a5f9e-680d-48a0-a9a9-207eade1d46d","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":39,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"f8f5470a-4be7-43e9-91a8-f6bbfab683e9","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":39,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"917ba213-8499-46c6-8b4e-2d544b53b6d7","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":39,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"6a8e126f-1e3c-4a97-8000-e23be79079e7","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":39,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"a6ea035a-ae6f-4a4f-abbb-16fc6c5c58f8","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":39,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"e3cbc091-2ae5-43d9-ad6c-dcaa6896c540","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":39,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"e3faeb99-8a35-433c-81c1-4b12e3870db4","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":39,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"7d960713-a97d-4082-b947-b130ab1ba368","block_type":"box","text":"Asset-Backed Securities.","page_number":39,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"2d26aa9d-e7c7-4ced-b2b9-3a082e4fc60d","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":39,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"744466b3-d872-4832-b363-8ab9a1d67964","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":39,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"a39a54f5-e79d-4cce-9e88-42ee44cc97fa","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":39,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"4505af42-d4b1-4a65-9f71-4e269acaa302","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":39,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"6f98e17f-1d17-479f-a199-2e3510929fdb","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":39,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"d2c57367-511f-4aa1-aefa-ba78d3e807c1","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":39,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"dd1e0bc8-094e-4063-a832-7101308b8cf3","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":39,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"62180251-1392-47da-aad3-d332f53d8b9b","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":39,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"21c55333-f6ff-4e63-a23b-926b4e3bc1cf","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":39,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"5d25ee52-ad91-4dcd-86ba-f00671ce36dc","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":39,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"aca47537-4e55-4fc2-bdab-7a2452828f5c","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":39,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"8db7319c-c736-46c4-acf0-14b331e00684","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":39,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"04b0ad13-f4dd-4254-b5d1-15afa983c90c","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":39,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"f379e304-1d4e-40ff-b212-8bd806903934","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":39,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"0aab1c25-48c3-4722-b11a-74bf9d3b43ef","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":39,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"7ce89e82-f2ee-4d80-bc10-6779314d071a","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":39,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"20954626-1342-498b-b5c0-f22b3d722890","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":39,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"e609885c-de8f-4f4f-9ffc-a25ce0284756","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":39,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"05dcd87d-5739-4456-b9e6-b472e369248e","block_type":"box","text":"II-1","page_number":39,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"3d1b852a-d861-4dd9-aea5-39ebfe975e2b","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"30f2e306-0534-4a1c-a6f9-8fc053261579","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":40,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"b6a564bb-31af-4cbc-99b2-c4e148657d04","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":40,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"186f035f-60bd-485b-8491-37e65af6fc6b","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":40,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"800ca239-b6cb-49d1-bc6d-8abb737bd904","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":40,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"e6e465ef-5e3c-47ee-b13d-9544c4627414","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":40,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"7a2125d1-4103-4b7f-a722-0ec7a6da531e","block_type":"box","text":"Asset-Based Securities.","page_number":40,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"26bcb53a-5d44-4a03-a462-250a3318615f","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":40,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"78a22dff-80ee-4d81-8e40-6a1045c6fd25","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":40,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"7359a99b-ec3c-42d4-9064-e47a4a364251","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":40,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"c5ded35e-8252-4e70-9a52-69076ab543f1","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":40,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"b3b220f0-012f-490f-b6b9-0830cdbf8c28","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":40,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"0c9805fe-0f8f-4441-a0e5-7e623fb58fd6","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":40,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"d3675a11-8e77-4366-a7c1-393807163cb1","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":40,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"19d12945-4080-483f-b661-896888c44410","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":40,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"1333e614-78bc-4f8b-a786-4f19f2fb8c57","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":40,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"f013c769-29c0-471b-b335-468b997e50f5","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":40,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"40bb1c32-01e8-4bfa-939d-56f76c8f7ef4","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":40,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"5072ed27-8d3b-40c3-bc21-744058005b80","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":40,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"47253c40-55c9-4b90-9929-271637092a01","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":40,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"8e4186ba-cd4f-4783-a611-ab68b715250a","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":40,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"56f571c9-ea0d-4a1f-99db-7dcc98ab303b","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":40,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"68753289-0180-4f27-9dbe-3937d2c94ae5","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":40,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"20ed28b0-9ca5-40c4-910a-f214d39f529c","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":40,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"61d6b323-bcd6-427e-ad42-6386dbfa09ba","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":40,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"2be15e80-dab3-41a5-b5b3-21839f59f112","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":40,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"fb28825e-aab8-42bd-8223-2fa18dd04aa8","block_type":"box","text":"appreciation in the underlying asset.","page_number":40,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"cd5253e8-e4ed-451c-beb2-b3b42f1410d9","block_type":"box","text":"Precious Metal-Related Securities.","page_number":40,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"02535ca9-45f1-4f47-94cd-7b8bab5ada24","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":40,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"d0c44b44-f608-4924-a1f1-1b3b38bc78af","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":40,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"2a83d292-a88d-4aea-bb11-eae102c92267","block_type":"box","text":"e.g.","page_number":40,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"838204e1-046e-4864-9142-d6df3c60f424","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":40,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"d98751c9-ae00-4ef6-b489-6683137695e8","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":40,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"e6c49394-310a-40d0-bb75-1aa2ed45ad42","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":40,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"33fef342-7799-404b-80fa-d597b622991f","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":40,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"a0d45ade-bce0-4cd0-a134-a902422c32a9","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":40,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"1d857e2a-1700-43eb-913d-82668cc49392","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":40,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"8ace78dd-2892-4ce0-a758-c788c7858923","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":40,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"03389bf2-58a7-415c-a971-2522bfa4603b","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":40,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"aff3e971-62d9-4785-952d-000ed017ca8d","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":40,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"f5fd4019-b397-4706-9615-547c6513a22d","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":40,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"98154fba-8b00-40f6-8fc0-e68572e83fc0","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":40,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"94cb0bf6-6281-41bf-ae5c-2aef312c26d1","block_type":"box","text":"South African gold production.","page_number":40,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"dc6f9d81-b452-4589-b360-d730b6a20585","block_type":"box","text":"Borrowing and Leverage.","page_number":40,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"c42a36d0-b9f6-4609-be92-4a3a88761365","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":40,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"3cee7381-cd2d-401d-ad40-63819a1facc2","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":40,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"dce727c5-27ea-458b-a7f5-9bb6bb4ee8c2","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":40,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"c8809a94-54d7-48d2-9545-ba3851c1608b","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":40,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"46cff40b-2e97-466a-af26-af28800e7e6b","block_type":"box","text":"other securities transactions.","page_number":40,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"4da9cf1b-4411-40a9-8279-a9406a1b8835","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":40,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"3cec1275-a1c4-4a7e-92d3-680ce4e69e56","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":40,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"d841d22c-0743-4fbd-9a6c-de846c397e11","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":40,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"91b8fe26-7598-4f23-b23c-6a993deac0ab","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":40,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"74cdd5d4-dc36-49ee-b436-708f6188ec75","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":40,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"6f0c6322-1af2-40ec-a72a-fafd174824c5","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":40,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"1c6c63a2-42f0-46cc-9f71-1909dd028640","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":40,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"704ee024-d450-48ee-891b-75bb6a9ae69f","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":40,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"a5346fa7-bb6a-48f2-ba31-8981e738fbed","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":40,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"adbfce43-edee-4d5d-b3d6-7fcef93eb4c6","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":40,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"89cb6b9a-dfe2-4f93-a1d0-dbd2d1e6d6b9","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":40,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"dd41c70a-655c-4c11-a1b0-2f71824f58a4","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":40,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"fe686875-7a72-4135-bff9-9c06d2812d9a","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":40,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"afa53b03-994d-4df4-a322-1b28af6fd4cc","block_type":"box","text":"II-2","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f50964bd-a848-408c-9b51-2033e679e230","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad9487e6-16ed-4724-8c45-832c72dba606","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":41,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"d887c73c-8c69-4e9a-a2d7-914bb9b23371","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":41,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"90f30de8-488f-4e8a-a644-88139d4adeb6","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":41,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"caece413-389a-41e9-949f-6ba8e6eaefd9","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":41,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"efe62592-e05d-405d-a6f5-0cf47c05f530","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":41,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"a6696c28-7b63-4f73-8a72-f3e3132b9932","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":41,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"7f2fd8c4-8cbb-4bdb-bdae-4d2f786fea4f","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":41,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"fbabaac0-bb0c-4e72-997e-7c8709a5d3f8","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":41,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"d84424f8-c505-43da-a8f1-d876e53fae1b","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":41,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"b9ae6711-46b5-406c-bbd3-c96bbd2c9847","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":41,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"e3b1b66e-cc4b-4a23-b583-70026042e334","block_type":"box","text":"Cash Management.","page_number":41,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"53bcfb88-c716-46b9-bea3-53f87d330390","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":41,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"4ff8de2f-0026-4320-954c-b3d3aedd1e9d","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":41,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"9339d237-c865-4618-af15-9c06a192ce50","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":41,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"7374677e-6727-4bec-aebe-7dd3dccbc225","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":41,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"e4bbaee2-71bc-41ab-810f-0c73468d6f83","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":41,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"b5e3b32f-d4f8-4264-ba0c-f6bb499b0b99","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":41,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"0c1d95f9-465f-49fb-917d-fdee4a2eb659","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":41,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"fd529539-a606-4e48-a6f9-6b313b544734","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":41,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"17748ac1-1a73-4ae4-be10-eaa1fe065792","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":41,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"1bce09fb-57d2-43a4-9f72-d30ec717f2f7","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":41,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"a3ecf63a-1371-4ba3-90b4-612584fad03d","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":41,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"9f57b72d-02db-4737-83ab-6365b16433c1","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":41,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"fef2a962-f6ff-40e3-8ba3-ae6f49e6a3d7","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":41,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"ad674c92-5c38-4427-8bd0-cc0b493368f2","block_type":"box","text":"Collateralized Debt Obligations.","page_number":41,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"bf610898-d637-4cd4-a1cd-3fd2e8b6f250","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":41,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"f45b2b46-47bf-4403-8bc1-e39cf2ef25ba","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":41,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"51ddd4dc-3b47-4eaf-86d2-ef1becb50a0e","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":41,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"83e283b6-950d-4af0-b334-7e50870ea95e","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":41,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"32bdef8e-6927-4a45-9dfd-b46725299d31","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":41,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"0cb030f4-d16b-4ee5-a1a8-f67ae49a9c55","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":41,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"a9eac03a-ae9f-41e0-ba8e-9ea079a31a62","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":41,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"9c6a4793-9110-4a33-8abd-1786d8a2734f","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":41,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"1d25740a-0d28-48b7-b28f-6073d24ed8c6","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":41,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"ec437461-1712-4758-b59b-27cd7ca37cf6","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":41,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"34245e12-c2e8-4869-8c5f-0a8c7f446c97","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":41,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"4a7590f8-d3d7-4762-9fdf-b6778d6a60bc","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":41,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"8e3d620e-059f-4e00-b0c6-e1ff65fe74c3","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":41,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"e857c0ff-27ee-4c2f-8829-b85da1c18555","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":41,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"4cc39eec-5a14-4410-a68d-6c4e9d54f5a6","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":41,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"11ccad65-dcac-40c7-a320-4d3dfe7cde34","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":41,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"c5ba8a4f-eccc-4679-8d28-da6a5ffc34f4","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":41,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"057d89b5-74b6-48c5-91a5-aee7e97bcfeb","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":41,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"8e733715-5cc4-4758-a8bc-4627a564e8e5","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":41,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"6d2a5e4f-da84-4eb9-9515-12de35820861","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":41,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"e0d6e012-6cdc-42ed-b1e7-98489ccbe867","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":41,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"7b7ab5e6-4428-44f2-9afc-9f4ae376c361","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":41,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"6bda67ba-c30e-4c58-a3d8-9f046bd96686","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":41,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"f9acb849-662a-4e1d-84e8-0616816a534d","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":41,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"dd993870-4e77-425d-a4b8-5f0fd3ca4729","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":41,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"11342868-0b15-4744-b279-873fe52d9926","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":41,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"ac982855-647a-429e-b2c6-0de5e2c6a409","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":41,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"b43bd6ad-f29d-4371-bdfa-d92ccad4d202","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":41,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"af24e15e-d250-4cb0-b352-8ae20a33759f","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":41,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"f255200a-d907-4d50-8a8a-ad24e5c4047d","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":41,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"1450c9d9-c194-4c6a-99e1-a0886b95cf66","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":41,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"7766b6f9-26f8-4a27-982d-65de53e04c59","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":41,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"158b5267-281a-430a-b98d-3dd7bb5d716f","block_type":"box","text":"II-3","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e8475bce-7824-4735-8b8d-5397ad12903f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2e4a0360-f869-4628-bd96-ca4f631c2553","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":42,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"411c60d9-66e5-4fbd-90b2-6f8026e4e4f4","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":42,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"ef49779f-a913-4bcf-8d4d-8cd453bf8a19","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":42,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"299bdac5-36e0-47fc-b4ee-161d9a2a0286","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":42,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"1c3716a2-eab5-4010-b386-1a831c56e6cb","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":42,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"87589e44-e233-4199-8ded-00e246862491","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":42,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"2b40bc39-ae9e-4606-bf10-d5688259d265","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":42,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"9e29db84-3d1a-4871-be09-81cf582ac4bf","block_type":"box","text":"Commercial Paper.","page_number":42,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"8a03b672-5c08-4e8f-9e6e-3f148801da66","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":42,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"7867fba0-c4ad-4a6d-9df3-4a873bb1c5e1","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":42,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"b2c2a244-76b0-471d-b735-8702ad6ee85a","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":42,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"13fd6707-7cc2-4def-8705-9be2f1bf8733","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":42,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"329572e8-9fef-4b4a-8bfb-50bc342b4e2d","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":42,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"1bc12cd4-c770-4830-8184-ecee29ecaba3","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":42,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"6be3a3e6-8676-4983-81eb-d3a4693ddc08","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":42,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"bdac54a3-2b17-44fe-ac02-8618a47b66f3","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":42,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"b9af5166-96f7-474b-9df6-1827f959598a","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":42,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"28cd73dc-0fbc-48ec-9ae2-08f1411dc616","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":42,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"7ff6335f-f837-4a74-8fbf-bf0d88c0e83a","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":42,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"818ff614-55cc-46ba-ac51-51a4770c3194","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":42,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"92ccb27d-539c-4c55-92cd-3592939d0cb0","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":42,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"0e8ee799-c7fe-4305-b70e-fe1eb063cf65","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":42,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"340025bd-a135-4313-ab7c-9fed838b8163","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":42,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"76ae66c3-2cb7-46f3-8145-0f1745e22312","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":42,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"ea678c44-89a9-4a7b-9449-0d0d6b896b6a","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":42,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"83329ae9-e1dd-4ddb-9239-6a0c9009f4eb","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":42,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"1ab9ac98-40f3-4ca8-b75e-42263c765dbe","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":42,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"3722bac7-f806-4b3b-9ac7-c9bf98fe762f","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":42,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"3eb66c7c-6221-4c05-98cb-bca317b26235","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":42,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"1a646047-1bc1-4826-91ae-0996e8fb6015","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":42,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"6830003e-88fa-43e8-afc5-5ebcb7b6e1c8","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":42,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"59f13711-4db1-419e-8ac4-28db7c30d516","block_type":"box","text":"variable.","page_number":42,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"37d7380f-b6ba-4ae4-a02b-06b498d91619","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":42,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"fea014d2-06e9-4685-ae7e-a8f856cd784b","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":42,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"4db0e25f-5642-4954-9f96-ec2e077f23e5","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":42,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"5627a577-c912-40ba-96c8-8d4936a292f2","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":42,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"c43b02a9-8674-44e7-afb7-6c46bad6308c","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":42,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"5fc87eb5-f960-4053-8f66-af911408300e","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":42,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"ec9f5c43-250c-4dfb-a965-e72b869b7500","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":42,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"8613b633-84e4-4c51-9c56-ad7bfd88ab4c","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":42,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"e7563efd-207d-4b88-9724-39606cb3ff6e","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":42,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"0b386a32-3aa3-49e0-bbe6-d6165a5c93db","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":42,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"a1c59c34-b87e-4301-86ea-ba83beafda5f","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":42,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"f2fad4fa-61eb-4aef-a336-8f8fabb11b14","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":42,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"33d15ace-54e6-45ed-8a3d-4def74588a9e","block_type":"box","text":"correlation with stocks and bonds.","page_number":42,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"8f6f4146-bcac-48f0-85a3-8038493aee16","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":42,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"68b2350e-a397-4397-9fcd-54e8e6c5bfb2","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":42,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"dc1a7eab-1a08-49cc-9745-4439fa4e8018","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":42,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"9a5b3e25-0694-44f8-95b5-ab08b42f6375","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":42,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"1bcf2176-9c92-4500-a4c8-f3c1ecd4fe00","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":42,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"bc22cca7-9b19-4864-b845-15ab670c03ff","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":42,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"20a17052-d8e6-405c-b698-5a74a31f9148","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":42,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"083ea5bb-28e5-4ed6-aa72-228cd07d3da3","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":42,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"aab4c00e-1e5e-4a42-96be-b8d16ee891c2","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":42,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"ec756fd1-cf6b-4169-8a81-e3724971ad7c","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":42,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"2baeb15d-3851-4f30-b1b4-8954c36ed80c","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":42,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"1cb1daed-e9c1-4158-ac88-4e3c632298f3","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":42,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"aa823576-21a4-44b2-866f-6fa8ccc28726","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":42,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"800cc4a0-9ba9-4ba7-b1e8-4168b5dc189f","block_type":"box","text":"II-4","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"359ca6f3-f930-4230-80a3-b890ced547d7","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31e05781-47c0-436f-8d73-c5d360bfeed5","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":43,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"1a132e97-fb44-41b6-85c3-09dbf224a6e8","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":43,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"b7c63959-5774-4a88-966a-95a20b446da1","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":43,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"a8def4c8-0917-4451-a1ef-a29f9b0268c3","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":43,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"940894e0-0cab-4d52-aafc-ad557abe9f2b","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":43,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"bf4b4d53-e580-416d-9e9c-4068bf516b08","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":43,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"0d079665-2a80-4768-928c-6c88a4078f7e","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":43,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"4e449a7e-abbd-48d4-b24d-9446a4f032c9","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":43,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"316b66bc-038c-4c47-88d1-538e476d4c3f","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":43,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"8a621d93-e7bf-4bc8-a406-574d7e051df0","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":43,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"ab0d9799-4d4f-4787-9928-76df42131048","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":43,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"5b4eea00-5b4e-44c0-881b-123b76f67396","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":43,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"11a88aaf-ab75-4b12-84c4-d17016dd9776","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":43,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"b39c87a9-31ef-4923-96a3-3ae6b664318a","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":43,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"12f95e23-8e2f-44fb-b3a4-80bd41da8cab","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":43,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"0c5d7a2e-ba8d-494c-bd38-be5bed1cb15e","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":43,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"82034fb8-0a7e-4bb1-bee5-8e08d457b9c7","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":43,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"eefef37a-19ed-4751-aea9-a34c5b79a475","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":43,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"b4f31d73-340e-4aec-8f60-4659a373b0a3","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":43,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"9ee62737-4d42-412c-80e5-abd0a61bd8b4","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":43,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"310b21d7-5f55-4862-b8c0-4038c0ca362a","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":43,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"b3521a17-f300-41b4-8546-1890bcf1e63d","block_type":"box","text":"the Manager believes are relevant.","page_number":43,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"875215c6-45d2-49c5-8fad-9f486cfa3063","block_type":"box","text":"Limitations on Leverage.","page_number":43,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"12338417-82ea-4995-894c-d0cac1b0cdf3","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":43,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"add8da75-c704-4684-8856-acab1f251743","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":43,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"3e81da5d-42a4-4918-958f-0c4716ee9660","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":43,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"a08c7b67-60b7-4a12-a8e5-16569ebfb929","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":43,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"3c9ec430-5d61-4141-a4d0-9d7347e8897c","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":43,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"016c8946-f3ee-41b8-bca3-4d3b32210c1c","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":43,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"cbb675c2-bf64-47ef-9d4f-93331be95bff","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":43,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"087c5274-e4b9-4a28-aea5-a35eaefe1a0f","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":43,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"a076972b-834e-432d-9d88-70204aedb637","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":43,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"f5bbfd9b-d165-48de-8d67-b22ea4bf1c95","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":43,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c12a8182-0b40-471c-967f-f18e479fdf95","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":43,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"19b89f34-0f9f-4dbd-a768-987166a77d14","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":43,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"12978b49-3340-4bdf-bff4-aac2bc8f6a2a","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":43,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"c63d0ffc-f3b2-4c44-84c2-6a1603525ef2","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":43,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"7da090b8-5fe8-4fab-8c83-f8269e2b5e58","block_type":"box","text":"Counterpar ty Risk.","page_number":43,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"49ac70af-c9fa-459a-bf69-5cf23094e487","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":43,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"e06ff73a-c5d3-446c-8292-c78d6a61edd8","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":43,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"5e7c1b01-0aa9-4c32-951f-e1627abd2b72","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":43,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"c1da54cc-bd2f-4255-a1a7-ec8ce8c134b8","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":43,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"a140a2c0-ce1e-4aa3-bc9d-b6c414e11c9d","block_type":"box","text":"e.g.","page_number":43,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"636cb7a6-71d6-41df-a836-5131b6e0ec6d","block_type":"box","text":",","page_number":43,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"cdc0613f-fd9f-4018-8613-4fde976d4678","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":43,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"c727ac43-49b0-4384-8e11-d1fbe0c020da","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":43,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"ecf11fb0-096e-418e-92fc-260250c313bf","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":43,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"737ce1a0-8c9f-47f0-b33c-b8027a15cd17","block_type":"box","text":"obligations under the structured note.","page_number":43,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"aba47be0-5656-4aee-b922-179d693e5d4a","block_type":"box","text":"Convertible Securities.","page_number":43,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"a268ddf6-1d18-4b17-96e6-a3d67122ecdd","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":43,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"9148bcfb-1518-4584-aaa5-a3a0f3fe9a6c","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":43,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"bdd61711-bb03-42a4-95e3-696b5cd86dd3","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":43,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"cd9654ed-c086-4b8f-803d-15bcb80204d4","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":43,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"c715a685-402c-422f-b3bd-278129cfcdbb","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":43,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"146a51e6-e5a6-4c34-964f-8c26cdc236f4","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":43,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"c56eec43-b508-4288-b464-bb94ec0b28ac","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":43,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"4fc5a7fd-38c6-4777-9ffd-292aab25380c","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":43,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"ca123610-3c51-4c38-9899-ceaf17f7b475","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":43,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"ac202129-af64-4eb1-8552-1ccf564e7570","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":43,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"efe4f658-6001-49d7-a7ce-07cf28ca1ace","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":43,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"9181014f-a150-4a85-8966-5bcffd29f4ac","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":43,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"97989c87-f681-4469-970c-7364b156f4e5","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":43,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"f34fcf7d-5648-419f-9d2e-4cbd23d50707","block_type":"box","text":"II-5","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f5297687-284b-448b-9c75-e72d38a42510","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"058f4767-5b82-4ff2-843a-2939fc639ffb","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":44,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"95c325b5-6cd2-4e8f-a5b7-6f81f79d0293","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":44,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"a43f4ac3-6932-4da9-a8b6-9b7d215ad134","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":44,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"6fd06a4a-7cf5-47c1-b56e-72d83f3175fa","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":44,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"458f4017-5c4a-4673-8e96-6196c94a42d9","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":44,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"d1889a7b-7c81-4b73-a8a4-8aa8f30184ab","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":44,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"c00255ca-5a0e-4acd-8b5a-5ad5c06700fd","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":44,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"26e194bd-b89f-42be-8f42-99670cfe1070","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":44,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"75ec0332-7e15-4d05-bbee-745e9b2b3c84","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":44,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"42e04446-3e45-43db-ba5d-2de28834442c","block_type":"box","text":"things.","page_number":44,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"9ab47fcf-d3a9-48b4-b394-0373cf5403a0","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":44,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"22028561-5d9f-4f2a-baeb-7dab25c3c802","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":44,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"1ac0536a-bb22-4d36-b261-ba76e53eb131","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":44,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"573d9b70-c10d-42e9-9350-7f54e58a4dd1","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":44,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"402c0926-0f58-434a-8f44-f059e1486c4e","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":44,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"e13d629e-af5b-4f83-8a71-d54a023a9f02","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":44,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"79f2f4c9-2aa1-4f7e-be30-76f69fcea008","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":44,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"0a64db56-ed9b-4c1b-9799-994e4c121519","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":44,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"93831f77-97cd-457e-8fa6-e1dd6b332af3","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":44,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"c44561d6-ddab-4fe3-a0c2-203e71180dd5","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":44,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"20d40eba-cb1e-4bb3-b59c-6be7851ffc77","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":44,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"bff12e5c-0117-48fe-8a48-6345eed407aa","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":44,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"89ce1ccb-d22d-4979-a3cc-57d131a7457a","block_type":"box","text":"i.e.","page_number":44,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"c4631a12-dc36-425e-b545-6a6e764abe3d","block_type":"box","text":", strictly on the basis of its yield) is","page_number":44,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"59e93ce9-22a2-4f3b-8a03-6f8ae70bcdd4","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":44,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"337cd481-6617-4d8a-903d-16e719c83c19","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":44,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"16addfbb-5131-488a-aa9a-f0d3a34fac34","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":44,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"e1ff76bd-4bd6-472a-9da7-185147907224","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":44,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"909cb742-495e-47c7-97a2-e7c49a8d81ba","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":44,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"e2e3aa0d-874b-4496-a545-2e1250a6f16d","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":44,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"a578f381-1f1c-4b43-8a84-17a9290b1412","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":44,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"a6c15135-f943-4b3d-945a-74002f37c748","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":44,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"4d7781d1-b6f5-4ce3-84f1-a0cfda8a6aa9","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":44,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"c099e2b3-12df-4a17-8fe2-48bac23c8082","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":44,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"92215172-745a-41c7-b3cc-1b3f4bfdb447","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":44,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"e90245cf-f338-40e1-8d81-3b7cf78c567e","block_type":"box","text":"than the securities’ investment value.","page_number":44,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"56c8a18f-813e-448a-8bd2-5ccb143a692a","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":44,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"312a53d1-8ab1-480c-ab82-99b1983a1e6a","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":44,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"00e7bf68-79ed-4b70-8c59-32601b60d55e","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":44,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"05b7f0da-df92-4f0e-b85d-75c461a000c4","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":44,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"a2124b51-009c-4287-a609-40208896e785","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":44,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"b16ce0a7-351c-4a79-ac7e-a1a60ba566ee","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":44,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"e7f244b9-5a0d-49d9-ac8d-cbc2adaa1404","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":44,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"6ee91c43-be37-44e7-a15d-7e1006913ab1","block_type":"box","text":"security under certain circumstances.","page_number":44,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"c2fd699f-642c-41fa-a295-0776044f2e6c","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":44,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"d49fb2f1-d6c7-4fef-b361-eca106410515","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":44,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"698e0dcd-12bd-4c95-a4c7-488213d85b42","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":44,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"03a4ba93-6a38-4812-896e-dd1d40e03919","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":44,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"8d4c578c-8152-433b-9a62-518278216a8e","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":44,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"8420649f-e7d3-4e1b-a8c2-f53f2c62efa7","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":44,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"9aabd06b-00ef-4541-b44a-2736cbe62e97","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":44,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"311fd63c-df3f-4edf-9266-c0d6425beba3","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":44,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"212d0f3d-49ed-4486-b8ce-5070e70ba50e","block_type":"box","text":"i.e.","page_number":44,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"58bb86b3-bcaa-428f-9e97-bd2d9805c5c8","block_type":"box","text":", fixed-income (“fixed","page_number":44,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"5574a58e-11ca-4a49-8037-b8f680317caf","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":44,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"a7d6643a-cec4-4e12-9e27-195a82841217","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":44,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"405151ed-d06b-4444-b0a8-dc83a81e6d4a","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":44,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"cc5685fb-99dd-4ade-be4c-57874cd0a717","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":44,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"3d840899-cc75-4492-95e7-fdd179489fac","block_type":"box","text":"II-6","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4bbf331c-e3a5-4b55-9dfe-45b7e583c1f2","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77cb3c22-b329-4533-ae90-24963d02d683","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"f313a202-69bf-4bba-8d0c-3ef13c4b905d","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":45,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"1746e4d6-8a72-4889-b4f0-0b10a29c5399","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":45,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"906a7663-c14d-4140-914f-a055be1fa0c7","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":45,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"1ad71bec-bbf9-484c-b0fb-f7ab56c57c4f","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":45,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"3da4b065-2a45-41bd-b012-5e17a0f0323f","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":45,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"f20e8d11-fe77-40c1-a0ac-67cadbfd5fc1","block_type":"box","text":"component.","page_number":45,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"a8fc4699-21f2-4ad9-89c9-82ea6a07e5ad","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":45,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"ce6a48ef-d2f6-481f-b6fb-1ea1a25ec90d","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":45,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"ee463bec-3ca1-4454-a224-8c98cfeebd9e","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":45,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"35a2b836-b178-4cd3-850f-26a5650aa995","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":45,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"30bafa1a-a0e4-46b7-b867-0f4426c7ad77","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":45,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"fc5808af-990a-464d-b46b-0c49754cbda2","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":45,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"6157107c-f026-40ab-957a-b85feac73634","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":45,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"171f3274-2d90-45ad-afb8-31857dd291d3","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":45,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"98966aa2-9dc2-48f6-a796-587ebeda4eac","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":45,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"44aa762b-fd01-4b4b-a2a5-d6c73c50776c","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":45,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"369fed9d-53f5-46df-81da-ebbba0c5528e","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":45,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"bc03d0f8-fd3e-424d-acf9-8b9a705daf7f","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":45,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"a5634691-99b5-41d2-8d3b-58345f7c79d0","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":45,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"1da77d3f-fefb-4bd2-97bf-2df97871d5b9","block_type":"box","text":"favorable market conditions.","page_number":45,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"e8f4b72d-3735-46a9-bff0-1873cfd03f99","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":45,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"cb352e50-d993-4c4d-b2a0-efecb6356876","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":45,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"f2ba5c31-4ca6-4828-b232-df0b41c6bb4f","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":45,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"4c1b9cc8-2454-4066-b77c-e5f4659fcbba","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":45,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"1afabc89-4cc6-44f0-938e-67f9982de1bc","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":45,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"37a8be0b-7b24-424d-ac32-8fc37c8fefa3","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":45,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"5eaf3e0b-3e86-4635-be53-f68de75ba973","block_type":"box","text":"Corporate Loans.","page_number":45,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"302af146-4584-4b0f-b228-ac545a362bd5","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":45,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"69ef4d45-2fdb-4189-8209-7acddae0f068","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":45,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"2485054d-c3e8-45ba-bfba-68bf4befe1b9","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":45,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"2c8f77f9-89b9-4ca9-8271-628111d86861","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":45,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"d147bfa2-b9b0-4466-ad41-57c7999aeb42","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":45,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"99c2e16e-a3ee-4d7f-a9f8-2de27283e632","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":45,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"90e30b2e-ed3d-4b40-9c46-ffa51dc39ad8","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":45,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"9eac0d39-8b23-4921-ba90-d1b92f171346","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":45,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"64377fdd-54f1-440e-aa8f-2abd6e325274","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":45,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"ea6df3f9-1ddd-4f9b-9fed-cd9679a85393","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":45,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"d4a784d1-c7ce-4cc3-8417-8a78f4e463c9","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":45,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"412c829f-229b-4365-ac9d-f0a1fbe51542","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":45,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"3e09bee0-701e-4b44-9022-7ef8326dcbf0","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":45,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"377e5bc0-00be-4ae6-b4d6-ebf2005df496","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":45,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"1faea2c7-ed34-43bd-94c3-ce41a149c850","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":45,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"e526f86f-f557-445d-b386-415e22c2695d","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":45,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"5fda370b-e057-4acf-95fd-66de5d8ebc34","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":45,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"a1d71a58-10e6-4514-b878-5b056df11610","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":45,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"4cf56a20-63a3-4da5-88f1-e285aaabf9dd","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":45,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"9078140c-b58f-4f73-8d16-7862d538f80a","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":45,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"48dd861b-292c-4dfe-9d8c-b91f0dfe702b","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":45,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"0d288981-cc12-4305-ab9b-b0b5d804f7ce","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":45,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"02d1f7fd-3122-4292-b128-e6113be55166","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":45,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"3809c01b-1995-48e3-aa7e-3f13d1d79933","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":45,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"93877aaa-a04f-4c21-bb2d-50135499031d","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":45,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"2042b240-f39e-453d-a47d-94258c4a002f","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":45,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"6b8f8a1e-dc10-46f7-a646-3107b44fa695","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":45,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"05c5d0ac-9a9d-4cc6-adfd-4977fac324a2","block_type":"box","text":"of the borrower.","page_number":45,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"1eea9a4a-d2d9-4cfd-ad42-a657dbd3af8f","block_type":"box","text":"II-7","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6d03975f-a868-4a95-9231-3a7ed2ffe0ef","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e943e54c-1ed0-45d4-848b-2c5e2bea6a23","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":46,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"e62be984-0312-481c-bc3b-15ca31d59adf","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":46,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"18fd6801-83f1-4107-b141-64321840fed1","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":46,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"b5a55391-b1e5-49aa-95de-5fef6fcaa260","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":46,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"66b6e0f9-57a4-49d5-86d6-fee63dbbd423","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":46,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"461c75c2-9135-4d47-843e-bbec044203f7","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":46,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"4cb906e3-985b-415e-919e-e2e1d2be3f61","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":46,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"5b4fd870-544c-4fd4-b976-ca7b002bb8b1","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":46,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"b05a3ad8-a0a9-4069-a79e-ee9b5c8d4520","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":46,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"b0551a7f-2820-4d08-bae7-68347a591e84","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":46,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"a5170724-6164-4390-98c7-b3e155bfea8e","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":46,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"8e65e788-ffb2-441e-9322-3e1e96d0300b","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":46,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"052bd440-f06c-494e-ab5c-eb4445f1a6e3","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":46,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"93fa310d-4be9-4eb5-9138-7f72b6bf681e","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":46,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"dbe5a0fe-649d-41dd-9c52-24753efffadb","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":46,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"04862c41-b2a6-4a25-affa-92b4894c6f9e","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":46,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"afac2697-1984-4d6b-a203-c281ad059d81","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":46,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"766c59f2-282a-4601-aca9-319c3a4029fb","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":46,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"b64bfa12-c741-43a8-9652-ca40147784c0","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":46,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"bacf64bd-5888-45ae-8c36-ef5aab84cddf","block_type":"box","text":"state law.","page_number":46,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"198ab7b9-ad35-430b-96ec-267466abc802","block_type":"box","text":"Direct Lending.","page_number":46,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"d3dce5df-8a81-42ba-ae0e-3ce9e8aaeeaf","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":46,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"b9903406-f422-4ef2-b0ec-5606cd5905db","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":46,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"bbe5847a-9ce5-4025-8003-554c5c8e6ab4","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":46,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"1eb7162e-fa40-40c1-a75d-b14c03c2a5e8","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":46,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"9d135f1d-4408-4eb8-be80-318d4d0b97f0","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":46,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"f6416081-76b5-48df-8dec-7fb8dbe76864","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":46,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"bc19fe36-cd65-41c8-8d14-758bc5c490db","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":46,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"847b9849-6ca6-4976-9a6f-3d057f0bad0b","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":46,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"5c6ad48b-a701-4955-9169-b058f6d7e33e","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":46,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"6d8d9fbd-aaef-4737-b7d2-f6036a2e32e2","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":46,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"eafdcace-dd97-491a-897d-629389c6537f","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":46,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"a86612b3-aef9-48bd-a337-e969d18414d2","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":46,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"2111ddb0-1d15-45a1-b0f8-71d8ea478047","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":46,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"8e35f95f-38cc-40ca-ab1c-de3958867352","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":46,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"15d391da-83e9-42ef-a00f-664df9edbc7a","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":46,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"0aeac8ab-5a8f-4413-99ff-68c3d429220c","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":46,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"aa8e9896-3fe2-4794-ab70-38c8dd426833","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":46,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"2a0f5c2a-0ef6-4515-8688-0f216ccd42a7","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":46,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"72ded801-8a6a-447f-9dd7-594cf8c370ba","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":46,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"5939db3a-f8de-4c73-a0bf-9c49dd308a11","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":46,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"c86c4d8f-2fac-4432-9a89-75cc2b2f1aa2","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":46,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"21621317-5e19-4e89-b0bc-0ff44c0dd50e","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":46,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"12aae381-e810-49c9-b7b4-764867fe90d3","block_type":"box","text":"Credit Linked Securities.","page_number":46,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"ac8c8e36-28d4-4853-a90b-b288219b9d8e","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":46,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"3e31b88f-f6c6-443c-baca-bfd8505aa46b","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":46,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"8a2b2940-44d1-427f-9de3-0bf043df45d0","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":46,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"412a439b-d9e0-427b-8fa1-ffb59c170eb1","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":46,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"8111bd10-70a1-4e1a-b063-3565a80a9794","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":46,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"5924e2a1-6f6d-4baa-a774-8a129265b9e6","block_type":"box","text":"traditional income producing securities are not available.","page_number":46,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"3f4112e6-9c7b-4904-a06a-b403bcbaee52","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":46,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"209b902a-85fe-4a75-8419-3d434a3f8c9e","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":46,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"d4140062-ac07-429f-90ca-e15113c34a6d","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":46,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"ced33cc3-3aee-49de-82dd-be65374d3449","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":46,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"37160765-8c33-4756-97fb-599925790893","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":46,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"6c140a7f-d141-4f9a-bc13-e277748264ce","block_type":"box","text":"II-8","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"5d599265-d9aa-47cb-9838-6fdc99a63136","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2448618-9241-4728-8f8c-4d2fd2dbabb3","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":47,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"d4397429-99ae-40f0-8ed0-9a48a221d755","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":47,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"2fd8e578-9b91-464a-a2bc-d95924ea7d93","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":47,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"568e5eaf-8173-42a3-b3d0-f494d85e01ef","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":47,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"1ffddc56-7b98-4dc3-9294-16e28f11a4af","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":47,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"bce3be08-2ecc-4a14-981c-0c05bab37260","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":47,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"8f9570da-c6bc-4eae-a1d2-ebddcf005e91","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":47,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"8d608284-4bfb-4a08-b065-0c263526154e","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":47,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"724a9c0b-3f2d-44b9-b36e-aa77e9938d23","block_type":"box","text":"investments.","page_number":47,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"92b7f83d-5c94-4aaa-8c81-52558849e647","block_type":"box","text":"Debt Securities.","page_number":47,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"bdc00544-a8e7-4306-b4b6-acc3cb98dca9","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":47,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"5d610e24-109e-45af-ac5a-c253675de419","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":47,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"f9fc5f87-d641-4fec-b6e2-e3c619d3351c","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":47,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"9ff87887-a03d-46ca-a0f7-b6493b28400f","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":47,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"695a0528-b984-4643-9699-af4ee3a94a86","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":47,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"6f51876e-65c5-4f4f-87fa-0b83a762e6f3","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":47,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"666ee7ce-d3ae-4b60-969a-924c229ee22a","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":47,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"25ea1cc6-3ac8-4814-a237-d5179de3a59d","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":47,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"ded09273-bfb1-4196-9e88-4b18dfb489c0","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":47,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"ffa14bd0-fcad-44f0-8b2f-319bea388d41","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":47,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"2be8e02f-1de9-4d18-b799-cdb829bc07b0","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":47,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"b0d9d9ef-851a-4e7b-9f4a-a14e1eb0539e","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":47,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"09f54985-0112-4661-ab0a-807dd7b35d90","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":47,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"c1fa5e62-853b-4a2a-876a-ccf8702d9855","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":47,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"1d500dff-742b-4626-8545-6c3629bd9a03","block_type":"box","text":"lose value. This is known as extension risk.","page_number":47,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"024d6731-6d0b-40d0-be1b-e4abcedccadc","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":47,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"d2bf3856-c2d4-46d6-b6c7-9ab89beeef9d","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":47,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"92ce520d-a7c1-4f71-a740-bddea3729383","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":47,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"3a78eaa1-aaf6-4226-b7f9-7a1d94d52ea4","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":47,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"2f9da760-1c23-4bbf-91e8-15ead75f1d84","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":47,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"4a15dd31-2656-47ff-9819-d61779e602a8","block_type":"box","text":"Floating and Variable Rate Securities","page_number":47,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"a30abfcf-7d5a-4040-b82f-88941aa72c61","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":47,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"2f6f36a5-6a4c-41b7-8f27-7b82e464d775","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":47,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"2340627a-1755-49e6-8347-a6453f9eb6ef","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":47,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"8a614ffa-981b-4424-b72a-c04adb2ca221","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":47,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"7d2d7f9a-f47b-41d7-a1ce-fbb2047bede2","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":47,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"d2350c7b-b90a-4fc7-8c1a-484788fe5390","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":47,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"a4dd497a-0c93-4da6-8e81-bef6c96a8075","block_type":"box","text":"market interest rates.","page_number":47,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"f0093f9b-49c4-4652-bc24-0317d4167262","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":47,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"6b26364a-cb7f-4c83-b2d0-1089ebb787a0","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":47,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"79ede8b8-1ab4-46ea-b39f-e7206a18e1a9","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":47,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"ac59ea72-19f1-46d6-b520-c6b73191836c","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"8d3be109-817b-4fcb-9684-1ad40b57ef15","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":47,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"d2f79bb7-ab65-4740-9b94-6e32d55d402b","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":47,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"16351477-9876-4230-937a-8377dc08f5b6","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":47,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"77ec3cdb-6ebd-4309-82c6-c9ec4281cee3","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":47,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"cf9044e6-f1f1-449a-89cf-c4501290cf5d","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":47,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"9ada3383-51d5-4a4b-88a4-ffed0487f0fe","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":47,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"1a515703-c011-4a6b-9e84-44fee883600f","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":47,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"159e62b7-109f-4816-a8f9-a01d2a9b74f2","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":47,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"9d0a9fcd-df02-4289-a3c0-f975dfee6ed6","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":47,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"5e25c33d-8458-48e6-8f1d-2b0fde556f5e","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":47,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"8c66ffe9-b738-4a7a-8a75-0db676753dc1","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":47,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"0cb42b36-cceb-40a4-9991-b1dda5bd23ee","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":47,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"fbd5e1ff-035b-4ffc-96ff-b54539fe0d27","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":47,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"81a1dfa8-31c6-4994-a74f-cc2e307955f6","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":47,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"827587e7-13cf-43fb-80b1-95244b1b52c9","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":47,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"3afa210a-9b1e-424e-8442-58aa12567acb","block_type":"box","text":"II-9","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"5daa44df-67b4-4f74-9dba-3d43df1b85bc","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b8cb6f9-a991-4fb8-9bf1-daf010427467","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":48,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"d1b8f3a2-d007-4aac-a6ea-88769ae41f5a","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":48,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"e144888c-2460-42f4-ab6e-8f0261f9936d","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":48,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"aed57dc2-ddea-4753-b6ca-3c0dd021c533","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":48,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"8150aeb6-f3b9-4d7d-b711-8dad8d826c82","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":48,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"cce4e9c2-39f0-465e-904a-05c5bc09ea0d","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":48,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"f149f400-d208-47e9-b254-b55e512a8584","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":48,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"fa4e1bb4-25ce-487e-8717-4d8ec20ebc6e","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":48,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"7a2f69ba-911a-41a6-829b-a07a96c8c81d","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":48,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"6884d995-e0fd-444e-b9aa-2eb341e79f5b","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":48,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"8a25c294-22a8-4097-b69a-69f87e13b284","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":48,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"3e0a1a58-48a8-41b8-99f9-78f4a23b0af4","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":48,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"16f57d83-6a90-4363-bd3f-3463234741d6","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":48,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"e9f4a92b-98a6-449d-8fc3-5d76e0d5ac60","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":48,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"3fb88c1b-30e2-49f5-badc-790bd3fac59d","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":48,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"d9afad11-0e03-41aa-9bee-8f0f1fd08d96","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":48,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"6f5680c6-57f4-4826-b7ac-2cf743ad48bd","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":48,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"79d991a2-0edf-45a8-9833-1dca5f2b0c3b","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":48,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"9ba704eb-73f2-46be-9576-e47141a04ba1","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":48,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"e9a33abe-2910-4762-8c44-4f85a7e79072","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":48,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"1e8352df-49a0-4a2c-9cb1-a369051b9c66","block_type":"box","text":"United States.","page_number":48,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"84da4eaf-79ce-4541-a65a-74a9d53ec660","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":48,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"1f605bec-a338-49d0-9e7f-1d53667717bb","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":48,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"77e4dca4-eafe-47d1-aa6b-35a93ec0f49a","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":48,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"7a19e0b6-f0cd-4d0c-8b12-4e13b09c09b8","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":48,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"3daeb1f3-5abd-4d98-8cae-8d8c5f459a82","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":48,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"0e401ad4-7c98-45aa-ae2e-7b43e6789adc","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":48,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"c36e7759-6e74-4add-bf14-b5d1f8677b27","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":48,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"8cc51cbe-8912-4d97-99fd-5ede3083ba70","block_type":"box","text":"i.e.","page_number":48,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"4a4ef167-9edc-4928-b024-86ed8de9da82","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":48,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"61fa716f-7750-4bc7-8dba-22ee9236a444","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":48,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"8eb5b748-cd52-4ac2-a8a9-edc0253ec12e","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":48,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"100ea58e-56ba-471f-b2fe-5565992a6475","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":48,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"a2f1c2ca-eea9-4c3b-a43f-afcc496f653a","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":48,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"ae398964-caeb-44b3-b5da-b2104df54d49","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":48,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"a624220e-b50a-429e-a22b-0d2ec15e55f1","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":48,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"4cd35f86-37d2-4d96-bdfa-033879e4f77d","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":48,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"f212502e-a7c9-4cca-9427-01e456d2c005","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":48,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"cc9ef20b-28a2-4dfe-8f7f-4b4af4a2093a","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":48,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"32d29ba8-8b1a-475f-88e2-03c65dbffce3","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":48,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"25b11e93-41ba-43e8-90bb-621914263ce5","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":48,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"46e337ca-1f3b-404e-8b33-b32edd9d2a02","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":48,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"b35b61d7-98b1-4239-872e-3a1150c82953","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":48,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"b84282c8-e062-4fca-bfe6-96ef9289a6cb","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":48,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"293ba278-cd56-4f7e-bbbf-21b3cc405c1f","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":48,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"59243c78-c080-4b3b-8396-df1187444f0a","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":48,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"e7d4f775-116d-4988-917d-605c05709b37","block_type":"box","text":"risk than higher rated securities.","page_number":48,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"2e6796b9-503f-4b46-8e29-d8e0760dedd1","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":48,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"298d5ff7-243d-43ee-9e0a-cc88348966b3","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"ee3bdd81-e5e2-4a59-ac29-5936ab809e8b","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":48,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"700c2a63-6b0b-4aa7-b830-84279c9edb73","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":48,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"dc5d87ad-dc8c-4a75-95ff-2c6bec19c265","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":48,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"4bd362d9-74f0-441f-8309-fd25c9bf02d6","block_type":"box","text":"unavailability of additional financing.","page_number":48,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"a0e350d1-f0c1-4f39-a532-bd0fd1f46049","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"bdcb81a4-ede7-4123-a5ac-4a3b6a91bf00","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":48,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"a233fc77-cc13-4676-93bb-d30b3fa3da07","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":48,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"ac857c27-2cbe-4b1b-b1b1-e2db3ce64b29","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":48,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"636eac70-35e6-44a5-a984-d94a53c6d641","block_type":"box","text":"II-10","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"13278810-edd6-4519-b67d-0a91ad4791af","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99a46b01-4cf0-494f-9a0f-f61dacd2e527","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":49,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"b45f8d99-1bb3-4120-a993-e7dbba1461ea","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":49,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"630650b0-45ec-4778-a6d9-d265c85128ac","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"3f14f6b7-8009-4cdb-b9d0-c8767adbce66","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":49,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"8bbe991c-bc0e-4823-9329-ca50830202b7","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":49,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"0b85f8f7-9a3f-40b2-b890-3d9a37f0c18f","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":49,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"1db81760-7163-4294-92d6-2e3fef447c90","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":49,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"78a690f8-df9c-4069-9707-a0c65588cd0a","block_type":"box","text":"investors in higher rated securities.","page_number":49,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"4d93bb83-5c56-491a-a96e-1a508905d72a","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"6531164c-a673-4d11-aa64-c9e1321ea08c","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":49,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"9b3b8fda-bfa7-460c-9ce9-e5d14f32c942","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":49,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"e3b713b5-06c9-4c61-86e6-e689e1de6850","block_type":"box","text":"lower yields and may lose income.","page_number":49,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"e14ba915-5575-42f0-94c8-349898e38426","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"b50b900d-d181-41ff-9109-29ee7c56643a","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":49,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"8ea8aae1-5bd0-4db4-8a42-afc32e732f3b","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":49,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"9ef22a15-c952-4d7f-8437-a4c72a4e55cd","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"108e783a-6f92-451c-bf70-e74771458326","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":49,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"da801bc8-669a-439d-9ae8-4c34635cffc4","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":49,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"d26b4a0e-cf93-417e-9546-3b745ec87980","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":49,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"331cbd52-fa9e-4c67-a31f-65d4eb2c0ac7","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":49,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"cd1a1604-28bf-4bbf-973a-eed599a6d598","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":49,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"7a803f35-3f7a-4087-a835-9200ad23691d","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":49,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"347195c4-4f71-4dee-97ab-8397440c24b0","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":49,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"9ffb4b50-1283-4c52-a92c-9adf0e284a1f","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"d17884c0-00f2-4e5e-a7c4-1000075a5b54","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":49,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"2885a45b-4b06-458e-bd1c-7d727f249b19","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":49,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"f75ea2ab-3f74-4d97-b953-dae12e36fa06","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":49,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"2072ad35-ef27-46db-b7f1-8752a29fc43e","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":49,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"ccb31be8-ff8d-4c1b-aa7e-92236342cd3a","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":49,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"60a7023d-4b0f-4dd9-8ef3-7ba96bf5d2bc","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":49,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"ab21393d-e794-438f-8e67-b265bc38420f","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":49,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"915ba065-eafb-4015-a773-2a7668ded7ed","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":49,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"875f2e73-3c7c-49f8-9dca-2291861ef153","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":49,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"fe492ca7-4d13-4904-8691-dfa6e2302034","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":49,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"7fe8634b-a311-484a-be43-93d75185b039","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":49,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"5d6b4103-dea4-4a97-b1d7-1f896b924e26","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":49,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"5d8be205-cce3-474e-934b-3e58d7ebae5d","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":49,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"79c42bc9-f3c6-4fcf-a7df-330a501e329f","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":49,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"a633ec11-79d5-4307-9990-12a46399163e","block_type":"box","text":"role in determining such valuations.","page_number":49,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"a2088d11-15c9-4f9a-80be-7355db963562","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"6f2ad363-b70f-44f3-aca6-988e82b1daf9","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":49,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"d1fcef74-a897-47fc-ab68-2b32e5efeef1","block_type":"box","text":"a defaulting issuer.","page_number":49,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"3d1354e0-240d-46fa-8095-16054f79d47f","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"c5404fdb-3f0a-4e26-b5a7-441e79936818","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":49,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"2e3ee6e7-6764-4e4d-9d51-25013f99944c","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":49,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"b0d79ba9-576f-4a40-bdee-16631a411843","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":49,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"5d66db6d-d71f-4858-acae-0fb0e4c0e967","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":49,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"bab3de9a-beb1-49d0-947c-27762fd253f0","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":49,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"bb7894d2-3a3e-4769-92a7-3a54133664bf","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":49,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"39c6e47e-147f-4c07-acf8-4cec638aa45d","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":49,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"a792f62a-21b9-4049-80b1-5f14d2338e5b","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":49,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"67bd72eb-8444-4d15-87d4-3ace8fe793d9","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"ca1e2ffb-b9e4-41fa-b5bc-22ffd580a2cb","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":49,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"883f003a-6bb2-4366-a40a-5b16cdec34a2","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":49,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"5c844862-d62e-444d-991b-80338ee992ab","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":49,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"f1b53ad8-6a9b-422c-9064-52bbceed402a","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":49,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"5c3799c4-ce91-443e-bd49-5947bd30a9c4","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":49,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"8e97749e-2fb7-4902-aaee-28b5946d9933","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":49,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"5c00a806-6335-4dda-9f09-232e2d48a847","block_type":"box","text":"higher-rated securities.","page_number":49,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"fb0ee2b2-5234-4a6f-9838-e55eccc57bf4","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":49,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"b2cddf25-915e-450d-84e2-24cc23b69172","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":49,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"bb6d39d9-bcbc-4f50-9dd9-884efedf8566","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":49,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"10c7d78c-9f3e-44ff-8590-4747cb95ba05","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":49,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"7a916ac2-963b-4365-929c-79a86ae6f46c","block_type":"box","text":"II-11","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a031bc6-9e34-456b-9846-a7b9f3944f77","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2df9f15-0720-4bdd-b8f3-6c73a9f0b836","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":50,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"4249f716-5fa3-4d15-8472-3f10267bb761","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":50,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"594d49a8-212a-41f4-8aa4-3f76eef0d47b","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":50,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"96390db5-5205-43ad-ab64-53f8cbabdbad","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":50,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"da509347-a964-4de0-ab2d-4a920129310c","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":50,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"b6723f9c-02d9-4e70-85b9-2fdf0cc61791","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":50,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"93bc08f3-ea05-432f-8182-91cb83e51171","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":50,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"051d0639-934f-4077-82fa-600e93123405","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":50,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"500e16b4-d8be-40d5-98ee-2e3b16b575d1","block_type":"box","text":"Mezzanine Investments.","page_number":50,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"3cab9621-840d-4776-93d0-e0489d400ce3","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":50,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"8f26f302-b539-4956-bd70-f64df0838983","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":50,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"8741650e-0e28-43a6-a8ba-f45261663442","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":50,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"01bad253-6367-4a1e-bd30-b815d41a6cd8","block_type":"box","text":"e.g.","page_number":50,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"65ff4b02-2b84-4f70-880d-9bde3c16f375","block_type":"box","text":", with","page_number":50,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"90d80835-bc0e-472d-b506-b31ffe74a24c","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":50,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"7fc1fc55-cf6d-4151-9121-5eed8742b5b7","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":50,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"7a4e25b9-cbfd-4677-b419-c1935de3de52","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":50,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"fd3f8bcc-f9d6-4eb5-aacc-4a6b820a182c","block_type":"box","text":"other obligations of the issuer.","page_number":50,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"2c2021fb-4301-4012-b3b9-994d189736ab","block_type":"box","text":"Pay-in-kind Bonds.","page_number":50,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"e28fdf41-e179-43f2-b5a2-129d37b96c9f","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":50,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"621c7296-5d1d-4c8e-b2d1-9f81fd276d78","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":50,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"4454f198-e908-4610-a8b0-750dfd881ccf","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":50,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"11251505-6558-4df8-9278-6d9f3baf9951","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":50,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"d16dd02f-9ea5-4d16-8f11-4d6ea3f86593","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":50,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"ce218e5c-da7d-48c4-bbaa-d8b883bd0932","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":50,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"0191c3c6-ccc3-4fca-ab42-a82ba76581c6","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":50,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"190ccab0-3000-47aa-a671-2a02dc5abb02","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":50,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"02d64c51-4115-4589-a02b-60c4ac9a901b","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":50,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"77c26f4c-4afd-4cf1-9c9f-f96751fb8fda","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":50,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"e6ae6847-98fa-464b-b997-694fd3c95f32","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":50,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"ece32bb6-f8f7-4541-a9a8-2467b1872e8e","block_type":"box","text":"Supranational Entities.","page_number":50,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"9bdd5a37-ce89-470c-a019-245824f54eed","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":50,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"e0268966-c5dc-40f0-b85b-0499332a4bb6","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":50,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"af328e4d-6bf3-47f9-924f-97b6c232ce5e","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":50,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"4d4c7764-a360-4a0d-8e89-fd5f8df6b413","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":50,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"a86c52a4-4f3f-4cd9-9e5a-c2d4e9bc35a1","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":50,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"46a3a182-cb9e-49a9-b7ec-c13e891883e6","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":50,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"d117a302-0436-4e13-9d7b-814c0b39e938","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":50,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"c95eae22-a60d-4b00-9462-08327d42d265","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":50,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"7e4f7e9c-9ffa-4f71-a029-366150adca0f","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":50,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"303d8aa6-7af2-4225-aad7-ae46df367323","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":50,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"3e5839e1-f591-47bf-8ff0-1dda5d47a043","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":50,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"b8dc3249-3b63-4972-8250-641dedf4b038","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":50,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"73ac2df8-8446-406f-8816-8005ef40f7db","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":50,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"3f69965d-1037-44f6-9a7f-513152ddb038","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":50,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"099c38bc-79c2-45f8-8aab-4e35ecef470b","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":50,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"3bb493a6-f2f8-4ca1-925a-f6f0399c02f1","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":50,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"0f686f46-a1b6-4847-9f30-edeabd70d833","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":50,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"9c25ac15-e491-40cb-807a-6e5c64c9120d","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":50,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"f5316845-9763-48e6-bbc6-f5e829e500b7","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":50,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"686d0001-67a4-4da2-a1fd-7c78133959be","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":50,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"8e7716a9-8166-4b4c-af1d-934d07e4bb9e","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":50,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"b44c0a4b-d206-4be8-bd3a-78d97b4cc26b","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":50,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"6a1d55eb-8009-452b-99b6-7fb3517b84a1","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":50,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"c90b4050-bc9e-4585-8f44-ca854750955a","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":50,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"550854f0-9ca2-4e3a-9a05-3138ad45bda4","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":50,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"4c2d47c1-ccbb-4004-8f71-ff744d6feafd","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":50,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"a2b12e45-1861-4c7a-8891-01a6da463447","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":50,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"63382cfc-3fbc-4645-83ed-05109851d1cf","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":50,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"e1d263cb-a9de-4beb-aef6-675b80d08eef","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":50,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"3d34c74f-003a-4f00-8f89-21ef25b0b3f1","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":50,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"3c21dd18-f2e7-4d6c-8f6c-3d7417336d61","block_type":"box","text":"II-12","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b6fbc059-cd43-4ec4-9ed5-a8112e4267f1","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"74181157-1d09-4c91-aec5-be3f8f610526","block_type":"box","text":"Derivatives.","page_number":51,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"49d2cdc7-e53b-40a1-add2-1534e18a89fb","block_type":"box","text":"General.","page_number":51,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"bc860151-2b5d-4d12-b6b4-88f001f6892a","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":51,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"d1330ae7-b916-44d5-b8cd-d2f91bf14d14","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":51,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"9804a813-2240-4ae8-88ae-83407a5bb92e","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":51,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"6a851374-ed24-43fe-91ae-3a28c0d0ae8d","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":51,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"7080a2f7-f7a7-42d5-9163-b61797d032d9","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":51,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"66b3f7fa-8f41-4858-bd9f-7e57a2585f8b","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":51,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"787fff3f-228c-417d-8126-5985dd562e48","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":51,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"01f559c1-3507-40a8-ae3d-d94824b1ff26","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":51,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"ab6972f8-d5c9-4682-8437-f83ca6109d30","block_type":"box","text":"i.e.","page_number":51,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"62caa34a-1027-4fe7-b638-6d6722e04dfb","block_type":"box","text":", the payment","page_number":51,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"33a98c59-41e4-4c41-b99f-1d9d94d0acf5","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":51,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"ac0fcbe6-f552-4503-90a2-423ea6574a4a","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":51,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"8612a40f-4309-4691-b53e-7cc60502ee0a","block_type":"box","text":"Hedging.","page_number":51,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"9e71fcc0-d7da-4dbe-8ade-0b8bb4448fc5","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":51,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"8f7e1c5a-f0f2-4c69-96f8-472d1398851f","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":51,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"798ae54a-3eef-49f1-9d50-e5b332c290c6","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":51,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"ca5d44e2-2c96-4bc0-a027-0edf0b51a04d","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":51,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"6fe7493c-ab6f-4ed0-b6bc-bcbec2009029","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":51,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"7e8ebf7a-dae5-4042-b402-731e2be9fcfb","block_type":"box","text":"correlation risk,","page_number":51,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"68a00646-02a3-4a30-af8b-e54877fb068a","block_type":"box","text":"i.e.","page_number":51,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"c5322817-301f-4033-91fc-c35bfb205e98","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":51,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"0a8053d8-247d-4d47-a8e5-974f4fefbdb1","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":51,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"d0f281a2-4b9f-4454-b9ee-9ef2225d1a20","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":51,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"6852cb97-7f86-4fc2-a9fb-4785a12498b1","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":51,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"39411c96-9962-4233-b72a-a6f394883720","block_type":"box","text":"Speculation.","page_number":51,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"941e58de-b8fd-4b1c-8b8b-e906fd04fec3","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":51,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"f4d9ca07-f16d-4075-af01-ed3549b0f373","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":51,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"99a5ac80-33c2-48fe-a780-713a70baf5e8","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":51,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"640525ba-8951-45c4-993a-f2b2660baa72","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":51,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"108e7093-a98d-4371-9baa-50cf9189fc43","block_type":"box","text":"in certain cases may be unlimited.","page_number":51,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"3ed3b485-524b-4793-89bd-b28803d72eee","block_type":"box","text":"Regulation of Derivatives.","page_number":51,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"6ef0f661-fc44-4b82-85ea-34195bef9982","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":51,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"66c309a3-1721-4c47-84a1-b0ed485b1af3","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":51,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"aca25632-fb77-4b2a-8d8d-0bd3a2a8807c","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":51,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"f4bf7d74-f270-4aa6-866e-e0dda047b0e2","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":51,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"50450d85-38cb-4b40-9e87-4db6f56d8439","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":51,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"ded97d52-1f25-4b71-ac61-774fd4e593b4","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":51,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"64d76fd9-f18a-4854-9244-58ad3f5fc328","block_type":"box","text":"coverage”).","page_number":51,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"f1eaba13-5553-41c9-9d43-b58a6daf6e3c","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":51,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"048202cc-6df8-42c3-8b9a-db09bb835136","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":51,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"92c5d6b6-a4dc-41f9-a27e-5c03ed973460","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":51,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"d5c37f1c-53ed-4131-8d88-0022b432d7be","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":51,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"5b362186-2d11-433f-89b8-1f63d6221c8e","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":51,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"c2dced7d-92c7-4103-bda0-7d2f4d79963b","block_type":"box","text":"financing transactions (","page_number":51,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"d85000a4-c59a-4c3e-99db-2cbe6c4b6196","block_type":"box","text":"e.g.","page_number":51,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"42eab33a-43e3-4959-b373-0d4bcd8b7c3c","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":51,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"cc691cea-6bbd-42bb-b811-b9594ddc0ff6","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":51,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"dc2902a6-05a0-4d45-8509-e01d3b2056c3","block_type":"box","text":"securities (","page_number":51,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"8b69dbf8-13d9-4270-918e-4d6911476abb","block_type":"box","text":"e.g.","page_number":51,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"2100a30e-e5af-4f70-9d8a-ed84a1b4b6ba","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":51,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"6461aa16-1f79-4f21-a959-128503d3fe67","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":51,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"008e3da2-bf4a-485c-a2b1-d57524c817de","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":51,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"cdb31fe2-4923-453d-ac3e-d6ab8add97d4","block_type":"box","text":"Commitments”).","page_number":51,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"a0da3ead-4c68-4fb5-9f4e-bdd3290ea78f","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":51,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"d6e03936-a0a6-43a3-bd6d-bc153a0e2825","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":51,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"0c531807-5d97-4b07-bc77-3f5d916120b4","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":51,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"406758cf-2659-45e5-8c12-f76dce6a9e9e","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":51,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"860f4178-fc9a-4a0f-8399-c847150bf923","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":51,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"8ac856b9-8252-4952-bd5e-20aa76b4d5da","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":51,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"46bda8d4-656f-4cc6-a9c8-ed0a9b7cf37d","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":51,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"1b3824fe-af5b-4b6d-831a-187a1cbb8b08","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":51,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"cbf665c5-cdc8-4d81-82cd-6285726e8557","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":51,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"33a11237-f7e5-4aa7-8e4a-2b9c79bdc5c4","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":51,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"b0b7c327-3882-4846-907a-31060d76a493","block_type":"box","text":"II-13","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22b56fc2-4f91-4837-8d0d-93958d69869a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e52f610e-b09f-4a1c-bbe8-6aa5245bce6f","block_type":"box","text":"Dodd-Frank Regulations.","page_number":52,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"300bb0c5-dfcc-45f6-8c29-bf971ace3889","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":52,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"a8f8e10b-c789-4ac5-a468-7f981ace917c","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":52,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"971d0109-b578-4069-90f5-df59af5fdc31","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":52,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"e01ddd46-3526-4965-a7ce-b3e9390e2e97","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":52,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"a54aaa7f-bee3-407d-9be1-e7c14c0fe35e","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":52,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"51ae3a0d-e3b0-44b9-8c32-538cea17a5dd","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":52,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"3973ec05-bd8c-4798-bfce-3254c1826631","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":52,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"1d92f1cb-fe29-4929-82db-008c21f7e439","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":52,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"97166fe2-8be4-4ec9-af53-13d832299427","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":52,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"ee3b29bc-debb-488a-8028-d4b7539b9405","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":52,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"49cff9f0-294d-499e-a2f9-657772c1b57a","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":52,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"a0c38419-2abd-4848-ba65-f4b2b66efd74","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":52,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"9e007f24-6155-4b69-8004-ec1a5eab0a5d","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":52,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"5ae870d8-240c-43fb-8c77-620b45895279","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":52,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"d9a1e818-2e17-485d-8d3a-7634560b171f","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":52,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"395b7e51-7b28-400f-a861-81a1de9cf968","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":52,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"ae7805f1-a784-405a-bf14-667d823debc9","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":52,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"3efb5d71-da36-42c2-8b0e-de8b98b7d1e9","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":52,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"0c4c0f71-d8c8-408d-a195-f0e5718c6e49","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":52,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"4c2eaf68-ea6f-4622-9d6a-fb66461e583d","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":52,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"7bfb96eb-0f3a-4643-ad0d-72b75e8425a3","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":52,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"bce7ad48-4d70-4f47-9d9b-10387a3575eb","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":52,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"1f5c2013-adc9-4ca3-b8fe-c317503bf873","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":52,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"2585e03a-c1d4-4b20-bd4e-a98be0e3dc98","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":52,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"e528871b-b503-4719-ace7-4f0518b6b46c","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":52,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"9edc63bd-9f22-44df-8250-e339cdf184f7","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":52,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"4a09c105-df55-4d67-9846-89dd5b81501c","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":52,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"1edaf9d2-0bb2-4ca8-90e4-8182597d70c4","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":52,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"29b47ddd-2ce5-432a-b63c-debc2233aa70","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":52,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"575e3e64-e41a-48f7-88cc-c3b205fab247","block_type":"box","text":"member.","page_number":52,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"a5b55c5c-80d3-4670-9b05-1328d0f2d4c2","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":52,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"3b97f012-4ad3-4f2c-a009-95a5c696a5d4","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":52,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"fdfd6452-ec52-48b2-9b00-b878f18257b5","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":52,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"580b3dab-b77f-4ee1-bdb7-cf582f7dd55a","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":52,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"cff8cc17-bc16-447e-b4a0-db5406fcfe3a","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":52,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"447fe52e-0a9c-415e-bddc-e2e04d7540d4","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":52,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"4f590600-f64f-41f8-a240-24708e072548","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":52,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"12e8090a-66a7-49df-b1c0-2c1f54de440b","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":52,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"5b497edd-0745-42ea-8905-ee218baffa50","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":52,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"bae969d5-3449-4c16-9db6-4726940ed91e","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":52,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"69600fec-7742-420f-a7b7-1e036c23ff08","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":52,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"5ed07598-198e-45f5-95c5-cba2d712f272","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":52,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"2081869e-58a8-41c2-99b1-d43ef80a7e1c","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":52,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"0b4b37a5-97f1-441e-a582-07f612b1c778","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":52,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"e8b2c337-8238-4f69-9c89-50af1f3075f5","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":52,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"654caf37-3984-408e-a4e3-fb5b385ec3a1","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":52,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"460ea008-1090-4763-9c26-438b2819d7c5","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":52,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"63fb03b3-86ea-4ced-9304-bc594dc77fcd","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":52,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"d8b851b4-3d78-41d7-a6b2-4b3b941a4e63","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":52,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"f1be4383-d9b8-41c5-a4e9-5ea418554b95","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":52,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"63506bd4-3d35-43d7-897e-335df05649f8","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":52,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"351ce1ce-3d30-49d9-9928-a5eaa631f890","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":52,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"153affdb-841f-4395-9829-bd48262f942d","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":52,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"4f31129b-d459-46d6-8f42-2e1d5a0eccda","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":52,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"6cb2f083-a5f1-4ee0-9bb8-4d3d04dd057e","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":52,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"be977c42-58ff-450d-a210-d677d84ffb3b","block_type":"box","text":"II-14","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"54cf39ff-8af2-4b14-b69b-e063405f94a6","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fecf5ed3-3c50-4530-a09a-9e30ab7b0c55","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":53,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"ed309113-0b72-45d5-84d2-cfe6acf6f116","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c567f377-347b-484a-9930-569abf5038ff","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":53,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"7825ed18-a7a5-4e58-b333-0ebff5cdc3c9","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":53,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"16079244-3423-4a4a-8eac-f556551f71fc","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":53,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"9d0d85b1-0cb7-49e9-bf93-86ebfe6bdf6a","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":53,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"bc4436e4-f09d-4137-9c78-0a52dcf8ea9e","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":53,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"20ca459f-074c-44d3-a434-2547ae6fd9f5","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":53,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"26d48271-3404-443d-b4aa-5ab1281d7c92","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":53,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"0029c48a-c2cf-4c3e-88b1-c2042875c894","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":53,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"5b1a3fa9-1cad-4285-8bc5-7094cd80cc63","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":53,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"70d32cd7-caa2-4dce-88dc-ac18f48d4eb1","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":53,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"09f3fb22-bc68-4fd4-943b-aa83099c90b2","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":53,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"5ae109db-c499-41b5-a31e-9aca287a2a75","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":53,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"3246953d-bf29-4686-9c47-0db9ee91599a","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":53,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"0fbc7edf-67d5-431a-bfe5-fa5dfb36ac0d","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":53,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"04e87d85-4b34-494e-8b85-292f727f45aa","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":53,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"d4a13ff1-c889-4882-b8e1-925e5506584a","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":53,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"ad18b20e-86c8-4b5f-9410-4d3306c1526d","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":53,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"661e949f-c39b-4a7a-a341-cbc6e20d4845","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":53,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"5240d9b7-4236-4768-9a05-70fbc5745d88","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":53,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"4f48f42e-ea8d-4b0e-acff-7088cb0f3c64","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":53,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"7b18ae8b-0912-4847-af70-010f5ab73452","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":53,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"bc057e79-0142-4292-a80e-4d2e9fb2d1e7","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":53,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"436c961d-65b0-44d9-b426-5e12b5326676","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":53,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"154b6991-5cd2-4443-84ca-7b07bab52955","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"c0b65fd6-3ee6-4e18-a418-a526d142fb0d","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":53,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"c3a46695-5c40-44fa-aa0c-f2e2cc39840f","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":53,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"0c4dc72a-dcdf-4ed2-a9f4-da7a2e3c5790","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":53,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"9ca5560a-587f-4ed5-9a37-70f02d05ad59","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":53,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"93057f3a-b3ee-4ce9-a726-62bad1f7aeec","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":53,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"27e074e5-8993-4a05-a972-c8ae4b42465f","block_type":"box","text":"collateral received under such contracts.","page_number":53,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"6a2330f0-8ff5-402d-a52d-fddc48c7b1a0","block_type":"box","text":"Risk Factors in Derivatives.","page_number":53,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"cda71999-6c45-4b47-a33a-a75c14be8647","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":53,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"befaeb85-81db-4b80-9610-0983e7c80bd3","block_type":"box","text":"Correlation Risk","page_number":53,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"3ced154a-8e0f-4ea9-9ae1-6535777133e4","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":53,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"b1ca8b02-bea0-4a73-b108-5e3a0c67cefa","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":53,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"d7dca6d0-32e9-4ff2-b1d2-a632ca14e1ff","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":53,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"a5ddf8d2-6004-4357-81a1-fc40adb4e899","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":53,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"45087715-9765-4745-813a-073cfbe307d8","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":53,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"f261c29e-2718-45d3-93ef-556d0f5a28af","block_type":"box","text":"Counterpar ty Risk","page_number":53,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"69778a1f-f751-448e-8d8d-c29fa275b29d","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":53,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"6ba191a7-09c1-4a48-8c0f-4c6063934c1d","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"b6a4ee88-2dca-4e76-8114-b6d67eb5712b","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"c3d39c22-74ac-4b31-be61-4df8a085e78b","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":53,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"206ead98-eb97-4128-a89e-bd90ee6fae63","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":53,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"ae4f2e7b-5dde-444a-aa50-0f4070bfd65d","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":53,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"fed20220-c363-4e9d-bdf1-3e75693f7f4c","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":53,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"de26bdd9-618d-4dd0-ae1b-338825ee78d5","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":53,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"685b01ae-666a-43e6-807a-2792c4186e0b","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":53,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"f2717886-b907-4387-9583-9a2aa48557b5","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":53,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"294666ff-ca8b-4d20-98c1-744c02b5dad6","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":53,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"0037e045-eedd-4858-bbc7-f713210dc201","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":53,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"d55e4621-873c-4643-9a63-60d9d9b92dbb","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":53,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"a8c67db8-8418-4367-9c24-6a6f2f647882","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":53,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"1e6a7995-60cb-4ca4-a6f4-67dd5a6a3182","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":53,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"309e5378-fd07-43d1-b297-d0f099649507","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":53,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"29a77a76-9400-4a6e-96fc-f48f70a90462","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":53,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"8fc31001-af0a-42fe-b003-d174513895eb","block_type":"box","text":"II-15","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f625af46-2ecb-447d-893e-8f421229c332","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"230ae413-df67-45cd-941b-c6a7bf8a1289","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":54,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"8ce23969-1b9f-43ca-8e4e-f7d6b9b0f046","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":54,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"90da2fe5-77b6-4790-a875-79b094dd8f61","block_type":"box","text":"by the clearing member.","page_number":54,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"4bd7a733-de2c-4054-ac8c-f2b42fcbd5f5","block_type":"box","text":"Credit Risk","page_number":54,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"85cfde09-f5d7-4cd9-ad57-db19375f56ca","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":54,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"aac05c09-958b-492c-8ad1-bfe4a5a61ea8","block_type":"box","text":"honor its financial obligations.","page_number":54,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"6585ec90-2848-414f-a97b-2c443acc6e6a","block_type":"box","text":"Currency Risk","page_number":54,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"ed81c27a-6d67-49ec-b640-9c4c3bc08bbe","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":54,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"d32c0fbb-f6ef-4ac2-8da0-add2a33e4767","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":54,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"ade31446-f8a8-4639-ac74-f993b3bfcddc","block_type":"box","text":"Illiquidity Risk","page_number":54,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"a36093c7-3b66-4514-a782-a3c4ab9064f5","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":54,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"acd0d142-b38b-4329-a6ba-19654a3be1e7","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":54,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"bec37e1a-f90c-4fb7-b60c-c16d8b547cdf","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":54,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"d3b4a1ef-87df-438e-8e3c-4eb1bc0e6ec4","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":54,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"1fd61076-08a2-4b07-872c-edf07c1455ce","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":54,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"7ffc5ea2-4c87-47dc-a3d1-4ead34d50fbe","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":54,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"d3b1cfaf-8df8-4114-a631-44052b0e167a","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":54,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"9e01aef1-d778-4cae-9f87-2fdc7242b0b6","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":54,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"02e0f1d7-77ee-4adf-84ef-7a559b944ada","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":54,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"8a479712-dec1-4e79-9880-85720776581e","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":54,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"839375b0-f9ee-4e60-8fca-630477edd2e6","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":54,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"c2498cc5-6330-43a8-be69-b74b02a5fc9c","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":54,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"08860787-a64c-4585-a4d3-7e0a9cc6fec5","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":54,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"918dc121-510f-45e3-872b-d79f1c2bbb91","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":54,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"bd2e1da5-8c8d-4ed8-a4b6-ddbbf0df8edc","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":54,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"80276a68-a7a4-43b4-ada5-fcd20748f251","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":54,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"bf70d500-f4c2-4107-b455-6f56fb0e7399","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":54,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"a64f8084-50d8-4a92-839e-c6e358b2eb0a","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":54,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"ef5cce2e-8814-41ba-9fa0-18a7751abfdb","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":54,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"2941b3de-7480-4c52-b460-3561d62c2c1e","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":54,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"a102894e-1608-4c50-b42d-e8e12dfd5908","block_type":"box","text":"may be disadvantageous to do so.","page_number":54,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"6081bf49-15cc-4771-a452-265dfbefbb2a","block_type":"box","text":"Index Risk","page_number":54,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"a1cee398-5413-497b-bbd6-8fede369b825","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":54,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"a21d9035-0cc2-4069-80fb-3db66171ce43","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":54,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"5afefb4e-0104-4945-ae1f-7b7970020637","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":54,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"08398041-9b86-42d5-92ee-a038528db164","block_type":"box","text":"Legal Risk","page_number":54,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"d5bec415-ec95-4f44-b4ba-83db89c00cca","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":54,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"b18d45ab-809d-4667-9eca-e0d23b4b4c2f","block_type":"box","text":"or enforceability of a contract.","page_number":54,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"2cdb9c20-d7b1-426e-8ff7-a72a71ecdf67","block_type":"box","text":"Leverage Risk","page_number":54,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"65ec0135-d952-46af-831b-3696c3a098b0","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":54,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"c252ed6f-d110-4e14-8213-0659af6d97e1","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":54,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"a0573359-816d-4861-8217-302fe483dcd2","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":54,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"6a7f65ea-ae44-4bef-9bac-399a373b164c","block_type":"box","text":"Market Risk","page_number":54,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"a594ea9a-4b26-4917-84fb-6f47b29184ff","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":54,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"7df2c394-ba6a-41ab-ac3c-4b1096e24876","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":54,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"fb52f588-4181-4d02-b3a0-872089a387db","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":54,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"be588014-0f61-4d58-a3ed-bbcb97b26ce0","block_type":"box","text":"affected.","page_number":54,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"1df5dcf8-9c6a-4876-864c-4c4e98c76f78","block_type":"box","text":"Operational Risk","page_number":54,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"a239b883-13ee-4f3c-8a31-cc8e345d5d2c","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":54,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"6f838f5e-6114-4b34-9d5e-71636315eb62","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":54,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"1efd47c5-2fa3-4071-90a0-5aa2484cd053","block_type":"box","text":"Valuation Risk","page_number":54,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"4fc9a648-6051-4ae3-b81d-dce6c71026b2","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":54,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"cc4527ba-2cfa-4f63-a9b4-c6bfb3901938","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":54,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"ced7a18e-050f-4e3a-8d5f-82563f6ff336","block_type":"box","text":"complex instruments or quote prices for them.","page_number":54,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"3a4e1804-0485-4dac-b530-7e07bf991d2e","block_type":"box","text":"Volatility Risk","page_number":54,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"d27e40c7-599d-4c1d-baa9-deb1c79b44cd","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":54,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"ce3d3fb5-4687-4e11-854f-dd158e7db762","block_type":"box","text":"Types of Derivatives Transactions.","page_number":54,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"a5f1dd43-78f9-4895-9bf4-a65b067fdd2f","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":54,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"3d2ed753-401c-4293-be01-4c3ce87983af","block_type":"box","text":"including the following:","page_number":54,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"e831abf3-21bc-4504-9c13-4f04afe32c79","block_type":"box","text":"Futures.","page_number":54,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"50bb2986-f684-4ff6-b96d-e98abbeb5055","block_type":"box","text":"II-16","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"47093b48-bd63-4076-9d05-3ee1b54ebfdc","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3c79943-99a5-4059-8399-2cdaa25a9517","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":55,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"c98624a2-d272-41e3-a448-cc15a03b5f22","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":55,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"bfc3db01-02c5-40a2-bab5-469fcf7ea58b","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":55,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"ed415d4c-25cb-424f-afef-5a38cf99b54f","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":55,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"963c063e-f320-4bd2-839c-7b4bfda76470","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":55,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"099072db-23e0-4478-a262-4134bd55737e","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":55,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"0e6839d0-cf6e-4832-8140-4300c2f8a9f8","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":55,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"839c2a0b-618b-4520-8bae-63c5aa312eec","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":55,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"5bdaf5d6-58a8-4107-8d01-8ef282746729","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":55,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"358c8273-1926-45e0-a5c3-d7eab4e931f0","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":55,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"1f774a11-b79d-4f2f-a53c-e5b090979dc1","block_type":"box","text":"of the futures contract.","page_number":55,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"51aa65bb-2f8d-45a1-aa9b-9d5188c317ce","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":55,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"9eae3861-bbea-4ccc-9c5c-897f3f4fb8db","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":55,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"d28b769f-2881-43f7-a08c-68c031c5d2ab","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":55,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"4f657f7d-1d24-4da8-ae85-7754baa18fc0","block_type":"box","text":"relating to the futures position.","page_number":55,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"19d75cf3-7e3a-4b90-be26-9ee4a8e12c17","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":55,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"2082acd7-6ab1-47ff-91d7-94c63fa55f33","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":55,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"d5e7c4dd-5968-4d98-a7bf-995357108e65","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":55,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"6a8001d9-eb15-4aa0-bbbf-308b519ba88c","block_type":"box","text":"Regulations” above.","page_number":55,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"29f62dd2-04cf-4868-bb8a-c89939f2acad","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":55,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"fd1318bd-67e5-4251-8ca1-c3300e5366a5","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":55,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"c1e27596-9389-4037-a923-030ddc8ed2d5","block_type":"box","text":"(","page_number":55,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"29ab4f34-3456-466f-ad81-eccc44aea328","block_type":"box","text":"i.e.","page_number":55,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"6f9ac120-df1d-4440-baa2-39b8295c36b8","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":55,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"31d1f95c-d446-4402-9a0c-14b740107b5e","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"d674608e-033b-4050-ae2f-31655aa7729e","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":55,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"4456518c-eeb5-4e38-b827-7de298e52777","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":55,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"4d4b07ed-2a2e-4b03-929a-983b0c3154b9","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":55,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"594f7ccf-75d7-437e-acff-18ed8ad4a8d2","block_type":"box","text":"Fund intends to purchase.","page_number":55,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"b8e5474c-9277-4185-9064-55dc9e3661e2","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":55,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"175e84ae-b0f5-4035-be74-1886ae37e312","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":55,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"1c0578d4-9428-4fd2-a1e2-0151ce9db907","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":55,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"c5ac1f75-ec13-43cc-8ff4-e881435700d9","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":55,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"2472b0bf-48f7-4099-a088-74796588aec1","block_type":"box","text":"illiquidity.","page_number":55,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"e06ff1da-6512-4cd4-ad82-f05874cac71e","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":55,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"aaaead47-5c0f-4864-b32d-50cddb9faff7","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":55,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"b663dcc6-8a4c-4253-9ca7-34ba80ab2524","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"c607530f-7f05-40c4-b6e8-edf51e1828cf","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":55,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"83326d29-c84c-4b47-ab05-d39f76a3490e","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":55,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"1f61076f-ffe3-4557-811a-c92a1cecdeae","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":55,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"1c874f15-b73b-413d-a0f4-e13cf3e33f88","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":55,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"c7a32c91-ae7f-4038-8428-cdd04ba9ed2e","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":55,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"e0e4b552-0f5e-497d-968c-eac810c77c06","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":55,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"794e7c82-1b6f-4c1c-9a8e-d411ca458151","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":55,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"92c0b5a8-e1bb-4883-9465-2a11c96b0db1","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":55,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"19484eb8-2e37-4cab-a82b-664a9970ae08","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":55,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"076069f8-39e5-40bc-be6c-bcc17e94a383","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":55,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"321142c6-4fb8-4d08-bb36-47087577535d","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":55,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"02cdfdd2-5a95-4fb4-b993-f227fe57b98c","block_type":"box","text":"Swap Agreements.","page_number":55,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"84d9ed04-cffd-4036-a87c-8457d4eb922c","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":55,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"c8bcbfa1-ab17-43d8-af79-d3539964761a","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":55,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"1cd7097b-1905-47e2-ab4f-5a8026f26c82","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":55,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"9144889f-f9c6-4a85-902a-8d7c0151e9da","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":55,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"936d97c9-69ab-4714-95d3-2afd21a6c7af","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":55,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"3e271824-b7a9-4e60-a8a6-b0dcb0f4501c","block_type":"box","text":"a “notional amount,”","page_number":55,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"444b4bbd-c011-4f29-a56d-1cd8e7a6c6b2","block_type":"box","text":"e.g.","page_number":55,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"48bd2a38-7170-45dd-b1dd-86361aa2cb57","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":55,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"63a1fe42-84ee-466b-88f8-b6846830569e","block_type":"box","text":"II-17","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a970993-5131-489e-855f-48c64ea05f6c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dcfaed48-8b29-49de-92eb-499fe042a3e1","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":56,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"6ddd985f-e412-48e3-a4e1-e97145b7d488","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":56,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"0313f3c3-ab9d-4611-abff-5800a3d0d1cc","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":56,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"73f2459d-17a8-4f6a-9a8c-764c132ad914","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":56,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"e234c6a0-7558-4ffa-ae50-650676a4bbae","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":56,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"99cdb244-e10a-485a-98f1-13b372ed3c2c","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":56,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"f0f12a8b-7865-413c-9ec1-c24c9089b2df","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":56,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"a85e5614-8e52-43c7-a888-05cb6f574092","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":56,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"d9ded489-bd75-4737-910d-9580ae51e409","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":56,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"74a250eb-f8a2-40db-ada0-a9b19d57daa5","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":56,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"ab71d751-fbfd-4901-97cf-7e499162f97e","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":56,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"58b1a862-2515-46aa-a806-d13af72e0fd9","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":56,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"aaf4bd65-751e-46c2-a3c9-c72c10dcb4f0","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":56,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"939469af-200a-4b3c-a85d-8cef3f01eb8b","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":56,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"b4283729-a90b-410e-8c88-ab8e2d953a74","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":56,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"a734d700-3cca-4ad6-aca8-b8ae46c14a4a","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":56,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"b96f30a1-98fb-47b4-bb29-10b7ee3d37c1","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":56,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"17c896bc-f0f2-4020-bd85-3b81168150f7","block_type":"box","text":"index CDS.","page_number":56,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"44ff5fca-fd39-4f9c-be00-3ade5bc49ed7","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":56,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"a3900c0d-5265-4ee0-abfb-b619abfbc976","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":56,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"fe522f13-335a-4c52-9d0f-ce2413595478","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":56,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"b13b804a-3d60-442f-9a8b-2493ef04b7a3","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":56,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"04e48d5b-4223-49c0-b18e-cbfdeaf90300","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":56,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"4be6214c-6c22-4a71-be0f-8382841af609","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":56,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"21d7326e-0537-41c7-ad5f-615db5e89508","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":56,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"a77e0d17-2c63-4ff3-a58a-15e563955667","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":56,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"96c85656-38a4-47d8-aa40-ca1d9a68f044","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":56,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"40bdb1e1-d9d2-4898-80a4-03f8ccbc72a6","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":56,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"07cfcae4-c737-4705-a583-725a8a81fa27","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":56,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"399892c1-88b8-43bd-a38a-a90ebbde1792","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":56,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"74335211-5285-4162-8b2f-e1187d84ac6a","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":56,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"69913d6d-7fae-41a7-9054-f146f7797bdb","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":56,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"c4a80a64-8590-443b-9e94-43038be7b9eb","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":56,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"0cc1b285-3929-4438-8b62-30378c58a1be","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":56,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"6aeb31e5-db53-4fc0-ad67-bccd62993650","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":56,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"ced76e81-085b-41a3-a6fa-77a0f12dd4d2","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":56,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"536d4f93-2ec4-4ac2-81ef-0faed1d146f3","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":56,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"d675b5f3-b7bb-427b-9300-158623b46231","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":56,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"d54e90d4-c9ca-4927-b626-189d754558da","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":56,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"4b8bdaf9-3c40-4785-8f6f-7a4622ca6930","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":56,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"938b4a32-734a-419e-bb5d-1de7bfd77f21","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"af88962d-daa3-478f-9edc-112f0d6beb9b","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":56,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"e9b3795e-3b93-42b7-b7b6-ecc344ca54b2","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":56,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"0ae27934-2d8e-439c-a136-48c6835fb2f1","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":56,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"1b200249-8c3c-4d6f-ad0f-84ac0b68d70c","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":56,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"4558fa42-5ef1-4ae1-aa1f-98446e6102bf","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":56,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"19cc5199-59bd-4aee-974b-9888ebb7bc6f","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":56,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"90b0e798-7120-42c5-85a2-cddda5161f77","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":56,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"446d9dc3-e816-4b48-b3fd-c070b9db226b","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":56,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"b87cec48-3ec7-43b1-aed9-466182dca80d","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":56,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"c4650006-659b-45de-bc07-9ad4a66c8966","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":56,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"8b1612d8-b2c7-4a28-9cc8-f284b7ac48d8","block_type":"box","text":"conditions.","page_number":56,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"d2d5ce97-e5fb-4832-b00b-ef46625a8274","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":56,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"a88aff90-404a-4c11-b832-8861e48fc2e3","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"2ba48bff-51a1-478c-8105-0e26c7269a50","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":56,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"2f1558db-4dfe-4ebd-abd0-6b78c0c09641","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":56,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"83acb982-43a7-46af-991b-8ec05a554d33","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":56,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"60c33fb6-5c08-4250-a6f5-bdd5f05154ef","block_type":"box","text":"II-18","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e740901-8cee-4286-8f7e-ec61b1498d26","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1b06e20e-06e5-4865-a76a-bdf3f7146c57","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":57,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"777388f5-d40c-4755-ae0e-4dce3b8b0424","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":57,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"113477f8-fec4-420e-9c36-ea5b98281bc2","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":57,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"f2b57de7-b1ac-4cbc-96af-c608432c0350","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":57,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"8af89cfb-5afa-4585-8ca7-49259135881e","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":57,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"1959781c-6167-42ef-9ccd-abf45d942624","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":57,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"758b4a2c-2b43-4416-b1d6-e3a6101f3714","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"f3341421-9eaf-41d6-8bc1-089577f36bcc","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":57,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"d116582b-bb77-4973-936f-6974b85fa573","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"5f105f5b-ecee-4067-90ee-1bf77c455044","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":57,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"f2713074-e775-40a0-a85c-038cab9fa249","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":57,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"c41c1db1-7869-442a-9e11-8be2796e8437","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":57,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"a8a4ef1b-8d70-4a94-9cc2-dc34c35054a2","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":57,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"b3aa6771-1476-4c65-b34b-b54d883a348e","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":57,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"89c48415-f15a-4c5a-8ca2-e608773a3078","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"c3279b49-34b9-4b64-a7c5-fb79e8705a1f","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":57,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"f5c86604-3ca4-4bc0-a8b0-c0ab499f0356","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":57,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"0a66d0c9-df09-49cb-825c-34c9867b2572","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":57,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"2bbbd33c-f84a-40f1-9b28-28a5decf776a","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":57,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"3f1a99cf-8ca2-43b5-a08d-99cbc20c956f","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":57,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"21014849-0305-477b-874c-36aa6dd897a2","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":57,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"a36ac47b-d355-4136-a24b-4ff3ac50e973","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":57,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"b9f7d1a2-a1fa-4c43-a013-9bf0271a7b92","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":57,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"e60a764b-8c27-4141-b990-7fcc9b636630","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":57,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"e6dfe7b3-b289-4694-87ed-ed283c25747b","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":57,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"12511a5b-4c29-4d49-8c41-de9c27b539bb","block_type":"box","text":"cleared interest rate swaps.","page_number":57,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"bfdab99c-b9ed-4727-9eae-0469599e9ca7","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":57,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"51aa6649-598f-40f3-b8f6-a5ce312146b5","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":57,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"1097ab0e-6b03-450c-83f2-09e0d90482e8","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":57,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"d5f6a8db-afeb-40a5-895b-032e5908edee","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":57,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"f471e36d-6643-405d-87d2-181bdcc27d35","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":57,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"48b619a5-5546-4c7f-8e06-27ec827f8ea1","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":57,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"1ca0fff3-44ab-464b-b62c-760a704fee1c","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":57,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"608b48dd-ede1-4760-8c94-06cf34f7f2d9","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":57,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"adbece76-e724-43c7-a675-daae55eec285","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":57,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"9623f81b-b2eb-4eeb-828b-043481e0dac6","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"def96b88-3bc1-4879-8abc-eccec40685b7","block_type":"box","text":"or variable interest rate, index or asset.","page_number":57,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"98ac7ae8-6ebb-4e4c-a6db-d13214b4ea1d","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":57,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"f21992a8-5a32-445f-be1e-3b676017c39b","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":57,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"5b01ae6c-7eed-47ef-b113-7fd70ed0b198","block_type":"box","text":"such interest rate floor.","page_number":57,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"382cd55b-f88a-4318-bf83-74e546f58b73","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":57,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"d10f8ead-c68a-45a8-8384-a7a8479f1642","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":57,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"2da57752-172f-48ed-ac1a-d50f8e14dc95","block_type":"box","text":"such interest rate cap.","page_number":57,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"2752a721-6e18-4c3e-91ae-6879f9036c1a","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":57,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"574d9a5d-e7b9-4dba-b16c-6d999321a581","block_type":"box","text":"commitments to pay or receive interest,","page_number":57,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"64f96c87-e61a-435f-9edf-569cc1a176cb","block_type":"box","text":"e.g.","page_number":57,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"d09c0bf2-9c26-4ceb-8282-7f4ccced1df0","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":57,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"152b6285-f446-427f-a2c1-dbf5a168f085","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"aaf91937-93bc-4f7f-a2e8-43f5b0029c36","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":57,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"318550d2-7d39-4adc-9b97-72ed4a04c6c7","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":57,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"7c7f13ff-6047-4d5f-9be6-610ebe7bb608","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":57,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"84742943-4f8e-4414-aff5-44b6ceb1928a","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":57,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"618541b0-0308-491d-a48c-b002c47804f0","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":57,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"14c37ec3-58e6-464d-824d-0ac24c10c594","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":57,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"ceabb104-1425-4353-8eae-5adef8d5c6c7","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":57,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"64015986-ad69-4e33-9ca9-8863d9510f56","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":57,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"6229a398-1a62-4e48-bdfc-c61fa0b29712","block_type":"box","text":"II-19","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2b2aecde-778a-420a-9a8f-cf7ea0e6cde5","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d8b834a-bafb-45e0-a992-b89652db3a16","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":58,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"a99be6a5-50a7-4897-8c5b-e17231400db4","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":58,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"1674df9b-5b07-4a1b-9e95-ef979acaa9e2","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":58,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"b09ef794-8e82-41e6-ae2e-a0f2d82c4c3b","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"d9d5f065-ffa4-4c58-8743-45ea6320d924","block_type":"box","text":"Total Return Swaps.","page_number":58,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"163c310a-ea2b-4c94-975c-475333f90d43","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":58,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"c3368822-c3a7-43bd-a411-aa3fb37bd270","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":58,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"39cafb93-0295-4a32-bc70-430f9e344dbb","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":58,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"29a680d2-b8a7-4b4b-979b-c123e18f00df","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":58,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"da05eebd-fc54-492a-8554-7a3ea4c07a5f","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":58,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"98489636-fff2-46a1-adda-19c9ce185ccb","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":58,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"63f832bb-d019-446a-bb30-ae2c13300d25","block_type":"box","text":"“contracts for difference.”","page_number":58,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"7ae9f5dc-a963-4845-b971-a68f10dec7aa","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":58,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"8bdc16dd-9506-45cd-930a-3328d35ab15d","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":58,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"dd4085a1-c175-45e5-96c8-1cab66176c90","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":58,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"bb7b4366-2e2d-4052-aaa0-064c4914a19f","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":58,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"55ad6091-93c2-4128-906c-620f7232c416","block_type":"box","text":"the notional amount of the swap.","page_number":58,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"0e8931b3-fc06-4221-888b-424361caaa5e","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":58,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"f339e29d-7983-4fcd-9c61-f037f34b5d50","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"e356518a-a67e-4c51-8eac-a846e2fc3476","block_type":"box","text":"Options.","page_number":58,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"0cf5b1ac-c24f-43bd-a36d-d4b3607deedf","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":58,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"f24bf572-ece9-4e38-9762-de4aacd90e47","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":58,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"41f8fc9f-b7c9-482d-8082-db3a1fe99a53","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":58,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"35e22a66-a34b-42c9-b622-9d12c61b0a51","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":58,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"d3af0a10-44e3-4ff1-b80d-502273c9dc9a","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":58,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"aab32040-df72-4087-a7b7-9d5e9cb4c73e","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":58,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"3120d2fe-44ca-49aa-9b52-478f8007f808","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":58,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"c2b10e71-2196-49be-b6fd-bbeabad86209","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":58,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"5cd75ea8-bc77-49a2-954f-6f90942a7291","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":58,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"69451c78-6348-40fd-a931-1f94a6030cdd","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":58,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"00b3d2c5-8803-4dac-90af-a4eaf7577091","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":58,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"ec6c2ff4-eb75-4561-8c14-e7fa48637d87","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":58,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"f8636102-6ca6-486f-87c2-744349c48deb","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":58,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"706f00cc-5273-4b42-b11e-b042d8abad3c","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":58,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"5f68fa35-e700-49aa-813c-08e1aa98e0d8","block_type":"box","text":"OTC markets.","page_number":58,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"6cf3adef-0daa-437c-bb39-eabeb6eb4e6c","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":58,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"677e02e8-3caa-4ba6-a5cc-7e4ad5a257da","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":58,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"e28c89eb-2a31-4fee-a75f-32e7f3f63f5e","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":58,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"d9bf0ced-bb9a-45dd-8592-20f745d3395b","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":58,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"0849e5d0-baaa-40ad-aa03-59df5bacd0d6","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":58,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"0939c8bb-439c-4451-b4fe-6397251cfa16","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":58,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"bf7cf0d4-d2c8-4ce0-8971-9277a24080ac","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"1f638202-572c-489a-80da-b28251d57a25","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":58,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"8b5d54d8-aab4-4288-b9ad-dd332154a19c","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":58,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"39a471c7-056a-4eb1-9e98-b3ef43069d05","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":58,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"8983980c-ead4-4034-9bee-b9e0c3baf760","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":58,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"65e62dac-9052-4829-98de-3ae595d923d6","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":58,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"2fd4fa79-c7c4-4f9c-9dfe-95a31b23e04f","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":58,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"1ffe581c-e36d-4f4e-ba20-a8054046bb76","block_type":"box","text":"terms.","page_number":58,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"373505d7-0994-448f-9208-762bb3f70bd0","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":58,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"8a8180a9-05e6-4d8e-983f-5aaab0cc71f3","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":58,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"c842e149-ef12-4f2c-aa7b-d78656d7f5cd","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":58,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"d24f9926-7839-487a-ad5b-b564102b55b5","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":58,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"38c85bbb-6c75-421b-bf68-25f8a6c5f447","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":58,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"001a0ab5-ba6c-4009-8814-6bf1e59da709","block_type":"box","text":"II-20","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"85caedfe-5687-48e4-9ece-bd3a3ddfaa08","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64ac5aac-df0e-449d-8d3f-1b573bd39a23","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":59,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"27f91fc6-453a-4394-a6af-e14096295fe0","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":59,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"c568c908-2e31-4902-ad15-93f7a1025b3b","block_type":"box","text":"Call Options.","page_number":59,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"87702ba1-a2e7-44aa-8149-976807a5faf7","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":59,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"8d460a13-4da7-4efc-b396-b9fb99b2f961","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":59,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"6b691f61-0743-40a4-8a00-bf8048350d85","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":59,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"b3555d18-f5fd-4a30-b8a4-8a8456592c56","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":59,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"b0982623-1bb2-4f46-9343-0e5a8b75053f","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":59,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"886289a5-5b21-489e-8d45-88d41aaddc86","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":59,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"bae3497f-be6e-4f9e-ba45-da638db4987f","block_type":"box","text":"of the option.","page_number":59,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"14ec2350-4306-4e3d-99b4-d452518c653d","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":59,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"a137d114-e030-4cae-be88-96769b833c01","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":59,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"325f71ef-926a-44e8-a087-3acca1e23735","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":59,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"afc9702a-0eaf-42e0-8d42-ad4ee638ffe0","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":59,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"2ecda551-552a-4b2f-a0d9-0c4df3c826a6","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":59,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"c63c714d-39cd-43ff-b893-bdcaa687d481","block_type":"box","text":"A Fund may write (","page_number":59,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"048bcb93-e337-4ee3-b82e-178a06f416b7","block_type":"box","text":"i.e.","page_number":59,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"759d054e-4fee-4358-9922-09ff9187a116","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":59,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"bcc501fb-4e98-4f47-8fa8-cde0f4df3b00","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":59,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"5e05a68f-716b-4832-a9b2-6be2d9680a2d","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":59,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"5c9dd914-289f-4b1f-8447-af5e7a2e5a22","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":59,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"09636b3b-7044-4a70-8b30-ff77336c1235","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":59,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"68c63378-b6a7-42b1-902f-93e07462ffe2","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":59,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"8a2b448e-365b-4d0e-92a3-33c50854f5eb","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":59,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"a9f80fe7-b399-44b6-a2d7-e2143d283397","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":59,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"3c19ba30-eef9-4244-add6-bdb98d4c66ad","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":59,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"181306da-453d-4af0-bc2a-c6b188b2cd62","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":59,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"d75c3f4e-c28f-46f2-8134-e0cd12d1b9c9","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":59,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"d444c1ee-8edd-4994-8f26-b97daf660090","block_type":"box","text":"A Fund may write","page_number":59,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"022cd353-0c79-49fe-9334-7c75adf7589b","block_type":"box","text":"(i.e.","page_number":59,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"8122cb37-b094-4d3f-8777-4c5d213608d6","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":59,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"c2a3a8b1-fee8-486d-be63-4da261079b84","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":59,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"e1193461-7a39-4054-8fa9-0f20a08afede","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":59,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"f1c0c863-d6a6-4f41-a6d6-f5095a5dc749","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":59,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"936c00f8-a569-4ed0-b3b7-64c6d86d4281","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":59,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"10628463-7e87-4118-bcbc-6e6f4fff4540","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":59,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"e909dedb-179f-4644-aa46-7cdee286b5b7","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":59,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"a183fc5d-ee1d-4c8d-be4e-0581a60fec1c","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":59,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"de3b3672-f4a0-4ec3-8ea0-a452c4ef3c09","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":59,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"507e0379-2d86-413f-98ab-0703543d98ec","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":59,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"0d4eccef-6c1e-49fe-bbcc-96c0bd1c70c0","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":59,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"5febb165-b4f6-4037-b649-0beb8e5baea1","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":59,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"3f6dbd9b-f495-4eea-ab61-d900255d5a63","block_type":"box","text":"Put Options.","page_number":59,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"fb038f73-89f3-4ec1-9faa-9fd32d2ec6a4","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":59,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"7d1ac637-869f-41ea-a1c2-e900be848b3e","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":59,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"b4d6ae25-c25e-46ad-a02f-0bec3d18fea1","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":59,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"7a9ae1a3-d52a-44fa-84ef-27bcb40f14a3","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":59,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"2c49f39b-03c4-418b-b735-4554c0730c8f","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":59,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"677f4fb6-f5e5-48d7-83b3-d4256d5472b0","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":59,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"93e603b3-d625-45da-8339-d0ce1ace68ac","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":59,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"c8a40bcc-4dc8-4451-826c-a3b6171d273e","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":59,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"d016865e-7da6-4574-8210-0341a0087af7","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":59,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"5fe9e27c-1099-42d5-8f6c-7ec7c00973b4","block_type":"box","text":"purchase uncovered put options.","page_number":59,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"6140c2d7-297f-40a6-8d06-cfd6fd170440","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"d337a2df-8c6f-4df8-a064-d653c2f2e4d5","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"cebf6e44-e973-4ddb-bf43-5ee66af9e041","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":59,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"bfedf92b-e3f7-4b83-af29-d4bf488e2108","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":59,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"562059a2-6096-4599-bdf9-d74a450b6d80","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"bb392768-14f2-4ae9-b0fc-2d006a53dfce","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"b96ceff0-5dee-4da6-af96-8b1126173325","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":59,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"755f8ff7-e7d0-4b76-87b8-01a40e328754","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":59,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"99816dde-91ee-4fbf-b0c9-7ae95f982f84","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":59,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"f6bf961b-90c7-411a-b5ea-27fb7d3e0f52","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":59,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"6156bac3-78d7-4966-ab01-1d24ba14b097","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":59,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"a42a8ec1-a8f2-4262-948a-38f81c495a6e","block_type":"box","text":"II-21","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c5e2edc-7258-4752-8121-ff661f95f1a7","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1029c31-f206-4643-b95b-4fe8709b03b3","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":60,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"d2baa412-7834-4a37-8230-c0f7eeff8ebb","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":60,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"ee364d85-9212-4afe-b813-05061b273d62","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":60,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"e2f84416-73f7-429a-9f71-5a2952502402","block_type":"box","text":"the exercise price.","page_number":60,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"c942ccac-a275-4cef-a206-d55cdb92221a","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":60,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"dfe58384-0e5a-415e-b0fe-813f40b2cb7a","block_type":"box","text":"The following information relates","page_number":60,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"47013080-47a5-4392-abe0-6e07bcc5bd1d","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":60,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"ca2d82a1-cbc3-46b6-9018-4ebbce83580b","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":60,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"d7ba1fbd-fb90-4a0c-8d01-8019735e60c8","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":60,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"18cb6f1f-5232-4692-859e-c5546e344b58","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":60,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"a626d1bf-b2fb-4358-902d-78ad885e89ed","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":60,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"a019eb3d-c862-4f87-8197-1eb5868daa34","block_type":"box","text":"market in order to maintain its “cover.”","page_number":60,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"34f59d7d-acf9-453d-a3e4-88b52396e5a9","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":60,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"39118ce3-1ffa-4acf-8124-e30722fc148e","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":60,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"dc56b9ed-aa4e-477d-8398-71da4d3ba518","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":60,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"892954a4-e157-4810-9b24-7148e20c8f60","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":60,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"b9631417-5572-49d6-9b79-75ea54053017","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":60,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"6d96de18-138e-4d4a-bd25-31055e610aa2","block_type":"box","text":"and incur transaction costs.","page_number":60,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"4ea97d4a-31a2-4a2b-97b8-943f1080a60c","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":60,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"93dbab48-5aa1-489f-928f-ca53f1315187","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":60,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"c98d5f5f-bdb9-49e6-bd9c-8bdf8857f72c","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":60,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"5e943306-13e6-48aa-a586-20d504986eca","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":60,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"020c8928-e43a-49dd-a74b-39c8d4fffd97","block_type":"box","text":"i.e.","page_number":60,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"de036b4a-e18d-41e6-8a4d-424784dc83d4","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":60,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"45454ed6-e2e7-4ffa-a4ff-81d0ffbcd5dd","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":60,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"4471f0de-f56e-47db-b1bd-70d6cf147e8a","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":60,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"05a37550-f5d3-4485-969b-0adb3013e833","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":60,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"067bf8c9-10a5-485b-93df-3ad056ac6b24","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":60,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"b0e416f7-c9f1-4d96-b779-d9143de0c428","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":60,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"1712b6e2-9236-4350-9d30-8b245eb98ac5","block_type":"box","text":"required, to be cleared.","page_number":60,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"0d626869-30f2-43a6-b963-ea73dd248e36","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":60,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"7a5a571d-63f8-4cbb-9827-00fc519d55a6","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":60,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"85e742c8-3982-4a6d-944f-4c4531e73ec8","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":60,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"d14eca22-f9b7-4a83-bca9-ff6641e31f59","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":60,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"b576e36d-25bd-4ced-8036-6d7959e3b3f6","block_type":"box","text":"Derivatives” above.","page_number":60,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"2b9e4173-3776-4e2b-8c3a-adba80e43803","block_type":"box","text":"FLEX Options.","page_number":60,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"bf1193c6-bbf8-4a2e-b65c-929d55ee86b1","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":60,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"4076cb2b-4679-443e-acfd-130ec5747bc0","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":60,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"cd19370e-7c71-4571-b127-7ea41799637a","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":60,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"ff6e3f30-71d7-410f-99b4-7c501c2c1cbe","block_type":"box","text":"exercise prices, exercise styles (","page_number":60,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"09bc0294-2e12-49fe-99ac-b79e77ec7d42","block_type":"box","text":"i.e.","page_number":60,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"b8d8a3db-524a-453e-a333-f264b5b09463","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":60,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"d51cccd2-973d-42d1-94b7-8d07bbff61d0","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":60,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"b6fd8135-5064-4874-862b-6ce06d4d9573","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":60,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"38cca5c7-42a1-4534-bd56-de1c9387a37b","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":60,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"87f022be-3bde-4d5a-8319-d2f9f89ed188","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":60,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"91f35542-de6e-46b5-be05-c843bea63927","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":60,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"7ff866f5-6dca-43f7-979a-7f0541b868ee","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":60,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"0b1e6210-4547-4537-9855-1319d618e255","block_type":"box","text":"FLEX Option’s expiration date.","page_number":60,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"bf1c6031-ee01-4b15-8714-695beb79cde6","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":60,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"2a5e699a-a335-4613-a45f-de25b561f41f","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":60,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"fc648584-672e-4e14-aee6-2ba48a374520","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":60,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"bcd303ec-610a-418d-a8be-03a0a3782d0a","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":60,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c32cf091-2cd0-40cc-b915-59b638b3a7dd","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":60,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"6de2f6b4-a5c8-446c-81a2-b334b2372b32","block_type":"box","text":"FLEX Options contracts.","page_number":60,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"01b223af-b6b6-402b-aba6-afa48cbf13d3","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":60,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"b961098c-4379-461c-a8cf-134ef0429400","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":60,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"244823e6-61c9-4af4-94a4-40e4f26791b7","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":60,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"7cc7b684-8826-4f20-88b5-9c2ac9644321","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":60,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"3e6562f4-3e16-4733-91d9-a7a09f9b0a70","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":60,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"0ac4ff91-df22-480b-b449-55699f19530e","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":60,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"9bcb873c-3177-4438-8599-83ea9ac9d2c6","block_type":"box","text":"II-22","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de33e561-193d-4215-b14a-945e0ac9a362","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61781136-c366-45f7-b063-42cb44922b7c","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":61,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"cece4928-5d7c-4010-8274-73ebf5405460","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":61,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"6fba11ed-c13b-494d-98ee-9a0e1248f504","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":61,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"10047ec4-73a5-4810-9e56-40eac248e112","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":61,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"94fa300c-3d1d-424d-be5b-9ca4b877abe8","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":61,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"542added-04b0-44c2-9e96-d6bdf81aa104","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":61,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"c3168b05-e929-4822-b634-bc34c080b2e0","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":61,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"d447f584-dae8-4f2f-9c72-5aa3779cf2c8","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":61,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"4b7d2a7e-30f0-408e-9861-328db36e512e","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":61,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"198849a6-0231-4992-92ec-faf4435cb0d3","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":61,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"6d04c1c9-c8b3-46de-8bc8-b66a4d2c01cc","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":61,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"84655897-72d4-41be-b379-8dcfba812934","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":61,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"d079286f-4e09-4671-8c28-64dd2635b761","block_type":"box","text":"expire unexercised have no value.","page_number":61,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"716f2f43-e1b0-4298-9368-8249ccd22adb","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":61,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"5bc5e8a1-2c1f-4292-93a1-b7317bb6e7ad","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":61,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"22ff0ef1-21f8-4a45-a24f-4e4fb887ab52","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":61,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"ff62bb15-8fe3-48f6-8581-5bcef6c2648d","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":61,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"7859263d-e6f7-43b6-9ea6-d5f75b999b47","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":61,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"48c91c87-58d6-4e3a-a865-c41fd8f89950","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"69807a09-604c-4b8e-92dc-ef770f2c9d39","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":61,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"3d8b7e48-cdad-4645-b072-2ad8953f8a4f","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":61,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"ed89f9a6-bc9e-4d84-8c00-f551aebe55b9","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":61,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"6d18e2f8-cc6b-4349-9085-0e8d9d9229db","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":61,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"f3a8df1a-06f5-4225-804f-a2c21ce13f2b","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":61,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"d2c0ed5b-a8d1-4f8b-8dd4-9e23deb0cace","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":61,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"c4718803-b59f-46cc-8593-f15804142e3c","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":61,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"018f88cf-87c3-4350-be47-1a1d179c690f","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":61,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"5816c621-6e93-4c49-97ae-0432e2fcbdc8","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":61,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"8b2183a5-a710-48a8-a583-2d928698e20c","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":61,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"c57168cc-4d58-48fb-a05b-1b4960c8c71f","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":61,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"e19a2f80-fb43-4751-b44b-6bb3053a6781","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":61,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"302a6cc2-3ce1-44cb-b444-24f62944ca76","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":61,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"73eed5d4-061e-45d2-8655-af9272992c4c","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":61,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"691ba8a4-0e20-4437-b7b0-e658ccb95dab","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":61,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"570c55f3-23f6-43a4-87a4-d1d8648d5c83","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":61,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"21cbd03e-3013-43d4-ac37-99a1de95710d","block_type":"box","text":"Foreign Exchange Transactions.","page_number":61,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"e802a779-efe9-40c9-9b72-9c4e18cf2104","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":61,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"365c9e13-a195-4d84-913c-2094bb8e6f3a","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":61,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"f77fe9be-ed6c-4db2-9f9b-9bf37940ca40","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":61,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"5eb10b1c-dfba-4937-b525-658f7c3d20fb","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":61,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"0664d0b9-2901-482e-b772-24d864c636e7","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":61,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"33a033e3-c0da-479e-a33d-9c8ba77dc7f1","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":61,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"9ee620a8-aada-455e-a6cb-454f622925dc","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":61,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"a7918aa5-734c-41bb-a402-c5f2131513ce","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":61,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"e561c4d2-88eb-412f-ac09-2b15653c29d9","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":61,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"68e3d175-2d7c-4d6a-aa00-29f21afef751","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":61,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"f0e06cfb-34ba-4ad4-9924-6936edd36ff9","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":61,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"94bf0316-64ca-46ae-9193-2b310068f4f6","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":61,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"c7164add-9399-4d12-98d0-94c14677780a","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":61,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"fbfc77a2-cb88-414a-9640-c03fa434cc5f","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":61,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"245ba29c-494a-44b6-b847-c8ffe7cec92a","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":61,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"f8182564-4f7d-45be-a6b9-c0167fbb157a","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":61,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"e8b837cc-000d-4987-99b4-2bad1262d3c9","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":61,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"81b7f359-3086-4dd6-9a7d-e449f436cf59","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":61,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"1b192434-344d-4038-b780-f4c9fb57a751","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":61,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"1f48b619-7218-47a4-bda1-6d87714d786b","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":61,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"53348dd8-bc39-4bcb-baa8-30e10fe22abc","block_type":"box","text":"II-23","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"987880e1-3e34-4e3e-a472-7b0207c41cd4","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c72f3610-0b5c-45d5-8e30-ff808c962f8c","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":62,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"1f48f8b5-9cb0-421c-8e7b-b1f10fc9862a","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":62,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"87f4e143-2b68-487f-83ba-90a15f2fc00b","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":62,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"90664dc3-88bf-40c9-965b-53983bc16c6d","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":62,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"704884f1-2c77-432f-aa21-ed1b0ed0e25f","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":62,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"97e49339-44ec-4601-835e-c6e6e4d9750d","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":62,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"ff2c57ba-56d0-4a7d-b5ee-9643ba0851b5","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":62,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"343d75c5-e2a1-42f6-ba34-3f060ff03b02","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":62,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"fc9ab14f-2a64-4e9f-9dcf-f1dd7b40fb2c","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":62,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"2c8b1b9c-9636-4f9d-87fe-74e91deda586","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":62,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"e2598774-5296-49b3-80f2-f8824dd12283","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":62,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"e4301007-0a56-42e3-a1d4-6f84e2c255b1","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":62,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"f5e94dac-1375-40d7-bce2-06100e576b38","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":62,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"18db560b-5463-4bf4-bd2c-ee5ff940b4d5","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":62,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"6b1caa9a-820c-481a-8944-de766b72d315","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":62,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"8451603e-9c1c-4b1c-98b5-aff867c3be47","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":62,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"6d16108e-448a-40ae-836a-21caf072822b","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":62,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"cdf8ded4-e38a-48a2-b2c6-d3d4a3da1520","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":62,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"45736b25-fb2c-4571-ace1-c03ca0488f6c","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":62,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"23c5340b-c1e3-45fc-82e7-3909229d2833","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":62,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"4421b34b-7da3-440b-ae37-2e5dcdb1b901","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":62,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"679d28ec-a326-4239-9f19-e55b4dd6d563","block_type":"box","text":"involved.","page_number":62,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"2c14e144-91b4-4e15-b0dc-ef16de406c76","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":62,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"93ea8953-ea0e-4d85-9535-384631c4786f","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":62,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"b9bb61ea-9ccf-4a3e-9057-c4ff473aeacf","block_type":"box","text":"denominated in such currency.","page_number":62,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"82bc067b-71dc-4127-bf6b-12032904a5a6","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":62,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"a82becb4-b4af-4c1d-80ff-7f8eb8e6a191","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":62,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"0eb4513d-c9ba-48f3-9c1e-f22a88ff3ea0","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":62,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"b2b81edb-3121-41cd-9735-831c4b03fe31","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":62,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"739d4698-04de-4f33-87d1-c99d486c43fc","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":62,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"cd52d39e-55e0-4308-88f0-ea0efaf1396c","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":62,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"b20664b3-4a9f-4eb2-ad94-6e043d04b440","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":62,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"069bb321-f6a7-4c12-a07e-ed7f150ffa68","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":62,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"e2f37bee-6f61-4e43-9851-0e8ee4500684","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":62,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"4577cdf2-e9a5-4fe3-8007-c97f2711d0b2","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":62,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"b95b9d00-6d85-4790-b6aa-d56eb520a11d","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":62,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"8dca88e6-8ad4-4969-834c-f556d9704bda","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":62,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"424cfdb2-73d9-4232-8814-b6a4639215f3","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":62,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"d3abf112-aa69-41d8-a745-72fc3a4cb369","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":62,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"6a7bfd96-9a35-4100-b50e-3b7a22d6b73e","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":62,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"00b40739-7f1c-4375-8082-174de1525e06","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":62,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"d81ea19f-c18d-44b9-8dde-6e1052de4213","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":62,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"85044db0-2be7-46a1-ab04-058199f4344d","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":62,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"b8cb352c-369f-4365-b9ad-5313734f0cd8","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":62,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"3a787a82-9046-4012-8173-2ad99a395522","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":62,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"848f4f72-7440-4ee3-804e-89fa72b3ca3f","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":62,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"700f8f29-7c67-428d-b8cd-e14bb354b85e","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":62,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"fec18727-bd7b-4f7f-997f-0bbcde217c4f","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":62,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"2befff11-6c86-44f8-907c-407c6ccce8fa","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":62,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"559b01cc-f17f-4ba2-a6b4-77cb0805c1b9","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":62,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"b35287ca-3ff5-40ca-97c5-80193e33e6d8","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":62,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"4d48513a-8d99-435d-9758-d7daebb95df1","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":62,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"f8752094-75b0-4acf-8ae5-f7fa21b38469","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":62,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"839a9ed7-f910-4095-a787-b348abb576ad","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":62,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"059ff564-4017-4e81-a289-50afaa389c77","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":62,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"1e3eed6e-bba5-4be2-bafe-f0af9486e27c","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":62,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"58df4205-e235-4764-9fb0-f55a27603b0c","block_type":"box","text":"II-24","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ac34fae-5160-4ca4-a98b-43d5bce9afcc","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"536bb37e-212a-450a-9651-e9f7409d9d22","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":63,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"708b2a56-e9b7-433b-8fc0-a387f030911c","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":63,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"4752176b-40ee-4e4c-b747-b05fba9751a2","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":63,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"7bfd0099-5b59-4e02-9c3f-8c21a0b3a029","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":63,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"f9d5207a-4865-4e51-835c-1d3d89bc5245","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":63,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"9f3c60e7-a848-426f-862b-8dd23e64cf1d","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":63,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"8b1c5000-52f2-4924-a82e-b922b1113440","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":63,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"cd08624e-2abf-46c3-8508-f5cf3e8d25a8","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":63,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"ac0287d1-2199-4848-babd-ed0a116852cc","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":63,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"dc52eccb-e4d0-46bd-be97-bc3f2c440ff9","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":63,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"010aae25-4d85-4724-9efd-ae9beb51f4b9","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":63,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"cee87348-a024-45a2-9453-38159f0a27c9","block_type":"box","text":"traded.","page_number":63,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"2a9ccded-6093-4f48-9ace-687bd7ca5408","block_type":"box","text":"Currency Futures.","page_number":63,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"3af90ac5-83a3-4d7a-8670-47392ec17eff","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"14330b4b-fd8d-45b2-986b-e2768ba699c5","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":63,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"ee63d0ab-b34b-4c0d-89d6-98eb782e9fad","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":63,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"42d2dfc8-fa75-4153-81d2-9f0a9a67ecb0","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":63,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"4dc272ee-1fdc-4a00-8aa5-e4f5acf9f586","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":63,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"6c020e9f-6e42-402f-bb69-be45abc14b99","block_type":"box","text":"Currency Options.","page_number":63,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"57e1b0a9-a49d-467f-897a-334f8f212e92","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"a2166404-5f23-4f1a-84f2-04cf9ad00298","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":63,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"cf7b700d-1361-4856-9bba-2056b0aaa15d","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":63,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"d7b34fec-0bea-40b0-af8e-237cb3602c52","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":63,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"41d727e2-c72e-4337-a7a1-4c038b323d50","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":63,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"63f5897c-816b-4088-ba79-6d5b6244438a","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":63,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"aada9ffa-f893-4cf6-8014-cc1afeaa0975","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":63,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"24ac8d33-fb93-45c2-b5ff-18a9f3277256","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":63,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"abe1f417-fba5-47ee-90eb-6404118838a9","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":63,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"e5398d17-f152-4e33-9c3d-d5d99fa5e2b7","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":63,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"50baf2c1-3d89-4a2a-a340-6e5bbf46cd65","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":63,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"4f4d3411-084c-4f0e-b2fd-aed30789fb79","block_type":"box","text":"Currency Swaps.","page_number":63,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"9c3e7ad3-67a3-47b3-b67e-2f23fd6ba9b8","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":63,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"4c3b00d6-31e6-4134-b7aa-93e34cf9dad3","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":63,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"c0a77487-2c67-4c64-9711-7383f4775a7f","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":63,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"32a38a9b-4f4b-43ad-96a6-495da6656fb4","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":63,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"cb637951-e0f3-4ef5-9db2-229a2e6b3f9e","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":63,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"415e427f-ae99-4a96-88cb-75bd76d33057","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":63,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"df852408-61e4-4c58-9a9d-2dab38fe9a9e","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":63,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"0b3a112f-8fc6-49e8-85fc-431b5f807e89","block_type":"box","text":"Distressed Securities.","page_number":63,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"15bc247b-8b37-4ada-8206-7d63845ccaf2","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":63,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"49b8cfdc-d4bb-412d-8346-d4c1e0d820cc","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":63,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"e676020b-a383-42bd-813a-58b35dc64c17","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":63,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"3eaee34b-abff-4340-a1a7-dd15d620ee03","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":63,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"3295c319-54ce-499a-a289-6ec859636bee","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":63,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"31bb9809-bffc-4752-8e8d-dfb180822775","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":63,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"1d0ca21d-799d-4d2b-a2a8-35d870cbf1e5","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":63,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"f3e3929c-cfac-4c92-a5bb-7180bf65ada3","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":63,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"c7505d90-7cfb-4564-96b4-a8f07812b22c","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":63,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"a6f792c8-2b17-422e-b7f8-f6a1606cc5fd","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":63,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"25c27ff7-6cff-44aa-afbf-2d1f9af0a7a0","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":63,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"acf4f982-d6b0-458d-a51f-64c44d299a01","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":63,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"b635b04c-b269-42ce-a2aa-14b6eaaf0804","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":63,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"d3867079-91b5-416a-a2a6-fc9346e6dc5b","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":63,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"7ace4170-b902-4dfc-8186-a6bc915e0a9f","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":63,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"e6af99bb-a2c8-446e-985b-48b82c4a22ed","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":63,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"89a2d860-8d1c-46f3-92dc-e30b43d7b4dc","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":63,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"d41df2d1-5867-4023-8dcf-365ab5f50fb0","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":63,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"ce494469-7a15-457e-bf48-1fc29ac3005b","block_type":"box","text":"satisfied (","page_number":63,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"57f20874-48a4-4941-8376-9971e33312ef","block_type":"box","text":"e.g.","page_number":63,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"65641693-03ad-4e7f-a1d0-387a8c5f073f","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":63,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"e7354af8-7704-45cd-a3df-30c1b9b2a2c2","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":63,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"b67688ee-5cf1-4fcd-8996-0a6f71b44ec2","block_type":"box","text":"II-25","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"96b4f70d-25e5-4625-9b52-9ff19fbcdf57","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a197d488-d2b3-4454-9968-1b386ecb6af8","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":64,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"98b189f8-ae9a-415d-aa0b-45ebc98b016b","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":64,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"08eeec52-7ace-403e-aa5b-80a8d6577de3","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":64,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"fbd3300b-bccb-4cb9-9bfb-a9047ff548dd","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":64,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"a37e697a-6ea3-4fe9-8f5f-91434a8277e0","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":64,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"98b98336-bc9a-4f56-a973-7ca6e0be591b","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":64,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"9bc47f02-36bd-41e3-a5e1-9d7ae3279921","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":64,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"a665f651-e2cf-4ba4-b73a-5a0efe481c83","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":64,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"f29106bf-1c88-4da4-a597-ece81e2c453c","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":64,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"c333a43c-d396-4ec6-8990-c403dabbe398","block_type":"box","text":"affairs.","page_number":64,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"1b94165f-460b-433d-b0ad-fc994d9163ab","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":64,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"9ca148f8-4b5f-4d04-836f-13766945f5fb","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":64,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"4fc87a74-51fa-4336-aa29-3caea670f103","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":64,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"3bbe6f16-170e-46f5-a6c2-228da9f850c5","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":64,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"16c1cf2e-5a38-4462-91a7-1747bcbc1394","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":64,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"c0dfca9d-0c70-4e88-b7d7-9116946a2002","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":64,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"93b962e9-2593-4c1a-bab3-97c09d079a80","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":64,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"edcdf6c8-fffe-40e7-a5a6-c834c85498c1","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":64,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"3855fd16-92af-4baa-aacc-6e3d0b568d52","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":64,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"6619cafa-379c-43ec-9977-5ab28fd0f9ac","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":64,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"5cb524e8-99f2-4b4c-baac-1136f7ddc0e4","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":64,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"f87961a8-ab6b-4550-851a-1928b9dd977a","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":64,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"5a060687-775e-4271-968d-2e77ab2b3c80","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":64,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"54534e13-c002-4baa-ad08-ff0548602612","block_type":"box","text":"Equity Securities.","page_number":64,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"1be9734f-4c8e-4641-9d14-873ecb50e750","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":64,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"6633d662-a934-487d-8ce6-d88b1c8c3642","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":64,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"58f96b64-3f12-46c4-8fd3-61b40498d886","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"dd0be860-9bde-4151-a217-5f5416a88763","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":64,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"c207222d-0a92-437f-bf00-b3f58a6b33e6","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":64,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"fe289f25-f95d-4756-8e18-c671154dcb5a","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":64,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"4e92b1cb-9e32-4ada-9660-9bc088094401","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":64,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"29f23a82-e857-4fd3-81eb-12f609f4df0a","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":64,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"2f4f0b12-c42a-43cd-86d1-38bc68f46f69","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":64,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"6a5c4589-c1c4-489b-ab78-ce060ca061e7","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":64,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"c6a7aaea-6a44-4fc8-ae33-3bd3c7d720c6","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":64,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"24c29a08-aa07-4640-9ab5-2ee5210f74b0","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":64,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"d83a7fa9-d136-48ac-83dc-6ca0a708afae","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":64,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"9a3d1e6d-c358-47db-9ca1-42c920e7bc3e","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":64,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"e0b75c48-6dd4-43e3-a1dd-ed6579a7a024","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":64,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"b5aaf29e-de6e-4590-aa29-fab66ac4e895","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":64,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"e71e801b-0ccc-4adb-8480-ff62f1dec8b4","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":64,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"93b036d8-a977-484a-8814-8b7affba70d8","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":64,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"5530bd0e-1b84-46af-863c-ded0830624e6","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":64,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"fe9ec888-55a0-4e75-a23c-4693e4d6fb23","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":64,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"8fa297a6-5e4b-42cb-81ba-de421a0d9b2f","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":64,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"68e1e2cc-14c8-4650-8941-0d1c9a1d8944","block_type":"box","text":"initial public offering.","page_number":64,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"d812defa-9330-48e3-8815-d0c767cd2cba","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":64,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"fc133d9e-936e-42af-b44d-cd15d4b3cc22","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":64,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"d8fb4f44-984a-4b79-b7b6-5bbd44b01952","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":64,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"970fe4c4-fc50-4047-8557-c94fa4f0e979","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":64,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"bc91edab-cb17-45e2-9998-b5aaa97451af","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":64,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"cc3a289d-7215-4cd7-85ea-43d586e7d36f","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":64,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"b2ff1533-5a72-4770-a5c9-f3ccf77ca52e","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":64,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"775d0f8b-8c7c-4f1d-bfda-dac420081f16","block_type":"box","text":"more established companies.","page_number":64,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"b1516323-2c5c-404e-b427-7bb3c5da4311","block_type":"box","text":"II-26","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a3325d1c-58de-4d4b-bc7c-8f8fb099a2b7","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e0ddcc9-1185-4464-8595-1a1dc23ae106","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":65,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"12c00ab2-4e9d-48b3-98c4-09f2ef2ed796","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":65,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"db9514a1-c937-43d9-9467-11ef772b3bb2","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":65,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"e8a6a0ba-94e9-47a0-bd5d-2e9a8915a93c","block_type":"box","text":"below.","page_number":65,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"02d71780-fbbb-4aa5-bae5-f274fdf4bc66","block_type":"box","text":"Real Estate-Related Securities.","page_number":65,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"57f82b6d-8363-49f0-b318-d385b81fb987","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":65,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"8ce6d055-4059-44cc-80fe-0e8351c4a1c7","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":65,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"9eb82021-c003-40b8-886c-d4dec2900bce","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. 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To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":65,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"5df1d3e7-1c08-4693-a190-a11009eec461","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":65,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"b0033454-c128-4054-a3de-9f4dbb2c0deb","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":65,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"88ab8aa4-30da-4110-91c0-63f3c8241ec5","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":65,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"f83bb701-f45d-4f9b-8733-48aecf3aaa4e","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":65,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"80f835f2-682b-4b35-bacc-2ac8909bbf85","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":65,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"211fdfba-70bb-4ed8-a5ca-186ff6f8b909","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":65,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"32a25b38-3a83-4e34-aa63-7b58ff86c5db","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":65,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"735c5528-4d12-4604-9d29-7bdc7d9dce4e","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":65,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"d32acdc7-0d39-4363-b5dc-75b828f0eca6","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":65,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"141fa5d4-6199-47ad-a0f7-538b99b91159","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":65,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"b1475135-fff5-4f75-8af1-4f6791ed2363","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":65,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"82d193c6-0947-4f2c-a93b-3106f69163ca","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":65,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"0cdb8e68-2df5-42d9-b416-a9a52801016e","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":65,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"227e53e4-39fa-40b7-ac61-2cdb01d62789","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":65,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"aecb1888-a2db-44ec-a361-3090924b93f6","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":65,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"24d35f65-fca6-4b6b-8318-51c9cfbb33d5","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":65,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"596cc9ba-28fb-4ea5-a6f6-8a3e354fca7b","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":65,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"ed8aba72-c176-47d3-af91-864b134d9d47","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":65,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"bbe2cee5-3b8b-41d8-a51b-75bac0e59819","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":65,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"09f30d64-8612-45ea-8993-32c98be19db3","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":65,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"1be24e94-f344-4a4c-9721-3ae72a3bc189","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":65,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"247e291b-dd98-43e6-96a7-53b85e377e9d","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":65,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"d786fce4-0f2d-4aaa-8181-6935a6cf3c85","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":65,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"47fdc03d-94b7-4296-a512-31591771c030","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":65,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"f7a00d8a-7e09-4fb0-a7a6-1d747a4b1bc7","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":65,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"8518007c-b14b-472a-892b-32fc281d1920","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":65,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"584c05d2-e952-4084-87eb-3aa60ddac884","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":65,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"b2652adc-7ba0-4fa1-9cb0-ae94e38a0282","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":65,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"eee4bd88-9764-4614-b793-995e37333030","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":65,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"5223e8cd-9bda-49bd-9c4b-b480deac39b7","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":65,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"069c4c75-8136-4d5b-832e-41424e5e43ba","block_type":"box","text":"cycles.","page_number":65,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"0d85b9d5-b496-4850-9694-97797de02334","block_type":"box","text":"Tracking Stocks","page_number":65,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"33258214-e1bc-47aa-817e-393ee4f9d51b","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":65,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"f62aa6f6-8e5f-4fcc-a1fc-aa25d406f670","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":65,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"aec300ad-b260-4f76-9d65-bfaf59a12f77","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":65,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"f45b2628-a42c-497c-82f8-21376b5a5f18","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":65,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"25f479f8-fbd0-4582-803f-4c46ef8560ee","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":65,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"d01ad578-8efd-425f-b43a-9d67363a3b96","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":65,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"e8a1ab59-fe6b-44bd-9864-5588a4fa7a60","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":65,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"34ce1d76-2175-450b-a95b-e0959aa032fa","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"0ff6177a-fcb8-4f1f-a01b-846155c01d03","block_type":"box","text":"II-27","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6a7034d6-8b48-4ff8-bfdc-0b105721114a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4719e6f2-9c6d-4729-b15e-18ab7ff4f9bc","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":66,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"9a72e89d-3fff-49ad-8856-ef07d682940b","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":66,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"f104f1c3-c135-4cae-bfbb-a7deb7f2e84c","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":66,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"513a15f2-de56-4d5b-9417-332eb324598d","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":66,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"9c51263c-14e3-4a2f-a85d-9584e7f576b0","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":66,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"46253877-126d-44a3-a4b1-8cade4952cfa","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":66,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"5b0f57d3-5816-45d5-a74d-46b25990c5c0","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":66,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"5a684c76-dfcd-48c0-97da-dc1796760a7b","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":66,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"f90bb933-f323-4f74-a0c7-62a5aa60f9aa","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":66,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"76223181-63c3-416d-a778-ce2bb9cac67f","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":66,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"94d9161e-2a7a-485e-bb57-2272d1d16efc","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":66,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"48f85ca2-b118-4ea8-bd0d-fea62ee608f4","block_type":"box","text":"ETN.","page_number":66,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"78b53a31-9432-4602-8c57-ba1fc08e1446","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":66,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"90719099-b4e6-45bd-aade-320df4cca7f9","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":66,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"52a07c35-47b0-4bb2-8198-8a394e3f0984","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":66,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"d4e62be4-b0ff-4083-b94f-690877e15ac0","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":66,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"93fa386c-4a9c-49e7-92e8-fde4cb8ef42c","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":66,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"40b140f4-e693-4a7d-ae32-03a7e418ecaa","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":66,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"ba6e4ee5-014f-4e1d-84f8-a8b648c7575c","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":66,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"2cf44274-5df9-4cd9-ab2f-bed11e3e2047","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":66,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"6ba3ee94-7151-4a88-8a5c-1e53e8895445","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":66,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"63bcc13b-a9aa-43e8-a04f-7027324a5302","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":66,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"1b4adda3-bc68-4ebb-b5f2-0faf3fdda514","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":66,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"c4e4da93-0a62-4d58-96e6-44c5feed6e02","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":66,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"e4eb193d-9848-45ce-86ab-f1a470b43059","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":66,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"086060fa-1576-4831-9e1a-b8fd14ec99ef","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":66,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"da5b097e-8c3b-4f4f-b122-40f749c0a03a","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":66,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"f003b5b4-087c-47ce-8e9a-d3db33275436","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":66,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"df4865f9-0fe9-4350-865c-be9cca36ab78","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":66,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"216fcfa5-3493-4f49-9abf-35979b1bb06b","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":66,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"e8024b1c-5a82-4cda-8b2b-d265bf7bdf72","block_type":"box","text":"Foreign Investments.","page_number":66,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"1de035d2-fff6-499f-9a3c-f80b19549861","block_type":"box","text":"Foreign Investment Risks.","page_number":66,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"c06aaae1-2d3c-4c10-abc5-5e00da9802f0","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":66,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"98ffbf4e-81e0-4131-aa24-6a3f679de1a5","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":66,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"a95a0171-d452-432f-a0bc-b173346276f4","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":66,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"b7a934cc-abb2-49e6-adff-d432d46cacf2","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":66,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"74cf6f0b-c8ad-4585-a08b-7afe99110077","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":66,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"d06eb1a9-f492-40b7-90c0-a1e83a1d8290","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":66,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"1903bcf0-d3b3-470e-a898-8952bf5bd5db","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":66,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"c0207973-7b87-422f-a69a-febfce8fa12d","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":66,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"8cca2022-e560-4d84-ae02-83a57c19dde9","block_type":"box","text":"benchmark index.","page_number":66,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"f96d38c5-99d8-411d-8e3f-7435fcbd07c4","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":66,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"bf9e6474-8a88-44ae-b48b-1f091885986b","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":66,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"e38f1ba0-a4ef-49b0-89e9-6273af8c78a0","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":66,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"80154aab-9910-46ec-a0ec-76aced391252","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":66,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"7e32566f-0760-4f38-b7f0-a79d64fed0d8","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":66,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"e560c197-a49e-48c8-a7df-b5ac5ba179c9","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":66,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"b6c86223-6ab9-45d8-8b0b-a2c53530b992","block_type":"box","text":"securities and zero-coupon securities.","page_number":66,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"0e829e0b-5de2-4650-aa91-d82fda9bdbc6","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":66,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"8fb64fba-d462-4d53-9455-b97832f8089d","block_type":"box","text":"taxes.","page_number":66,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"b079ac3f-63c3-40c2-a147-386444d80418","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":66,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"39539920-2280-4658-a140-e40d28b24161","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":66,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"30ad6896-18ca-40c4-baad-f30da185df16","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":66,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"ee855499-f6d4-4f00-8934-219e2fa3c7a3","block_type":"box","text":"II-28","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69cd4dba-6314-4170-9eca-6f79ff0a29d6","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"98ecbca6-f84c-40da-86c9-34610059fe0b","block_type":"box","text":"underlying security (","page_number":67,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"2fa18ea0-94a9-4d96-b34b-6ff07f5a1242","block_type":"box","text":"i.e.","page_number":67,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"67a74af1-46dc-4a1d-9303-d8caa6fc05fd","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":67,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"43ce584c-7a85-419b-bb3b-2dacf8d62fa5","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":67,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"66aa59f0-5e4b-4524-9425-f73598739c2b","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":67,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"43b21eaf-4fb1-4a60-aaea-5ac30ef4766b","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":67,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"814e9154-825e-4417-9651-046d6ac81289","block_type":"box","text":"Foreign Market Risk.","page_number":67,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"1ebd8fb9-8749-422f-9d70-e927edee8f15","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":67,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"b7cd364e-dc44-44c7-814e-5a4d340b768b","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":67,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"f1c88da0-464b-427f-bbd8-a6c296bf55be","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":67,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"5a55e68d-7694-4eb2-a9b9-8daec7e146c2","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":67,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"61526692-1b4c-4699-b129-789516b733b4","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":67,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"2774416e-4a8d-43b2-92e4-7ec1470df69b","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":67,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"4b49ef42-44e4-4410-a38f-473729a4fe84","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":67,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"88b4dd86-2a56-4597-8e9e-e4aab8a1e5e8","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":67,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"4e6d99b6-b7a8-4009-aa1b-afe6d8af726b","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":67,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"9732fc13-88b5-4de4-a6b7-83c3d4b0e605","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":67,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"d8993bff-29e7-4b2e-88c9-72d99ff91e2b","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":67,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"b22d5ab4-650c-4645-8308-c7d4abb47403","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"03d84bc5-39da-4e66-980f-b4b35f79f5dd","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":67,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"ed442b3f-db14-48e7-8d62-fc4aeced2218","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":67,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"39134c4f-340d-4617-a6f8-b918ef8cb6d4","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":67,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"cd629cff-fbc1-4a52-ab33-97d3af0d5f21","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":67,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"46b7a2f7-2ae6-4ff5-87a8-da609cd94a14","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":67,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"f6424ad8-38d9-4d1c-bfcd-58711fe137ca","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":67,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"90163151-e447-4927-a709-033856e91654","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":67,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"febcaec3-12af-4c09-8c29-266e7986c3c1","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":67,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"bdceb7b7-b996-4687-acff-c2875ebfc039","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":67,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"20e4ff92-c3ab-445e-a84f-f13b00108b48","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":67,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"ab5acd90-7e3e-43cd-8e50-234b3f998a5c","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":67,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"abd26938-818a-4867-a2ae-f304a7930d9a","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":67,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"5c1a3651-e7c4-41bd-a647-27df83a67c9b","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":67,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"fdf3ae88-2d00-445d-ac32-a80ab244977a","block_type":"box","text":"Fund’s operations.","page_number":67,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"e3f4a626-067d-428f-93b2-a8166a1fea69","block_type":"box","text":"Foreign Economy Risk.","page_number":67,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"58d0c4c2-0b15-4d08-af21-4175811727c8","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":67,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"63ee7f4c-995c-4416-92d3-4794f310bfc4","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":67,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"f225770a-65df-490d-a22e-e9fabb27c5f6","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":67,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"0b83a014-c438-45ac-8cf5-b52fdb0a0dc8","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":67,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"a07c177e-ecac-4ada-a5c8-85f479613876","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":67,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"53d0797f-6017-478d-9c5f-c04e271322e2","block_type":"box","text":"measures.","page_number":67,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"a7ce2dea-ba53-4944-9c3b-f8ec15c82e01","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":67,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"4e93bc51-9053-42a9-a5bd-8cda8bd90353","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":67,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"3fbf0ae1-e76d-48f7-a1fb-9fd303885fd5","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":67,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"c718c17a-7a7e-4a82-9721-f9e6aac84776","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":67,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"49ff5c30-1a01-4083-85af-438cb6a4d638","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":67,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"274ad0ae-0de6-4402-a100-b998b9591b14","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":67,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"5c858ac9-d9c5-4907-9d71-c7c23a0dedfb","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":67,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"44cffa2a-73f8-46d7-8685-eae6b609d817","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":67,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"eaef05b5-8910-4851-976a-924b9e0ff4ea","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":67,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"6deede1c-d45a-442c-8db9-555d064d5d6c","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":67,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"6b1c8538-034d-463f-b0d8-aaf83f67eb3e","block_type":"box","text":"United States or abroad.","page_number":67,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"1e83fbf7-cabc-4215-a6cf-bf037ce49bc0","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":67,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"cadf64c9-ef7f-42c1-bfa4-7929561b68d1","block_type":"box","text":"Many foreign governments supervise and","page_number":67,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"56494587-7150-485a-9bd3-8ff1c7b5aa1b","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":67,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"8a6ad025-0502-492b-a725-ca0bc22908de","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":67,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"35e5ac53-4510-4abe-bb72-718ec96e7156","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":67,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"47aa3a43-7b96-4e43-8a43-c4b7b7c39541","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":67,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"c7ce1b5b-5984-45d0-a463-6dd7d260e4eb","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":67,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"1d7f1931-cc97-4e3f-9955-be47f9761daf","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":67,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"5085cb20-70e4-4029-adc1-0468b9d30821","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":67,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"94af9015-8e49-46cf-a967-75dced51188f","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":67,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"d05f732c-d2a3-4e23-a31a-1134b0cc3228","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":67,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"822c5652-9e97-4c90-938d-b4bbe9144a0d","block_type":"box","text":"II-29","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f097fa21-bb0b-4396-8607-927a813b165d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee20846a-fd5b-4c71-a5aa-cfc9d2890990","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":68,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"301b28eb-8890-4d16-bf82-2f57933d28e3","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":68,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"1f2e1855-7f58-4a5e-aef1-ebc1415671ba","block_type":"box","text":"investments.","page_number":68,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"1515ff6f-8211-414e-9868-731fda8c95d4","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":68,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"8b7f5a31-a42f-4524-a136-0767e687247d","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":68,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"f92dc985-fbf9-42ef-a52a-7e0201eccd10","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":68,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"9c407ae0-2a17-4e20-85f1-a1e69f0c3b5f","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":68,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"aa69fc5a-df02-4a2b-87e2-4f32cc81820e","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":68,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"c97e7507-bc1c-4670-9726-bb30db6ebc9e","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":68,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"ffde1260-14cf-49c1-821d-8bb572408a91","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":68,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"4e8ce75c-2168-491e-bec9-a20566eac081","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":68,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"82fea6a9-41a0-471d-8ecb-cf1280ab2edc","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":68,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"eee6cad7-146a-4fbe-9e1a-db7017c5285b","block_type":"box","text":"States.","page_number":68,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"bfb18ff2-cf05-4f84-be5d-f99ca3d00acb","block_type":"box","text":"Publicly Available Information.","page_number":68,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"b6c180bb-381d-4aa5-a3ea-b0eaaf6394c2","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":68,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"5a2260a0-1389-49e7-9dac-1e7435463b16","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":68,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"f197f10c-8198-4a3e-9846-15e93a585b3e","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":68,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"a061c6b5-9974-457d-8256-7526dccc9dd0","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":68,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"8afb818d-fade-4d4f-81dd-2c9981b44954","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":68,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"014b2dbc-d979-4a92-91f7-8d503a14d922","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":68,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"fa18e266-6464-4b3d-a15f-604f45661081","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":68,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"844346a1-63f9-4843-bc49-c8a759eaf1ee","block_type":"box","text":"United States.","page_number":68,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"26f08d89-b11f-490b-8f62-cdaa67a793a6","block_type":"box","text":"Settlement Risk.","page_number":68,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"3c5a3fe5-cd94-406f-9752-c48f54b6f746","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":68,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"4873adbd-58ee-4e49-9102-a8d4ba5e3538","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":68,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"6ad6edd3-0f22-4263-896a-e462eb51293a","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":68,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"d2cf0780-3f84-40c6-bb0f-cdd110b1fd40","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":68,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"f9fbadd3-33e1-4098-a509-0f27de6b692a","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":68,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"4b44bc6c-e697-4cb3-a438-a4c0790b7b77","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":68,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"2246ad8c-d98a-4734-9593-3040f56db002","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":68,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"1c67309c-4975-4884-b040-a113af2bd7ff","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":68,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"31ff43d4-ec5b-4847-95cd-074faab322ff","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":68,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"3be9090c-8764-463d-ac8f-5950bb9f8e0e","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":68,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"96dd607f-b41b-463d-a5dc-4f5375d9cd80","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":68,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"899ee250-5ad6-4137-a980-0f172b331c64","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":68,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"65527702-e52b-4c26-a77c-2ba1e58a0c63","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":68,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"3b7592ab-44a3-422a-a534-17ad91c1ad51","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":68,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"06f5f496-cac7-4648-9665-3b1d00ba0e9f","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":68,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"24a03cad-25a0-4ba9-b7df-c261905c4340","block_type":"box","text":"Sovereign Debt.","page_number":68,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"a256de1c-160f-47ce-86b2-4dcc01d04e01","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":68,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"21a8ff5c-0d2c-4ec3-9174-5316c4c6fdd0","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":68,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"74ac2055-cb01-4fcd-b65f-3a40133908a9","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":68,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"93009cb9-f3b1-4d39-88aa-65df64e2ae3f","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":68,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"a9c188fe-5525-4ce6-904d-75c38715ea5e","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":68,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"3d50dcc3-0aa9-4474-97c4-540946208e8a","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":68,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"0eacf95b-6434-4bf8-9c40-572aa8e9aa42","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":68,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"0a8fa2ee-2e1f-43a3-a889-72080064f239","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":68,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"86581815-e42e-47fc-82a7-8bd6e6c7229b","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":68,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"3226eff3-cb07-4532-b748-fea6e171fb7a","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":68,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"27e8cd88-c301-43d1-a946-0156d7c60eee","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":68,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"3b3639ac-4f56-45aa-a378-48de6a2d98cb","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":68,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"4d19e3e0-135c-469a-bde7-ad2c370c95f6","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":68,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"1d13d82e-d4ce-4acf-a6b8-9b33b5342a75","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":68,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"70808cfa-d9af-4795-b1d0-0de5a1601b9c","block_type":"box","text":"debt.","page_number":68,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"365f491f-59d4-46a3-900f-462872d66605","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":68,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"f3ec5d1b-1fd5-4924-a076-7d6e73973987","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":68,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"b039077d-39d3-43a4-b62b-a732634e49f0","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":68,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"1a9e5b07-68f5-4c36-a7b3-20bed90651f2","block_type":"box","text":"II-30","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b05073c5-3f72-4aaf-8458-575a27c6672b","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d2bbe81c-e677-44ef-9a4a-85efab88fd78","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":69,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"c78aacf0-f910-4f9d-94b8-c0f7f4cb6744","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":69,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"9ab7f49d-80d2-4d65-8861-aaff3836844c","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":69,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"b84c02e5-86bc-451a-8abc-fca89047efb6","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":69,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"99a4016e-1b85-4540-8209-500372792f0a","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":69,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"2b534957-5a69-4454-bc30-985689860344","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":69,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"6e79a85e-7a7c-40d6-b04e-0b09814ea1c8","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":69,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"1a91b3b9-9743-4242-b023-c7ecd5641c52","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":69,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"bafa008d-3ee9-4bd0-b1c9-e1c0e48a043e","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":69,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"707d03b9-7f38-4b0a-b012-cf976d21211d","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":69,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"ddb8d726-2329-4aec-96f3-4caf38edc8ae","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":69,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"f6519c74-2cfb-4cef-8340-76ae69004824","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":69,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"83eed7aa-cdbe-42d4-a26c-4038418a4ec1","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":69,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"0617ffc0-7a1e-47a4-bb26-065688bf5ae3","block_type":"box","text":"in the Fund’s net asset value.","page_number":69,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"d3eef593-056b-48d0-ae23-7abed05ae020","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":69,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"990a0ea6-8d6c-4830-9916-d8e8cef7cd5f","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":69,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"f24cf2b7-3b98-4fe3-aad4-e956a630ef76","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":69,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"75522521-be39-4f06-a2da-69e3b58a7b93","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":69,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"c7da454e-8754-487f-964b-6f278244bd55","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":69,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"d210443e-ed7d-4fa8-b954-79ddd6858387","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":69,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"e7e525d7-e101-47da-91cc-45c5d90c5b71","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":69,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"e277647b-c36b-4170-9d7f-a262c1e3d00f","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":69,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"66bf3878-edfa-45b3-8dfd-f051c5debf54","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":69,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"aac56856-6dd5-4c04-8b40-43a76208f295","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":69,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"19561b44-8cae-4fb6-8b4c-062e4b13db9b","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":69,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"b3d1aa6d-7a3d-495e-800a-00a797ad3b68","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":69,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"c9d3b180-4335-4eb4-9090-c9c777287b0d","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":69,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"82cbb020-1aaf-49ff-9e93-6c5065d39338","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":69,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"5fdb6240-faf0-4f9d-a4d1-7050c3677318","block_type":"box","text":"Fund may invest.","page_number":69,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"44bd5d6e-d0ec-4cda-9b6f-0a26657eb075","block_type":"box","text":"Funding Agreements.","page_number":69,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"de9815ac-457b-4ec2-a8f2-9020d02ca9ba","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":69,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"273698b7-cb09-4ded-81e3-1683e9e39d08","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":69,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"51a9e9e9-fc7d-43cc-ade6-d787a70721f5","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":69,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"740556bd-8f94-4158-bcc2-12e96874977b","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":69,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"7f539e68-c274-4f91-89d4-4b4e023abdc9","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":69,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"567ab822-34b8-4276-b5a9-7ba7281ed601","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":69,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"024244e9-6dda-456d-a949-ca4690ec4bfb","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":69,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"c4efc7db-0c57-4ff3-a027-084fa9f388c2","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":69,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"8d6ebbc9-1818-4d6c-8f0a-fd59adb47f6f","block_type":"box","text":"Guarantees.","page_number":69,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"724c0ebc-4a73-4af3-afe5-b2e0303c5774","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":69,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"e8ecbd23-8b50-404f-8801-cadb797357f3","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":69,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"cf3dacbd-8ef7-411e-8303-d03c67c730bb","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":69,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"29f3ec48-a540-4932-bfa6-9e8666330037","block_type":"box","text":"Illiquid Investments.","page_number":69,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"6fa68b7c-1475-48d8-bb9f-8da0dba459d2","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":69,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"147daf69-5cda-44e9-96ba-d8b01d6669c3","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":69,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"79044f33-94d1-4037-beb7-e5b67fddeb72","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":69,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"089dafec-c332-4b5e-842f-279e0abc9503","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":69,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"22226f84-7727-462e-85c3-3a939622d296","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":69,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"f87b721d-fc38-48de-9121-36d84ab6f8f4","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":69,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"85564854-350e-40e2-b89f-02a9f54142f0","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":69,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"21df516a-d6ef-4352-b8cc-1827c0c67d79","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":69,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"bcfdbdb4-4d68-45df-9b93-00b5b3e5f4e1","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":69,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"f815fadb-1ca0-4d96-9b50-bf369ac06253","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":69,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"72818daa-af20-4ad3-9b71-9d4f82c25098","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":69,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"d7c1b8c0-b7fe-4e6b-91cb-144958012db8","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":69,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"6f972358-0fce-42e0-82f1-7b0f17e36e4e","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":69,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"44c1acde-7801-4150-8549-0b45e7e27e5a","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":69,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"6e8874a2-1ec6-4cfc-b32d-3d21e5c821f7","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":69,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"a4a519b3-3b65-43af-91d1-678793d090c1","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":69,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"081968f1-8c75-4b70-a500-0c69c3b28d8b","block_type":"box","text":"market opportunities. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":70,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"8bef6d4b-10ff-40a3-bd5d-b1362d881784","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":70,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"781ba005-2b48-4fce-8707-3b02491eea85","block_type":"box","text":"the investment performance of each index is a hypothetical number which does not take into account brokerage","page_number":70,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"11cd7c41-3339-494c-a905-02b444bc28a8","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":70,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"99e45e3c-4c04-4d28-a3fb-6f62c04ba68d","block_type":"box","text":"(","page_number":70,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"03aebbbe-0cb9-469b-8a2d-e75052a07e3c","block_type":"box","text":"e.g.","page_number":70,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"010e0853-9997-4218-a948-529fbb024747","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":70,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"c308f1e2-05a2-47f0-8b71-d24c4e02539f","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":70,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"c87dec51-9138-471c-be3f-36a1d96fb8be","block_type":"box","text":"particular security as an investment.","page_number":70,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"341828a5-e0d1-4068-b16b-0e828b4f6502","block_type":"box","text":"Tracking Error Risk","page_number":70,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"b45b5f8a-fa92-4562-b558-bbf99172a272","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":70,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"4137f607-0888-43ad-869a-29f9938d2a9b","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":70,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"a10a9aef-02bb-40a0-b102-d26bec6042c0","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":70,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"87ceb61c-2cb0-49d0-984b-1e69ad6ebe84","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":70,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"faa07610-5ebb-40e8-965b-1f0cbe538fed","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":70,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"bd54429d-caa4-486f-b3e9-5f964cf7670f","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":70,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"2ea5542a-d62b-4276-b380-68d93869a349","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":70,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"45f7bfe4-e37f-4ec4-af5a-1f5d40577aa6","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":70,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"cb5db9d2-c63b-467d-9608-27494d3eee80","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":70,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"49e98b97-ea85-4845-848b-6711f2bb3f1a","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":70,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"24639eb8-6bcf-4450-a420-f57c03d0195f","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":70,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"1c656316-2b6f-4562-baa7-02085c843736","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":70,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"3b7a2c54-a896-4ae7-9b62-3a37ff79964b","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":70,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"46f51552-e050-4685-a10f-44f38b261f1b","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":70,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"1d2c3cb3-f48d-4574-959f-87dc92aac09c","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":70,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"8ef0e93e-9e37-4860-9750-2d62c5254588","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":70,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"19d3971c-4051-4038-b4b8-e092ec45a556","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":70,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"0ec1c81b-d3e9-4729-a28e-379e1fe85177","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. The application of the","page_number":70,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"a5184474-7259-4c89-9f38-aae25f40bc6c","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":70,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"83258d9e-29e3-43b1-a0fa-b5bfd61293f5","block_type":"box","text":"and its affiliates (without any guarantees). 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No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":70,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"3a9091ba-0959-4200-be3b-94b9e6fc9d6d","block_type":"box","text":"of S&P Global Inc. S&P makes no representation regarding the advisability of investing in any Fund. S&P makes no","page_number":70,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"62535567-0f76-4b90-85ae-b3626f1f0118","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":70,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"68da826c-6d15-4431-b493-d8953edb6aef","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund particularly or the ability of the S&P 500 to","page_number":70,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"2af88feb-90e5-402e-aa78-ce45acd831ba","block_type":"box","text":"track general stock market performance. S&P’s only relationship to certain Funds is the licensing of certain","page_number":70,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"5a508857-ddfc-476d-8473-b0e5aef0c7a9","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":70,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"2668fc9b-a8c3-4e50-a7d8-16e8b68321b6","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":70,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"9bd26e79-c16b-4472-97ab-677c2004346b","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. S&P is not responsible for and has not","page_number":70,"box":{"x":70,"y":778,"width":803,"height":11}},{"id":"81022f66-26b3-4c6e-9142-4b2428c90fae","block_type":"box","text":"participated in the determination of the prices and amount of any Fund or the timing of the issuance or sale of","page_number":70,"box":{"x":70,"y":793,"width":787,"height":11}},{"id":"59672a5e-edf9-4066-ad6d-15ef6301f276","block_type":"box","text":"shares of a Fund or in the determination or calculation of the equation by which a Fund is to be converted into cash.","page_number":70,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"e317d737-c54b-453f-8c58-843267b7bfe2","block_type":"box","text":"S&P has no obligation or liability in connection with the administration, marketing or trading of any Fund.","page_number":70,"box":{"x":69,"y":823,"width":742,"height":12}},{"id":"e10e7cdc-ff94-447a-bff3-3a8cb8209867","block_type":"box","text":"S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index or any data included","page_number":70,"box":{"x":102,"y":846,"width":761,"height":11}},{"id":"d1e76da0-562c-4a08-ac0a-8642f9800bd0","block_type":"box","text":"therein, and S&P shall have no liability for any errors, omissions, or interruptions therein. 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Such securities have the effect of providing a degree of investment leverage, since they may","page_number":72,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"3c0ab8cc-2a22-4489-8c25-1a03735c6a8f","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":72,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"559ea7a7-10c0-4f08-9a97-59edd2c278c4","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":72,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"27085169-c339-48e9-b837-c0001728e67c","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"526847dd-0abf-4e10-bc3d-319dc499a994","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":72,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"82637271-f124-4ca5-9b66-9370c9d18561","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":72,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"1dfb8531-8698-48af-8115-fbc9c484e86b","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":72,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"745196f8-552d-4003-a64c-0f2bb930be9c","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":72,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"2f5b01e1-bcc6-490c-b0df-2a302b14d337","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":72,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"0d2e8de7-04f7-479b-9a70-505965e89f94","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":72,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"8d3a10ce-b05d-4b3e-96b9-53ce1ba9e6b5","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":72,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"75922846-38b5-4758-be63-5c41a11f8dbb","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":72,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"8e98d98c-b340-4694-bf5e-13d277e5b07f","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":72,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"7aa93ebe-27f0-41e4-87d8-209ac762f4c6","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":72,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"9cf98600-1daa-4efd-b1fe-0bc866ddacaa","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":72,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"bc45faee-f99b-456d-a479-f580bdc5d2f4","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":72,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"6e3aadfa-8c45-4b10-a6ac-ef4258725cdf","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":72,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"69ed40ed-44cd-4185-9868-b544e6fcbe17","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":72,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"5ce9a2f3-f995-43d3-b259-7f444f1022ae","block_type":"box","text":"Inflation Risk.","page_number":72,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"00d413a9-b480-4b7d-9f19-5eb63312c305","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":72,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"192d741d-2885-4046-832c-4610039c2527","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":72,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"1ce49d8f-cacc-48f5-91d7-1b098ae8f5db","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":72,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"54c59439-e94a-4c7a-b796-6026cea034c8","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":72,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"bfad9580-4bf5-4ab9-a940-81792263f161","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":72,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"1d938d5a-ffd3-4f5e-b86f-a3f864bf5946","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":72,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"b1e8c8fb-680f-4e6f-a1ff-4bb67e28b3f0","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":72,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"224355bc-fc36-4161-9b1b-26c22df426d0","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":72,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"8789e464-1914-46d8-955f-4865b5b1b3b1","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":72,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"d932d7f5-b430-4d9f-b903-039f98a08640","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":72,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"5bd95250-954b-458b-87a7-2a993b926b46","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":72,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"00680726-c1b0-4fc6-ae2c-f301885959c2","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":72,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"96a7d42e-e0cc-44ff-9220-be0f5975a003","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":72,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"3540ba32-df78-4788-bed3-b2e47cbdd657","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":72,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"2ab45e9c-2ebb-4ac2-81e2-da502b3025ee","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":72,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"8ab51378-8c83-4a59-b582-cc87386e70de","block_type":"box","text":"II-34","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6b4d575-1e23-4077-820a-3e50b98d488e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1b26ce33-30a3-4777-b422-977ebd3e1dc2","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":73,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"30305f02-4324-4ca6-924a-2a3ef5f5c1a3","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":73,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"6e277bd8-6467-4b14-bebf-2d00c40ad022","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":73,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"9e67ea82-d6fd-4327-adf8-c08732ae8ad5","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":73,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"7f0c7ec1-d843-4dbc-ae50-65eabcf53862","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":73,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"c6d48c22-9a40-4748-81d5-b4819c3b1c83","block_type":"box","text":"be available for very limited periods.","page_number":73,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"d91dde44-7993-4779-b702-09e9d237fe6e","block_type":"box","text":"Investment in Emerging Markets.","page_number":73,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"64c374b6-390f-40d4-9f30-5e572dac8100","block_type":"box","text":"General.","page_number":73,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"a41562a8-d260-4a50-8e81-51675ed97cc2","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":73,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"189b5eed-7026-4e30-a4b7-7514a6e1deb9","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":73,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"cc78829e-98a5-4119-8cf6-6499d1d44d0d","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":73,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"5859dd4a-d053-47b2-aae7-47714aaeb490","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":73,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"77dff042-ce4e-4a5f-9b87-8e525458cd56","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":73,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"b8374a09-06a3-4b94-b66d-e5d2f54f768a","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":73,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"9286a373-d651-4a67-96b0-6bd5f39a6a26","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":73,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"b87c9d80-3e26-4b7f-93c4-12b358de57a1","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":73,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"853bdbd9-9725-434c-8b81-381085010edc","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":73,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"33bc0943-a8ef-4de5-9de2-578e21ebeba1","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":73,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"34dc6421-ddfc-424a-b482-c673570bc9b9","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":73,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"51d99705-ec57-4e05-b017-6ec3084664fc","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":73,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"b46afc7f-4c39-4579-bf62-f5c0f0660047","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":73,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"3b1fcbcd-aad6-46d9-ae0d-fabe7a44f005","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":73,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"ff5131f4-3208-40cd-8970-a34093455c79","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":73,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"5b00243d-4efd-4ec4-8b74-4e1ca9340b66","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":73,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"6cedadd7-378c-4ee6-b3fc-a31685852215","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":73,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"c1261fbd-21fb-4fa8-9940-938a12662126","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":73,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"2f126fde-fbb0-464b-804a-929cfa9eb499","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":73,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"37121deb-9f49-4a58-9d93-e72742dc1f3d","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":73,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"d75ce0ab-0fb6-4168-9c8d-05fec5f47841","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":73,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"c1ceae3e-b256-4171-9d14-be72b6c7676d","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":73,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"9e265bd8-10bf-473a-a61c-4842948b3e64","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":73,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"79f2c01d-b17e-49cc-8f3f-1be0dc618d21","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":73,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"e0a5512f-c174-4110-8312-490f4dbe8003","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":73,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"493d0fba-45fa-4bb4-8320-e292b1a3d52c","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":73,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"9f98aba9-247f-45c5-a45d-72f8abd49748","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":73,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"6d050f66-e994-435d-bcc7-92f40d565f8c","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":73,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"4ff2548d-12f0-4c1a-9945-b4ea9548ad26","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":73,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"b4c965f4-e14c-4f53-bf92-7fe0cfeb16fe","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":73,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"4c6f70fb-32b8-40ca-a45b-6242ce444061","block_type":"box","text":"volatile than investments in more established markets.","page_number":73,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"5cb219b2-bc14-4094-9bd7-f60500a80f9f","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":73,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"23eea524-b9e0-4087-86de-01ae4c643ef9","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":73,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"5fa73c3f-75bd-4d00-99ec-a7154c5f6f73","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":73,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"a8dc3612-1fd6-4e40-90b3-c2811cbde858","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":73,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"4dce08ca-6524-42a3-88e1-495f109e7337","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":73,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"dd370570-28a2-48a7-89db-15452916fdbd","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":73,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"a7b30483-ddfb-4d9e-865b-be1a039c5d2d","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":73,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"b7dd0492-87d2-47ee-9c6e-e7d2c0909053","block_type":"box","text":"acquisition or disposal of securities.","page_number":73,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"d5c190aa-023d-40e7-867d-7f7f27727757","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":73,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"ce5f9120-52bf-49d5-b1dd-e8981718af87","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":73,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"8d430763-ff2a-43af-a852-426802b86263","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":73,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"ae474506-0091-4288-ad13-3643ddee4367","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":73,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"f63d912f-69d0-4bae-bb33-5e79de670758","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":73,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"0a05c654-bf66-41d2-882e-803adcb6df06","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":73,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"701c286d-c738-40e7-b0c8-f7b7de8af736","block_type":"box","text":"II-35","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"35ef0fd8-2f27-479c-9cb8-3d636db8a08e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba3d09d1-1539-42e5-8dda-5540ac1ed07d","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":74,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"a8aaa30a-2bd1-4249-a912-e8cc960f754b","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":74,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"75f4b82f-0012-4590-9110-13199b9692f5","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":74,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"b8a229dc-5a53-44cb-9c15-84aa2f9b622d","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":74,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"7c6097cc-5706-4005-9246-9cf883c4202f","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":74,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"3e61cb08-9fe3-4a94-910a-7e6441ba682c","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":74,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"3a1e1262-94ef-47f6-ab85-7043925520e9","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":74,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"ae430406-2d56-410c-a407-17021e6fb91f","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"90c8e202-f3b2-42c6-9736-d6b9d1d43382","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":74,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"a7ab9b60-186c-4a11-8476-a97afd34cd5a","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":74,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"3ea45e0a-d9e3-43ed-adcd-461251662e7c","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":74,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"173eb461-b289-40e5-99aa-4fa5f082cd25","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":74,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"069a7c29-2839-4100-a48e-20788eefa9fa","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":74,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"ca42a1c9-59d6-4295-8257-81fdc2180779","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":74,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"ffb4963e-6568-4f01-a10e-1c007d04f188","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":74,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"aa932cae-2cb1-49bf-8fd9-3cf0ed1211ba","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":74,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"ad2e1b17-a838-4881-b6f8-58c9203968cf","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":74,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"b5e7dde1-c838-4994-b60e-635a343974f1","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":74,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"ed425bb5-d917-4b3c-a25a-53d159c2fc4d","block_type":"box","text":"performance of the Fund.","page_number":74,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"ec83858a-53db-4cbc-bee4-975b2e7c8c15","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":74,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"ec4ab376-7839-489f-881a-778b6fd7185e","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":74,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"eea58fdb-0ca9-4f81-a385-4cfcd96e7c4f","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":74,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"152b12bd-7529-44b5-a3d5-d01741ae5f00","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":74,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"b7cc81c2-6588-4a3c-b932-7525f295be57","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":74,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"9a46a258-d74b-449e-8b9e-de74e289f718","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":74,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"f23d2209-8cca-4274-8a25-46650d740ab4","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":74,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"a0f7c11a-54b8-4763-892c-38c136b9eacb","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":74,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"f7f3c20c-788b-429e-b5f1-2a696822a58f","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":74,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"ec3d9cd0-3bda-4ee4-b9d7-8b911e74bd19","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":74,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"857e9558-8325-4192-be82-ddf05298e793","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":74,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"0656c420-86e2-42ba-966d-3be06a4df64e","block_type":"box","text":"affected by a variety of factors.","page_number":74,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"779db8e5-3ac6-41e3-845c-d665ad523eec","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":74,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"324d9a35-abde-4623-ba40-c2ecb1a5a7cd","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":74,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"fa2a0b17-90a6-40a6-b27b-2c74f6daf20f","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":74,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"1e1a6f66-ebe6-4efb-9ddd-9bb9321d29df","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":74,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"258585df-347c-4b36-b875-19b1efe34c3d","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":74,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"07fa69fc-cb5b-4dcc-9c91-2b7e45f541db","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":74,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"a5424e14-ed89-4e09-b3fb-efe5923dbf65","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":74,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"7c26e7b6-7e92-4311-a6cf-811323ae4ee5","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":74,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"1d1c42c7-416e-4d9e-b5ac-905c9e9295c7","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"2e4e1a29-b526-44b2-b64d-d5a1051f2ec4","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":74,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"cfa2f0ee-8f2f-49df-80d8-6412766de0ae","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":74,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"c04b6bcf-61f6-4f56-b3b9-5fefd2f749c0","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":74,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"c516d9ca-0588-4dd7-8974-0b8f29fe9658","block_type":"box","text":"nations.","page_number":74,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"4e0a895a-6ed4-4573-9a87-00ff956a749a","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":74,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"b5652b21-ba2d-463d-9813-29e7709503da","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":74,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"b2e5aa73-ccf0-4b59-8d5f-f71e87fd7c60","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":74,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"c76f7da5-3f29-43ff-8fd4-0c5a53044f19","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":74,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"b17c90fa-f2d7-41dc-a302-226fb349d079","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":74,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"6e0c3518-4f54-466e-b682-290ae216da48","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":74,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"f8f3e0ef-7752-4326-a34f-284484ca1f7e","block_type":"box","text":"market Asia-Pacific companies.","page_number":74,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"47b9d38a-ee12-430d-841a-9f7366863f81","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":74,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"4409a03c-fa61-49b7-b38c-1fd2704ae323","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":74,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"e07c3ebc-8cae-41cc-9097-856ffafbcc65","block_type":"box","text":"services for such securities outside such countries.","page_number":74,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"e12e5620-1ed1-4212-99d6-87f68102fc09","block_type":"box","text":"II-36","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c693558f-5ee5-4dd5-9473-991770c2d3a9","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ed2f815-e369-4f57-8364-56b7959a293a","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":75,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"9e10aba3-4d08-4115-b952-f9b2f8650078","block_type":"box","text":"to commercial banks and foreign governments.","page_number":75,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"4290e8e2-224e-45be-a6e8-1b390131d4c1","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":75,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"e8f1c49d-a427-48fa-9a5c-5f2ed15c933b","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":75,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"baf7e4ad-a003-4f27-9f5c-5425e5a6111c","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":75,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"278aee4c-c56e-42f1-9313-c727bf7818ff","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":75,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"9230997e-281d-4e60-b265-18ff82771294","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":75,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"fb53ac9b-eefd-44a9-8f46-49d19cfa7b58","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":75,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"bbeb5423-f4ec-4f63-a18c-351e9efd07c2","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":75,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"a8b4461c-162d-46e3-ad22-70736cba0bac","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":75,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"1986b4be-3d9e-49a9-831f-19cccba59649","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":75,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"c2eecfc9-d4a3-498a-874b-ae0fd2477bf9","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":75,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"e767532f-9755-49ce-82ab-6e93803cdef8","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":75,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"1771b1fa-1926-43a9-bd00-f442d8483f73","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":75,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"0174f61e-a2e4-4969-b8be-f78a947b1863","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":75,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"c41790bc-5a49-472a-83fd-6adf30cc351f","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"b693a2b5-c89e-4aab-add0-873f5f5c888a","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":75,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"e08a2c73-6460-4685-ae07-aa9574d5317e","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":75,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"d9b39570-9e1f-4366-be43-2a6815966bc0","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":75,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"b44ccd12-0abf-42c7-83d7-d674e77f2da4","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":75,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"555ab96b-8180-45a3-9620-3f0d868844ff","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":75,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"2f3db8f7-5121-4474-854d-7abe34b90101","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":75,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"46f8eeb6-0af4-45da-8131-18fcd4ba8b62","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":75,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"40d21620-d139-40f8-8d4e-3f8f725e0155","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":75,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"f52eb2e7-ff08-44ef-ba06-69913b947ca8","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":75,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"a3681d9c-6daa-4725-8e52-2b332ed6efaa","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":75,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"cf05e712-15e7-4275-8b9b-ca9347f7b2d4","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":75,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"dc7613c6-99eb-4dac-9f50-45f30b7cf897","block_type":"box","text":"investment at that time.","page_number":75,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"f1fc5a38-8248-48ea-be01-5603a860c322","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":75,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"e62261a5-cb15-45a4-a18b-3b29a071716a","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":75,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"3256dea4-d30b-44b2-9779-ad14741fe414","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":75,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"cdf631d2-bad8-4740-bd34-1b8a6c36afae","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":75,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"4ac386f3-3a8d-44d9-93ca-8bad3b187d1d","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":75,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"0928a245-f650-4f94-b046-0b7c068ad27b","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":75,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"79e99a23-ddcc-4e99-9049-0b8acb256b23","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":75,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"fd68f506-0aea-491e-b392-47ec7f00697f","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":75,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"736e9f79-6062-4aee-b6db-32ffb6a2021d","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":75,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"e281f19b-d181-477a-bc86-34b4af91468b","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":75,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"0c7d144d-8a1a-4e23-881f-9b127757910c","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":75,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"6a091eaf-e239-4f40-990b-48d3802b724a","block_type":"box","text":"government).","page_number":75,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"9b9f9dc1-9f49-45fb-b995-f23676f508f7","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":75,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"a553786b-810e-47ca-87d9-8a62f6c948af","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":75,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"9651fffc-032b-4f01-a92d-a05af7b2bc57","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":75,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"c75fd28a-0de5-4e24-8cc8-1773a624cf94","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":75,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"da9f45b1-bde9-4975-8375-e6303408ec86","block_type":"box","text":"foreign banks and other financial institutions.","page_number":75,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"5f61f66a-4521-4d0c-bf51-9e2cedde5abb","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":75,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"64e675c9-2927-448a-a24c-494a693327d9","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":75,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"f1cf3447-3484-4051-8895-8a67ea5fc619","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":75,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"7feff13f-f7f6-4835-b3f5-75fff123ad7d","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":75,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"83b8edd9-927c-4ce2-920f-3003ad9f11ce","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":75,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"1ea0e1fc-62df-4b77-8c50-d762ad61ffdc","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":75,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"f3c0b3e3-b87e-4134-ad51-f999cfd96fc1","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":75,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"be44e846-0265-4cc4-b01d-d3986116305b","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":75,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"bdcac07e-1a9c-49d6-a52d-bbb2fe035c12","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":75,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"15cc19cc-21a3-4a63-9dac-82ae3e855322","block_type":"box","text":"II-37","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6234cc85-c60b-40f8-bd1a-3264c6217d87","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a9edcf16-b52b-4776-b0fe-68fe19d5d866","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":76,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"96616411-2bdd-4fee-a188-8ceffd30b418","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":76,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"377fca0b-b5ae-439e-b0ea-5dd36f58deda","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":76,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"229248ed-4cd9-4030-bf41-476e7b4d75ff","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":76,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"7a347755-e7c7-4a82-8570-d12576f32956","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":76,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"9625ce83-d1d8-47c8-9242-ae9991dcc920","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":76,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"93a05849-d363-43f1-b2f7-3d59955aa375","block_type":"box","text":"foreign securities.","page_number":76,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"b540744a-1fb7-432f-849b-5b312553f611","block_type":"box","text":"Risks of Investments in Russia.","page_number":76,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"624840b7-1040-49b6-a2b5-d1748c55714b","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":76,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"20507078-2c14-41bd-bd48-ffc95c1f3663","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":76,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"fc230971-f0c1-4bd0-ab66-65895e3d47b3","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":76,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"b108197a-9b86-474f-960e-9275becf43bd","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":76,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"93ff74f4-fcbe-4017-997c-5912440628c2","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":76,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"f9ccb434-1bf5-400c-916b-8858434efcc7","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":76,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"57067883-3c15-4219-bd79-cba1d28245c3","block_type":"box","text":"developed markets.","page_number":76,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"e076be3d-fb60-438b-9d88-2b80b4518f34","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":76,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"e0e9c75a-f4b8-4198-b4f1-c1ce946a4fe2","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":76,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"957f1958-5cde-4fce-b990-a658e9af87c6","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":76,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"cbd8e9a9-8264-4d3e-984a-ae5cd03bc039","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":76,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"116c2ba8-42a0-4ac7-818f-59fdca9500bf","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":76,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"dc2661c8-6251-4175-bc3c-870972d7f326","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":76,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"6783d1c0-e991-46c3-a826-ac9aae9f68cd","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":76,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"9c3d79a4-b312-43c6-b92c-d994b874d3d0","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":76,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"12220242-79a0-48e6-8a1b-a70352ebb5a6","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":76,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"00610d3a-862b-4370-91c1-215e33ae0943","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":76,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"b89e162f-af09-4e9f-b6ee-8b8cbab73425","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":76,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"8a6c94e2-5043-432d-b8fc-381d3d70186f","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":76,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"8c37b9b1-9e30-4c4f-a800-8e3da2720342","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":76,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"a12a926e-61ca-4a88-9cde-7f376c2e8ffd","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":76,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"43a37fbf-7a37-4ab1-9052-3230cc345d72","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":76,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"dd247e96-03f2-4114-b122-cb92768e4bae","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":76,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"a235cee6-3446-4cd2-ab6a-37f0c1d1d903","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":76,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"e928ddba-d3e0-4027-8e75-c907d5a7e2e7","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":76,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"7075811a-5202-41bf-b872-3a7c5d87c9fe","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":76,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"37624ea1-bdba-4e57-9503-54130dfab804","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":76,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"f4b19426-eddb-44b2-a200-7c36cb88394c","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":76,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"e130a362-eed2-4f0e-bac6-fcd6e3656a95","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":76,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"927a5879-80c6-4ef4-aeab-4ad525500e3c","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":76,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"1c4f83cf-7c5a-4e10-8395-341b3103af1e","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":76,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"39bb6910-e070-45c3-88a8-0c91fbc907ff","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":76,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"9a261dfb-8628-4334-ad85-eb2700c828dc","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":76,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"bf1af001-857a-4efd-ba12-4d50d93dabb1","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":76,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"f63d1770-bbbe-4396-b454-756d75346c2e","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":76,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"40e7628f-7cba-4dcb-abb7-7b4308cd6b60","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":76,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"32b77208-79e5-4fa7-a64c-4254fe4fc644","block_type":"box","text":"sectors globally.","page_number":76,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"03a2657f-df03-4d4d-80c6-5ded08c7a5cd","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":76,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"b42ec358-710f-4acb-9756-9440787d4e76","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":76,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"49fb92ef-4f55-4332-8009-73add3e130fd","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":76,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"6eb3abd9-67f7-46a9-864c-a2ff08468103","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":76,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"eac005c6-ce50-4d46-85f9-1cf448507975","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":76,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"d178c3ab-3cf8-4846-a78e-2cf90ce0bc7e","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":76,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"8daac0d4-c743-48ad-8853-72682c3726fa","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":76,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"8d8dacd7-b64c-47c8-b694-b154cc65574e","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":76,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"776f0c0a-6585-4d9a-88cd-e21b38d7bf06","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":76,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"a36b86fa-7f98-4afb-9558-08f8ad249175","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":76,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"a4ac79fe-2f4e-4375-aec9-ac0033b35f58","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":76,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"13c163fe-e8a3-4c3f-9077-e244ee1155ec","block_type":"box","text":"II-38","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6a9a11f5-ee90-4fe9-9f63-0a1b09cce787","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"36acb2c7-db73-4c3c-8440-3556c951ad21","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":77,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"a97ee423-5407-492f-9d22-601dff6b64f7","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":77,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"7dd52d10-8f8a-4b5b-a875-0589b5ee3e39","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":77,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"9870c1f9-b22b-4f6a-8fdf-7a044256f38c","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":77,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"d9981685-cb3c-49b5-b58b-d5428fa577aa","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":77,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"f927db94-090f-4b73-bae2-16072679fc15","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":77,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"7b2aba4d-6ec1-42b2-a5ef-2440b1f0b1c2","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":77,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"5aae3df6-817d-4040-b34b-da4dbae9daec","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":77,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"342e1eba-d7e9-4c9c-b0a9-79f9a34cbfc4","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":77,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"9a88e338-95ab-46a6-841f-ffb10187dde1","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":77,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"c005268c-b14a-446b-8a75-5909f44f3adb","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":77,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"57b7e3fb-c93d-4e33-a045-53f3bc9cbd31","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":77,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"a4e16a88-613a-40f6-905d-cb66324887ea","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":77,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"6c24c2ba-cfe0-40a8-bbb3-dd548ff41e5c","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":77,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"6c977001-523f-4eae-9d33-e51733644b0d","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":77,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"21cc6289-2777-4051-9e13-8143e2788d25","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":77,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"0cd1767e-bcf9-493f-85da-539eb6f103ba","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":77,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"b1d45134-a4fe-4ce6-8297-e17fcadfed3c","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":77,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"11495bce-b4e1-4e63-9e25-a44c8838b375","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":77,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"27cfe90a-eb2a-4485-8318-fc6eea21af39","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":77,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"c0ac05ee-1efd-41de-8c32-b8db2311dad9","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":77,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ea6c00ea-ba6b-46f2-afa8-17906522d4fc","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":77,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"3b744907-8926-46d4-896b-4a1e11a797f2","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":77,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"0865e925-b886-42cc-9850-9467761e2e17","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":77,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"9cfc7653-cfea-4c75-8a90-ed810bfcb9ae","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":77,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"23ef1cfa-3e66-413b-8f35-920c122ed8b5","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":77,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"2079dabb-b49a-4a1e-af42-cbcb66e1c9ba","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":77,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"cb0ed27f-ddd4-477a-828c-6f95da022431","block_type":"box","text":"impacted.","page_number":77,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"692f6c36-a778-4cc7-b793-3e4c3c986435","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":77,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"8483d0d6-9616-4de8-8cdf-536e0236adce","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":77,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"bb534a38-8c50-433c-b842-2a323ea50b22","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":77,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"162c5adb-e479-414d-a210-3f07c60631df","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":77,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"16a06408-4bf1-460f-878f-a5bee0e6c9fb","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":77,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"f04edcfb-7513-4929-8121-802c1e9e4fb8","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":77,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"ffe37868-8081-4009-9252-cef13b4e2736","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":77,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"c174f2d5-cb3e-4f08-a6aa-e62364f3803f","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":77,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"aaaef2c9-89d0-4085-a766-144418ede247","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":77,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"aa25e0c5-035a-4f13-8c5e-2a82dc8397a7","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":77,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"0c5e7361-c6be-4016-86a7-887c2973d258","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":77,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"dd00a613-3567-45d5-b8a1-4353c92d64f2","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":77,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"9babd681-d12d-4a07-95b8-72faff6b3090","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":77,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"89b656be-935d-4560-853e-3211db7d698c","block_type":"box","text":"economy.","page_number":77,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"1a56dbf1-1d8c-44a5-ab69-7d3f54dffce4","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":77,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"7759de56-cd48-4239-9d9a-522d7c7747f0","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":77,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"6d4bb25d-4360-45d6-9d8f-643cf0a5323c","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":77,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"9e0cf91e-d82a-41c6-adee-cf0d190358d4","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":77,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"a4c79614-057e-42b7-9c16-411cdcb56b81","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":77,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"58f76d2b-d01d-4b22-a0e5-309d8f23a3f6","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":77,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"fcb2c7a8-a914-4500-9304-ff93ed23f204","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":77,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"d334a90f-a3c2-466f-b741-0ccb6754f9ab","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":77,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"61539255-6b61-4eef-a49b-1f0b78d4f95e","block_type":"box","text":"typically the case for investment managers.","page_number":77,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"ebf370a5-7123-4d54-964f-777010e4d60d","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":77,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"bfc6f958-54fe-455e-bba9-c7e48c3e24d6","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":77,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"c9dd7749-3912-4e92-9a11-26701c9ff525","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":77,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"bf0aa5ce-b14f-499f-945f-082595a41a63","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":77,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"fe1a4c3c-85f6-46a1-b6a9-ffd0d0bb17ba","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":77,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"58da15e9-e8df-4d83-b85c-fe05e0031c20","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":77,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"3c6e378c-e65b-47f2-9566-44259f8715c2","block_type":"box","text":"II-39","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bed18347-6b7e-4ce7-966e-8179edc0e870","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"364ca5fc-09da-4011-9704-27a1b79cd515","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":78,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"f6785e41-9487-4366-b861-19bf12e9968c","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":78,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"37941791-fb1a-47a5-af08-a1806448e0ce","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":78,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"afd8f76e-1c52-484e-9174-f8a445de7d3d","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":78,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"567fc1e0-fc14-4528-bb8b-206c4c0378f2","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":78,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"76750b64-b3f7-4717-9e57-c71e949c84c4","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":78,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"006a5706-597a-4a27-b7f4-da4956c58f23","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":78,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"3a4b0e24-9828-4372-b008-d927c71c6ed2","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":78,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"0dbb31e8-6920-4e0c-8914-52cb41cbf87b","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":78,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"edf33369-dd44-45a5-b927-d91b9fc2e8e7","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":78,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"674c974d-a08b-4fe2-b483-608da6179e29","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":78,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"b585994c-8606-4815-972a-f6eda300f1f8","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":78,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"a33033c4-9a36-4556-9426-b4246b94b851","block_type":"box","text":"will be indirectly subject to those risks.","page_number":78,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"8d851b39-6d39-4ada-94cf-aa61ec5a5422","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":78,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"e2f61d10-45b8-4873-b9b4-34bf02ae8818","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":78,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"caab02e2-8c9b-41f7-934c-b41431038c3d","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":78,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"bae2ef16-4c0e-43d2-9ac4-40649ac22cf0","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":78,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"9da0c8d1-534c-43b9-9ee3-155b5957c1c9","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":78,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"ddf48d66-687e-4f6f-ba75-4851ac7c4210","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":78,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"ac5b1d44-c333-40f2-8f32-271c637d6bf2","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":78,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"ffbdf20f-9b5a-45dd-b3ab-2e6a710de1ef","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":78,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"d5774fc8-244e-4084-b53e-4e10257983bb","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":78,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"23dc374d-c03f-48e2-8e79-7986abafd6d1","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":78,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"a129de61-414e-4ec4-86ca-d624c361826f","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":78,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"de72c593-09d1-4c6f-aae0-80ed7e645414","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":78,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"6bc138b5-60ae-4fb6-9468-b6c50eb570f7","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":78,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"b8c925da-0265-4568-a2c5-82c464944457","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":78,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"020e7a9f-23a9-44d7-b8a0-b45d6fdf11f2","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":78,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"0790175a-0574-464c-a4d7-d2c2731406cf","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":78,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"f56d5b74-9c6c-42a6-864c-4d9775be2373","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":78,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"cb1d064c-8e59-47a1-bf70-f0f3f276b4ab","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":78,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"33343bea-aae0-430f-a445-5634197ca123","block_type":"box","text":"impact on a Fund’s investments.","page_number":78,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"37860ffe-097f-445f-9f86-8d9bae73cc53","block_type":"box","text":"Brady Bonds.","page_number":78,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"0b5e4c61-b867-4bcf-8eb9-2c9a636adbdb","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":78,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"f65187d9-0952-4540-931c-8e77ccbdf420","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":78,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"570f8c28-7332-4d10-82d5-4b42c7b699de","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":78,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"3ef07912-ad46-435c-9da1-8e15ae0c2ab4","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":78,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"df4892fa-3ffc-4663-b8b8-75ee35d3a70c","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":78,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"2c99ec76-26d2-42c5-b523-67ef7ac7e9b7","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":78,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"ed70b445-3a0a-4583-b1aa-b49bf10d1d58","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":78,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"1fd6f85d-799f-4be7-b9a4-1f612efab6e4","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":78,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"d7124103-046f-42a2-8900-9e21cdccb0d5","block_type":"box","text":"Venezuela.","page_number":78,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"b541256f-8da5-4ebd-beb2-562664186543","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":78,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"0e6fa46d-2d12-452a-a35e-bb840f9a9a55","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":78,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"7aceeb04-43e0-46c0-9c91-41285e11e334","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":78,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"b12b8168-64d8-4dfe-8ff2-2cf8c70d2905","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":78,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"f6770285-288f-46e0-9f2b-c56087dcfa8c","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":78,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"08f586d8-8d7d-41b2-b5ed-74d6142fd533","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":78,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"4223e122-76b8-446d-9010-b7f28bb6f27a","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":78,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"7924c4cd-6e84-4025-a001-63cae5309dba","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":78,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"831ae3d9-91b7-4cd1-9cc1-9a3f3f216148","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":78,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"83b8ea20-8c84-4272-a8f4-d326ef9bdd4c","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":78,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"8c2efdea-ad66-4bbb-bd19-ed327a1f01e4","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":78,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"51dc02a7-599c-49b3-94f7-c868c41e9152","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":78,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"1b43eac6-ea39-491d-b218-7562893df3f6","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":78,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"3f65b6b6-cc62-4746-984f-78032843b452","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":78,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"cdc9f0e6-41f6-4d72-931e-59ebdc57430c","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":78,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"a54bf622-f704-450c-b947-448f7a203a8b","block_type":"box","text":"II-40","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"93e019c9-83a5-4afe-9181-41dc5d5ea42f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1ecf373-f575-47c5-9f53-5e5bd40fa438","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":79,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"f7d570ec-d96e-4c56-8608-8e82ba81a527","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":79,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"013cbfb5-17a0-4f26-82f3-c9f38a8c48bf","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":79,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"ba005e6b-9e9d-4d24-8330-1772a1dd5c51","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":79,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"65ecfec3-cb6c-41aa-935a-7397105603b1","block_type":"box","text":"China Investments Risk.","page_number":79,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"16b4f747-1b56-44ca-bb85-0aa8526bc1ea","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":79,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"7b2f659f-942e-45c8-91da-d76c2fd5dd63","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":79,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"b611311d-e52e-4c3e-8bec-2386a2b23fbf","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":79,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"a80deb1b-7dbd-4b14-9520-571490c7dd1b","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":79,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"1fba7def-e878-42c6-98ce-8321d21cf28a","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":79,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"af34be17-191a-4078-9fda-e9d6e64b436b","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":79,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"9ee23bea-5a2d-4e87-a0b2-63b12055f71c","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":79,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"9df86b3d-a552-4e4f-941e-d3de53c10878","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":79,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"b32cec1a-6774-49dc-8b3a-ebeef532b3b5","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":79,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"cd1e427d-0be1-47fb-a0c0-838a6befda78","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":79,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"73d52bbc-4443-4275-ae9f-1c44f83d9fe7","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":79,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"6d4dac08-bb79-42c2-a633-15aa4fc4e1fc","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":79,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"0a38cbc5-46d1-4210-8125-983dd82f13bf","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":79,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"a26826ea-bf2f-48df-902d-1f8c0391e75c","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":79,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"b8399e63-ee01-4ba1-8073-5458c65b34e7","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":79,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"4ad397d9-aaf6-4099-9dee-c5c4d279f0d7","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":79,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"ad85ebf1-a30f-4512-ac88-f3b0861d8627","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":79,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"94e12574-747d-4793-b5c6-28adf37244ab","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":79,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"0ddeea11-6ed0-45dd-bf8a-201563aafeb0","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":79,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"ce356dd9-c520-4b5a-9792-831f04ce6ff4","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":79,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"16c72b51-490f-4132-a887-a3124143cddd","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":79,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"4e1f77b0-581d-46e1-834f-c672b5e7c962","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":79,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"ebb68763-4ef4-4239-9558-9f3e1a0310d0","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":79,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"ed5979f1-6294-4806-9df5-1d316554792e","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":79,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"87bbf69f-1694-431f-a81f-cdf29569b4a6","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":79,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"47e83a84-fa47-4c2e-a49e-dbf480963ba2","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":79,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"c40bb137-fce3-4b3d-920c-b057b6167949","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":79,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"885c7ecf-9c4a-4b46-9983-3d803eeb5c35","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":79,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"b486081d-70e0-442f-8b75-26d01a183a98","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":79,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"60a12331-7675-43dc-9033-027cfd996077","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":79,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"5b0f055f-fceb-4164-9eee-a63848b076fe","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":79,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"0839769e-3361-4353-b6ab-c23f26b172ce","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":79,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"79f6f9e4-00ac-4e5b-b0f9-8f86bf1d05c0","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":79,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"d70bddf6-d15a-4ce6-aa5d-605da87fead7","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":79,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"1ffe3fdd-9d4e-47b6-ab5e-cb782f4beb62","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":79,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"f8354285-0138-43c9-9296-8ddc45cfc02e","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":79,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"91fb64cc-9cea-4cf6-ae5a-06a6ac4af3b8","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":79,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"f872a642-6079-4b15-afd6-6bed74c2f9bd","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":79,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"702f3385-a535-4d23-8ac5-8d8b37939d7e","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":79,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"b904cd1b-c800-4a31-bae2-d9ad6468e8b8","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":79,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"6aae1b53-84a8-4d18-85a9-7ca157a31789","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":79,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"c63244cc-7b49-403e-ad2d-69402cc8445d","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":79,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"bb7c86b7-831e-43fd-b421-66525d639a0e","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":79,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"c3f7c7b3-f503-4b57-a72a-8ce479b6279f","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":79,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"b006158c-fe5a-4d9a-87b2-4c7fb87c9323","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":79,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"fd9f7e08-2f53-43f6-99e1-dad2bf5f3b67","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":79,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"29b72bb4-b4ea-4f6a-a867-ddaf21df4030","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":79,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"952c175f-55ae-4f39-b0e1-a0c6f8f9c5b3","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":79,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"f1947c10-c128-4880-835a-b5d41020ea0a","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":79,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"d441e05f-6d51-478a-992b-b7c1f8379008","block_type":"box","text":"sub-custodian.","page_number":79,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"bf5bc73e-f59b-4242-9043-32f979f137e5","block_type":"box","text":"II-41","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ee60bb93-7ab5-4ca8-a8c2-6580f03500d9","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6802009-8bff-45f2-961d-0ab9a827dd65","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":80,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"098892d4-1247-40ea-b777-8504f8e989b7","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":80,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"25fa26f2-6bcf-4dc6-993c-6581a5ccc1e1","block_type":"box","text":"on investor protection considerations.","page_number":80,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"2a4df68c-accf-4d3f-a5a3-d738bf30e58d","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":80,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"752e8558-fee9-483d-8632-d3a0c02bbf94","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":80,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"d4f378d9-4acb-4722-bb6c-a7ec4bfadb38","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":80,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"1a0b3894-6a58-4c50-b754-a53f217d5320","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":80,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"1d8855bf-5dfd-4499-aaed-9d4f6a95b61a","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":80,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"9f6628f1-2d8e-4573-a8e8-d96b7884c7d5","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":80,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"79715fdb-e7a6-44b1-aad8-d31db5870628","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":80,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"3f5bacb1-6793-4265-bfdd-83c971b8eeb8","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":80,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"65e38654-f2e5-4e25-9071-5b5e3101a138","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":80,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"cab77148-0dc5-491c-9614-6fc94b634824","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":80,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"a1df7200-b7ab-4045-ab24-89f927f4c690","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":80,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"5d36598e-1c6e-49f5-9db8-d97bc247b20f","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":80,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"caf31d00-ad9b-419e-a818-a30614df7acc","block_type":"box","text":"accounting firm.","page_number":80,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"0dc2737c-336d-4817-9ecd-e23d8e8b5f59","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":80,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"83d3a533-ec50-4891-ae0c-0d23b1de33a7","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":80,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"3b614a43-0790-4f61-935c-1837a58e8bff","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":80,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"b10605f0-3d7b-4d88-85d3-ec9c4e17959b","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":80,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"673db78b-cbe2-46ce-9d5e-c2ef15289027","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":80,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"fbb4fdb9-2a1a-44f0-9be1-aa095b057731","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":80,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"467d4151-5b12-4915-afda-aa128db471d2","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":80,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"27c3df1d-e2a7-4821-99fc-ce43dca78042","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":80,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"64a55187-1672-4f67-85c1-b0447e056838","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":80,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"b4bbc252-e063-4998-a2fd-aa173498fe6e","block_type":"box","text":"RMB (“CNH”).","page_number":80,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"c4293e25-059d-48f8-b014-e27ea4a0f2ea","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":80,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"d565947d-3ae1-4dd3-a86e-ddf28a9f2f8d","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":80,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"6ef2048e-1936-4e82-8c70-2deaf6a42f7a","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":80,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"5e2a77c2-0f4f-4720-9626-a4e20d52e2a1","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":80,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"9acd4cd1-9d2a-404c-bac3-627df4397c75","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":80,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"610c660e-6c10-405c-9066-d65926b5c09f","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":80,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"cdeb6244-b8b8-4b64-92d1-c0cae0da1187","block_type":"box","text":"represent equity ownership in the operating company.","page_number":80,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"a250d9f3-6b21-42f1-a892-d9df9ca5760a","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":80,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"6d2cee77-e11c-4abd-94aa-3a04d60a3c41","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":80,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"6a89db32-1c10-4523-8689-20f5dc44fc36","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":80,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"82127d14-1ea6-46c2-83be-67d9726c78a2","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":80,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"43d9575c-555c-4c8b-bcb9-2a1c4fa8d688","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":80,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"a08c20a6-fc9d-455a-95b6-9f742129ecf0","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":80,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"d050f64f-e208-457e-be5e-d49f30c90f8c","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":80,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"9c86df8d-6aa8-416d-9ce0-cd08f1ede5c2","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":80,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"9934d3f5-78cb-448b-9888-b475576da335","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":80,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"6f47de70-f587-457e-9007-45d54aebee5f","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":80,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"0106d004-30ff-4c23-9ecf-8a529bca3610","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":80,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"ea3c05de-5f22-49b6-ad64-c6dc53c1d3d7","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":80,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"42618ecc-204e-4d98-a492-d4296de035b7","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":80,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"b09efaf7-57bd-4d0f-bea2-271a3b8b7147","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":80,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"5253044a-8b25-4396-9c35-ddad049f5107","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":80,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"af236a84-6680-410e-829b-c1a1677455dc","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":80,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"0bc3b7f4-23e0-42c0-8a68-77d2b5a87102","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":80,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"e050aec1-96b0-45e4-b1ae-47bdb0269d3b","block_type":"box","text":"losses to a Fund.","page_number":80,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"1b6823b3-8ecf-4157-ad4e-ce6cddfb08bc","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":80,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"e01db931-b35d-46a4-8944-2e2356379153","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":80,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"8c6d9c81-a772-4ba1-8630-2f98186189d3","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"0be8285c-c106-4b28-a507-8001e57a9ef7","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":80,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"f0a94572-4c8b-4194-90dd-0e678a7fe70a","block_type":"box","text":"II-42","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e9a6bbda-643d-4f82-a938-4639f8cad431","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df1c3eab-a2fe-400d-bcf9-646617233af1","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":81,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"0ad7511d-af5f-41fa-96a6-dcbe2b8e2e9a","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":81,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"40549649-93a6-44d9-ac3e-cb95f76e03a8","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":81,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"4396b86c-4923-4616-ac96-01e95fc76334","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":81,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"b8cc5455-db45-4aeb-9041-c6d27281c042","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":81,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"8ed705e0-b58f-40ef-97c8-d4f360c1aeef","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":81,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"ace0abb1-1669-4400-825f-7be0c1642139","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":81,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"8a72cb99-93df-4442-8192-be193e45414c","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":81,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"7a9a9340-1e0c-4f18-a024-d539fd0ca0c1","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":81,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"76539307-acc9-41db-9008-4ef07f789220","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":81,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"f585e0f7-c4c2-4ba3-90fd-83a31a64ff2f","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":81,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"2ad72800-4f06-4b72-a1ea-6c10a40f79c5","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":81,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"d9a261be-4487-432d-a73c-ec4202ecaece","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":81,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"1f9d6b35-8344-49de-9a9a-62b48d0f1387","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":81,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"ab076db2-6d74-401d-85b3-1df6f07ed60f","block_type":"box","text":"such companies.","page_number":81,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"24296ec6-f434-462c-9a9c-7852a97dc5a1","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":81,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"757f78fa-910d-4643-91f7-623163bba728","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":81,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"803c9044-03f9-4646-8752-dbebcf45d2bb","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":81,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"5f2d3151-571f-41fd-b411-29e226b393ff","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":81,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"e958323b-dc2e-4440-8917-0002a9a601d0","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":81,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"5b7deaa4-1992-4932-ac9c-d29fcd5e039e","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":81,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"9160f0b1-8aea-410d-831e-c2dbc19f90c7","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":81,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"374491d5-7355-46ae-8bb7-ce3668f9b618","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":81,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"2fdb504f-1b07-40e8-a304-fcb9535a81a4","block_type":"box","text":"standards.","page_number":81,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"f623567d-9117-4496-bed3-0bc246a4adc5","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":81,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"adcb2af7-b6f4-4df6-bdca-7ad1be1a2768","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":81,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"d4fdfdf1-f59c-4f4f-9bfd-9e4b88246aa4","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":81,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"87839f50-0f78-4a51-899a-a2981a53b31e","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":81,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"b11f003b-1187-4a05-b952-099c9d7c398b","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":81,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"91554ade-9927-4eaa-ae09-b790df592e4d","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":81,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"141e13ce-653a-4289-9c0c-6cbdc885d8cd","block_type":"box","text":"General","page_number":81,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"8d2d7ca8-489c-43b4-98cd-16ead61b2b74","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":81,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"accb067a-c001-48a0-a5ee-4a134b41364e","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":81,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"84f9dc81-f4dd-4535-abff-574f45419359","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":81,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"9e02d133-4e8f-444a-b36e-c468e88903c1","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":81,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"44577fa0-024f-4f81-886d-e37a3f10d581","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":81,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"28f4d03b-d9de-43fe-bb4c-644d9358bfe6","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":81,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"5a3a2a47-848b-4e7f-babd-600138ef90e3","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":81,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"4af424f6-bb6f-4f2b-acfc-f8b1a7bc2121","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":81,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"027bbbc0-013e-4e59-a764-66bf089d85b3","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":81,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"ef70ddfe-d975-4d40-8653-2742b6b4ff39","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":81,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"b8b3d6ba-7576-4bf4-a207-9373a300b7a5","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":81,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"c59d6c98-3bcf-43c0-9a49-7936f6e6c246","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":81,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"d53226eb-60c2-44f7-a4b3-1c6735629a62","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":81,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"f05b5439-2ccf-4296-b6c6-1b55dad2d34e","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":81,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"ebb9454b-3b44-4998-b6d4-6a591a763778","block_type":"box","text":"company established by SEHK.","page_number":81,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"bef5d18d-652e-4010-a043-30412cce251f","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":81,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"e91e94a4-3f2f-4b12-9815-53d68a7f81a9","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":81,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"9faa393a-cd2f-403f-9fad-1db696b61c80","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":81,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"2f8cde68-dac2-4dc4-b42b-643ea71cd001","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":81,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"3de525e4-110d-45d2-b463-43d64c5e8161","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":81,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"599c5619-dfa7-487e-a378-7bb283aa06a9","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":81,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"d998ce19-7264-4841-9b06-7cc3804d3126","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":81,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"d1dd5c76-7d76-4d5b-a9e0-50f48266f6f3","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":81,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"2ca3767d-e24e-40da-8f7d-4a5af23921e7","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":81,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"26ce38c3-7c4e-4f6d-9201-68b6a979efe3","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":81,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"cb7eb12d-97e8-418c-87e7-a635f9efe281","block_type":"box","text":"II-43","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b83d60ae-c971-404f-b242-4c5751b0e43f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a88cbe3f-885d-4632-a433-c61e2bc5ba0b","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":82,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"9beeddd1-9c3a-45a7-a5a5-3bfb12751900","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":82,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"20d2649d-6704-4a6c-81c9-c9e32c477d38","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":82,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"0f99e172-b899-4927-a1fc-a0dc7abab1ea","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":82,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"24a7b218-a233-4763-960a-d120dd7b38f7","block_type":"box","text":"i.e.","page_number":82,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"c09cce3e-b1f2-4791-b69c-f707d3928a0b","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":82,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"a7302354-0a66-47a6-ad93-b0eb22cadc56","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"8f9b99aa-3540-4373-a057-64c60860dd44","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":82,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"47a7a0be-7868-4866-8985-904f3b9d8993","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":82,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"a729b07d-5027-4432-b3ad-7d6a452d4ec1","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":82,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"ffc9f920-581a-493e-afb5-8b051f87936c","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":82,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"75b34add-955f-47e0-818a-5f669f4f578d","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":82,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"dd22bd20-a3ad-4875-96e5-6bcd3287b514","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":82,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"1289e6c2-086e-456b-a6a4-7bcc2e99d543","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":82,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"93b08f58-8305-456e-b567-63f1c0d6c720","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":82,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"168c816e-4b9a-4899-bcf8-7f772473b3f5","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":82,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"3a46d631-7759-43c5-a927-66a58d82c5c7","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":82,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"5909eadb-e340-41d1-a36b-d09afabdcef8","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":82,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"1adf56f5-86ae-4297-ae18-435204f8f07a","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":82,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"f1b8e1e4-9d63-49f4-87a9-9ed4ec1cd6ea","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":82,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"8457a6a4-4510-43ae-9fcd-ff4c8540c946","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":82,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"1300b3ac-e562-4b42-a380-a66046630811","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":82,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"9ff84609-14a5-40a4-8003-ae95c1cf99b5","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":82,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"e735e7f2-818d-45f4-8401-0501f82b1afd","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":82,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"23aabacd-25bd-4e31-9c30-d3c14c946fb4","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":82,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"8548eac3-245e-4db3-9b5f-49552b12c308","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":82,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"98934376-6b11-4c69-89e8-051fabbfb762","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":82,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"3f773e7d-4d4a-42ee-8aae-0172ea5be30b","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":82,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"a7c81a78-6667-4b06-b1a0-d4d8ba42bca7","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":82,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"7ba6ef5f-f0b9-429a-a19a-e7be5e53ffa1","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":82,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"aa3e3a9a-b459-4120-9e81-325da26d0dec","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":82,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"818112f9-b585-4098-a8f5-f744d4cd3ff9","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":82,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"e81743f2-385a-47f4-a1ac-3bae2b8568d7","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":82,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"5fabce45-df63-4d44-a931-1995b4b530fc","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":82,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"d5541fd2-4914-4c12-be29-ebeda129735f","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":82,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"9961b67f-bec5-46ba-bb3b-47b276cd99eb","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":82,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"f4a0de7b-2f04-42f1-881b-984f6f11191f","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":82,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"bcc0a833-df10-4d80-9658-1c858ee4ab47","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":82,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"3ed533b5-6cf9-44ec-a119-d22c5f25921c","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":82,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"9cbc57c7-0056-4299-a9b4-9ae8da07bac3","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":82,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"8cedff92-ede4-4fbf-a670-f4a07f933b2d","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":82,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"0dbebfe7-d04c-46e8-a77b-f3ba7a6a4b9a","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"d234279e-201f-4d4b-a99a-176f348bfe3e","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":82,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"39f70e86-9c7b-4350-a0d2-2e3f618b50a0","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":82,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"57660307-1a9a-4b59-9e02-00aa6dd7b0b4","block_type":"box","text":"PRC.","page_number":82,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"2dc70862-e78a-4bcd-aa7e-554ea6200d6c","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":82,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"bbbb2972-b4c6-4019-85f1-7b5f36eb15af","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":82,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"dd7afe5c-28cb-4cdf-8ee7-8aa984f0502c","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":82,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"00f2e40e-1a1a-4b46-a211-7fed4e9c84d6","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":82,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"1dc18d01-4041-4de8-ac1c-86e8555b4421","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":82,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"201c764c-485a-4c70-8fec-dda46607ede5","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":82,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"73bf32d8-6ea7-470b-9c1d-11ef724f3c05","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":82,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"249208e4-039b-4e4c-b825-34a4676a2517","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":82,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"5a55d3c9-697e-4620-beed-36a2d4fdc11f","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":82,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"3b4832b3-09b3-4f00-af5c-2d66095be8d9","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":82,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"79c09c38-c25c-4551-ae7c-b56b77a26a99","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":82,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"969a71d3-c0fa-4547-bad4-1923d7b455f2","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":82,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"87644544-88bf-4a77-82c0-7f987f890545","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":82,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"e98eb816-f127-4c82-b7d6-6a7048747aee","block_type":"box","text":"II-44","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b749653f-2d27-498f-bb5a-7b9766f0218f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b8adbf0-a0e8-45c1-9945-ae2b5bd21f34","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":83,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"0fc4c7b0-4906-4bb9-85e0-50a212e2417f","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":83,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"d6a4ba54-2efc-4e65-9d2c-13204acb2b2d","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":83,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"f6e11c6a-daf6-45e9-9f9d-5c9148882ab0","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":83,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"8ec7ce7b-5c84-4d9b-98da-ac5dc35c0cfd","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":83,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"c3efdb18-dcec-4b0e-9b4d-97a9a10687f7","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":83,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"43999de9-6a45-4010-a38f-bdc9cdccba93","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":83,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"3d436386-a60f-4e97-bf2b-f04de8f8c14a","block_type":"box","text":"Suspension Risk.","page_number":83,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"a6b43738-8f92-4e54-8c61-dc6d74c09594","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":83,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"0e79fb58-c66a-40d2-9287-6163612c3414","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":83,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"3800d9d6-7e2d-4bdf-ae1f-f4d87b4a9cdd","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":83,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"503539e4-59b5-4aeb-9e99-ea05558ecf13","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":83,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"1bd0dc1f-9574-4d2c-b8a4-8d77af20ef8a","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":83,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"9f5d76dc-5802-464b-a29c-47b38641aa5e","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":83,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"ecdf43db-779f-47ed-8a0f-8d6f4cc02125","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":83,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"c842b76b-6b05-4e0e-b409-b4e137bbe75f","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":83,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"765ea5eb-71c0-437c-bd20-211c5015aefd","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":83,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"0d56f2ee-abc5-463d-909b-5a1c970801ac","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":83,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"5fc60008-b6f3-4caa-a049-7fc969200cdf","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":83,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"0bd06f3b-1227-45ba-adad-9a7d26ca87e7","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":83,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"69c1b911-7fe6-46c2-ab4a-46df235a45af","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":83,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"acc70993-a4a1-4188-94e3-b2f61c0bda52","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":83,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"4fd83e74-59b1-40d1-b3cc-d9bc4e90a4b1","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":83,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"88488d98-ef0c-41fd-8aef-77f812f7c611","block_type":"box","text":"A Fund may invest directly in the","page_number":83,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"a758223d-64ba-43d2-9825-b470707d0828","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":83,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"9ca84584-0529-489c-afb5-fbd8db0ee1cd","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":83,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"9c300b25-970a-4337-b673-173eb231c4f3","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":83,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"dccf20df-0ac3-4388-a70f-38a4e36966c7","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":83,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"5bb3f59d-5d8c-40f8-ad52-9e96779a2ee6","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":83,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"c8e0428f-1813-403a-b559-80bab3c79128","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":83,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"0c68e74f-4119-4679-bd9c-9702ff15f095","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":83,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"1f6f6f39-63ef-4731-a524-02d4b3b90456","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":83,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"596efc68-37e8-43ff-9184-dcc80d2408c2","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":83,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"67206dd8-8b9a-46d0-9d18-0936a92e9655","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":83,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"3736b217-14e6-402e-b93b-0a92f3d394c2","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":83,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"3f445bf5-c05d-432c-bf46-7824c7488530","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":83,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"46c92fe1-e6bb-4290-b3fb-77699fcd5704","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":83,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"24016127-46dd-40bf-a058-a85d0715f4c8","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":83,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"b6fddc92-1a2c-43bd-beb2-24a875385988","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":83,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"82810e9e-80e7-41c7-84d7-e320309f168e","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":83,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"0f8b967f-813c-4050-b7b6-b09523589801","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":83,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"ea0130d2-755e-412a-91a2-955d07cb3578","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":83,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"075680a3-d1dc-45d1-a48f-c3e960681b1f","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":83,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"448ea7ec-d992-4a27-99be-4aa09e79195b","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":83,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"0cb4ca39-e8b2-4031-b8d6-d88349527b15","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":83,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"f54e66ce-565c-4583-9525-bbb237bbfddd","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":83,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"19e08b9a-5aa8-4656-86ea-e94632e19bf7","block_type":"box","text":"i.e.","page_number":83,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"a54605fa-112e-4773-9352-9a1e567fa9fc","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":83,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"5d6511fa-1f53-4379-890b-16a4812e5fad","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":83,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"4b6974a8-2149-4c09-8d07-363265cf47bc","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":83,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"ff23bc19-eb83-499a-8cb0-3d531ae4c10e","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":83,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"e5e2e33d-97bc-4846-bb94-1361ee5062e4","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":83,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"1af5f7ac-55d9-4238-b60f-758c9ef17b27","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":83,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"025952a4-f0f1-4b6d-96f8-8c1841eab17c","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":83,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"b7437609-da3e-4e24-8bad-36515a102a20","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":83,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"d70845ab-1002-4784-ac9a-a7f6e019609e","block_type":"box","text":"parties.","page_number":83,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"df163994-5f18-409e-91b2-e4bf6629b8b6","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":83,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"c05e582a-302a-487e-8fbb-b12d0c996ef2","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":83,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"46fcfc28-6954-4560-b1e7-b9d7b328f428","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":83,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"2e1a7c64-7020-43e2-825b-3f755272e732","block_type":"box","text":"II-45","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1e8f14fc-8a8a-41fb-9ff7-918da38d2729","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b22d2fcd-9072-4cdc-833d-c9324ba01372","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":84,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"ff8ef1f2-a20a-41a6-99d3-b48e305553ef","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":84,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"8d6ca9cf-bed4-4dde-8abf-8224af035cc8","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":84,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"afe6a300-cf5b-43a2-852c-d76fb45ad52a","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":84,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"df3d4035-8e22-42d2-91d5-1a68e4b66ba7","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":84,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"bfb524ae-7515-409a-967c-1fa20f7ef8a6","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":84,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"bd37205a-7cb2-4a7c-9a51-68ce3f5b1316","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":84,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"acca73a3-7206-46a5-a525-21cd041de89e","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":84,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"a2753cfe-e5cb-4cc1-ace8-4c0fbf78ab23","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":84,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"b2823f92-9b62-411b-b904-32830b573af6","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":84,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"e6690073-080c-4dc9-af89-d12335ed5ac5","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":84,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"eac1e2cb-a6ef-46aa-b6b2-a7b0896db158","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":84,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"481fc3fe-cfcd-42bc-90cc-0af79e691a3c","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":84,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"4fa0cf14-eca9-44c3-acd6-a691f6ac7638","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":84,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"3961f335-5eba-45c4-8281-259b4d291533","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":84,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"bc816cbc-ece4-4d0e-8411-4ae01f60336a","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":84,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"d4427708-7882-4bca-a4f0-cde4baa10f6e","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":84,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"7d496a90-84f6-4ec3-a378-00d51fd184e5","block_type":"box","text":"performance.","page_number":84,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"544f32db-a84c-45b2-8b3d-43f60ed28770","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":84,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"bc97d441-1b46-4dc8-9a0a-90ab4914b304","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":84,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"25516cd6-42cf-4bd8-a2a0-afd60b3c278c","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":84,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"5f8387ef-a02f-4754-b54b-4da1e7f04e9e","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":84,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"2e45c67e-20e1-49c1-9346-89c9935bff83","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":84,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"efd4a297-5997-441e-b4ab-2872114e9213","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":84,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"8b2fdbf9-d844-4acf-a9a6-4e0f0caa1d1b","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":84,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"e7e25666-20f5-40e9-953a-5b164be70327","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":84,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"9db8bf97-525b-43d4-adc1-7f06981c0dd8","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":84,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"5e1ec372-402a-4ebc-8ea9-20675ae92d0d","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":84,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"422c0328-27eb-429a-8bd2-14f5c83254dc","block_type":"box","text":".","page_number":84,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"8db8ad55-286b-42d2-a2d1-f8d9ba951e28","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":84,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"c763908c-0f2c-4ad4-b118-3b6f9502be84","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":84,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"eac7190a-28b9-47f3-9819-c83769eaadf9","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":84,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"b253cbe3-3685-4a97-90e9-6cf159daca1d","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":84,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"d04c5f51-5b3e-41ca-aa73-f3ccab5c14aa","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"4e069e02-cb1f-4a2c-b5c1-a104a6db98fc","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":84,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"cbb051a6-4526-424a-8225-a97d831fbdd4","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":84,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"2ac72ac1-044a-4a2c-b8bc-639aa7765393","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":84,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"1406e3c4-3041-4b1a-8198-b64cea3d8fee","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":84,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"9c592e0d-58f0-4ab3-99e0-e78e4b56023d","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":84,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"e1fd349b-0a00-4d43-9204-f1d49c592ed9","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":84,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"3dea0c90-58e9-49c3-95fd-04bdf6c764b8","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":84,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"6122d8d9-8a98-457f-8097-cfa9fb685965","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":84,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"13492572-a74e-475a-80e0-637f2695b520","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":84,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"a89e19df-9663-4122-84fe-26ff10ed285a","block_type":"box","text":"without notice.","page_number":84,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"5cd5cb68-c346-4b49-bfb1-21f00250f8dd","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"db0e82a8-5211-4fec-9ff5-fe1bdf2088a6","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":84,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"66af1547-d7c1-400d-82dd-987850acd3f4","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":84,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"cc11c97c-1011-4b68-b652-a697c0c57d96","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":84,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"b3332aeb-b386-4c99-baae-6c89bb6192f8","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":84,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"6fa0cf56-1479-47e0-9515-319bd20cad3e","block_type":"box","text":"December 31, 2027.","page_number":84,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"1eba4521-c548-4519-9b33-40ba35fef399","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":84,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"80ffb446-4567-4fb8-ac8d-a554b98c0b99","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":84,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"9bb40f58-b1ae-4ff2-94dc-2583c76c84ad","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":84,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"8d172bcf-3dd0-46dd-82d7-56c08039eb58","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"9e86c194-65c5-41be-b644-a5659399788f","block_type":"box","text":"II-46","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6dbc86a5-13b9-4c3a-a6ea-4b945dad756c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a8b9706-54e8-4bce-a7a7-434a181ae7a2","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":85,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"af252ed8-8b0a-49bf-b0fd-6fc81fa029ce","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":85,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"fc42cab9-1e19-4934-bafd-b807d66a8d00","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":85,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"a14348ca-9941-4519-b1d7-bc09cfd04f0f","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":85,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"0e9dcfae-b9e5-4a7e-885e-3d5d24f25061","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":85,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"c68debd8-b2ad-40c8-8e2f-af2fcc298998","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":85,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"d99897ec-dd17-41c6-bf0e-0ec56caa06a9","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":85,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"9a1b77de-71f5-49c7-a770-aea8f3ca329e","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":85,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"17c02bd7-70a8-405b-8d92-d1bb15f84e2b","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":85,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"9c43551b-c5fa-4de4-b550-6a326832afe8","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":85,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"cf17ae1f-fe96-4667-a24c-3f70dc39dfe5","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":85,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"dffaf2e1-0923-43fe-bc54-a31ae113716e","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":85,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"c3590a52-7e6e-4822-80a7-55b7e856fcd4","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":85,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"1e986776-172b-4118-a91e-723fcf73dc92","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":85,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"e39e8a3a-e4db-4ea1-ba67-9f43ff815902","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":85,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"d6b53408-f19e-4642-9ee6-cd33b547a40c","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":85,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"878dae84-a655-44ae-884e-053f0a16ca20","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":85,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"a93bd90a-1ed4-4b28-994b-171c474dda14","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":85,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"69b6107b-8793-4edd-bc3c-2581071e6db8","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":85,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"d950e4e1-c7be-43d6-8351-51fad76a319a","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":85,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"8efd3cc9-546e-4829-ae68-059dd6c5796d","block_type":"box","text":"the PRC in notifications.","page_number":85,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"2b4da9fb-3bf2-4996-beb3-ea92ac638d90","block_type":"box","text":"Investment in Other Investment Companies.","page_number":85,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"1763674e-5727-475e-8ae9-7c042689d7ae","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":85,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"9c14b369-519d-412a-a82f-63c69fb6bb0b","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":85,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"cf0252bc-60e8-42ca-8af9-3e49148e6f51","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":85,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"dd81e10a-cfa7-40e5-ae76-734aaa9e1f94","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":85,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"57f0e892-dae1-4be9-be31-1da58b22476d","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":85,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"8d91f501-7fbc-408a-849c-0e4db40b29cb","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":85,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"4d0ddb91-4394-462f-847e-2d446bfec655","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":85,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"680a4318-654d-4605-911e-52daec144784","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":85,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"08ac8362-26a8-477c-b042-0ddbb264d6c0","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":85,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"d59e49d9-4880-41b2-8451-d2fe02e0dc97","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":85,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"81a969c2-4b81-47d8-b8b5-5af9e24857fb","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":85,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"6f3bc1eb-334e-46c1-a51e-0ef9254943dd","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":85,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"e6a11148-505b-43f6-acc7-cdb588a645f5","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":85,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"6032ccd7-2190-483f-b2a6-7455ad0b44ff","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":85,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"caede5b3-8881-4d4c-a083-4cdd31cb0b15","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":85,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"d8b16052-a183-439d-8365-bd20cc66163d","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":85,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"a0b6126d-fb0d-49cf-bd01-ceee8375c3cb","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":85,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"a50c0796-e9bf-467d-8a08-6b00a0b94052","block_type":"box","text":"subject to certain conditions.","page_number":85,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"9bbc9350-6fa7-4f69-a31b-a30f1acf82ad","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":85,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"fd50c940-7291-4e07-9b01-7bfc754b9040","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":85,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"96012522-e805-4aef-9e5d-d8bd909ec5ee","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":85,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"e9024623-8b74-447a-b6c1-d1f44f3a9725","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":85,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"8b039d2a-9be5-4e81-aded-119e2d52760a","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":85,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"90bc5f92-8ff5-4fe4-9619-f943a008f5b7","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":85,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"9ab1e670-ab72-412f-bdc5-417406d23e31","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":85,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"2e5d87e2-5ff3-4a95-91fb-205fb94f2b96","block_type":"box","text":"loss.","page_number":85,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"88792fa0-3fc9-46d1-b159-5b29bb84e92c","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":85,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"818c9c52-7542-433b-a892-827ecc6bad8e","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":85,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"a26e9606-9771-41a9-9c02-47bb363662a5","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":85,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"48f661e5-8392-445e-aafc-af00f1423a6d","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":85,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"33c4044a-fa62-4d12-bbc1-ab5aa56f8cd8","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":85,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"da9acd1a-1b9e-418a-bd22-1627ac0a637c","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":85,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"927d5283-d098-4e7b-bf06-e3ced962e612","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"7dca9521-ad3e-4036-bcdf-295debfcac25","block_type":"box","text":"II-47","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"749764a5-5345-48fb-9b43-f1e03e2b67e2","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"156b570a-4675-4da3-b3bf-dfd78b9e61d5","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":86,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"c9bc42f1-19c3-4d7a-939a-28a6f3104af4","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":86,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"83986d7c-82b1-4b4e-ab5a-340b833a5a3c","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":86,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"0b26bf1d-38fb-4925-9d36-142d824a35ba","block_type":"box","text":"assets.","page_number":86,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"7fcf4b81-f75e-46ba-bc71-bb4653125532","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":86,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"954b21ff-f42e-44a8-b3c1-24ef49a850fd","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":86,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"f63b80a8-f7bc-4665-822c-3c74a9317e8c","block_type":"box","text":"e.g.","page_number":86,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"9b9d5719-6ee7-4e3e-b962-501c9ad101ab","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":86,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"357da251-86c6-4af0-bbe2-d16b3016bee5","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":86,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"145fbdfd-fc7c-4a8d-8a5a-bfabed2d455a","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":86,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"821d85c1-d2bf-475a-8edd-9b16cb068822","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":86,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"98db4c28-e650-4446-9fc7-bf88dca2bc38","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":86,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"7d1a720e-a77f-42f2-85ab-a76bc691a0c3","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":86,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"feb97f6c-0552-46e7-828a-9acaac902e4b","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":86,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"1e787644-4744-4682-8670-0a29927e177e","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":86,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"fb533610-7b5d-48d8-9b8a-c539e37fa94c","block_type":"box","text":"countries.","page_number":86,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"d6ba0d71-c2a1-410e-8d75-71d0006e278f","block_type":"box","text":"Issuer Insolvency Risk.","page_number":86,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"6b2c5eba-c028-408b-883a-776d3188968b","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":86,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"914d1a5b-b558-467f-8684-ece92167befc","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":86,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"ba67dd78-49c8-4ed0-97aa-a1b583c965ec","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":86,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"0db03d8b-16b5-4195-9b36-464faac50db8","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":86,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"2437676d-b9d9-46cc-9658-eb3415fc32be","block_type":"box","text":"issuer uncertain.","page_number":86,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"ce8c2fd3-d4a1-4d1f-8b68-66b641928163","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":86,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"a4661d47-fc20-46a0-850c-02a76baf9f5f","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":86,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"e3e07b43-49f1-4049-8f09-7a57240839bb","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":86,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"6ab20739-1ea7-4940-a41d-028d42e9f123","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":86,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"05e178fb-e999-4b72-8093-7d9e8ca83f98","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":86,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"91eb8f67-14c3-4c76-9039-6a9c1a172b29","block_type":"box","text":"eventually be satisfied.","page_number":86,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"68f9ee90-2da7-4d0a-b8db-52287ba1e935","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":86,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"f937d5d1-2370-4e6b-b117-8c233a457906","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":86,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"89de8c42-bcda-4e76-868d-ae9afded0f0b","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":86,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"85c40984-b2a7-4579-83f4-24c4397b4689","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":86,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"7abd394d-95c0-4dfb-b4db-b43a8e4764e1","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":86,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"7c085d2b-b038-44b6-8880-8ac9eaffa5b5","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":86,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"73603490-721b-493b-b5ed-41129329dbae","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":86,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"c3426c15-67aa-4966-981c-ab8829dbf638","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":86,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"a638bd15-2f68-40dd-ac6a-463a4f0e2bb7","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":86,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"b9a4bb41-b80d-4eb7-99f0-bd61dcf23acc","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":86,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"48c76980-2a63-46f1-aa37-8a9d3646410b","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":86,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"10048a9a-bede-483c-994c-fd51225fafc8","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":86,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"9a393f28-967d-41cb-be2b-0f27148439a5","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":86,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"38f08875-50ba-4aab-a9a4-7b4865dd657e","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":86,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"126d2138-f2c2-4bb0-8b24-eaa46d80973c","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":86,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"b4b132e1-c288-4ddb-a5f2-dacab8b6a6aa","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":86,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"0a247488-d6d9-4c4f-8c65-941bec96536c","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":86,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"aa43ed62-f2e0-48d8-8fcf-b1a56940f8de","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":86,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"0d5f9016-8747-4ccc-a553-9a6ec63ee39b","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":86,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"05bf239c-0a66-4127-afa3-353502bb66a6","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":86,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"e055cd96-ee4a-4026-be76-dc9f769360f7","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":86,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"6d4c9047-65ab-4775-97c0-8e1593ac2bcb","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":86,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"2b4c6328-7489-488a-9b5f-176aa26d3787","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":86,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"42a76cf0-43eb-4d67-b65d-7ce9d5a9b7ab","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":86,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"36b2308d-94c0-498f-a635-b636be2c0ab2","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":86,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"220c32ca-b847-4118-8bec-d0f114f1a281","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":86,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"49a73c8c-d0b1-4062-8053-c1e3eb249c26","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":86,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"112a092f-e1b6-47e0-8ba6-3ae6d0e7b329","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":86,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"8f0af5ee-22a8-4d60-ac44-37064c46157f","block_type":"box","text":"that assumed generally by an investor.","page_number":86,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"8d3457a6-9189-4ebb-b6ca-66fb26e960bb","block_type":"box","text":"II-48","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba67c0a9-8dee-4562-843a-d48cd7f4d3e4","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6df1f5b-e3c8-446e-b35e-f1b233c02f9a","block_type":"box","text":"Lease Obligations.","page_number":87,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"608ccff9-31a2-4e02-951f-5c409294a68a","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":87,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"285709e5-121b-4247-88a5-fa4de2f2a4a0","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":87,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"cb6659a2-2bf2-4b55-9271-6ba1e4b2bbc5","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":87,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"7ca8785a-7e99-4f6f-8396-241e6197139f","block_type":"box","text":"Life Settlement Investments.","page_number":87,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"e68f808e-5e8a-4277-af77-4b68d53d7a26","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":87,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"92e3ec7e-6c3d-4478-8a19-879ab7084531","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":87,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"bd80e844-4895-4a0b-8178-41b748ef2c7d","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":87,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"ac6475c3-f9f5-4844-8f0c-36f74f2f3997","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":87,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"2c95c4bf-744b-4578-8969-0f4b5ef5cd3b","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":87,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"92165bfb-1341-4a62-8e6d-288c9850d17a","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":87,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"aff722f3-aef1-40cd-abf1-6816a4eed74a","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":87,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"ef9965e7-d8e6-449a-994b-24042eaffebb","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":87,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"44293841-eba2-4c3c-a4fb-ffaf03dab364","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":87,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"d234a114-ea45-4cdb-9d75-493705462173","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":87,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"3ac293a4-c78f-4f24-8b3f-3dfa316acc44","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":87,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"eb81d52a-abb8-44e4-9943-415c7d1e3d25","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":87,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"1f5e4abe-cd12-4dc3-a7c0-fcc9cb11edbc","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":87,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"860b9b9e-ab92-4c3f-bceb-e7c7214edf47","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":87,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"a4c7df61-f968-44fd-bb2d-19e35bfc0aac","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":87,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"ba0a137b-d8e1-4f04-ae7e-4ef8bed7ae53","block_type":"box","text":"Liquidity Risk Management.","page_number":87,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"978f2200-564e-4b5e-b77e-a26527c5e8fe","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":87,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"458e2d98-eb96-41f9-83be-d23fa63f3a02","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":87,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"481f756c-9e14-452c-b4e4-ca602d1348ea","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":87,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"acc69345-05f9-46d6-acf3-b0d655383612","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":87,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"896c8a69-8fda-4c8c-94dc-5782d609630f","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":87,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"76d80820-003a-4353-b1c7-7d9fe965eeee","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":87,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"8eea4634-8ffb-4d65-89ca-21d90110c9cb","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":87,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"363641e3-c75e-432e-959a-25f23a8d6e2e","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":87,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"932ac725-4fbe-445a-9195-e15d58975bae","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":87,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"78b1c188-ee81-41ff-97d6-052f347ea579","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":87,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"4d2527f9-1c25-45a9-b906-e8ba5aeb81a1","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":87,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"93b003b8-e0a6-4da2-b4a5-63d1828429b6","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":87,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"81acbbc8-8515-4e46-a30b-c5ffc25b16f0","block_type":"box","text":"Master Limited Partnerships.","page_number":87,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"ff2cea73-fd05-4d42-a8d5-f673db9b3081","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":87,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"35deac36-d2ca-4189-89cf-3050705fcacc","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":87,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"d06f18db-7837-411f-81d8-26030fda27bf","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":87,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"84aaa55b-b04c-408b-8011-544ccb15be19","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":87,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"a84c673d-a1a6-47b4-b27d-50d5147aa9cc","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":87,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"0875e0e3-7d3e-4b3c-b292-f82936ea5f50","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":87,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"26085d7c-db8b-4538-b968-4a88938ada08","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":87,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"f6782c80-7900-4a94-a36e-0eb2c67d9997","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":87,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"80081bf0-0193-4c1e-9233-3576e750cef5","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":87,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"a4d681bd-2fd2-4f87-a2d7-e72e19dfc6a5","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":87,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"67e6e54b-cb5c-4645-9d0b-9e882eee7102","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":87,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"4896544c-069c-401e-b8bd-b790f0ed31ea","block_type":"box","text":"in the partnership’s operations and management.","page_number":87,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"81f59e31-8a29-49a0-8ecc-4af455a85fb0","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":87,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"91c592fe-3a41-4a9d-9315-3bceecbd290a","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":87,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"0ddc2b57-fbaa-41d7-bf83-989b7cace3fd","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":87,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"c516844b-cbfe-4370-a904-fa3808d664a3","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":87,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"998308a2-c7e5-4793-aaf6-2c70ea6c2bf5","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":87,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"9082f08a-9fd5-44f6-b61b-048ee57aaa70","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":87,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"cc31f4c5-8403-4509-b8e2-e0ebb9f46f4e","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":87,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"47bf17b8-3a94-49a4-ae6f-712bd121eb8f","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":87,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"79c1da73-23f6-4235-b486-9794c3a1a67a","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":87,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"f9b51d0c-6fe8-4237-bfe7-3f5b99f4d9f3","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":87,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"6fd97efb-de19-4e4a-a126-4efecc67bf11","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":87,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"b9736915-0468-44dd-bb72-da582437c411","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":87,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"96f0b9fd-9078-4cf5-b2db-7a07d776c938","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":87,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"7528cca4-8c97-4259-8ec1-09e26d9a563f","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":87,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"5aa67aef-916c-4f89-8353-58df9b000ace","block_type":"box","text":"II-49","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f164336-a4ae-4a12-ba95-fecc2cf6d811","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"65e35398-32ae-43c1-92a6-d239959bb42f","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":88,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"9289470a-fba1-4ab1-a2ba-f78bc4dddbf8","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":88,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"aa5aa551-c082-4a99-9f78-0340ccbcdc33","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":88,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"cf6c6b26-f505-489b-acef-cd942e84b289","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":88,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"97ca6105-4879-4f34-a91b-e540c61ba0f6","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"bcc2ef2d-4373-45c1-9326-1448963b805d","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":88,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"f3f6f8de-0114-482c-9cbd-7e5c47ec2a69","block_type":"box","text":"Merger Transaction Risk.","page_number":88,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"62e8f7e1-64ef-4876-84d0-f93562fe70c9","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":88,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"6fe3135e-eaaf-42dd-bd5d-71bda11d4fbf","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":88,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"0807aba8-29e9-4ec1-8673-e16652466ec4","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":88,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"2f8d65c7-8f22-4e28-9912-7638252ce2b1","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":88,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"82c2ea1c-91cf-4bc3-835b-280004efa364","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":88,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"078c0e1f-7c47-4056-96de-61588a1557d2","block_type":"box","text":"the Fund and may lose significant value.","page_number":88,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"d08a113f-70ab-4273-8329-148c7e99cc40","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":88,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"172de5f7-cd5c-4c2e-93ed-3ae84be449a8","block_type":"box","text":"Certain","page_number":88,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"89a5753e-786f-4576-9517-b2a8247e7cec","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":88,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"835f8940-abed-43f3-806a-eb3d2ab357c1","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":88,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"5437e0c4-3013-4366-b5b5-fe262f8db291","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":88,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"84e64003-7143-4889-8b2e-e842ff723485","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":88,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"8e9658c6-a7f2-41fe-946c-aa50ca24051b","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":88,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"bcaf965b-0fe1-47e8-b94e-b96f7b79ac9c","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":88,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"9725c81e-060c-4dda-964d-8fd5971f9558","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":88,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"172393f0-7217-43f0-b26e-27a94bbcc32b","block_type":"box","text":"branches of domestic banks.","page_number":88,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"bbbd90d1-2473-450e-9b3e-68e451dcd849","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":88,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"b1d5b3e8-ef16-489b-ba8c-4151edb2c539","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":88,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"8f57dc0f-92b6-4404-a83c-28afe5c54ac6","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":88,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"b92d2ca0-a3c4-493f-8dd3-b27c1cb8d3da","block_type":"box","text":"paper of a foreign issuer.","page_number":88,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"a3516975-5120-42c6-ba74-900a0c0298fc","block_type":"box","text":"Money Market Securities.","page_number":88,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"80c13a51-f296-4c03-ac94-6f9232e984df","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":88,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"7b77f19c-d06d-4057-9c09-df3477598e5f","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":88,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"f4e060a8-045c-416f-9f43-ccd6bb739af2","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":88,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"4e715ae6-cf00-4a58-ba71-a52afd2a8599","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":88,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"d88ca0c1-2689-4bc0-9211-bafc8d71de54","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":88,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"32a928b9-1d1e-415b-a6dc-da12e316f3c5","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":88,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"769800a3-73a5-4296-960f-f6f3df10fd19","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":88,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"2e87a8c9-417b-4a3e-a58c-f22ec7a3ee85","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":88,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"3e835f05-c31e-44fb-a945-df59d07446be","block_type":"box","text":"agencies;","page_number":88,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"4c1c156d-f85d-4f48-a35f-51c3b4dbf8a0","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":88,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"1770d11e-94b9-4a33-a8bf-5602402496d9","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":88,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"819c4bc8-42fe-407f-ba97-e16c4170de5d","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":88,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"372dd7e2-1652-4558-b39b-e573b954d939","block_type":"box","text":"obligations and credit card receivables);","page_number":88,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"8e903025-3866-4401-a928-9daf8bcd0581","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":88,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"4ce60e70-ba85-4094-9431-ad472067f96a","block_type":"box","text":"authorities and related custodial receipts;","page_number":88,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"118aa756-9125-4ca8-83e1-52ebeb61da91","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":88,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"68c34813-0938-49d3-9455-e9f23a37d6f4","block_type":"box","text":"agencies or authorities;","page_number":88,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"f7bafde1-0ac7-4180-b94e-f23422c9991c","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":88,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"73729142-f707-474d-b120-0ef54e35d21f","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":88,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"0edbf1c9-1ff5-4784-b192-0a2c8837b101","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":88,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"4a577fcd-8639-4ee9-bc8f-3a91664f2e99","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":88,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"f5dc9405-ee5e-451f-a862-1a1fd50ed075","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":88,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"c7e72ca1-541b-472f-ab6e-a14a573d9736","block_type":"box","text":"States;","page_number":88,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"87f844ba-c34d-409d-a717-fb1ed3b19d2c","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":88,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"8b979fe2-bfc7-4ec7-bcaf-7eebbad6d0c7","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"ebc3109a-be87-4aab-9f79-0583032c1721","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":88,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"54735379-56d1-4432-b8fe-09148c44a1bc","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"83d613a4-1ad3-465f-96d8-f49237915595","block_type":"box","text":"II-50","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c8769b4f-99b2-4549-8d49-3a2107d66478","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac95349f-d63b-4106-8293-2e49075423be","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":89,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"111636b4-3784-4216-a681-9996bc4ec33f","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":89,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"5b8ccadc-2d7c-4a18-b288-624488378893","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":89,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"af59b7ac-97b7-4cac-8aa5-6e626cda3b8c","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":89,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"e0902efb-6735-4756-b3f7-cf7984314ea8","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":89,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"04f430cd-f2b7-4777-a614-2cae24a08947","block_type":"box","text":"States.","page_number":89,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"cf3199d7-4493-442e-ba27-5775b15715ed","block_type":"box","text":"Mortgage-Related Securities.","page_number":89,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"70c734ed-3ae7-42f5-9231-de135fa0b2e2","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"fbc957e7-e4c5-405e-b4f2-3a59c44b23e5","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":89,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"e904e6a8-ba74-434e-95a7-00b149db9837","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":89,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"55b431eb-65bf-4e6f-b15e-f9f5806a6c5c","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":89,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"3600688d-dc9e-4f38-8673-565971bfde0c","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":89,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"88777e2f-f589-486c-8a60-f319744405c7","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":89,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"355268d4-b85c-4ad2-bfd6-246d4ee46403","block_type":"box","text":"maturity or specified call dates.","page_number":89,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"4dbcd6bf-308c-4eb4-a75f-ce7a3f026339","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":89,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"8fecf1d1-7409-4137-8628-dbd2f89786c2","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":89,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"0ec5a8bb-20f9-4de7-a9bc-121e9b59dfae","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":89,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"dbdf8116-fa5c-496b-88f7-5c84750a2bfe","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":89,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"1c30417c-cdc4-4e68-91a0-c0ff52cf79a0","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":89,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"5b3aa12d-773c-4e85-8a44-9efb14360540","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":89,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"e6c75b29-972b-4b6e-8da0-4c86f5b534a0","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":89,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"8a5f364b-79d9-45af-8e35-f7d7d54a30ea","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":89,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"9c5b2f47-0d45-4eb4-8fdb-8e516dd351ba","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":89,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"67817818-a7d5-4c3b-8a4b-03cd2bf28f14","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":89,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"b4ce14ed-9794-4d63-9b33-bf0f2bdfb808","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":89,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"936dfae1-a0c0-493c-94e0-289e4a32f883","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":89,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"83f2af10-c50a-4d30-9dbd-bb8f46c1c2ff","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":89,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"c95a0a38-495f-41a3-8bf8-bf24d028b7f6","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":89,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"22a77988-e878-4c0d-a388-5c727859d07e","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":89,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"0cdc657b-ca0f-41d0-9337-fea37ebb0c66","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":89,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"9abd33b6-8784-43e9-a160-c1ac0647292e","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":89,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"7b55bc06-b84d-442a-8274-6d2b715d42df","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":89,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"f957de0b-6a34-440f-bef5-34e08faa5bb7","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":89,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"969d16b6-c34e-42ad-b5ee-8f990c0a61e0","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":89,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"5fbf5d80-eb6e-45a1-ae1c-0e8b7b40b37e","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":89,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"3ba51442-05e9-4776-b219-6802e7d1b87d","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":89,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"805dcb54-549f-4a64-82e8-db1dbdb03172","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":89,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"4e99d444-f155-4321-b830-3fc5686fff52","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":89,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"89819894-a08b-4177-a5f6-3c131331905a","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":89,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"3651262b-a9bd-46cb-9abb-cf83ce3846b9","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":89,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"e14b7091-4067-4576-98dd-77819838343a","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":89,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"31b36e49-f6b6-4728-ace5-872393761c91","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":89,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"97e35513-05b4-433b-9436-23309411993d","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":89,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"9748472a-712b-4be1-abd5-36cc34a7ddfe","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":89,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"2d65b7f9-9973-4e52-955c-1c9e00114d0f","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":89,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"6e04c912-d37e-4433-9c4e-ba1513422804","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":89,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"60483e76-03d9-456b-a18d-db561ee1ae37","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":89,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"5df0bc50-8537-457f-82f9-32a8ea4fb74f","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":89,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"539d13fc-fb6a-4b19-9bcb-aa92b407c1c4","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":89,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"9ef9c739-bb8f-404d-aa5b-d63b2ceb6cf0","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":89,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"99f1f131-da2b-4792-8bca-35836fe61c70","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":89,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"3e9c4aeb-8999-439f-811f-833b494ccfae","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":89,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"7782c4cc-0d82-4b8f-a1af-fd969855b212","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":89,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"32ceff08-0805-41e1-9fdb-37351d87520f","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":89,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"671691f8-cf41-404c-919e-271f2a1ec39a","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":89,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"078219f4-55c1-4bd8-94db-8c3b02bd8a1d","block_type":"box","text":"II-51","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b66026c9-cfa1-4582-a049-af9097986a27","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"490c28fa-eac6-4215-bbd9-8fa57f87aae7","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":90,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"51548cbc-509f-45c8-8ba3-34d74a07d5f2","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":90,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"763bdb01-25bb-41c5-83b6-ec18472010f5","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":90,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"a9845516-3140-410d-a266-4de7a092d015","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":90,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"724cc0c2-f5c1-4990-9500-109caa1ab3d1","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":90,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"8ce7a743-aa85-43b2-9d98-f0df5afe2962","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":90,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"25eec2a7-9b02-4aa8-9255-9c1eb0c70b07","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":90,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"73c898c1-7986-4541-9b2b-d721d0fac4c3","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":90,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"e16c6729-39d3-4d79-b03d-fe8b5642852b","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":90,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"d6f79f53-eb83-4fd7-8188-e199f9e490db","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":90,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"1f101ccd-da03-4776-8aa1-8477e41c6840","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":90,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"a23fed0c-0e5b-4ff5-b8c9-c15edda95dfb","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":90,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"1ea6b2ee-08ef-401d-ae79-c36c9fcb7cf3","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":90,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"ee2d34cd-5120-4a2d-8b28-61cd3bf97286","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":90,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"d94468de-9a94-416f-a2ed-56c1dc0eb80d","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":90,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"bbbf4c28-259c-4f21-9c44-daaa926a272e","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":90,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"75ee9f44-8da3-481f-8ec5-82b932071db7","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":90,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"3fee1e28-c16a-4b5a-9b0d-18e356a7b64a","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":90,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"99328474-896f-4e33-991b-e4b51b86d128","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":90,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"0ac54c24-66d1-482b-b167-424e08c1bd61","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":90,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"f425c0c1-8371-4dde-bf6b-8d75944e1ade","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":90,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"88c1421d-494a-4e73-90c5-e457b88c317c","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":90,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"baab8055-012e-4eda-8ad9-638c803a8126","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":90,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"a1fd6f9e-0a36-460b-b0e2-b2fa9e7e793d","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":90,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"19efaea8-19df-4c53-aa83-afb4b65e17ef","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":90,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"ff615c09-4262-4ac0-b553-30dbedbab029","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":90,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"69a62c3c-4f15-4331-9f28-9a6808b59509","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":90,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"b5ca1c09-e84f-4bff-823c-057449d06763","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":90,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"3afcf0c9-bb6c-4657-8d6f-593e5c00dbb5","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":90,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"094c119b-2b36-4d8d-b0de-816ad9898c96","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":90,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"ae790f58-dfc2-43ac-86c0-2d09a6d12518","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":90,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"ba5a72bb-c07f-4b8e-b74e-b7b309105bd4","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":90,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"259623e0-ab45-4065-8150-57b361c6df00","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":90,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"15d66324-3afc-44ef-b2cf-db707ed7e0b8","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":90,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"3ac9254c-1557-40b2-a790-57a899254e58","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":90,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"59f12de6-c130-463b-9732-515436d14370","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":90,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"551e30c7-34cf-4c5c-b6cc-1b74b071bfad","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":90,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"36fc9908-edd5-4af9-bb32-f8d46ec86c16","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":90,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"71ce59e0-03b7-4966-b76a-32bd8dd2ca5c","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":90,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"5539e1d4-8c4b-492b-a2fd-5481724171f0","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":90,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"c0586756-a3fd-4f94-9fac-0dd47822219b","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":90,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"b5292f8f-5026-4008-a4cf-0c1c8c7874be","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":90,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"0f29e75c-273d-4e68-9fe3-da94d2090990","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":90,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"90e678a2-f3d7-4f0a-9fbe-05705fe3f134","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":90,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"7a28c70f-16a5-4c00-a14d-6e4996857286","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":90,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"ee4afe67-f164-4398-91c9-89e82b595b8e","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":90,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"f99e42b3-898e-46ab-bec8-456d93fa28a8","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":90,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"2c5c10d8-e608-4fcf-884a-f3fcd709c697","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":90,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"1be119c1-1acc-48f0-b2bc-aa586a061a7f","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":90,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"37f5d110-ecdd-4269-b39d-6bb830233265","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":90,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"6d6b44af-1782-473c-b244-c4f715f5113d","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":90,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"81bda4f9-97dc-41bb-be21-7dc3c532477a","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":90,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"e6eda1fc-5b83-46a2-b7dc-4972f5bf8cc6","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":90,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"f974ca60-3156-4327-b3cd-9b329643b3c7","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":90,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"69450323-c679-4676-8bd7-0eddb56a9e92","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":90,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"d23e93a2-45a2-41f6-8a95-2a618e4cfec9","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":90,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"a864597e-c65f-4f98-ba40-d4c3045b574f","block_type":"box","text":"II-52","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76aa195f-46d6-437b-b397-9d16a7c3b76a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a80d3146-29ae-416f-a488-fdce46e1d564","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"f13cb6f3-6e44-4bc7-9813-c087a28a3abf","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":91,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"0cded270-9093-4254-bb94-e6ab98b3060f","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":91,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"6a9d2243-506b-4346-a704-4639166b03b5","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":91,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"dd7bafdb-ff35-4988-9098-a329a3b3ecd6","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":91,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"ce4709f7-22e5-468a-9406-12ed36bc5665","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":91,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"95b74338-9c15-42cd-9dc5-a30ceeabc8e9","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":91,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"e1f84be4-ff59-403d-8589-679d38ebc49f","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":91,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"608424cb-ccb5-4f08-9715-0d60c7b6cfc9","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":91,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"f43b9db7-a42d-4d25-a4e8-c56c288cec39","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":91,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"6e40285b-79d0-4ec3-8c2d-f14d9628abcc","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":91,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"5284f2da-bcef-4805-8a59-dfe0ce49bb70","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":91,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"b0e41cfb-7cd3-4002-8728-44d2e7d169f8","block_type":"box","text":"of principal because of the sequential payments.","page_number":91,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"e80cb277-a152-4172-8f80-b5dce2ae35b0","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":91,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"5039945c-a8a5-4d08-9c2a-dc41409a6e3e","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":91,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"96bddce3-5798-4409-a0e7-0ab020fb0cf1","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":91,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"1ae8dd06-c230-4cd4-aac2-153b3ed7ca8f","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":91,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"b12bbf53-a084-4ecc-9333-594671fe7bac","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":91,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"8bb6637a-aa3e-45fe-bc9e-f36fd209baaa","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":91,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"02a46cf3-0958-49d7-9bd6-40b908efbd1a","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":91,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"69dee216-b8d8-4244-9474-2519dd6255aa","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":91,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"c2bf4a47-cc7f-4544-83a2-a7b355cc79fd","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":91,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"414ca9b5-b891-40e8-9551-7fc1f7ba542a","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"74bb6ca5-50cd-4231-8604-8d70f6ac9084","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":91,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"930ba7b4-4ae9-4eca-a855-84aec98e0bf4","block_type":"box","text":"securities of any single such entity.","page_number":91,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"7cfd0aba-97ff-44e3-a5ca-3b600dfdce07","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":91,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"4010b438-425f-4a8c-bdfe-335cda0fbbf9","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":91,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"42e725fd-f0cd-4e0f-8338-16b014f4eda5","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":91,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"3d1f1214-9bf8-4f67-94d9-f5a917c0939b","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":91,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"395aad07-8724-4763-846b-ec5229dbc63a","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":91,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"6f59ca9b-966b-4771-87df-bc71b392c9bb","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":91,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"b18a51d9-7190-4f13-950c-04d3e53c993c","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":91,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"5a823ec7-0953-4c08-b3c4-c7aaeea2ba36","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":91,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"5b90bfc9-5721-4810-a51f-c3c8da061b83","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":91,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"a785605c-d7a1-4149-9d16-1ddb2473badc","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":91,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"db268f8f-3ccf-4baa-b656-5cf9a11c4cae","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":91,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"9e213e79-5d0c-450c-9394-1044e8d6d62c","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":91,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"a904284e-3fb6-4bc8-8ad8-b5f3e3de9de3","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":91,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"91cfe203-0468-4318-80f7-e0ba8e252505","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":91,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"87c2d57c-14cc-44ba-8792-76a9e18ed11b","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":91,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"b06c4be3-2406-4f3a-b64b-e753cabb0f50","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":91,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"9c047198-b6d6-4abb-8348-5eb52bf18491","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":91,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"5bb0603b-89b6-47d5-8596-4e5d385172d4","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":91,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"ef40ebd7-df7f-4691-bba2-322bbd7494f6","block_type":"box","text":"classes.","page_number":91,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"75b1c94d-05ed-4a4d-b3a3-840eed7ecf94","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":91,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"17a07fac-7500-4598-a50d-4c4d9d6425a8","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":91,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"b59f3324-7583-4997-8f5a-83b314ac62d3","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":91,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"4940e447-a36a-4112-97dc-725ac979afa2","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":91,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"8a617d0c-b7c9-4851-bde8-94fa1560055b","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":91,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"110dd136-17c8-4ba0-b40c-08b2bf463ab6","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":91,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"34f6cd6f-674f-4d3f-88b3-90e07d0840c1","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":91,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"561248ec-a4b2-4fdc-8560-d8d0406ba636","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":91,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"1ded65cb-3120-4b82-9bf1-c6973f0052fe","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":91,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"8bd5be2c-7ef6-4ad5-9c88-c461f4bf5386","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":91,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"c3045040-7c45-456c-a70a-2b0f602e7cfe","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"1b7c3409-528e-4840-8816-3d12bde94f10","block_type":"box","text":"to a designated benchmark index.","page_number":91,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"6a3f041a-ab55-41dd-8919-b0749713b378","block_type":"box","text":"II-53","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d125a60e-ccec-4fd4-a85f-3550719d05f5","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e04ae6de-6535-4ca0-bdf7-0fc2e002dcd5","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":92,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"44433f7e-1826-4bad-95ba-bd7ef5440920","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":92,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"308bc676-b3cf-431a-be35-6b8d7b116019","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":92,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"38b47e60-e098-41cd-b400-0f747d02380a","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":92,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"a13fafdc-21c9-4a67-9a9c-03bbe6a5261e","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":92,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"d93f9e48-c096-4257-ace9-3d8041baaa10","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":92,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"5c2c4a4d-01e9-4f61-b549-1eb3859c3489","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":92,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"8868fa11-4cb1-42b0-b966-b707244ea0e1","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":92,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"08af0cd9-9f84-438d-8c5d-a528618ce1b2","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":92,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"784252ed-0aa9-45ef-981a-96e6e480e357","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":92,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"0e66cd84-565a-4f31-b368-1cf6263a2a93","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":92,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"3398e75f-73de-4044-80cc-c3ce18cc03c7","block_type":"box","text":"CMO Residuals.","page_number":92,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"f9f7d7f7-e372-4b2d-8a49-45689a8d34e7","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":92,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"01a7abe1-d58a-4c59-a1a1-9582ba3f4595","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":92,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"e8457c1a-b52b-48c1-98cd-dd6190b68d42","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":92,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"7a9fbdcd-b085-4ae7-8a65-42aefb6f46a6","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":92,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"8c707434-df0f-4c33-8920-c8554d3d0a1d","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":92,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"c0f5b455-dffe-479d-8323-dd9e97be087a","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":92,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"0f1aa778-4558-4e6f-b6ee-e4f3efe362a7","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":92,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"d09ff1cc-ddb2-43d3-b67c-6d77e7cae814","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":92,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"3238e96f-0c6e-4e07-ac80-7075db949925","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":92,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"d3f71469-fe3c-4aeb-8c5c-8c5711931b7c","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":92,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"64160363-efee-4089-bd43-f0ce548240e3","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":92,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"41a5b2fe-861c-44a9-877e-6914e7e42f2e","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":92,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"e48fdb74-7d57-4864-bd99-eb257c82a681","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":92,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"fc17f24b-f150-48c9-8837-f04393b5e89b","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":92,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"dedff759-44d8-4f93-aa52-004ca8b66209","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":92,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"1dbfd996-8bba-4e34-8b68-9e8c23a6ff79","block_type":"box","text":"a CMO residual.","page_number":92,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"48f1c1c0-d624-4d2a-adaf-33f664daff13","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":92,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"5ef54302-817e-42f2-8bc7-155fc8d05275","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":92,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"6298ada2-23f4-4eaf-b79f-fdc21f489494","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":92,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"fee66b8d-efd3-4663-bed9-6b19277d2dd1","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":92,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"d2b7bb58-c5eb-49c9-98ed-0e4b1d741b68","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":92,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"103aae48-3eca-4aca-861c-2f20ae4a542f","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":92,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"41d37fae-8c5b-46a0-9e17-b474ea7563d2","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":92,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"df8b3f0b-26f9-4ce2-8a68-f824beedc656","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":92,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"9830d239-44b7-4268-8b3e-3a153e11d128","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":92,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"614db596-0013-4a6d-9b72-c7c4312784f8","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":92,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"e4604d7d-dd25-41af-8e2c-9b09711c16b9","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":92,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"6854a3c9-5c0c-49f5-aeb2-b4dbf2aa0859","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":92,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"40ee27b3-95e6-48d8-9d1a-97619f0a7189","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":92,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"99058384-725f-4563-b18b-7950d54083da","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":92,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"aaa4c00b-ebda-4e2d-b20f-fbf7236dcaba","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":92,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"c8fb0ef8-3149-41eb-87e4-3b6a8a83c763","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":92,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"4ba4ffb4-3b69-4b6b-8609-f2b3bfd9fd3c","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":92,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"1ee20e85-16db-4959-8e76-13fe078c7843","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":92,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"f84af86b-7bcd-4b32-8216-7b27c0da3013","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":92,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"77246535-7f2b-4acc-ade0-21410853e18e","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":92,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"21e4306d-4e4b-46f3-95b0-3990754985fb","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":92,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"61ba29af-51a9-44f6-bd91-101a27895aa0","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":92,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"2e490270-0d79-4da4-984e-9f8fa9d3c5a4","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":92,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"45ee8554-05d8-44ab-9c4e-5e9774e2b7f3","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":92,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"c4437f0a-d318-4ee2-9ce1-c63c006e7129","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":92,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"d2cb6107-d95c-4f68-a383-65b1e909b14d","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":92,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"86f7d955-5b73-4e61-b0f1-b13d46124418","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":92,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"8605b888-e5f1-494f-bbd5-1c6bfad752bf","block_type":"box","text":"Tiered Index Bonds.","page_number":92,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"0621bf3e-dc28-4b96-9c61-53b63b340ef3","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":92,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"2b9e9ab0-69fc-49c9-a52d-32b1b4390a26","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":92,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"80c0ebb7-52ba-468c-8ac2-48b1db718a9a","block_type":"box","text":"II-54","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"be75d16b-b7c3-4ae5-80d5-623d5eddbcee","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4dbcc09-c5ba-4391-86c4-448c011d353e","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":93,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"0196e5f1-3c32-4bd0-adbe-fef78a8c1616","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":93,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"7c36402e-0a99-451f-9d67-a74cc71c78d0","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":93,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"9a5d9393-f67d-4d93-a6bb-4a3c0352ec69","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":93,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"7bba4c30-7b1d-4f98-9a6c-7642366bb2d2","block_type":"box","text":"that of a fixed-rate bond.","page_number":93,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"5fc50e5a-fb0e-4de2-8cf3-aa996769eae4","block_type":"box","text":"TBA Commitments.","page_number":93,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"992686b0-6782-4c8b-8ffc-d0c8457abe98","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":93,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"f84bfbbe-9f0c-4537-a4cf-c9a05fa936f2","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":93,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"2f336f44-2dc2-4e7c-8a10-1a86d4a8dfdb","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":93,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"ff597b17-7ee8-49d5-8f55-3b9d2d30fc8f","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":93,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"28902a6a-6282-492f-b969-b3e6da34b2ce","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":93,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"de4b5ab7-9ded-4e3b-a949-abd13d931d3a","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":93,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"e210d1ae-8332-47b2-a258-bfed29a00998","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":93,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"3b362402-5cf6-410f-9b0d-a96db0c63570","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":93,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"8d88b9ba-30a2-4296-a9e4-c368bc19b497","block_type":"box","text":"below.","page_number":93,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"af9aa36e-a8cb-46c8-a328-7359db4fd26e","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":93,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"38d4cc4a-00f6-4a7d-b131-d36f9104278c","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":93,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"9ea24db3-efee-497c-9a12-9a72dea0dbc3","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":93,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"88246986-503d-42f1-a2d0-3f8bca36a5a5","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"5da2b6a1-68e7-4fe5-b9d8-af98b56f5fcd","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":93,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"3bbcf368-4477-4c1e-9090-c00ccb75fd38","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":93,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"d339ccde-7b87-4fcc-9dc1-2f5bb5bc1e37","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":93,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"7f35d63e-91e9-4ea4-bd82-5675697000ea","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":93,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"eb17dabb-7c1e-4196-ac8b-5d68fdb4d4db","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":93,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"91bf3c7c-790d-496c-93ec-f00647ac1389","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":93,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"30ffad9e-625b-4961-841a-792c81ca3368","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":93,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"f5c7ab22-0f81-4da1-8739-ec70043e7b55","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":93,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"5ed68e97-a194-46d2-8929-4f62fe1b552a","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":93,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"b9348bf7-ae53-44b2-9162-50efe281d855","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":93,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"0f956168-1f3c-4bee-a0bf-374d46a321c9","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":93,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"cd1689a1-135e-4f64-8ff5-0773e00508a5","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":93,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"1d6d3dbd-c2d9-472c-b646-6b43e1782903","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":93,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"70dd4ad7-1da6-4023-beae-0ad2b92b800c","block_type":"box","text":"securities in the forward transaction.","page_number":93,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"978dc0a7-5fdd-4799-a2f6-e80d725d8788","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":93,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"4b62e7c1-0b40-4a11-929d-faec27c5acd4","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":93,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"14a52a2f-0772-4988-91fd-66680922f0a5","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":93,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"c6686bbe-a2cf-4f64-9d3f-713a8b553f57","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":93,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"a74d838a-5827-41c9-9c30-4b10c10b91fa","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":93,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"1a25b462-9e22-42bc-8436-646788313a2b","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":93,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"fee11437-95c8-41c5-b14d-74e90203e84c","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":93,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"69e018bb-b6db-4e4b-af1b-5e1dbf33c1c3","block_type":"box","text":"securities (","page_number":93,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"638e4a4e-05e8-4748-a08d-eb7940f0d63f","block_type":"box","text":"e.g.","page_number":93,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"5ae8ee67-0b47-4f14-946c-710368b68a11","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":93,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"d28a4c84-3539-4266-9f76-a1e3bb4f4ce3","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":93,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"50727481-2932-4453-9f94-3b2b239f9076","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":93,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"e2ca3148-1063-446f-93d9-b4d68bce23cd","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":93,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"71da5bc7-681c-41b1-935d-eda179c83ed1","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":93,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"a71e9ec7-d08e-4af4-be66-365d35a3fb2f","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":93,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"d8d43824-aca5-4ba0-8009-9f20abba2574","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":93,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"b29cb9fd-9a4f-4143-85a5-f14772235c36","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":93,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"2911741a-0fbf-4478-9402-a764df7199aa","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":93,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"fef18121-f34a-4150-83f8-a8f4480689c1","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":93,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"90fab176-daf0-43ed-8f8d-9d08dde3e55e","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":93,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"f44e46a2-a46e-4181-8140-4a1a9862387b","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":93,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"7f5e7fb5-da7e-4bee-bc5d-2eb047bf96b5","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":93,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"8358033a-ef8f-40fd-a153-4b7a2a03c943","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":93,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"61b4e75d-0a86-403b-a359-4b1e9cf65804","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":93,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"56fd8a05-223a-4576-bb0d-e3f2babf6301","block_type":"box","text":"Municipal Investments.","page_number":93,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"cfa327f4-d615-47c9-a798-1ffe4d7b8a35","block_type":"box","text":"II-55","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"959f946e-8c4e-482a-bf08-b16747058941","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eda9da2d-beca-49d5-b9b7-71dff2d90741","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":94,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"becd1414-e1fa-4136-8c83-216220eefec6","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":94,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"76f89f1c-7502-4408-babb-d9a168b6d182","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":94,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"63d0a401-c219-43cb-9713-edec56cd6851","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":94,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"8be9aecd-a15b-4831-ac59-30034a6af230","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":94,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"ab557b38-bacf-4fcd-8f82-05e795cbadb5","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":94,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"59f969a8-f35b-42f0-bbc6-3e9ac678e302","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":94,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"3442b716-419e-435f-8fa4-f4a6f4823c90","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":94,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"0c86ba76-a168-4be1-9937-57487414a109","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":94,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"43cabb01-94ce-47f3-ae04-b4e4323bc467","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":94,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"c4867bd2-0c2d-45bd-a9d0-0d20d91fb4c5","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":94,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"c231a465-8c14-4b4f-a489-39411998be4d","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":94,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"ed601a64-94de-4347-b725-9d740f57a26c","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":94,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"32e2cd9c-26f2-41ae-b47f-e9901eb36b0c","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":94,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"43662164-1bd6-4c2d-9d55-15bc83bbaf71","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":94,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"8fbffd05-5d23-46eb-adff-5321f1099031","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":94,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"b9658394-693e-4315-8f5a-43b6a72c18e6","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":94,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"c3416502-f882-40a5-bbc1-ec96e39c6184","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":94,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"71456a9a-eb79-4fd7-a0b1-94090b42e7ca","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":94,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"1374e2a0-ccf4-44a3-aa3f-4126b211fdf4","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":94,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"f229cf54-d4ac-4964-9d96-84ff0d8dffb0","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":94,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"7b236225-50a9-4c31-893c-db5ddf33c099","block_type":"box","text":"The risks and special considerations","page_number":94,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"63f7093f-4b29-437a-a228-8fcb59be2815","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":94,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"847798c7-a87d-474c-874b-16f46a520f1b","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":94,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"e2784f49-e08e-4bde-8df3-ec2a86e9565c","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":94,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"3d05fb72-b149-489a-80e2-7386769997ae","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":94,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"d3c577d3-cfa8-4798-817f-1db7201345b3","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":94,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"9da80e4f-a8e2-4982-ae72-a87b6dc1e66d","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":94,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"51fc8270-c24d-4a64-9f96-e31bfb53b674","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":94,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"9ac25828-f80c-4986-bda1-a7297bf10edd","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":94,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"41cfd44b-cdfd-45c5-b7f9-745215cb5b27","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":94,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"95785d32-8078-451e-a039-4791f284ac53","block_type":"box","text":"II-56","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0397dcb9-467e-492f-9cd8-78981b701e21","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1ebe8e9-29ed-4e5b-8c80-ef6554ff0f4d","block_type":"box","text":"Description of Municipal Bonds.","page_number":95,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"4ac5f3a3-c241-4b0b-a9e2-a8997b67a153","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":95,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"cc69e569-6ef7-41e8-b988-c371e1fbfbe5","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":95,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"cdf217e5-2747-4415-b389-d7302ad412e3","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":95,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"79ba4159-66cc-47f3-a596-2da215bdf1a9","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":95,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"8be362c0-819f-44a5-be2d-00e9b1f9aae0","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":95,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"528bd4cb-d99c-4af5-b227-c7b2f67b6674","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":95,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"bd0211a3-8c14-4b89-8955-9a57df0069ee","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":95,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"8b66e8c9-29e3-4432-89a2-674c699070b2","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":95,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"521945c5-5097-4d55-ab50-523bc6f5023d","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"03df4023-fbde-42d0-a256-7300f66f55e7","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":95,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"8e58d65a-0680-4176-a212-da535fff2aaf","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":95,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"aba2e7fb-36e4-446b-a2f0-ec980f8873ca","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":95,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"bd984f50-0014-4c9b-a81d-17df55821e6e","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":95,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"79bd1e6a-42cc-4be3-b026-16716b95797a","block_type":"box","text":"General Obligation Bonds.","page_number":95,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"6f5730c9-98e3-4757-96af-82956d6e04bd","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":95,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"a7912260-9094-4f09-9992-5bcca7ab53b2","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":95,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"7a91ae72-f95f-4bb1-8696-723114269f94","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":95,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"5d73e9a3-42f1-4a21-ba01-a12c2e0b9b6f","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":95,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"7289d2ac-d49e-4162-be4c-8a94700d7371","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":95,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"c4442b29-7779-411f-8f26-91f2bff6c8ef","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":95,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"bb645409-5570-4e70-a2d6-f69ac82ac082","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":95,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"f72c3b09-6972-47a5-8c46-2ff52f0e3254","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":95,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"2dc76eb7-d413-4528-87c5-94b1de865a59","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":95,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"b408dfee-ecfd-4171-90a8-e988ea4bebc7","block_type":"box","text":"Revenue Bonds.","page_number":95,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"3d5192b4-6595-4c19-9be8-ad3e693a1f4a","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":95,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"972ee6b9-5d57-440b-be9e-9aa6863d973d","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":95,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"2de881f6-8c88-482d-bd09-5079eec141ae","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":95,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"91654449-bb1e-45f1-a8ae-7ecd740adae3","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":95,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"c44570ff-7e1c-462d-9deb-ea271efe5726","block_type":"box","text":"viability of such facility or such revenue source.","page_number":95,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"496fbe14-1e14-425c-9f0d-a540028ec153","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":95,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"a9116caf-b529-4ff7-bd07-dc769d98954c","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":95,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"be0abd2c-6cd4-494a-aa37-189bdd94ca40","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":95,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"afacbf54-6288-4cfd-8012-77bb1e276a16","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":95,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"52346bf5-4c3a-4a6f-8519-f2335480fe28","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":95,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"cbcc2657-d921-40f7-a27d-4426e9b7fa9a","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":95,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"7bacd782-fe4d-443f-a431-05190ec0c5a7","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":95,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"e4a41cab-1c8e-47fe-a01f-2b4a964fff33","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":95,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"02e8d13f-df58-4cec-97e3-8ecbec1fbbb8","block_type":"box","text":"PABs.","page_number":95,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"7a6c6d2f-2d78-469d-94dd-4b0bd48feb76","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":95,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"eb9772ea-57b6-44cd-b968-c7fb605450d2","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":95,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"5ca9bdf8-e1e4-4bd0-8f81-0d33ffc9dc80","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":95,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"5da80482-072f-4273-a223-8dcffe427ab6","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":95,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"ce6938b5-f775-4e6a-8293-8e9adcc86924","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":95,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"2bcc6095-fb33-4668-8cb0-54f68a25a3e3","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":95,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"1fe2e440-dac2-42a0-ac12-0deaf1688e1f","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":95,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"abc5cc0c-911c-4bd2-a4fe-d375bf952a13","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":95,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"bcda2d83-be67-48b6-b4a2-0e719ff488b3","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":95,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"08bbc56b-c51d-49b6-bcdd-11d4ad8697dc","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":95,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"bfdee46a-0052-4aa3-b68e-5ff5d8f7569d","block_type":"box","text":"the particular facility being financed.","page_number":95,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"5b67b261-6821-4695-a0dd-216a5b2239e0","block_type":"box","text":"Moral Obligation Bonds.","page_number":95,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"60578db6-450c-47be-9c31-a04915ae9919","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":95,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"bfd5733d-9ce5-46a6-8333-9c24cd82888e","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":95,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"f41861da-4c9e-454f-83cf-92c2efef4870","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":95,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"f04ebe2f-cbb1-4f35-8055-52ecba383fe8","block_type":"box","text":"that issued the bonds.","page_number":95,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"bdda1b0f-5feb-4c6c-8732-b678c90b1960","block_type":"box","text":"Municipal Notes.","page_number":95,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"956db91c-4f73-4d07-a9cd-fa7ba3987e58","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":95,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"7a1915ca-47af-47e7-943a-5d06e49e6f3f","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":95,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"f76fa5e5-92b5-4c53-86de-3a59443e06eb","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":95,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"d253d43e-6ccc-4c6c-bf02-79ea8811d9cf","block_type":"box","text":"II-57","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5bb17daa-89f0-4c72-9816-52f50a6d8d28","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"920625a4-ffb4-4cc7-bc6a-5c54a5f3ec99","block_type":"box","text":"Municipal Commercial Paper.","page_number":96,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"da2ff3f7-3881-4cd4-9f0e-6d47f67ada37","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":96,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"549dc58d-5a26-4862-8d36-847ec2b7c949","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":96,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"a736f392-5a1f-4a87-8c1a-b3e631fc0a79","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":96,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"2a808043-4874-40fa-85d1-ead971c32460","block_type":"box","text":"Municipal Lease Obligations.","page_number":96,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"66b07ba2-9d9f-47ee-a3fd-0e1293696d5b","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":96,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"4c58f2ca-3a2c-4b24-a224-953bf67969d1","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":96,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"772b43f8-ad19-4250-80de-258cc3f915a3","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":96,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"f302dfaa-9617-4ab7-8ab4-6b896f92946d","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":96,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"5c52093d-8e00-4f0a-abe8-c0abaaad026a","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":96,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"f1c799f5-1712-4113-a6ab-b08d65d4ba9b","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":96,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"ecb5d6ea-e109-4c6d-8b92-7026cdd93507","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":96,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"21e2ea72-7848-4436-aa0e-7a6f4cfa60ff","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":96,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"5de6c4bb-2d41-4709-be27-84420ed88622","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":96,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"3765d532-172c-40ca-bbe7-cfcd43e98a0e","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":96,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"19c95499-31d4-4749-985d-aa3234511921","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":96,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"94076931-35e7-4fb7-974f-1ac5aea14e46","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":96,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"1ea52301-eb0a-4bc3-a424-3b9c4fd79e96","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":96,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"b1f6ab9e-c055-447f-89ca-69e1180cdb31","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":96,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"d0e86595-49d1-47ad-97d7-1f93e13d9e43","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":96,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"d3dec411-7bee-4bd0-a500-741b5f25245e","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":96,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"0039b064-5150-48ac-8d0d-52cb4d21ed18","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":96,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"4ce735ff-204d-440f-bd21-a24dee8a0308","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":96,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"72080f1a-b241-421c-9169-d2825071f258","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":96,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"04da811c-3ff5-40d4-a920-76159afeef54","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":96,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"bb02439c-ab2c-462e-92cf-0fa4e5298323","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":96,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"ee492eda-821e-4fbc-918b-8c42dcd758f1","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"4045afe6-2386-4a58-be30-4b88d13dac71","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":96,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"3ee99949-931f-4159-af40-89d9137f6aeb","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":96,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"f724da1f-63ea-4da8-8706-d32a2963afea","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":96,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"cb438e84-9dd1-435e-bbc6-d18bc6f21a0f","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":96,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"c5e7b859-38ec-4dc9-80c2-1b4e92207849","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":96,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"987ce35f-bc92-40a1-b031-692b59a409ba","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":96,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"dd253e81-1665-43d4-b59a-742a1f4b39d7","block_type":"box","text":"Tender Option Bonds.","page_number":96,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"680c5f9a-f7c0-4c8f-87a1-b7422509c2aa","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":96,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"627205a8-bed0-46ea-8dd1-4ee41cd565ea","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":96,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"5edee81a-4a64-4dc5-94f6-5ee68346fad6","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":96,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"95ff24bc-5a4f-4f87-a4b9-74344d16ba5a","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":96,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"49113a9e-9b6b-4be8-a3a1-3608177f74bd","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":96,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"b31e7a16-6516-42d3-a559-b004aad8c793","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":96,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"62967fba-4d9d-45ec-a57b-d3b8dbdc4114","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":96,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"693ec10f-e7d0-4925-8815-53dff6d5a4b9","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":96,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"fae7afe8-8737-4a44-8dc1-46df90f376a3","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":96,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"596efb7b-7a5e-4512-b439-09798af3b6e1","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":96,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"f60618eb-cc79-41cf-a645-1beb012a877c","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":96,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"c3105b44-155d-4c8c-966c-cd6d6658a80e","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":96,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"534f9476-f9f4-4ee3-a2eb-e967c5ee2289","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":96,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"01471350-f241-4b34-9391-c980b7c7c3eb","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":96,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"0aebacb0-316c-4c0f-aa32-d3337c6b69f7","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":96,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"cc0aa5f7-3a05-4292-8fd1-728a33da7e01","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":96,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"18bc633d-6fae-4b42-883c-c9260756e7cd","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":96,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"64950156-0dd9-4f51-a889-e88bcc12d5e4","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":96,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"6cea18f5-ccb9-45ca-930d-c6d35b432c43","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":96,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"32acb543-b9bb-4f3b-aacb-f2c1eb55d3e3","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"b44fa4c6-b0d7-43c3-ad9c-cd2d2e2371d2","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":96,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"7e8348ae-e5a5-47be-a9be-48b939afd2ea","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":96,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"0fa067a4-0eba-40f1-b1dc-16e25a557259","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":96,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"9a8949f1-c3e3-4de3-8c23-ffc4b1a1dc77","block_type":"box","text":"participation in the TOB Trust.","page_number":96,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"6bfd21c1-dd08-44ca-b6c5-525a54e0af43","block_type":"box","text":"II-58","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0af7889a-0882-4e89-9bc4-5119adf28491","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a67023c8-99fa-421b-9f80-2084d8f5ef75","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":97,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"6b2f7c45-1f2a-48e1-ae07-181b2318360f","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":97,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"cf2c4ab3-952a-4336-b97c-927e87cfa957","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":97,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"4f30c47d-b667-4886-87db-202b6ac68d39","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":97,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"00936323-63bb-4222-b083-2769080cabb8","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":97,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"d0af84eb-cfcc-4aeb-b5d1-10c567074133","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":97,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"f5b8598b-3721-4b59-83ab-50757b4bd841","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":97,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"0b336379-4a84-4750-a4a0-006286eabf9e","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":97,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"95ad77cd-037f-4f04-853c-f69ca1de0b44","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":97,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"327a00f7-cb1b-4547-ac9a-ab418a65b8f1","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":97,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"a716291c-e762-469f-bac7-a266d26d2287","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":97,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"13dc3c94-7946-46ec-b411-73be2bb2e32c","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":97,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"41535022-7296-441f-9550-1460513fd4d0","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":97,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"23354924-cb79-4b9e-9157-9c6279d7d55b","block_type":"box","text":"issues.","page_number":97,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"f825e173-570c-4032-a907-3787cdaf3606","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":97,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"e4c2b815-0806-4ac2-a7a6-f7ef1281aa80","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":97,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"6a18ff40-7784-4ef8-b247-a87cdb537db6","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":97,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"1cde9fae-63c5-4a41-b6fa-82d857b36637","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":97,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"187785fc-c427-4839-b3a1-f12764b6e915","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":97,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"95e5a139-76cd-4560-86eb-ab014ebbe64a","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":97,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"211057e7-ad5d-446e-b450-63b321d758a3","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":97,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"0bc8dfad-344b-4462-accb-1100caed938b","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":97,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"0b53f796-713e-41a4-a0cd-34fdd224f944","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":97,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"c9296503-9dd6-423c-9b70-47d5b20dec12","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":97,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"78b670ca-850e-4687-8983-383888900bd2","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":97,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"0bdea037-e270-452f-96c3-13173e7c2357","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":97,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"b256d80d-3945-4a7e-8fd8-b92f38e621b2","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":97,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"8ea7ebb6-4942-4022-8605-6a5f80c844dc","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":97,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"968b3a6f-1ec1-436b-a4c7-9c45aae78974","block_type":"box","text":"i.e.","page_number":97,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"01f9b489-2dde-49c2-bc37-b946fbe83d66","block_type":"box","text":", the Fund). In contrast, in the","page_number":97,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"76ff2c3e-c619-4863-99e0-e0dd07d14de0","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":97,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"5bba20ee-c964-4486-84f6-bacc48a828c5","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":97,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"236893ca-91fe-46df-b480-ab38a81b5d0a","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":97,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"925f2a6c-5757-4a51-a397-0ee122066873","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":97,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"64819ded-2741-4b15-8ccd-226e63f21fa8","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":97,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"ace70e1e-db8f-4852-abff-d7427a4bb010","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":97,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"bd1b999f-637c-4b02-864f-07dc9ddff0fa","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":97,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"62d29512-4d00-4bf5-96c8-8a5dec426fbb","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":97,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"db74799d-d2d3-4f14-a252-98b02ef1205a","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":97,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"13ab2a30-e0a9-433a-b075-2ae7bfbc383b","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":97,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"c15d6443-1dd6-4f28-b257-008d485c082f","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":97,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"157cd898-38b9-4101-9fa0-7150be424265","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":97,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"95105a0c-f2be-467e-b291-056bec6db88d","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":97,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"de3a7d5a-2d2e-4457-abdd-e9af3b81aad1","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":97,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"3d88190c-0477-45b1-8ce5-0e3a64ef73f5","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":97,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"bf0ab2c1-a673-45d2-bf96-f0a4089d4e89","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":97,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"d46a7c9e-7677-495b-abef-e05c788aee3a","block_type":"box","text":"Trust.","page_number":97,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"6bac6d99-11a9-424a-8fbd-e21bef03eaf7","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":97,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"98a8c576-dd69-4d35-95d5-15260f2a2ea4","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":97,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"7bdf1834-6cbc-4785-8624-8f2f6f163fea","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":97,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"b6573ccc-8578-4269-ae4e-07e7fa417673","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":97,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"8a789649-4614-4497-b4d5-7d9438e6c113","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":97,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"710accc9-528f-4e56-b42c-1e124810fc2a","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":97,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"db071f7a-99fb-48bd-b81b-200d99150746","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":97,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"db617ddf-e3e5-4039-a72a-06765f1350c8","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":97,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"6b2fad41-a7df-464a-8a24-f038260e74d7","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":97,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"520cafce-3209-439b-a52c-f5b916bbd8db","block_type":"box","text":"II-59","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db1021c6-76de-48f8-89de-b57ddecaeb01","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81c22ae7-cfeb-44ce-8dd9-3917b7b3c6eb","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":98,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"85dadb72-14ca-4b57-8e1d-58a91e27d553","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":98,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"62d1bec2-5982-41a8-a3d9-c012172d1baf","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":98,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"0d88a352-4a65-44a4-ba2e-2b3dec5674dd","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":98,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"90228b7c-fb63-48b0-9ef8-1915a79c28a4","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":98,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"ed37fc5c-4b64-47f2-963b-5ea877ab2af2","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":98,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"2416407b-d146-4341-9242-7dae5d5c6fb0","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":98,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"cce70d84-a820-4efe-87b2-ff92f7a4d72d","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":98,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"c1dfdffd-aa4c-42ac-aec8-119803af2a60","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":98,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"d67581ad-7d0f-4ddd-a423-a37eed0e3c7d","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":98,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"b50fd88e-4e8c-491b-bedd-b8c694b724ab","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":98,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"512ee0bb-7a5e-4c71-b923-8c0be72e5ff2","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":98,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"c63134b9-1d91-42c0-82cc-e2865bea8e2d","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"4e42927e-237e-4f34-aec0-4207024dddc9","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":98,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"2f489fcb-0fa8-4278-ab11-b682da1f8429","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":98,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"2eaed6f1-8aeb-4dfc-8016-8b3081098848","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":98,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"659fdba4-91ba-4ccc-a753-d1d99d41b848","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":98,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"256cbf54-cc1c-41d0-842c-3ef7c823cb5e","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":98,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"b9e9e6fc-61e4-4769-b2e7-1c002a47a994","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":98,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"5fbe9951-30a8-4467-a3fa-ccf2e91227d2","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":98,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"30c0a979-3edb-4f4f-b580-f805def472f4","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":98,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"3e0f7ff4-6f25-470d-9ed9-f4cb3127ce2e","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":98,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"f8a7cb3f-d393-4aac-8e36-f7d58f06f46a","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":98,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"4c1f8284-feac-43e5-b61a-1f1b5597c05a","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":98,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"9b2269ea-be48-4bdc-bceb-250941a36b0a","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":98,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"70c95075-ac16-4da5-91dd-191a831236b2","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":98,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"8bd41645-0f21-4660-825b-066b080fa9b1","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":98,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"d0a59370-d12e-47aa-aa7d-d09971a97cbb","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":98,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"6822b600-8113-4a94-a717-276c6611d88c","block_type":"box","text":"i.e.","page_number":98,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"865a6e8d-2376-4412-8cce-3364c945b376","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":98,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"e9c0139d-c9cc-4549-bf48-482cb7ba286d","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":98,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"4f857f88-fedf-4b83-aa8a-f58824bc89e2","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":98,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"0ef6cea0-4ddc-4327-9649-2b9f7c8a747d","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":98,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"9becfc45-fd57-41a6-a1df-e2b52b0e0e97","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":98,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"0b5e4132-a2df-40e2-983c-92efb4c9db9f","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":98,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"9e4ee5e5-fb96-4f4b-9776-587405f82dc1","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":98,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"8bfc2346-f069-4c37-b372-a3638d9ced26","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":98,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"c1595069-8a62-4cfb-b1e4-51094c570639","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":98,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"370060d5-8ca1-4922-99af-b377389342f8","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":98,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"1c3ec2eb-1c60-43ef-bd84-0ee3fa5998c4","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":98,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"038766a1-abd5-4de2-802b-2b4227907c4a","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":98,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"3289d2d6-54fe-493e-b4d8-63b6487f1a41","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":98,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"724594a7-25aa-45f8-b409-e8c1ba4bfff8","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":98,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"af150dd4-d94b-4b2a-925b-8a571e175a79","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":98,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"1abf0c49-5acb-4096-afb0-72c5a3367c26","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":98,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"b0f01e96-7287-4fb8-9b15-5871410154b2","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":98,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"31572c93-a47e-42de-b6f7-8810053bdbc2","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":98,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"d6d9ba69-cfce-4165-8bd6-d32d2dacd47b","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":98,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"ada0e7a9-c7e9-4584-8653-4eb04ea6f11c","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":98,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"a7839d1a-88a4-474e-8786-6a8d9e92baa2","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":98,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"cb422a24-83dc-4fb4-8458-9a1b655ce586","block_type":"box","text":"market is not yet certain.","page_number":98,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"992c4e59-7302-4f61-9cad-d3c0d091de43","block_type":"box","text":"Yields.","page_number":98,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"845be042-42e9-46c8-8ef7-3bc046fea017","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":98,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"2b498514-d754-4fe7-9e79-4f6d98656445","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":98,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"1fd4aadd-a1d9-420a-a489-42f141e5c25e","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":98,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"8c541d91-0046-42a7-a45e-488f9e47322c","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":98,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"6d746037-2054-4fd2-ab34-bbeb09d26c3d","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":98,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"b1228fea-02f8-4522-9246-bb0057c18c31","block_type":"box","text":"II-60","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3c945b65-cb16-4adc-9871-274f52640321","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3548f02-ffae-4c8f-9d5e-97d32f01017f","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":99,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"db493abf-be21-46d0-9c49-d61d4253b0a4","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":99,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"e16e7f0a-aa5d-4e85-aa7f-736084b222fd","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":99,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"8a607024-4701-4953-9bc5-8e91fb6b9b3c","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":99,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"1e1a7090-5acb-4e62-ac61-d0380bba5242","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":99,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"9ac4983d-36ae-4ed8-b41a-3f7c507b5041","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":99,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"e6359f1d-bd90-4ba3-a8d4-e29d0cd1bc71","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":99,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"51603ed4-b594-4259-96dd-832bbb930936","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":99,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"1d9dcf68-bfb6-44ea-a3c0-59157237dd83","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":99,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"93007014-c644-4ec2-b766-a602ef92ea02","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":99,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"28b50b33-e40a-478d-981f-0c6f0c3c80d2","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":99,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"92408c63-6c61-422b-b29a-fb630a861131","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":99,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"0a431687-4c4f-44fc-98d1-928869bb87b8","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":99,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"aeebdf80-b503-471c-b3da-abe1e9b91ebb","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":99,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"0216a382-4461-471b-9f78-6ecadec2ab3b","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":99,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"c5c2efd0-8709-4322-82c2-be0e3a7cf0e4","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":99,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"910d86e8-c305-4362-8454-ec45c8fec52d","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":99,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"3c64048d-7568-48e6-bdd1-eec11fbe24aa","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":99,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"0f1e44c6-2205-44d9-aefc-78f77dbcfd6b","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":99,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"db1d1452-f33e-469c-9b61-4b4a3dc3297c","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"682b1eb8-d2b4-4911-8ef1-58172c0ee3e3","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":99,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"6944ffde-1669-4872-8c38-98b675e8f6ad","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":99,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"782940ee-1d54-44de-b8a9-0e11e0cc9666","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":99,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"63cafd50-9f39-4330-982d-5497b018344f","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":99,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"56ec4b35-977f-4ca2-8c16-f49aee624b4a","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":99,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"78d1a041-7638-404f-b28e-6b06a646a2d8","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":99,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"643f29b7-abc7-4b46-9266-1a0e61029298","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":99,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"b9059a3a-b410-47aa-a9cb-e331b3a4a90d","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":99,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"6d3fe952-ad78-4c37-8866-e5883069f7ef","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":99,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"cecd9ca3-4808-45bb-a400-ea3eabe281a8","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":99,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"ecc30697-fab8-4040-8de9-f40d995fbaa5","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":99,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"9ea809d8-8eef-4188-b6c1-843eb50d06a6","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":99,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"c64fbc0b-9531-46c4-a6a4-322cdeedf313","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":99,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"779a1f2b-65be-47ee-8810-f99ca196d1da","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":99,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"faa90a82-c7d7-4f44-ab31-458e780a744d","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":99,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"ac4cad88-a02a-4eb3-b024-f20531cfa7c4","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":99,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"c4285306-0a0f-4a08-866e-273dfa03f6b5","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":99,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"be259e57-d3a0-4ab2-8222-118205ce1789","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":99,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"d1a12641-1e35-4051-a655-023171a3d365","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":99,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"92a97756-8a45-4f4e-b474-bd34482e2141","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":99,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"29b32e8e-4911-4646-9d98-57782f2fe63c","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"20b43fd2-acd1-4397-a72f-416424740283","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":99,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"14077e9f-e8a5-4712-a018-53d2f2f34b1a","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":99,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"8fbe757e-245c-4bc4-8963-ae193a632197","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":99,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"8ab7b710-23d4-46ca-bdf7-466e23afac0e","block_type":"box","text":"Call Rights.","page_number":99,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"257fb6db-09af-4769-8d3d-d41973baed4f","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":99,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"1cfc0e8f-30d6-4e89-b4e9-c48d3615bd6e","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":99,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"0be14f6e-1c77-4bfc-8db1-84bc8ff5d3ac","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":99,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"52eae849-a970-4ca1-9d43-3d9648301b90","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":99,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"3b081736-7462-4d5a-9575-5c68bf1fb774","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":99,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"0e658faa-72d6-4dd0-a3ba-e00ee6e80b7a","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":99,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"afc8a8c8-a430-4d9c-a53c-78ff4c28f742","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":99,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"a7e4abed-3b49-4d85-a7e7-0a290d667328","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":99,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"7c78e4ea-f1b9-4f60-9db7-0882fd5daab4","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":99,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"f6d67e94-9f66-4f03-b316-b4dd45df87ce","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":99,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"e3c78e1f-751a-4f24-bc60-abd7dce9dd53","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":99,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"84b7e46b-86a9-4fd6-aed6-6afbefcee8dc","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":99,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"d1d1e2d4-20b3-45ba-8469-188cc2a1d370","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":99,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"5f1e5d3d-0325-4297-85fc-768a9b8acb6d","block_type":"box","text":"II-61","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e76b9247-0a10-4e26-9453-51fcd7a06e6b","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6a2ad21-2b2a-458a-bef8-f120c182da75","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":100,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"de21bfce-6f79-4188-bbad-766d83852b1c","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":100,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"2fb17679-5a52-45d9-8aa6-a983f7ff00d3","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":100,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"608366b9-57de-4264-b9cd-48497a7a8f9c","block_type":"box","text":"i.e.","page_number":100,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"44694c7d-d2b6-42ab-a468-01b3731c6d01","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":100,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"17adf130-5ff4-4e93-ae93-c9e13673cd36","block_type":"box","text":"rates).","page_number":100,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"567ed46e-fb76-4174-85a2-d170696186c9","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":100,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"6fcdbb1b-d707-4f42-9d48-46549460ff73","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":100,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"d7b76be9-c844-4a94-852d-d8cfb1d8a8bb","block_type":"box","text":"e.g.","page_number":100,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"d38cc376-f913-4f93-8025-7ca6a998bf06","block_type":"box","text":", an exchange of fixed rate payments for","page_number":100,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"e668ae51-f7f3-4add-941d-b04442468c21","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":100,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"bbc53d9a-5894-4229-a38b-6518d2e2de8b","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":100,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"a6211a08-ff81-4332-8a31-cb6208cf3592","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":100,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"c459e349-fd1e-42cb-977a-c965ee1cd80d","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":100,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"ddbd87bc-004f-4f83-8206-a9397e12c833","block_type":"box","text":"with the same attributes as the swap (","page_number":100,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"9b24cc4a-8729-4cdd-94c8-f882543f91b8","block_type":"box","text":"e.g.","page_number":100,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"bb2f92cc-c4aa-43f5-a6c0-b300226af04f","block_type":"box","text":", coupon, maturity, call feature).","page_number":100,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"dde053b5-1d3d-4503-bf9b-2eb5044e92b7","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":100,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"cf23654f-522e-4c56-b719-1325fb8fe00b","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":100,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"c05538d3-0120-45ba-9c3c-3a9491c6aae7","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":100,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"c08d1356-bde7-498f-a9a7-8b7588cf24b4","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":100,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"49ec095f-2903-4d90-b6f8-d8b5d2bc113d","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":100,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"4b519bde-9fb9-434b-ad98-8dbebfc2c665","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":100,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"4e20e398-43d4-4b58-b641-a9d754f9fe26","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":100,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"f52001da-b215-4ee6-926f-b613a5f175f2","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":100,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"aea0fc4a-5d81-40c9-ada9-31e51387b170","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":100,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"760d9f40-74a9-43bb-8964-f9e61edf668a","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":100,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"34479fc7-87fd-45e9-8e89-5c7548f78285","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":100,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"f010d6ff-034e-44d2-a3aa-2f86d5f2ad1c","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":100,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"67f08cf9-7c1d-41e0-89e4-af421613ba28","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":100,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"997bbb5a-37ba-449b-9bad-11919926e50b","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":100,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"9baf461d-923f-4530-9062-7fe8690c0a50","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":100,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"227d45c9-4a8a-4c4b-b143-b880e3c5fc46","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":100,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"fdee2b5e-093d-4282-86ca-c115c1610387","block_type":"box","text":"Insured Municipal Bonds.","page_number":100,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"3bf7565e-105d-4759-a5d6-49fadb6fa63d","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":100,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"3f9296da-600e-4023-b2d1-e215e4115b77","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":100,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"5e08d133-9e46-4d57-8236-74db1a39264d","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":100,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"37a36372-37a2-43bb-8d93-d856e1475670","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":100,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"1f5b1e00-f3db-490a-aea4-e7bfbb90ab40","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":100,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"31a0a4d0-9d77-4e4a-8cc5-7112cbc48f0e","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":100,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"dccc2b6a-cfa1-4e97-a224-62c2021b36f0","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":100,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"d7a535e3-12fa-4eae-9038-ea60b87446df","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":100,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"fcbe4bf1-834e-42d6-b49a-be83e913a59d","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":100,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"e1eaffae-39d2-4508-876b-919c65874417","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":100,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"5d5a195d-c130-4869-9baf-99f99fbf1323","block_type":"box","text":"bond could drop.","page_number":100,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"c08eeb35-fc2d-4f11-b8ea-663c369f9af9","block_type":"box","text":"Build America Bonds.","page_number":100,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"ffbc2a48-bc2c-4a4a-801e-cae8d8a8b7f8","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":100,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"c2c9ae0d-051a-46b5-8a18-e3c3c2527382","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":100,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"197ab532-244e-4fdf-9742-e7122e9fe735","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":100,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"4cf57fbf-7c84-4d29-a436-71d18497438c","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":100,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"a0bff892-1ee0-4680-a251-8779153cfdb7","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":100,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"c4cba04e-ace4-4974-ac41-b5c38ede2193","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":100,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"2b3af623-65d1-44b0-b084-9344874c3b2d","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":100,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"4a699b65-fcc1-4550-a669-852f2f4876bd","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":100,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"19a99f8c-af64-485e-bed5-920aadaa9119","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":100,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"8db2eaa2-dd6b-498f-bafc-1a7054550157","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":100,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"a06a85ea-1838-4595-99b4-39cc3b05dc76","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":100,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"fc291fc0-4fc6-4751-b8d3-ce9b9194d66e","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":100,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"0c9875a2-26d2-40be-a7a8-2039850cde81","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":100,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"134c294e-5499-4110-8353-6d4c3ef776cf","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":100,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"ee7a5cd4-b4c7-4e83-8335-1dc2baee5954","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":100,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"f1c84a22-475c-4d24-9319-d527ac180de5","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":100,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"4b78e47a-0ec8-4255-9ae9-faa51bc87e3f","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":100,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"7a44d3ee-4b7f-47e2-9eee-0a4147777f0a","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":100,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"85c43645-8de3-465d-a340-9f263d57e2fc","block_type":"box","text":"II-62","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ab50b9cb-7b27-4da8-bbd6-38adff8ed584","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6c390b2-5d12-432a-8f86-654ff0729bc1","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":101,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"26d6d74e-fa1a-4d6d-9d86-4a38c455e058","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":101,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"076accd3-43b4-477a-8bb2-55cfaf6c4fb4","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":101,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"d60f9ca9-1699-4359-b856-b8d9ba5aabd7","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":101,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"f9349de5-35fe-4022-8bdf-fb57c6d036dd","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":101,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"61b6e9f5-2ac9-4995-a1be-fe8feff0ec26","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":101,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"377d1d28-4f58-41f4-83ab-db49b50f4c67","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":101,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"af41e4d1-2e98-401b-8bab-bc98269ec4fb","block_type":"box","text":"their face value to the sponsor (","page_number":101,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"b800d51a-6eec-4872-a6fc-8cbd1606bd45","block_type":"box","text":"e.g.","page_number":101,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"e7b48908-8b6d-411b-a62a-6529d60b6cbc","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":101,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"f3010b3a-4374-4ebe-b175-f30b487b8f82","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":101,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"e3a7681f-84bf-4c68-951d-2e1a8d7bc94b","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":101,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"eb006884-37c7-41a2-8509-303c7af71770","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":101,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"f141b9e7-9b57-4ecb-86ca-49ff58ae5d81","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":101,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"e0604bde-484d-4d16-8981-151c5c764bbc","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":101,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"9fb535fc-4027-4f4c-aa9a-1e36f823d212","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":101,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"54719499-44a0-419c-902e-4324e3a3deeb","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":101,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"00743eeb-3b60-4ec4-a5bd-a6994c867edc","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":101,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"3e1e89c8-e9e0-4c68-994d-e2c8d56efeab","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":101,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"13b07261-9d65-42ec-9a29-b5879196cbe4","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":101,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"08f4bd5d-2aa4-4643-8d31-bfdb0f6df7d9","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":101,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"726fbbe3-9427-40fd-b2f3-18fc1c2e6030","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":101,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"91308863-e4ad-44bf-9c33-9e8362696bd6","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":101,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"d817adde-917f-4820-9376-3d18e310e37a","block_type":"box","text":"such opinions.","page_number":101,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"3a615b5c-792b-469f-b42b-ad3bb474f2d0","block_type":"box","text":"Operational and Technology Risks.","page_number":101,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"6e14df13-1508-483d-a060-0c98baec5d56","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":101,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"ef839637-ee97-4c77-9856-677b73738dfa","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":101,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"fd2797b2-2783-4fb8-a5f7-166eecf15678","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":101,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"862fb42d-7259-4d9c-be8f-410d2094b039","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":101,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"159456fc-c198-431c-a90e-4228cc031f18","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":101,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"b9795367-d580-4671-88d4-5e7409fcb4ef","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":101,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"58a9ba38-382c-4da2-90fb-b6edf00fef22","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":101,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"d1bed73f-f3f3-49af-b715-fa328d482d14","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":101,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"049b9464-8e01-47c8-bfb5-b281cb194928","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":101,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"4b5ab5f1-9cf9-4025-b1a9-a48f8e14ef94","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":101,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"969cb608-f08e-401b-b259-4ed574960f9f","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":101,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"81e6f6a5-3fdf-4986-84aa-472fe53af169","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":101,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"190c7bbc-357b-4d7f-8dfa-297a94368a40","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":101,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"e54489fb-14b1-48f6-9b4f-307790a8521e","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":101,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"1c716ed9-1677-466c-9080-06b0befff284","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":101,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"6058aa3d-65e6-4708-b8d0-30d5b9b5bd6a","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":101,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"3abe0cc0-4aff-487d-be87-1bb9f74e10ac","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":101,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"fdd6a678-af9f-41c6-825c-b57d870b9eb5","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":101,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"7ec4f901-68a5-4109-a3d9-6d22379bb23e","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":101,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"4dc61ad0-077c-4b3c-9a44-31cd1b6b2afc","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":101,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"c8caa3d3-3319-4237-aece-e54b9d0dc2a2","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":101,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"07f92330-ff8a-4a45-becc-b9ef0200cfa0","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":101,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"2e497977-17cc-4a3f-8ec1-abc4890b680d","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":101,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"74849a73-f2d6-4225-8b82-eff4dec53473","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":101,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"9c4e3cb8-c8b2-420f-b755-173d7f0c0d00","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":101,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"e5b6ebec-1746-418d-89a5-ccdd9515bf4c","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":101,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"b03233f7-beeb-491e-8304-5326b099a450","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":101,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"0734c9d3-9ce8-437a-a827-d6bbd85efb6f","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":101,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"8968dd38-74c7-4cf0-9750-e3e0042e164c","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":101,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"c5e1d63d-7e45-4266-a753-a3c167998fa6","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":101,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"4884447c-5495-4ef8-87e3-ba1a67caf737","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":101,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"b61ae8c8-590b-41b4-b9f6-b3824c37c9d5","block_type":"box","text":"infrastructure assets.","page_number":101,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"49dc9cc7-8ceb-4500-972f-431f59c86883","block_type":"box","text":"II-63","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"640140b5-f94c-4f3f-a3f5-3bd70a14682f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9303bba1-6880-4590-8451-aba669be2bfd","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":102,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"abcf23af-a747-48a3-910f-2ea7b5475eac","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":102,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"1d73e5c7-aa85-40a1-894e-250f0dd52ced","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":102,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"530e7553-d405-45ec-a410-3525530fb0bf","block_type":"box","text":"or services.","page_number":102,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"2cda0e49-fcc8-4ead-9729-5d80e0bf716b","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":102,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"23c7414f-4f69-4622-b7ca-1c437ce3a71b","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":102,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"df9babe8-2119-4c63-bdc0-c59247bacce7","block_type":"box","text":"other third-party AI technology applications and users.","page_number":102,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"f995005f-981d-411a-a6ed-272777f83dd9","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":102,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"088171db-d978-42be-8353-28dc06ed35c6","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":102,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"c441de73-2236-461c-b945-dc0c248d45ab","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":102,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"22d1ea67-c94a-4498-9fa9-9d0158dec7b1","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":102,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"44502d62-3c0f-451f-9494-caab3aacf73a","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":102,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"05390d40-ac92-4a07-8250-ada1c0467ad1","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":102,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"801f25bc-2b15-4013-b8b1-9e6f98d662b2","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":102,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"ca02960a-e650-4025-849d-0a8377d33ed3","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":102,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"c1dd7fd8-c53b-4885-b849-861886be7672","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":102,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"a8167547-57ea-4f5e-8097-010a78811a63","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":102,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"b7c2d5cb-dd84-4212-9e14-20b5c385b033","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"730525f4-4264-4dee-9435-6a02b03c5048","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":102,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"12534713-820c-4c18-ab27-678054065370","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":102,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"be763f4e-f29f-43ca-9d23-ab936d5f74b5","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":102,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"06ca5733-3c67-4e37-9a9a-75325c8404ce","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":102,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"a36c0dd2-14f0-448d-8831-46013d7c04b6","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":102,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"4d956cfe-dfd2-43b4-adf0-0654cec70772","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":102,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"cafe2bf3-217d-41f5-9c9e-4903d5f25314","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":102,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"cb899f41-c8f7-4d22-804c-8b9f5560679a","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":102,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"d6f6cdc6-52f3-4fbc-b480-46c594730321","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":102,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"42b801b7-39ae-4344-b682-49f2696a5ade","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":102,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"85f55ae6-4a95-43e4-ab11-1c1db2d5e27c","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":102,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"24d91dbb-d31b-437a-a1af-b8cde697cb6e","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":102,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"06499fd5-e263-4522-929b-1e88e3a2253b","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":102,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"8935cb84-e7fb-4b64-a11b-ff5adf9597c0","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":102,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"60b78352-5c49-4671-8319-dbad38563463","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":102,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"c618ce67-4d12-49d5-9919-41004dd732e6","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":102,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"6a8abcf4-4b0c-462d-b8c9-3d70d1068332","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":102,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"6328f232-fc55-4dc5-a229-876285ec0c9c","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":102,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"842f94ff-fb3d-44e5-8ab6-1a77569f685d","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":102,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"12e56239-4815-45ad-83ac-037520353ba8","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":102,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"34c89255-c4bd-4a82-809a-958779ab0bca","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":102,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"ce919ace-3c3d-41f7-a859-57bc625250a8","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":102,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"bcbe5087-46c6-4c83-921e-d32f95b2b88a","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":102,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"861ea2bf-5b24-409d-9ade-ea077756e1d9","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":102,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"6484e663-c965-4579-9592-24e6d05fd7d8","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":102,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"ebf623a0-b891-46bc-a5a3-7aaff03a2708","block_type":"box","text":"resources to monitor and implement required changes.","page_number":102,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"c4aa361d-6415-440f-a146-fe9a453102b6","block_type":"box","text":"Participation Notes.","page_number":102,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"9351eae6-9291-4842-959f-12ba865d3024","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":102,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"d22453fa-353e-4c99-8fab-5bca6d3ea4e4","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":102,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"7fdbe38f-d5ae-4619-a3ce-5926afa1d406","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":102,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"e2784e9e-d17f-41c0-b46d-c88dbefd5a1e","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":102,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"06fbb26d-c615-468b-933e-ead8a7bfc72e","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":102,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"47bbadcc-3ec8-4f48-83b1-2586aedc2415","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":102,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"4ec0c534-573e-4661-b13d-421afa82ca69","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":102,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"14ef4633-f6a5-4fb7-873e-bd81b9515a5e","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":102,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"81571441-0a55-4881-9f08-9f96d920ca43","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":102,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"9b24bed5-13a6-40c3-bcf6-496b1a088b9e","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":102,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"3292c044-49a4-4d59-a8de-7dec8a7b9908","block_type":"box","text":"II-64","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc272b07-da8a-4418-b8f5-e43a60c582b2","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a932ad4b-0477-4c98-a1aa-ad82c62341dd","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"e9b18152-6ce9-4da3-aed6-cdcc67774f58","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":103,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"57f97dad-f4e2-4314-b200-70b3b282ad85","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":103,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"7245bd40-146c-49f2-b135-6528b01e7f0a","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":103,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"5555e59a-aecd-4df4-818f-b84d488f5004","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":103,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"1a4a5ff6-5261-4dec-9ff6-aa51d9e6ba41","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":103,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"85c31dd0-bfc1-41c8-afea-d4f1e3708f1f","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":103,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"d23e101b-304b-4318-98f7-20a9e707a863","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":103,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"62b01bd7-983d-4b44-b61f-343743e7f076","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":103,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"ce732b2a-d326-4d00-a48a-db6ab4e92784","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":103,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"00474bd5-7296-488e-bed1-f5f63e5c4b24","block_type":"box","text":"Portfolio Turnover Rates.","page_number":103,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"7e7f5d88-97b0-42ed-9568-5e2611352592","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":103,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"68949632-e4df-4654-9ec7-82432e64b2c7","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":103,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"c5394a8e-22a7-45e9-97dd-31eb9694a14c","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":103,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"e4e1523b-31bf-40cf-b68d-c8694afc4bae","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":103,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"23fb7e66-7d77-4e83-aded-8147095a5387","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":103,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"6595fb4b-30b3-49e0-911e-893432c9bca7","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":103,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"e4d06a3b-f987-46de-827b-ef3837a01f0a","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":103,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"3c5107f2-88e1-417e-b696-4c9c3871261e","block_type":"box","text":"i.e.","page_number":103,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"2d12d045-ed48-48c8-af6d-4a6f2dcfc190","block_type":"box","text":", 100% or more) may result in","page_number":103,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"1a769e52-9ed9-4756-8f4a-7d0289093d43","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":103,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"281ca92b-f2a6-4d12-92d7-2d10cdb73fbe","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":103,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"c44f3f1f-cbba-4cde-900a-96175304f7bd","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":103,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"3f3eb1d6-3b8f-489e-bd1a-c2186f5daa4b","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":103,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"c0f1b330-7c64-4502-b6cf-2a4d6d601f21","block_type":"box","text":"Preferred Stock.","page_number":103,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"cc320fb4-4534-490f-835a-5379a476e1fd","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":103,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"3ae3f3b6-6e4f-4c40-a0ba-529c689af5a7","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":103,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"ca98db6a-4793-43a2-ad85-f45e619e7b6b","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":103,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"1aa4116f-8006-47ff-b17a-85486f20294f","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":103,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"da5facd0-4cfd-4203-a4c8-4911afda1b5c","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":103,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"a14becd6-ae0a-4fc4-98ec-a046362b395c","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":103,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"481ef323-7ccd-4e3a-8734-5275e57c2a26","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":103,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"e5f090ad-e5de-41f0-a60c-934fad6cee75","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":103,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"8f308dfa-9044-4eb9-85de-005ec77ffa8d","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":103,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"81f26b99-050b-46c7-84b4-d926cce8c01a","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":103,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"e99d6487-5329-4c21-9dc8-78b6d963ee63","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":103,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"f1824593-6d58-4094-9133-8b42438837fe","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":103,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"04e3c576-32e7-4a4f-898d-19ec5546ccab","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":103,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"bf6aa255-a0b2-462e-9a49-db7c5f3bbccc","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":103,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"1745166b-8d06-49e4-93ae-5ea4217ea9dc","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":103,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"a00be994-7ee1-4bc2-9550-ab16f14520e2","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":103,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"b69e622d-fb92-467c-bd1f-ea02a041ecb4","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":103,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"d767ba5d-fa1b-43ae-94b6-333e0157a135","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":103,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"aef40ba8-6fbf-4327-a3d6-13915d427469","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":103,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"517689ae-0cb2-4b16-ae62-bf04cea6190f","block_type":"box","text":"Trust Preferred Securities.","page_number":103,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"c1175e6a-d91f-4b81-9db1-d5b6cc904e8e","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":103,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"0719cab4-31db-40d1-9ea6-168e270c1d18","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":103,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"2db3f6a7-d858-4d5c-8d66-a21bd314a5d9","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":103,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"3b904bb2-5013-4f77-a25c-636ebf0c1a7d","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":103,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"5c46efbb-0fa3-4c65-bd46-92743df9c181","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":103,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"baac5b30-75a3-486e-b9c9-a08f762588f8","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":103,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"fdcc0213-b7f3-4381-a563-293447a6044b","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":103,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"c0aaf5a8-44f3-4b51-a012-2e9bc4f8d4cf","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":103,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"be676b2f-fa59-4fa2-8da2-4c6ab0ecbc02","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":103,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"2c1b7c40-5cbd-4fc9-a8d0-ebe0976ff724","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":103,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"460e5af0-efb8-49dc-a484-ed7270d74770","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":103,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"a05e983f-08d7-4c6a-b58e-5040c9cd7838","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":103,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"6947afea-a2c1-44b5-aafe-404f8ea17fad","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":103,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"5870f94a-187b-444e-a9f2-c44978f57cc3","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":103,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"88f81449-b813-4aa1-b765-8747f10b4263","block_type":"box","text":"®","page_number":103,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"28e0a67f-2401-4b4b-9ccb-9f94d0fa203a","block_type":"box","text":"”); monthly","page_number":103,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"29841b67-c38b-45e1-8e89-7dbce4d99fa4","block_type":"box","text":"income preferred securities (“MIPS","page_number":103,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"f9f73750-8327-423a-98e4-de2a81d75ffc","block_type":"box","text":"®","page_number":103,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"6fad6df9-cfd0-4919-837d-500871791c37","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":103,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"b209b8e8-4e92-4a05-93ef-991fa67a92fc","block_type":"box","text":"®","page_number":103,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"7ebe6007-fa35-46b1-b1e5-7822881e910e","block_type":"box","text":"” ); quarterly income debt securities","page_number":103,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"9e9081c7-246f-45a0-94e0-69ac8fead4b3","block_type":"box","text":"II-65","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b003331a-95f1-4b3b-98e4-cda25b9017f4","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87e7128f-e9f5-45ce-97d1-06518d65ebe0","block_type":"box","text":"(“QUIDS","page_number":104,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"ff1eabc0-ef55-4d76-a2c8-233ba945d928","block_type":"box","text":"®","page_number":104,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"69ebd9db-69b5-4355-91ec-6a2f4bc57adc","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":104,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"cb5679ee-f718-4f8a-bfb5-cd3aa9283787","block_type":"box","text":"SM","page_number":104,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"a5fa653b-ec55-44b5-bfd1-4d3dc3a00a49","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":104,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"1e1bf1d6-ffce-4c12-ad9a-d752d5313f93","block_type":"box","text":"®","page_number":104,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"73856a6f-ace6-40a6-8981-68b3930c8dc2","block_type":"box","text":"”); public income","page_number":104,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"65ca9360-cdde-46b0-97f0-bf1d783baf39","block_type":"box","text":"notes (“PINES","page_number":104,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"c717d8fd-d9fe-4ac7-9769-50ee950f6a9d","block_type":"box","text":"®","page_number":104,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"d8912f7c-ff1f-4247-97b1-24d69f8e2f7f","block_type":"box","text":"”); and other trust preferred securities.","page_number":104,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"f2259c7c-91b1-4ca5-8768-3120c80b3c34","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":104,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"e6f0f7aa-d0e9-443d-9732-69be1aef40f9","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":104,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"349003e2-32bf-4600-a6ad-b62577439bb3","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":104,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"ac14a0b7-8611-42be-b13f-91e966bc6e4d","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":104,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"3174cac9-4376-408a-ac11-ef614c8730c1","block_type":"box","text":"regard to whether all payments have been paid.","page_number":104,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"ac6d18d6-16ff-40b5-a208-a63576646184","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":104,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"6283cdcf-1c87-4b40-a43c-781e90583878","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":104,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"3665ded0-2884-4f38-b6a7-30392d8f0481","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":104,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"2a902321-c55b-4836-b163-96dcb0cb1a3a","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":104,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"707e1732-4d51-4d41-82cf-654e4da1a91c","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":104,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"eb93bff8-6942-46be-b789-452d12c0e494","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":104,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"720c7795-65fd-4e0b-b24b-bfc359d1cc1f","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":104,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"946c723b-2749-44cd-b709-7415b1b25caf","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":104,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"0aed2aec-db0c-4aa4-8074-765fccbb4148","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":104,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"380539c7-a7eb-45bd-9fe4-d718e0e93db5","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":104,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"bd2b8687-f0d0-493c-9a37-383a0cf0a6c5","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":104,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"00a2c233-4bc1-417f-8476-cb527e2dc4cd","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":104,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"15f2956a-e3e3-4ff7-a88f-f6cf40032a1d","block_type":"box","text":"debt securities.","page_number":104,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"a0a0b817-dd06-46fb-801c-8134bb8028cd","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":104,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"4e154501-314a-494c-b1cc-d66c4a01d578","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":104,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"b24754c5-b204-4cbd-a668-0e6d098a8fe9","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":104,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"ea37773b-5996-4d9b-b71a-a8658c0a3d33","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":104,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"bb1b403f-c0dd-4617-94dd-907f56a0aa66","block_type":"box","text":"geographic areas or in specific property types,","page_number":104,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"8b0cdf2c-fda1-469f-bc6a-8160e0b81cc1","block_type":"box","text":"i.e.","page_number":104,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"b4c0b995-ba30-4a75-b1d5-b5f115ec4988","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":104,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"28eb803a-8a3e-487e-a29a-90744176eab1","block_type":"box","text":"buildings.","page_number":104,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"927e9008-dc6f-42dc-8979-c34756019fc3","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":104,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"57fda460-46fd-42da-8186-4cd07c76b7ca","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":104,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"1161cc71-8880-4a16-a9d6-14591f395cad","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":104,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"91f874d5-a9cf-4c05-a964-54c893420fbe","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":104,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"dc1bc5be-2f94-4645-b155-e950bacdd9e5","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":104,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"729b486b-7d21-4997-9403-a7cbcad47a28","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":104,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"3190671c-e31e-427e-b4ee-bf7f697acc13","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":104,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"57024b8a-75d3-4567-b144-8aa3aab378cd","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":104,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"ad9984e5-69a9-4cb6-ba0d-c498de6ec172","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":104,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"4abdd4a8-f78e-40cf-8998-a1a6bab6ad75","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":104,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"36e880d2-a25b-42ac-bdf5-b4f69ebca2e9","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":104,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"79e7c70f-ec56-4150-83a2-ba03ed6383af","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":104,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"add94596-e5a0-4dc8-82c7-b5084ff877fd","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":104,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"bdc6a292-2d51-4150-884b-041da8e6cf5d","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":104,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"4da38992-9251-4749-b1ec-6e6641f54475","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":104,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"c249e229-d99f-4e57-aa7b-23ac4c5572cd","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":104,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"8b40fdfb-0868-450b-8848-dc40b4013f0c","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":104,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"7c702221-67ce-4973-a999-8eef3f729901","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":104,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"5238f0ab-5a70-40d7-ba97-55010d0d0263","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":104,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"3fbe5e52-1ca9-4deb-aac4-d0f07b467af4","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":104,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"d4800409-ae1c-4065-982b-8f1906057fae","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":104,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"394f9dc9-5c97-46cc-b5db-8f3bb6ba4f27","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":104,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"83724d48-d31f-401c-a51f-06479dcb75ce","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":104,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"440c3a15-574d-401e-8821-44369abee036","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":104,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"a9059629-60d3-4f0b-b358-8cb66a896db1","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":104,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"c5935436-0ddc-4321-8bae-75e436ab9476","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":104,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"b46b6cfb-9174-4995-9aeb-e8c5fc5c407f","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":104,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"5982d3a8-7981-4b5c-af93-5086f6022e86","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":104,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"d72046b6-39b6-4156-b062-febf0669450d","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":104,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"12d4c1f1-fbb4-47ee-ae53-13fe9634469b","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":104,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"f8e58a1e-59f2-429e-95de-84fe66074cec","block_type":"box","text":"II-66","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b7f28e6e-2774-4738-9044-19826bae789c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3da4f814-7bab-42bc-a6d8-a1b46b8c31fa","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":105,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"b2312c79-682d-437f-bea4-3a1145da2f10","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":105,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"8d763d77-16eb-451f-91c3-ef69fc04dbea","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":105,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"739e28da-ce17-4b7e-b27d-84a844ee35be","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":105,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"a4104b3c-f91d-4e8e-ad64-25cea7a6cdc2","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":105,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"105c66cc-c69e-4fcc-b997-7a7fc986de07","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":105,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"968bff76-d8a2-4f97-a5d6-8f6e45a96d09","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":105,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"0b372b53-695d-451e-93de-e186bb7a4639","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":105,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"211d1436-fec1-4a81-91a4-aee63b1b7d8e","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":105,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"b41315be-e420-4765-87c9-2fc3136cd1da","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":105,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"18e05abb-4545-4d6b-b863-389f44d97688","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":105,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"c1ceca8f-3da5-47d3-8513-faa6ce7641d7","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":105,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"8de5e0ef-bf08-4fb2-a09e-0b09ce14cb09","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":105,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"d21c2dd5-4a13-4b52-b281-7c1e6a17bbb7","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":105,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"927ee55e-1d59-4f5f-ba65-d7d4cb7b6d24","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":105,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"cf326f5c-5157-4645-88cd-95f4b8d78452","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":105,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"b11c39a8-795c-4ae1-9323-d7c5a4d9d80e","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":105,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"3d4d2db8-cf0a-4424-9ecd-6a26e34324a1","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":105,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"c25b07d7-1503-4f78-b8f7-c36bd2b23cdc","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":105,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"938c42ed-e9ea-40fe-b46b-226b37db2f81","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":105,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"4fda6367-5b3f-430a-bd3b-e6ecd15df4a1","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":105,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"7a36eded-5228-4834-a737-0b982e097487","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":105,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"1cbb5280-3c23-417c-b8ba-d1e62a2222e0","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":105,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"684d374d-a84c-489d-a985-cb3b874f5cba","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":105,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"1e444132-806e-4c8e-861d-307b416c8b1a","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":105,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"8eec9877-4af7-4da7-98d4-a8a0d4fd64a5","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":105,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"07edd617-d6a3-4b3f-833a-4858304bb52c","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":105,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"b46adf38-c029-44dd-af3c-ceec98839965","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":105,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"ee9ab545-afb7-4b38-b3c2-a90539a29e38","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":105,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"8e902b35-1a82-414b-bb86-f99e6abf8e72","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":105,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"e09fcd62-d10a-4016-b5fb-d3c7223dd481","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":105,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"25ca4e1b-58e9-4720-bc74-19238351a8f9","block_type":"box","text":"conditions.","page_number":105,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"7b50e520-1d44-4b5f-bf0c-4e5be1626b13","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":105,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"9cf3d9ae-6fd8-491b-9fbd-4caa41b6eb70","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":105,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"e97f75a2-7f81-408b-b76e-f7b81d42020a","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":105,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"d0a5378d-4b27-49dd-91d4-63471d13e0ff","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":105,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"2910a220-9bc1-4cdc-ad84-70311bd78e2d","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":105,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"bac191b3-9cb7-4ebb-bcf1-68c010f0cc47","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":105,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"c00fe400-fe7f-446a-bbf4-d65b8be03400","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":105,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"4f017845-ce04-4538-bbf4-55d68c7a6a0f","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":105,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"fa486f47-8ac6-4a33-a7fb-76b38012de61","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":105,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"53262af4-13eb-4383-b432-e1b06084bb3e","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":105,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"085e4d12-bcd5-44c3-a105-b8d1fd171439","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":105,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"71198c73-0fc8-4893-9dc0-46e2e321a50e","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":105,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"7a116635-5ad5-424f-999d-47e773c1b7ea","block_type":"box","text":"affected by such events.","page_number":105,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"895f0f22-02c8-4deb-842e-afbd1531e0d8","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":105,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"29a91c8f-8185-4c3b-a4cf-c927a11bd8ff","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":105,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"9fbfc548-26dd-47bb-b8ee-deca44e27937","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":105,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"f383eb03-050b-466a-8caa-d4e023a31c13","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":105,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"69c91b30-9917-4a49-9608-18a531389aa4","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":105,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"6a5e5364-14c5-40a4-9103-3722c57fe3bf","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":105,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"c52e4677-76d1-46d7-8652-140ce57bfd2b","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":105,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"1dd16204-982e-4676-b14b-a8144fdb321c","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":105,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"09407d7a-c880-4141-acba-da19f382a1b7","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":105,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"5bf55cfa-6e66-4fb4-b44f-64d2985ec604","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":105,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"a8ae4d80-2194-4a37-a99b-bb22f796c8c5","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":105,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"3c59cb2b-c160-47da-ab36-15d57465e6ce","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":105,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"c917796e-ee41-42dd-9d1d-e03122810c3e","block_type":"box","text":"II-67","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"26e81d17-52cb-428c-ab12-21cd586414bf","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85607fab-2ebd-48e9-abde-fc6f8630b2ba","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":106,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"8144ab3d-5960-464a-9390-aceb7a6c47d2","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":106,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"3f06cc17-6748-497a-b652-b1eec1e84d62","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":106,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"580c9942-801b-44a1-8b13-9adeead6f90b","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":106,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"aaeb12e5-d78e-477c-87c5-917b0aac3b62","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":106,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"a261b942-babb-4e6d-80f5-dae8fa00b9f1","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":106,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"a8ee173f-79f6-4f7c-a7c3-99a71877443b","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":106,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"2c65dda0-2fcf-46a9-b90e-dff29c594a41","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":106,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"0f9e5d1c-3092-47ed-8bb2-312312d0f5ab","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":106,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"fc791cce-63e3-4b88-a970-6727ee58336d","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":106,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"e74fd6b5-ca34-4ee7-a61f-5cc71e9550c5","block_type":"box","text":"investments.","page_number":106,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"44f3bc70-9069-4f39-95dc-b6432f5a8590","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":106,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"efd70239-709e-4f1d-880c-4d0bd5627073","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":106,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"01e48ef9-f89b-47c4-b33d-13a2535bf7ee","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":106,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"923c4e1a-3b23-432d-b419-9d1142da7407","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":106,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"5188e275-8270-4a63-8128-68821d8d941c","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":106,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"39ba268e-33e8-4e8b-8f9f-00569174e435","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":106,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"ed33505b-29ba-4d54-bb34-8a3000c17f6e","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":106,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"ecbdc6e4-daf9-4782-a9b0-c12c5815939f","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":106,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"e2371901-564e-4ea9-9bd9-96a5cd172c7f","block_type":"box","text":"Legal and Regulatory Risks.","page_number":106,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"23bd5616-897e-49d0-b2a8-8bc587709366","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":106,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"44713a76-312b-4488-8dc2-b844723665c6","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":106,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"f9059fcd-dd78-4d33-b6e4-e2e93778d0ce","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":106,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"86b8ca73-abc2-4e55-b5c7-027763f1e015","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":106,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"d54e9588-d728-478c-916f-2d9b3e76deef","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":106,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"c44264b2-a6a0-4cb8-afa5-36f7f7a86b93","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":106,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"966b8786-ed3d-4ad7-978e-8a922fcf315e","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":106,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"80151edb-df43-4c62-9ff1-b1b24975eea9","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":106,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"75941e09-46b8-407c-b79e-dd0bbaff0de4","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"66a44c31-7e6d-4397-9f5a-313a1a2b7d4b","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":106,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"1eaa96b4-5e36-4868-950d-98f679c5c729","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":106,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"788473ce-077d-4710-88f2-9a6e347aa667","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":106,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"7cc02da2-64d1-4337-90eb-d18fcaf750a5","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":106,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"e10da627-3774-4a3f-9ea4-96934fbbc617","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":106,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"174f4743-fca4-427d-b6bf-45d57ca5ff3a","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":106,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"d690178c-b42b-4e92-8f94-7674ec6d078f","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":106,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"49b597b4-9f59-405d-a415-62375bc25d93","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":106,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"023d9dac-d1f8-4914-9832-b77b97c5f841","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":106,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"68d5bf57-57fc-4876-88bd-eebf8c617ef7","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":106,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"7f626e5c-3ec1-47b1-b921-e48d3bd9f742","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":106,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"c8d2fb3f-8b88-49d1-8518-c37c33f76bc6","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":106,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"77325edb-318a-483a-ad7a-7e995b4518dc","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":106,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"c8403735-6e75-4238-93b7-613a0bf3e7c5","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":106,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"be516327-efeb-418d-bc1c-8cda9686140f","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":106,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"0aaa2f50-9bbb-4a2a-ad03-5c8e12210054","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":106,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"f55a8968-0881-44e3-aa7f-ad4207561dd0","block_type":"box","text":"Geographic Risks","page_number":106,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"cfac475d-ce85-4be2-914c-05849c15ed89","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":106,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"50daef03-e5c0-4daa-b118-382c74fc0d06","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":106,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"cf85dc8a-824f-428c-8ea7-3d2821c5044b","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":106,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"ef2bb942-ea16-4eeb-aa39-bfab04cb1119","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":106,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"ccf12482-1f8f-4a07-bd1c-c4684792656e","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":106,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"1de70555-8a03-4a2b-9f10-9a3fc9b9f5c8","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":106,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"6896c25c-27c1-4fac-9122-6026028cf395","block_type":"box","text":"Fund.","page_number":106,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"c035499e-b892-45d7-b068-7f3f6e67b3b2","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":106,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"48e74f1c-49ff-4d8a-9682-20a0c8f21935","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":106,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"9d8075f6-cb34-4c6e-a9b2-c95787d8863d","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":106,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"b2574f11-215c-413d-bfe2-58b62dc9c6e0","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":106,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"c611acc9-5116-4adb-b7ec-fd5129f3645c","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":106,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"0da783e2-a425-4329-9bc7-a070e147a7df","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":106,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"a3e7df06-dfad-4ce1-a6b9-d510f7ed779d","block_type":"box","text":"II-68","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"26b7df3e-69d3-4b64-9044-40a08b327b02","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f42fb04-6692-41b8-801d-317716ff39b3","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":107,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"24f2c89f-9eb9-40f8-981d-9efb220aef99","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":107,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"b28c6950-0707-4c1f-9c38-684e0719a596","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":107,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"5d84c80a-7cef-4a76-a3b4-e47431ff863e","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":107,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"4057af59-46ac-46a7-8b72-6e492b253549","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":107,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"9e9c58e4-383c-4673-929d-29246b6572a0","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":107,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"52012f60-df71-4537-a20d-6326015b5e26","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":107,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"3acbdfe6-3239-41d5-8ea0-4d1021230bf1","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":107,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"2c0782c0-4b79-4519-8016-2050c6d1581c","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":107,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"f0df56f1-15d2-4179-9fa3-95cf1131e0e8","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":107,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"05ab4f56-42d7-4fc9-8ed8-6667b42f85c8","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":107,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"415b81e4-f3f6-4e98-9db6-ea83d09625d0","block_type":"box","text":"e.g.","page_number":107,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"d0d87924-5175-4975-b3b9-b65d5ae9b40d","block_type":"box","text":", SOFR for","page_number":107,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"9d4eb466-a5f4-4f3f-9990-efb62e520876","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":107,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"fed7b42e-6b98-4d48-a598-8cce491ebc06","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":107,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"46d366f2-0a54-4db4-aca2-a27900f00373","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":107,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"57def9a9-96d1-49d4-8ffd-2bc4c035836b","block_type":"box","text":"determined.","page_number":107,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"c1735ba2-c109-45d0-8a91-833add70edad","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":107,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"8cde49b7-e498-4490-803e-9f430a3bcffa","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":107,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"84f4e844-fb5b-4794-aa7a-e1a7ec9f0c54","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":107,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"cdae34bc-ce6c-4a89-bcc0-3e4ec480d378","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":107,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"c49be09f-770b-490f-9991-d7f4e30e8c74","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":107,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"c9f748ee-d79f-409c-b3e1-53e4fd4ea524","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":107,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"686d7734-bd7e-47d1-8b89-53c091da1ab4","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":107,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"b25478c5-e4aa-487d-8032-a1b2965308e2","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":107,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"6581ce6f-ba5c-473a-82f0-b9961ae10fb6","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":107,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"784ce285-2766-4748-ac73-1df3e5ddc4ec","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":107,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"171975ea-3ee8-460d-bef1-bd3e268d1b8b","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":107,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"9b0bc7af-888d-4d25-ad4c-50cb781121d4","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":107,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"002a90b6-73fb-44ac-a5de-bfd2b085ed5b","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":107,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"c652a71f-b236-4fed-9f7a-4d7b9c6596de","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":107,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"345d3f72-f200-40d3-b30d-a587e5d63262","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":107,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"a1804fc5-549d-46c5-b9ce-3e540b80f356","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":107,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"7d9a9581-b1fa-44d7-941b-e4879db09a4e","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":107,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"b4ba7913-03dc-4b90-8da7-ffb69b16e5ee","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":107,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"f3f1a3cc-ab8c-4fd0-a12a-ca0ac2e9e149","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":107,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"21db5d29-a7e6-4783-8c56-b4fb8053d9fe","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":107,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"dd7a9a6d-06d5-475f-861c-6bb91cdccab4","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":107,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"de91d2d5-3668-4311-a91d-1ccb4b694571","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":107,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"ba6bf73d-97ea-4c4b-aa81-111095ed989d","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":107,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"ba516be9-f8cf-485b-9744-343d4cf489c2","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":107,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"b1754c4e-2884-4acf-be04-0147ff11dd11","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":107,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"35863bf3-4664-48d7-ac8d-7338858ab39c","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":107,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"212390ef-228b-49d3-bc94-c39b1adb6869","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":107,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"1c00f312-3d93-4955-a067-111dfd323fb3","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":107,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"839d3140-30ef-4390-96f3-ee34434dfc99","block_type":"box","text":"consequences which cannot be predicted.","page_number":107,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"67416b3b-881d-48d4-be64-0dd81d29424c","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":107,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"20aee89a-0aa3-4ee8-99f0-8734ba47db58","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":107,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"7a38fe7b-2ff9-49dc-9ff3-9f254b204d2c","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":107,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"e5dc325b-4d39-43b8-91c5-6cefb95dc6e2","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":107,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"d757649a-731d-41d4-8bfa-e215d8220308","block_type":"box","text":"term of the agreement.","page_number":107,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"6cb3e32b-3ddc-4557-b095-6b77c397627e","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":107,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"ba61975d-f861-442d-9ae2-1e9aac413527","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":107,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"e5a7774e-dfc6-4ad9-9ab4-66a62ac6a631","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":107,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"d3bd2921-141a-4caf-b7f9-0904eb198764","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":107,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"37313de2-e49d-4d26-b681-03353f06b32d","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":107,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"c667fb73-0cc4-4630-9c77-3ed0169feca9","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":107,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"efed88f4-8b38-4f84-b340-3a73b19955f6","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":107,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"44f76245-7478-4de8-b9ac-2068e2304a3b","block_type":"box","text":"II-69","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fea8f5e4-89e9-4042-91f0-075684c5fa1e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1c52fe9f-6dc0-44b7-8cc8-2d329ce48193","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":108,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"c60d8907-c15e-4c30-aaad-1339138eeba9","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":108,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"5394b96c-db42-48e6-9f97-4065648f7f26","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":108,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"db5ec9c1-a2de-4b80-bcdf-afbb4251c4c3","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":108,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"c4890296-78f5-4880-9247-b03e7a7000f9","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":108,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"a0366843-7f6d-4d7a-972f-a6d08a8da627","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":108,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"036555a6-0daa-4523-8188-50ef96888d38","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":108,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"e25f8229-0202-4ef1-af00-4a41188a86dd","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":108,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"10216632-9577-40d7-a820-e69a5f1c4df7","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":108,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"947cdccc-0edc-4ce5-89fa-1f71ae6b978a","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":108,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"c1966db7-c017-4528-af20-6166d50ccb49","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":108,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"ea613984-03e7-49d7-9b58-d9199cca237a","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":108,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"731b2c8e-3cbf-4482-814d-4f9b0119f3a5","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":108,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"0409464a-b185-44c2-8264-7647d21e1b4f","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":108,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"0ff02fb7-03d9-4519-9025-0b3069eea109","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":108,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"1e778015-aa5e-4470-a688-2f4013637e31","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":108,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"fab4ce2a-2817-4af5-a58d-66a577fb7673","block_type":"box","text":"or by another authorized securities depository.","page_number":108,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"8e104f07-2eaa-46df-a1e3-0ee97182cd34","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":108,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"d7121b10-7df8-44bc-91d2-759ad76a2fcd","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":108,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"fdf363f7-07b7-475c-a7bf-ffc5df129a68","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":108,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"865e577f-0075-44d7-b783-4096e1d2cfe5","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":108,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"4f260877-8fd2-4c74-8434-52de20188347","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":108,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"b6a3d2dd-08bc-40c2-a29f-fe4123312f7d","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":108,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"8a266b31-c724-419b-a706-691844d81030","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":108,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"dc4bcec8-036c-484e-b5b5-fae37c438dbf","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":108,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"d89fdd4d-37d3-414c-9f66-a6262931d3b0","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":108,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"14f8e9e0-d384-40eb-a6d7-5aac1b6d6192","block_type":"box","text":"the repurchase price.","page_number":108,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"01b9134f-6bb3-48ce-9499-d80caf54434f","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":108,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"1069d089-86a0-4cf9-98d4-452b35cf84a8","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":108,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"1f73615f-585e-4d65-9a54-513b12aeac43","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":108,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"e830e348-bae1-406f-a61e-3b1882adb869","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":108,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"ef48d075-3e0c-41bd-9303-ca4b652d099c","block_type":"box","text":"strategies without the repurchase obligation.","page_number":108,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"a553dec3-b5d9-42ee-ade1-596bacbe5217","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":108,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"2fb758d5-a14a-4110-9253-2a7813fdd9d6","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":108,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"cdd486a8-7b64-47b7-bdb3-5c877a6405c3","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":108,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"77124db0-ed3e-428e-8edf-379791859247","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":108,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"00d3e99f-218d-4b8e-89e1-9eb7b9ca9a73","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":108,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"6871afef-2348-411f-b092-6ac1512c9979","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":108,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"0b0fcdc0-61e0-4fab-b778-2a45358d5ab4","block_type":"box","text":"i.e.","page_number":108,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"a96652f1-e077-4dd6-9953-ecab1a928720","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":108,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"14454695-4bda-492e-93c3-d594df675def","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":108,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"4c0510fb-97fc-4106-812a-b413c8faf11b","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":108,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"d7bb08f0-219f-49bd-953b-d8f0579fe3fb","block_type":"box","text":"and income involved in the transaction.","page_number":108,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"fd758c32-1d79-428c-be0e-a77f750157bc","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":108,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"b4029161-eddc-4428-b49a-0ed56dbd9b25","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":108,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"9c860f71-2368-4545-99cf-4c0508e718f3","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":108,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"e47cf87a-6b33-45cb-b683-34b18f342e6c","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":108,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"7860df06-7f4c-424d-a841-76ac8b725178","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":108,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"0ac9cb47-08d4-48fe-af34-e6e3d13d28da","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":108,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"2cec9d6e-4d36-46b0-b9f4-a2a28e6da410","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":108,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"c80a01cb-2660-4866-9c59-ae9a5463564e","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":108,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"74b4bd3f-47d4-4319-9e9a-214218232d97","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":108,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"1c0d1fd9-4473-461a-a2c2-6421e41f13d0","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":108,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"8ffb9ff5-bf7b-4f00-87c1-4f654d602025","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":108,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"3fd4ee57-58ef-4934-9083-2c36988a8fc2","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":108,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"4aeb5d0e-496c-4ba2-a144-abddfcefb4b6","block_type":"box","text":"Restricted Securities.","page_number":108,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"7897660f-0607-46ef-9ccc-cb8753b8ccaf","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":108,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"eb2915c0-43f6-41d7-af32-f9f6ca4fe92b","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":108,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"d59e77d4-9748-4005-90f5-013c4a26755d","block_type":"box","text":"II-70","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bca1317-d3d6-4c69-9fbf-889fe9ad5607","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3a9cb33b-61d7-4b2a-b94f-0f97cb2699e9","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":109,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"3aa95de5-0dc5-49bb-87b9-be12a6a15ec3","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":109,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"d83262fc-3a1c-4232-8942-8aff8108999a","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":109,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"2d4c40a4-5b3e-4dcc-8a13-53f029e2c0f0","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":109,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"555baf13-260f-4d4b-91f6-6e42a3e68cbc","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":109,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"fab020de-7366-41d6-bd50-f268bc0fdd8e","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":109,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"c4a5dbd7-35db-4442-8db4-e151ff0710f2","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":109,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"b792c44a-3c2d-420e-a801-20c7928e6f88","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":109,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"6d73e054-f9b6-4346-93a9-7512b3550404","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":109,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"b4020998-e5c7-4ebd-9f3f-16f49f2d1e39","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":109,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"e652d664-b5a3-4725-a1f0-1856e325c9a9","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":109,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"2e294eaa-631c-4547-b30e-b59ccaa56af0","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":109,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"77dd7c8f-f1a5-443c-9750-e4fb597a3831","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":109,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"335bc85c-6642-46c3-875b-867ea0dfbedf","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":109,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"adb5ac48-b262-4ba9-9a2b-6b67356e78ee","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":109,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"8d7e3179-8fe6-4771-acb0-e6cd3908f5df","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":109,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"e0fccdc2-8b91-40ab-9fc7-044359b8d952","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":109,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"8ae6043b-b8e8-4662-b031-c0bf37ecf7b1","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"4daa9bde-6e0f-49c3-ac10-4840f932b9cd","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":109,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"ff753657-907a-45dc-9785-087d00b64b1d","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":109,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"ad79208a-b76f-4b33-9465-1981e30202bc","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"217837b2-942a-4e4e-b765-d0f0022c80ad","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":109,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"bcd51760-8d5b-453f-a1da-b2c382318d3a","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":109,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"9c6952be-9a07-4c54-b263-ee0ef19d283f","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":109,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"33a42ea4-3084-4ed5-8981-b20ead902e79","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":109,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"1765cc7a-6b73-4c14-a792-8022aa9362fb","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":109,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"06ac3294-397a-4567-82a0-6e4eb9dad3dc","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":109,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"e719629e-6bc9-451c-97fc-7239f59f538c","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":109,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"5170af63-b16f-456b-8226-cc1e6cb6b03d","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":109,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"268bf45d-e980-4cab-9a4e-4b9b57d1ede3","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":109,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"3be4cd6a-6b73-48bb-9c5c-5fc5b9004a20","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":109,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"3a80ab9a-33f6-45d8-9ed3-60987232fa91","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":109,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"02fdf166-c4e7-4303-b8df-0cc3f61a90da","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":109,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"11b9c89d-76df-4329-b7f5-4c56e9781a76","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":109,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"18d7a09a-2be2-44e1-80fa-a41661877d76","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":109,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"43cd7fc4-d61c-46d4-80c8-c3735d4b341f","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":109,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"2aacaea1-a492-4612-a9d5-f8fd02089abb","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":109,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"95ae7bbd-a570-43fb-89eb-88ca50d070ec","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":109,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"e4907634-164e-4eee-adaa-effbc9cbf5ce","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":109,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"dc3e06ec-cfe3-4230-b1e1-62b8c8725d11","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":109,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"591a27eb-cc9c-48dc-9fca-03bbfd49b64e","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":109,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"6e77f235-e575-49e2-b7b3-f21101fee4f1","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":109,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"dda0acba-d924-425d-b3dd-9b9ed9555791","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":109,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"2de619f8-9194-489b-bb03-7d310dbe6ee0","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":109,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"13f08c65-6d5f-4594-bd13-72ddc7489b01","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":109,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"21db14a5-ab57-4bfa-a186-754dddc8bd78","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":109,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"11bec918-0a8b-4257-8ec1-f00de2fbe22c","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":109,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"c4ef591a-4a09-4184-8dd3-8396bf3e7f44","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":109,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"0d5cca27-603d-4a35-ba18-d69bf4ef48ad","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":109,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"3386c502-d908-40ed-959a-ffe09b385d03","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":109,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"f5be30fb-5f40-49a0-b255-7cb717925d39","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":109,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"49e3f1f8-18be-4620-a6b4-87931b8399b0","block_type":"box","text":"especially as that Fund grows in size.","page_number":109,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"56edbb92-2061-47fa-8390-e38c28d40dee","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":109,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"ac3c4be3-7f56-41d0-bb63-dbb5a3e9f1b5","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":109,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"6b7fc096-485a-4a00-8f95-bedcdac9b7ab","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":109,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"f421bad8-1521-45ea-80de-3efed89c47f7","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":109,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"6efd5697-493c-4589-a03a-7efa1ad0038a","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":109,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"c151a3d1-b2fe-4c45-b2b9-1797d2dffee4","block_type":"box","text":"II-71","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"324265a7-ccce-43c6-a5db-b9dfb95edb0e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0824c5ce-4096-49b9-9bc6-76081d08d654","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":110,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"1c9e7c5d-338f-4cd7-bab1-8aa31a22cd80","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":110,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"998e3a7d-1454-4681-b49c-5773eef1abf7","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":110,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"d8a974e0-ae67-49b0-a279-3b60c7c56a66","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":110,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"af5e7fb6-a140-4c7a-8532-7b2a54f1dbfe","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":110,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"a4d9739d-6a5e-4e34-941a-657694701595","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":110,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"bde5b10f-45e3-4a1c-ab49-6783e1958a5a","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":110,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"72d67d09-77fc-49be-b1dc-380bd3a557d6","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":110,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"685e8d13-1fa3-482e-81d8-a79ad823490f","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":110,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"70e87011-4427-487d-9cbd-14c4f7ddfa9a","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":110,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"ba4e81ef-cb69-417b-b94a-01523d05d1ee","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":110,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"42460d96-c006-492c-9483-8054fe6fc29a","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":110,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"96d5f241-0745-4e5d-8c9a-5615222cc26f","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":110,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"32776db1-d700-4728-b9a5-3f5c6302633e","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":110,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"6c45934f-7437-41f4-8916-71e33433e7ee","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":110,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"7f7e877b-8757-4ce0-b757-e31d208c7190","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":110,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"2508eb4e-a262-426f-9770-b0dd17d4c0aa","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":110,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"0782af06-677e-4fb0-8739-10465aee1b6c","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":110,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"f84bb47c-69e7-441d-befb-a9219c6b091b","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":110,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"1368c9d0-ec05-44bf-9f59-073385348e5c","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":110,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"0aab6f8c-e2d8-4e3e-9da9-fc0d062a9c84","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":110,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"a029a5f4-bdb8-458e-90ed-fe408a693048","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":110,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"8a1aedab-db4a-4cf1-8373-bf2396b9216b","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":110,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"36e7dc68-2631-41fc-a54b-38f06836ad03","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":110,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"904fc036-c18f-4ebe-86dd-aac0f11e22bc","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":110,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"1a360836-422c-44cb-86b3-1de5762346e3","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":110,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"10b25e5d-334b-4ec1-8b41-418ff428dcd8","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":110,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"b3c66586-19ce-4848-884e-1b77a65eb6c8","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":110,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"497d7d4c-1d09-4576-9acc-fd933ff2b0e3","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":110,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"e9e3a3cf-3121-4a53-a5ee-b629927feb02","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":110,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"68f91e81-0988-4aef-bc93-f1a7cb5b7335","block_type":"box","text":"similar financing transactions (","page_number":110,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"2ce2ef4d-89b9-4174-97eb-ac4f4e4595d0","block_type":"box","text":"e.g.","page_number":110,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"bc79a74c-ea33-4c46-bcf5-45cfa8d7f993","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":110,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"7fbe728f-e28d-4882-84ee-cea965b86be9","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":110,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"8509060a-25d6-4782-be79-3c5fc61d648f","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":110,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"8bf1cdc6-715b-4d85-b8d2-af151d115d4c","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":110,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"be3cc344-8a56-4045-8664-d37b096cb641","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":110,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"e0341dae-7dcb-4d00-bf2d-ef1539611107","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":110,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"2dc49784-e7ce-41ea-b81b-5360f82f5b90","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":110,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"74476017-423c-4b9a-82a2-614eb2a80302","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":110,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"03710404-4567-4f44-b5f4-ba6b33f24e30","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":110,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"ec9613c5-cd02-4632-9e6f-6f6dfe2f18a6","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":110,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"1556a66b-d4e9-4bef-a530-f2d750ecf018","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":110,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"3865bd0b-d4db-4ce0-b3dd-58d49b957d47","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":110,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"db383912-c216-4d10-a19c-6b013dd6f46b","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":110,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"4ac7f889-4b5e-4c4e-81d8-a2d3d37ac81e","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":110,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"adedcfc9-12f4-4317-a3bf-d3a14fce2f8c","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":110,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"2cb0f7f7-8a40-45df-a294-f0fcf59b6f17","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":110,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"440e554e-ccb9-4c7d-af1c-74ea84eafb16","block_type":"box","text":"amounts to be received under such agreements.","page_number":110,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"c01df32b-6a89-4f66-be50-942038632551","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":110,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"74f07604-3ae4-4f6f-b702-17942a5426b9","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":110,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"4c2cfe8a-a336-42ef-b320-2491f88b561b","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":110,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"9e8046f3-6564-4475-b7fc-5a7306e08c17","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":110,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"e07419eb-e17d-4585-bacd-1f38ed552561","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":110,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"86cc8745-b422-44b1-9258-17914ea4cfc8","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":110,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"0af39bae-a970-441d-ae0f-a7ba03a60616","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":110,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"05dbac9d-b8f4-4643-8c2c-51a079364438","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":110,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"c332726d-022d-4dea-8bc3-ddf68e8c5366","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":110,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"da93e700-d0bd-464b-9d01-4d8be59dbd1f","block_type":"box","text":"II-72","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b70ae91f-8b09-476d-8788-63a76bcf9958","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b85663a0-adde-4e83-b8e5-0cb12909a4c2","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":111,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"98eec1e1-969d-4bde-a96f-a1cb68f3c232","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"c2b9f931-6429-44b0-96ac-85f0088155a3","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":111,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"0c73c612-63e5-4712-b4c5-f05786212051","block_type":"box","text":"Rule 144A Securities.","page_number":111,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"b2b5edb4-98bc-48ac-86ad-6eadce16af3f","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":111,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"4979f97a-97ee-4f52-b9ae-7fd67ac941a2","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":111,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"faadfcc0-ab10-430e-8e44-99b75b493eaa","block_type":"box","text":"Securities Lending.","page_number":111,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"f175a453-95c8-46b0-be5c-491f6e121dad","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":111,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"49191ebe-ec8c-4712-b3c8-62789114f6e9","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":111,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"0db84951-7ebb-4ffe-aa50-3b84b8d42425","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":111,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"87c78a61-9e0c-466e-8a67-0e00278aa23f","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":111,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"e73d5711-b5d8-4ae5-b4cc-8511bf9d6ed2","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":111,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"d207a8dc-8c82-4cc7-b442-f1c86cead709","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"73f1925c-74eb-484b-9a94-7e2a88dc63d8","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":111,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"e9acbc63-df90-4943-8b10-dd1ed8c7c5f5","block_type":"box","text":"the securities were not on loan.","page_number":111,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"fc143e05-61a1-4968-ac90-06de4bdba25a","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":111,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"4060163d-db5d-41ff-987a-7141ed77d24e","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":111,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"420e2b00-a4d6-40ec-8a18-34a384673005","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":111,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"b44c455e-ded8-42b8-aaba-16a1c91a206c","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":111,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"1ff39184-c3bb-4326-96e9-5a2082ac81b2","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":111,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"58b9f57f-66b8-4982-b939-3e122da23fb1","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":111,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"d5237378-a7af-4953-9c4f-60ca2fa39898","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":111,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"e45b2556-d5d5-499a-a1e0-3af21dadc069","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":111,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"5dfaa9b5-3870-41ae-a039-27cfd83196e8","block_type":"box","text":"i.e.","page_number":111,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"635f88ce-87f7-4914-a285-62f27d9de13c","block_type":"box","text":", the risk of losses resulting","page_number":111,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"9ecf7895-3f9a-48b0-8493-3987e41ffb9f","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":111,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"0ded0736-653a-4d5c-83bb-8371f1cbbc23","block_type":"box","text":"i.e.","page_number":111,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"df61f3f2-6859-49de-906e-4a680a87f880","block_type":"box","text":", the risk of a mismatch between the return","page_number":111,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"a9bf4ccd-2c56-4d21-92dd-25b309648653","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":111,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"6efd6133-3b06-43da-8fb1-52a04d8263a7","block_type":"box","text":"i.e.","page_number":111,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"e40611b8-a302-4d3e-81c6-5b07471e2ab3","block_type":"box","text":",","page_number":111,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"935d0e22-3267-457f-a2c4-5c023ba32972","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":111,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"2aa9506f-1ff0-48c0-b0f2-fec975d12c8f","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":111,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"b3f5562b-5dc2-42ff-b38b-94149fdd4c96","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":111,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"5c9b8cea-b330-4875-ba88-810c6013e59f","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":111,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"32bc4829-8de7-41ad-9687-63ea06da14bb","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":111,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"f31a5930-9ef0-458e-909c-faa9b7e50dd3","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":111,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"3b9e13c3-b013-46b1-9a67-ced614054557","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":111,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"d41cb286-32f8-4a29-8022-771988627544","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":111,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"9d2fb292-dffb-4423-87c0-250e1f7fbe3c","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":111,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"dd711c4f-a0af-4d31-ab29-4c1891a3cfac","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":111,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"8ad5a54a-8482-4018-83b9-f305ce0e9902","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":111,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"02426a4a-4635-4691-b2aa-984a39a0b0d4","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":111,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"f5118a77-32e9-4e4b-878c-fbf42336c6eb","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":111,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"1d925a3e-a85a-4e44-a67d-e7d68a2fd65e","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":111,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"939ad6e8-7d3b-42eb-9aef-c0316a66dd40","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":111,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"09f8b40b-fa75-4421-9274-6a22a78c4600","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":111,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"ebd5a777-95fd-4281-9937-3464049c7f3e","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":111,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"223d3056-bd50-40e8-abd1-f6ceeca122ad","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":111,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"42793180-cd43-44ac-967e-e8980691c92e","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":111,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"cac65fdf-a4d0-429a-bdcf-4633a2bdd53c","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":111,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"eb7ac795-cb4b-4d48-8f7c-a5e2424525da","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":111,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"47cb8e9a-8207-4978-b211-bbd93554b6d6","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":111,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"f90d5c51-6ee7-4533-9232-88ac720990d7","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":111,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"6a151a35-4bb6-47c1-a59e-ba32ff14e8e9","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":111,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"eb769b60-be9e-437f-a4c1-b793232bb853","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":111,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"7ef8a6aa-00c3-4c5a-aac9-efad51686f14","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":111,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"0c07656f-406c-4b79-994e-6b9ac37e88d1","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":111,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"a57eff46-69a9-4487-a073-ed68676d1972","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":111,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"4ca90336-cace-45c0-9962-2999ee061e2a","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":111,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"7d6ed18d-19d6-4558-a225-819e8702962b","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":111,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"cd08ab24-7ee9-47e9-b3e7-971e5138f919","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":111,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"d2759151-6970-429d-ac9b-5b868b1bc1f5","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":111,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"37f3825a-2f5c-40c5-a404-3278cf94b233","block_type":"box","text":"II-73","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2e7f12fa-a52e-41ac-b8ca-3ba7c2c6ec20","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c80cef2b-308f-476d-b162-3ab7260649ad","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":112,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"f81dff6d-baaf-4537-b8c3-e50a0c70dfd8","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":112,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"6f439125-77d0-4f10-8452-8e05e6cb3c4d","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"7948513d-e635-404a-bc05-7c17187f873b","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":112,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"4323be9f-4b47-4924-97d2-6cacbca65933","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":112,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"aa4f928f-8617-4650-a3b3-a3097d0cdcdf","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":112,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"24de8660-0722-4b4c-a40a-0232c8b10e97","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":112,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"2cfedabc-9f23-47f5-b105-b63e3ae7c9ee","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":112,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"f7185b3b-236e-4435-8dae-b71b85fd273f","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":112,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"c44460b2-00db-47b3-8797-d2410266b26b","block_type":"box","text":"the current expected compliance date.","page_number":112,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"28cb4a5d-f7e8-4905-94c5-b881723d224a","block_type":"box","text":"Short Sales.","page_number":112,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"af4cd5c2-e76f-4fab-902b-855f62de1667","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":112,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"0b09361e-a5d3-4178-90af-7fff491fac25","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":112,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"dbc90d03-3c0a-4d57-8052-867a268e99ec","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":112,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"ef461408-4d44-489d-87e6-8577419937d6","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":112,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"b5b42f9c-afc2-4c7e-9925-4f2b8c635a87","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":112,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"6894fafd-f4b1-4582-868d-3fa59c9e07b2","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":112,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"2a7d199d-aa32-4f1c-b8e7-107093fdec7d","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":112,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"5f186694-b7e7-4172-a6b4-9d239429ead9","block_type":"box","text":"securities to the lender of the securities.","page_number":112,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"a41a37b1-27d5-4410-b8b1-50161f062a6d","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":112,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"3ebc9d46-4e76-4705-933c-29b48684c3e2","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":112,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"12fd86f0-752a-416b-847c-d0678435633e","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":112,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"f0667c9e-a9aa-4c2b-a8b6-cf999785b46d","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":112,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"79ed69d2-4cce-4cd9-a452-2dc96dd19475","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":112,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"1426c2aa-9458-4a08-a588-aa581db755c6","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":112,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"f8f00a0b-3172-462a-bb55-1d7870a4ada9","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":112,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"e5ce41f2-e066-47c9-b7d6-9a7d442677de","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":112,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"36984ac5-2494-4ed1-a608-523b157aca7b","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":112,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"7d4301cd-7f58-4413-b4c1-a239b82011c1","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":112,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"81bd050f-d200-4b51-b5fd-74239d6c7eb4","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":112,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"e95d90d9-1721-498c-b737-f108b590cd11","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":112,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"116e9630-05f8-4cdb-8126-eb9e1ff6d638","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":112,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"f84cf543-42ec-4da5-b27c-624e12a6d36d","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":112,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"50ba792f-c360-45ee-a079-687f435ec63f","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":112,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"85d0f2b5-af83-4888-8ca8-8797ea07205b","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":112,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"8bfbba68-c4b7-43b4-9bbd-65c67586b41d","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":112,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"ba4d1b79-9111-4610-9f4f-3380d6212b70","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":112,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"21fe507e-f649-40ed-9eb4-886ca936fbbf","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":112,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"0e37f9e8-8b40-4c6b-864d-607c9ec8fd29","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":112,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"3fdf0636-ee85-4d99-9e41-2e5e62a0176c","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":112,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"f54f50ad-d04c-42bf-a131-9866ba365dd9","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":112,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"99dcbdeb-810b-4922-9eb2-c511c1a760d7","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":112,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"8e6299f8-d957-4cd2-9512-4c8ec7e8ef4c","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":112,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"d6aefc70-0909-48f0-aed1-6730a7ba13b4","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":112,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"6e57085d-8921-48d2-bfe5-7c9d882b9b9b","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":112,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"156a9aac-e586-4232-a3c3-09bbc63a5df7","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":112,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"f1770aff-0508-45a9-8e6f-fb6b398be8c4","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":112,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"97310c6c-8cca-40da-acb2-897f013592e5","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":112,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"6b307882-7762-4588-a0b7-a9ae05e67f30","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":112,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"72670fe6-c98b-4791-aeb4-75241c1daee5","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":112,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"ae290318-e2ae-4dcc-9490-75e244da4123","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":112,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"44e063c2-eeed-419a-be1b-f887ed6b3fbb","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":112,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"e5c6def7-535a-48e9-a44d-d3a161333546","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":112,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"bf97d4d1-02f8-4afb-8236-ebbebade36b0","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":112,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"4349edcf-5aa4-4c1f-bbd3-4ba2a541bb28","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":112,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"23f19343-68a8-4398-b26b-5ae5ec576e1c","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":112,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"37d23a30-973c-46f0-a02b-423e7ba7754d","block_type":"box","text":"II-74","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"51c1d7a9-e622-4024-ac2c-52a9d2a37d5f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b0eb891-7b00-4707-8f53-a3616709b361","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":113,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"86247e24-716d-4ad1-9bf8-665c7a1f0fb3","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":113,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"a3171c2f-2b9f-4585-a89b-f50a55651950","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":113,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"062de6aa-723a-4ecf-a7ce-7a94d36cf852","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":113,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"4298e88c-cafd-4767-b132-390634fae7b2","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":113,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"39474702-d731-4f5c-9287-83d29fd832d7","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":113,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"a36c7069-e6ab-4144-96c9-d66dcc27caea","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":113,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"fff08f48-d56a-496f-87b8-5509c7bd8663","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":113,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"393509de-293a-40e2-b102-431caf3d6732","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":113,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"8aad1147-7192-48e6-b45c-855fce3222b9","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":113,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"feccd935-8b45-4c41-81cc-9a0fd44e4bfc","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":113,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"682d92f7-e701-4ea9-ac25-d55cc47db893","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":113,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"2b2350b0-80ef-4cce-a37b-d7cc804b140d","block_type":"box","text":"Standby Commitment Agreements.","page_number":113,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"949befde-7e95-4fef-b3e6-302b5fdc0dab","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":113,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"88bc1526-6849-4af5-b17f-6c0d74ed5ed5","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":113,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"8a7d27e9-f41c-462a-8b2d-49e58c265efe","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":113,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"f52230ec-0f10-4a5f-91be-4437a0f5def1","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":113,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"2a7da1d9-b1eb-47a4-b62d-01dd441a32dc","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":113,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"fbc33b43-cceb-4b30-841f-3ea27b00c334","block_type":"box","text":"advantageous to the Fund.","page_number":113,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"c4c2761d-0842-4d58-a2e3-8eebf9b041ff","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":113,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"c66cf28f-792c-46d5-b13e-d95363638df4","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":113,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"2c19cfb1-7fe9-4e6f-bdfd-5a4ca38ecc93","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":113,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"3c3f2bff-aefe-4e3f-8875-1699da4a3a84","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":113,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"8bc42f4a-2a60-4471-936b-f30d2b7774db","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":113,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"c08cc5a4-72a6-45c2-b3f4-9601ed786dba","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":113,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"7daf4435-5707-4aa3-9d34-f8c3923de0fe","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":113,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"946a2a39-ba39-427c-bdbe-6e673318b86a","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":113,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"450fdaf8-fc54-452b-9b0e-9c8d781f7e6c","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":113,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"f5d86775-499c-47ee-a227-6ef69b233193","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":113,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"e6e231c6-d5c8-415d-a44a-68e45fb399e3","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":113,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"e9ff97f9-9081-45e7-b807-6600baba08f9","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":113,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"4492d081-eee9-4214-bb29-fece2ae0b375","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":113,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"2240158a-a86e-45d3-8de3-ab14c1d5fa42","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":113,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"9da2e505-8f8a-4dbd-a3e4-307b9d95d4bc","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":113,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"0afc83d5-6a88-46cd-9d49-73b774743802","block_type":"box","text":"Stripped Securities.","page_number":113,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"844475eb-1b74-4750-a7e9-ed1c1ae385a9","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":113,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"9a4a4279-358d-4bee-b306-b57d9addfc5a","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":113,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"ae28b909-a38d-4e4f-b14d-e6885ce349b7","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":113,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"e34c7209-9413-42d6-814a-ea7934edf598","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":113,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"8d3b5c51-d190-4fbe-9bee-618d7cef384c","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":113,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"78f64c3b-6bca-42ae-a694-10328f46a59f","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":113,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"8829bc1c-31ed-4ea0-9d2f-c2884fc2ad20","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":113,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"438e74d7-7c2d-45e1-88f7-2c76aa7ba46d","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":113,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"941142c4-a778-4409-8ff3-b9c126685379","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":113,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"de726573-01cc-412e-afb4-2f016ca3eb21","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":113,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"b6492346-a19c-4e9b-a600-508bab4b815c","block_type":"box","text":"Structured Notes.","page_number":113,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"71eafa2a-a0f6-478b-bb9f-c1faf265f9ea","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":113,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"efb220df-5aef-44d7-9d56-f4bfbbfa8a0a","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":113,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"0eeeece7-a601-4aee-9ba3-8b442d453666","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":113,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"9719e1a1-45d4-44a9-ab2a-16bb6fa5d20d","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":113,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"ca148259-509c-4510-ade7-dd728dc6d9ad","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":113,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"deffd964-3c7e-4bcd-b483-272081f606fc","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":113,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"a833aea1-0b2d-4e32-80f1-053e4ca5b93b","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":113,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"c0d8ffb6-0135-464e-9028-ec053a301382","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":113,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"0a50e368-6765-4cc0-b6b3-0e32f16aa389","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":113,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"aebb7d65-a93d-4218-a239-1c78631b2722","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":113,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"50c8834e-5467-4f94-9161-2047b652f143","block_type":"box","text":"II-75","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"802776b1-5358-4173-bf86-a0d7f815aa74","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"963aa7ff-d334-48fb-b99b-3b37fc37de25","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":114,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"10364ede-d0e2-493f-ab32-3a3c90d60a9e","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":114,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"2b54c1f4-2548-4980-a7a6-0f5730cae29b","block_type":"box","text":"the risk of loss.","page_number":114,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"d605d859-664b-495f-81cd-3d9c222c1809","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":114,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"f1df6fb7-d7a9-4fd9-b4d4-7d8882eb4d91","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":114,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"0763cba5-4db8-4a1a-b869-7a3dde357a04","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":114,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"c7eff7f7-1a0a-44b2-9357-c5c1e74668a2","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":114,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"45d26dcd-2acf-452e-b41d-9edcb48dbbe0","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":114,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"bd539368-fb87-4204-a2e9-770563b70ae1","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":114,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"6d3b51ca-8bc2-4122-8e6c-921bb5700f1e","block_type":"box","text":"Taxability Risk.","page_number":114,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"331c868c-b694-4294-b2cc-f59957bd6799","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":114,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"628a3a84-b3de-4961-a7bc-37ea783f0cc6","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":114,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"22f49e79-af90-40ef-baae-f69d30f199a7","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":114,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"6381f52f-f71e-4b7e-8651-4970ec7f2ed0","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":114,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"a3f150aa-8298-473d-80fc-fc75a01b0527","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":114,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"d8fcd336-07c0-4a3b-abe4-522d934a026d","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":114,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"f3569e1d-3990-4872-b0f1-5909ffb89566","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":114,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"f9c86c1b-053b-49c2-9447-face8e18b44b","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":114,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"fbf75702-d225-4a0c-94d6-5db9d89ce59f","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":114,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"ce2dd51c-9367-4df2-b773-589565974fef","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":114,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"b74643a9-0925-4766-9601-8c028f955264","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":114,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"dce4dad4-2e51-4a51-a125-00da3d30a245","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"d89ea7e8-2c54-468b-9025-851c2aec6539","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":114,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"0356e1c3-c9ce-49fa-ab20-7760cd137728","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":114,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"075ec1ae-4079-499a-861e-498fa6d99cf9","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":114,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"435c6425-1bcf-4a3a-bb48-3c390a8eeb90","block_type":"box","text":"the value of an investment in the Fund.","page_number":114,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"e3d71fb2-65b8-4ca2-8123-ce82bf47de2f","block_type":"box","text":"Temporary Defensive Measures.","page_number":114,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"5d1e44dd-6837-4b72-894c-343031785fc4","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":114,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"e97c1eda-7aec-449d-9b48-5a0366344362","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":114,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"6878504b-e4ba-4ebb-a7e0-31b27e9a2375","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":114,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"082c65bc-0f78-40b7-b4da-47e8ff873274","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":114,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"9fb2b2b9-1e10-4de0-a619-530bd154fdcf","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":114,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"1c1d4293-e7b8-4530-b3cd-9e7257bc99e1","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":114,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"4a9be935-97d2-4c8c-bfb1-b69d5ea4282e","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":114,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"08b5a160-75ff-43f4-a395-492208fe8e62","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":114,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"32e4cf1b-bd3f-4a4c-830d-c146954290bc","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":114,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"d7bdedfc-2fe7-4845-b86e-2295753f7172","block_type":"box","text":"its investment objective.","page_number":114,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"8222c06a-1252-447e-8d70-d43f8d03da16","block_type":"box","text":"U.S. Government Obligations.","page_number":114,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"1d789adc-6f02-4428-a1ea-43f6b47c1e84","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":114,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"82d4f892-2999-4115-88a7-8af24788abfb","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":114,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"5477a6ac-42c7-436d-8611-d4bc6faecd49","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":114,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"075d99c9-14f0-43e5-a458-c9658b92297f","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":114,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"d73be8a5-b9cd-4395-bfd7-c48cee63ee50","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":114,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"5674ebf1-0e1c-4436-a5c3-cefc3ed06acf","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":114,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"55544ec8-566e-4812-a92c-97c3724a8aaa","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":114,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"1c5a6e52-490a-4641-b4fc-a660737f0ff1","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":114,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"f4c50092-d373-4492-b362-9190038e7ce7","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":114,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"15beeb24-4417-4115-a26a-c79545611a5a","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":114,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"65238b66-1165-400b-a7eb-c063ef92342d","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":114,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"e5c7410e-209c-42b5-9ddd-cf4816991516","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":114,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"b193a651-d2fd-40c7-ad65-354dd046633e","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":114,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"c90a04c1-554b-4436-bc56-a10f8063333a","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":114,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"d0ebb5d7-4584-4d3b-a004-d36411ad418e","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":114,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"099e4f9f-4223-4010-8948-2e470e74a622","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":114,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"706c300c-d956-43f4-bbda-e5414505b335","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":114,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"7e0ed043-f263-439e-ac3e-b4b241344d1b","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":114,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"e811c511-0352-441f-b56d-ccbb497806c4","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":114,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"bec9f600-89d3-4a87-af5e-9e652e3d2477","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":114,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"d2ea935c-5b2f-425a-9709-f57ec0480d4f","block_type":"box","text":"II-76","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c735311-670b-4150-9e3e-a102c2ffb51f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"831687ea-7a93-4f1f-80e5-87c482d416bf","block_type":"box","text":"U.S. Treasury Obligations.","page_number":115,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"fecc8b09-b48a-4582-a53e-49803698c792","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":115,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"70c70bf0-eb60-4969-bfd7-521026dd7242","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":115,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"4589a538-842b-428a-a287-8b8e5c9c3cf0","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":115,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"1d79d6f2-d15a-4357-961c-04f0a7a5b6ae","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":115,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"3f05dbc2-c801-480f-b47c-7ccb0d760884","block_type":"box","text":"do so.","page_number":115,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"996b18b5-2ee1-4f30-8508-762f833c62c0","block_type":"box","text":"U.S. Treasury Rolls","page_number":115,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"7f77b955-66b4-4916-9ce4-a1c7bd87ead7","block_type":"box","text":".","page_number":115,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"43f42ebe-39a2-41cf-95cd-6e9776d99dee","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":115,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"972f8eb4-4f58-4a24-915c-38544055a32d","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":115,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"bbf2a82a-fb9f-445d-8153-4f876759719c","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":115,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"ca711ed0-005b-4196-b032-b52b38ce2c88","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":115,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"4f048d69-27bf-4e3c-8b1b-7840856a5054","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":115,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"f8ad08f3-7a86-4436-b2d9-a91e38cbd817","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":115,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"9eaa87f7-a1ba-4466-96d1-cafedb99e57e","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":115,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"7920efcb-5589-43a3-a4ef-b46096e665a6","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":115,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"c0a763cc-4901-499f-91e6-f68c501c0f9f","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":115,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"9fe1bb8f-daf6-483f-8f42-c553c84fa076","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":115,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"84a24bc9-38ca-40e9-bb26-8f1cc6e0fced","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":115,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"00b44b45-774f-4dd7-b8a1-d16df8f8ebd6","block_type":"box","text":"Utility Industries.","page_number":115,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"495f2515-623f-4129-8ad4-f1f74e879752","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":115,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"35cba4fa-470c-4b13-8a62-f40f54e2139c","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":115,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"0a5a4cf1-9a0f-4123-854d-ac440a0e9323","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":115,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"452f5d5c-11e0-4e0d-babf-9fd06555ed24","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":115,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"455ec85e-d6f6-4007-9e6e-5cadb7eb1aba","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":115,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"38792e72-37eb-4fe5-b482-9fb5aaa06b6e","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":115,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"78194816-4cb8-4d58-ac5d-21488a4eb976","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":115,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"b5e0287b-b3f3-4433-b855-5406b5beb898","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":115,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"e8b1688a-2846-4762-809f-9119d7656442","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":115,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"087c38dd-320c-40c1-9afc-15ca8a8120b2","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":115,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"5ccae1e4-15d0-486b-8057-3f691421aeb3","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":115,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"a231e9c2-b1cb-42b4-94fe-8f9e14e1f940","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":115,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"b26b0b98-75f3-4f05-821c-7254233af3a4","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":115,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"8bfaca5b-e48b-4e33-8603-3d683819a4bd","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":115,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"3293f1f2-a62b-4ce1-9d5b-76dbd8c07e36","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":115,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"f241181f-d405-4eae-8d0e-8c53e53e4ab4","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":115,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"79d23ad2-a3be-46e5-acbb-54e74786ecc5","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":115,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"18c33f6f-b145-440b-b2ae-3bc532425196","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":115,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"e39f5895-0bba-4e1b-b2fc-4afc016f6d26","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":115,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"298b8537-e9ee-4829-bac9-d7bf7cd04bc0","block_type":"box","text":"utility.","page_number":115,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"c737150d-ba9b-4cd9-8b64-fd969f8e4082","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":115,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"6f5b5ea9-87a6-4ea3-9d12-6927d8066fc9","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":115,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"60558334-9efc-45b7-beed-dcac824592d2","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":115,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"295dcc0d-b4f8-4e56-a350-0b10735f58dc","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":115,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"ee06e157-86bd-4879-9a01-5de5442fea31","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":115,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"9ce4653a-db1e-4ea9-a325-89f6d8597aeb","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":115,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"64dae8b2-b354-4f57-91d7-7b5a8e7720f9","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":115,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"f579c3c9-7dc0-4050-b2d4-f3f23157323f","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":115,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"f1e82f7c-3776-48c8-a8d1-a3ec00331156","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":115,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"da76e8c3-bf1f-434e-a672-2acf0fe8cddb","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":115,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"283e2939-de1b-4691-88be-ab3cba47d041","block_type":"box","text":"continue in the future.","page_number":115,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"755a8018-b054-4531-82ca-feab6fb9c3c4","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":115,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"de13746e-3e58-469c-b11d-478396245dfe","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":115,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"68125a73-93a8-44ff-83fc-4ac1ead73d3a","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":115,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"f8118293-1a59-4b25-bc99-e0e560099e77","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":115,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"646eb40d-6730-48af-8eda-6abd9da880b7","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":115,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"773d2515-cf49-4c9e-875a-cf688e74cd3c","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":115,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"b8a936e1-59dd-40d5-a66b-02640030d438","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":115,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"6da4d8ad-6b5c-44b4-8c32-ddcab74a22c7","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":115,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"50a1bb6a-aaaf-46bc-beda-8c180a812b9e","block_type":"box","text":"II-77","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"13e6a4b1-eca0-4e86-8401-ed540059b00a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3ec89aa-a940-489a-a0f9-8b756e8d55d6","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":116,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"b63cdd2a-fe85-4051-8887-8d43e767974e","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":116,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"8c3e1ff0-cd7b-4e7a-b013-3f7df7f52f47","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":116,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"e537da31-bbf7-4ecc-90d0-9804799dbe4f","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":116,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"cbe17177-bb43-4902-b447-f55d31e05070","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":116,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"7a0312f5-2793-4298-9d5c-c3f780b7d435","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":116,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"f0bf50a0-a8af-4fb4-82cf-9d05540d0905","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":116,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"f04f33c9-c33c-47f4-9426-473474858d3d","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":116,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"e1c58c65-bed3-4071-9c1d-114c7b5cbfb9","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":116,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"2ebf5b6a-b470-4366-8e76-5c6b26305325","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":116,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"61ea49fa-9d8b-4879-9ad7-9c83d172a97f","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":116,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"9e48be27-bac9-4323-a576-d645282a1d82","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":116,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"5a080c94-b6c7-48bd-9003-f99700ea38f9","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":116,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"736810cc-1a4f-4106-b002-3d2c6557edb3","block_type":"box","text":"ways different from regulation in the United States.","page_number":116,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"41e8c6b5-57e0-44f6-9be3-0ba9edfad56e","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":116,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"e3ed5b02-9022-4d37-a403-231b76f24f92","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":116,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"1823bf5f-c38f-4354-bd29-81fec4dc6b25","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":116,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"9e16ca19-22b6-47d8-8802-1577c38f6ff6","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":116,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"5975f0d6-113f-4af7-9016-1918abb37654","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":116,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"9db1c07d-82e3-4d09-b877-e985bc987c9f","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":116,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"44a4017c-e0c8-4245-887c-665b68584967","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":116,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"3c93ca74-a99e-422b-90b2-364a0472dbe0","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":116,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"a69143c5-6b6b-4737-9da2-c78f8bebf596","block_type":"box","text":"increase.","page_number":116,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"9c97792b-14b8-45cd-903b-6ae53fb37884","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":116,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"50fc8e7c-8a78-4d80-82c1-04af9cf34236","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":116,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"707f139b-c690-4c8a-8ed4-264979f3c65d","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":116,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"0c0693e6-63cf-4d7d-a03f-41dfe0ce7a03","block_type":"box","text":"Electric.","page_number":116,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"36329719-9a36-41b0-b400-e47d097c6cbe","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":116,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"346e5fed-7906-4b23-a601-f20fbf897298","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":116,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"2c813f3d-fa8a-404d-8276-26812dca325f","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":116,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"72ed3b7a-8d61-4524-80e1-32e060862f8c","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":116,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"a5129502-0574-49b4-b511-13b8ae23d6a6","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":116,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"11653240-3fa7-4df6-99e0-fc9cc7ff1497","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":116,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"3c2ff678-2351-4476-977c-00374182fbb3","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":116,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"7b502fb2-d733-4249-a371-26cba701d64b","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":116,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"58b066a2-a35e-4509-82ca-1a569bb09367","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":116,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"5632797c-1810-4d4f-bb0f-fd0961310928","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":116,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"9d6a3f9d-4b6f-40d0-80a8-4f3009973bb0","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":116,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"160bee84-fe2e-4225-b138-8d260391c08e","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":116,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"f556be1d-d922-48fb-8596-59885f48fa97","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":116,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"9fcc40ab-229f-4817-b75d-1b3931757660","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":116,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"a931ab28-1818-4ebc-b610-f9ac8a189d84","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":116,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"8b833b82-73ea-4725-8109-325069e4c07f","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":116,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"388f80e4-155d-4372-92b6-bc5851de62e4","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":116,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"ce293ebd-a111-46e3-9c0e-5a94b709ddc1","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":116,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"de8768ce-cb1b-4e12-a52f-8d9050ac2be7","block_type":"box","text":"and for decommissioning such plants.","page_number":116,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"f3aac287-513a-4316-a145-0a8001eeba66","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":116,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"b2d27036-79c9-47de-bad5-c9c33b72fe4e","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":116,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"43143de1-2f86-45d0-afec-e07201c5592b","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":116,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"7f9add01-e531-481b-9cf5-09ee39a6c598","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":116,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"372937ce-d5b9-4fd7-9469-6478d58f33f9","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":116,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"8cbb4c25-f9e8-416d-996e-126bc8a47243","block_type":"box","text":"greater predictability of cash flow.","page_number":116,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"c18c5ee0-5fd3-4578-a174-c156de9e7ce7","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":116,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"1ef99948-2e1d-433b-9d44-53a5e4e4dac4","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":116,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"14be8158-5b3c-439d-9dc6-cc3c1516fc49","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":116,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"b4cc4199-b3c4-4b29-8ba0-e20befb2beea","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":116,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"46f36600-140a-4356-a507-6d78f49a5cf1","block_type":"box","text":"II-78","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"39f94c40-1d1c-40c7-b542-d8a10b2c87b8","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6170d0e3-105e-4782-a68f-aa51371ba0cd","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":117,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"762c50f1-f200-4c2c-a084-5b24cb888f5d","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":117,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"0504410c-5761-4c4c-a69d-c84a6246f107","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":117,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"b8a4b686-cfab-4127-a2f2-2dfe2c0efb48","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":117,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"653917ee-4291-4263-94f3-2b1b0f1d3748","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":117,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"e434b3f1-a02f-43ba-ada9-a882a3b77830","block_type":"box","text":"Telecommunications.","page_number":117,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"cb4d1a46-f973-4826-b079-4ebc070b859f","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":117,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"37ed83a0-9f64-410c-9bdd-476bae79fda4","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":117,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"37ef2eae-def5-4ba0-9ffc-8836e399de15","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":117,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"6e46231a-8a22-484d-813e-62faa058d1f2","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":117,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"6a5630e1-407c-42dd-af97-6b282e1947b1","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":117,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"22cec743-bea7-423c-bf19-f335b7fdf5e1","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":117,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"288276b3-9a1b-40ac-ae75-789c971d7e52","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":117,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"4b8a8063-8793-432d-9bbb-22ec4cb6e81a","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":117,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"c6d268c1-e927-4b42-a917-fe53b831ddd0","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":117,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"1a7be1ef-8f1c-426b-8d84-52fe824b1118","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":117,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"7b1944f3-af03-4a07-92b6-e0172898e347","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":117,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"6abb816f-3165-4ae2-ba06-4cb87626c871","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":117,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"608c18f5-8cc6-4070-949b-ef8bfd32dc83","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":117,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"4c2955a0-7efc-440a-b191-3da0a1fc444f","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":117,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"a09269b5-6729-4599-9398-ce339aee15bf","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":117,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"23ef397c-772a-460e-94f8-c0ff6c22306d","block_type":"box","text":"residential, corporate and governmental customers.","page_number":117,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"b4dd862d-5727-4cd0-af19-effad5942455","block_type":"box","text":"Gas.","page_number":117,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"8e127196-7acf-4019-8953-3e0548dabb77","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":117,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"ba62a529-d1fb-431d-bda4-45ab0e11de0d","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":117,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"5c73aa0a-5256-4b9a-b369-aa382d4bdb74","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":117,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"859a4846-710c-47a3-8e46-66b05bd9543b","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":117,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"89176d1a-cd7e-4f40-86c0-ad60e95bc32d","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":117,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"c9b0b1b8-6b4f-4219-a9ec-beb87cf45dd0","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":117,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"82b1ab05-ab2f-4a91-9cee-cb32b565aeae","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":117,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"06381773-c4de-4984-b792-73964d8b68ff","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":117,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"edfe43d7-447c-45e7-a260-d698ffc9b198","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":117,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"be7d8184-0a1c-4c5a-9f21-d28a2ee0bf49","block_type":"box","text":"Water.","page_number":117,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"c8382940-276e-459a-b835-8577bf76374a","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":117,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"12950599-5d49-42b2-87d2-8bcfdac730e4","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":117,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"6a5beba2-3af8-453b-b05e-8442bca59203","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":117,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"c62fe48a-8cc9-457b-9e56-30fd79d3501f","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":117,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"639b7937-a17d-4ed2-9eab-8aacda6e9858","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":117,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"f45ef486-e77f-412c-8e8c-50c756ee90e5","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":117,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"09621d5a-6235-4fb6-a823-20ca236395fb","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":117,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"6d29be74-ae03-40a0-92eb-5ba09439e26c","block_type":"box","text":"Utility Industries Generally.","page_number":117,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"4e13d3b4-3152-46d2-8667-df01b9fdc2bf","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":117,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"41ad7df1-aa7c-46cb-bfbd-539d973b362a","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":117,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"c43c5359-a012-42c8-9420-5c70e60fdebf","block_type":"box","text":"not develop in the future.","page_number":117,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"d05f8f37-7c7d-40cf-b32b-b376f6cd4158","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":117,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"18f9076a-234d-4832-8749-80e95bfa0ad2","block_type":"box","text":"A Fund may purchase or sell","page_number":117,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"2ecc1152-b9c1-4e86-8732-7bc9d8e32232","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":117,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"cdef546a-d0cf-4162-8722-eb90a941d461","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":117,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"90191076-83cc-4505-a9f4-9dd891165ab6","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":117,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"1759ce46-09d8-4305-9a8e-482d8ebd6cc9","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":117,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"a569182e-44bb-4f8c-850a-289aed4e9734","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":117,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"aba8deb6-f81c-48c4-b152-448d672bf7b2","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":117,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"05aa0372-367a-413f-aaac-81cfb4be9127","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":117,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"96bb68bd-2b68-46bb-af47-b4734eb14db9","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":117,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"acd1125d-5383-410f-8137-fa307901d633","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":117,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"4c9f96f3-73cb-4243-9912-ef765ae12ffd","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":117,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"0a727beb-4fe4-4b6c-8d18-3407657a95b3","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":117,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"996b852a-f247-4f54-887f-42540c615b8f","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":117,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"34b2416f-5544-4156-8794-2035796ca6ec","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":117,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"6b8c34f5-76e1-41ad-baef-ac32af32a2f6","block_type":"box","text":"II-79","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8c79f61-6538-4a2e-993c-1fcb8740d6fa","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1901563c-a283-4ac6-ba60-d9dfaff5a9f6","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":118,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"ec39ab21-ab35-46a6-9736-c4fa9f461658","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":118,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"b9bbdd56-de83-4991-a5bd-e59b3cfdcd90","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":118,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"d1462ed0-be35-4274-bd45-7ab8521376c4","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":118,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"1c1a1638-4119-4989-bb21-80d78808f347","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":118,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"756267a6-b662-4dcb-8bbc-4ca8b4294ee3","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":118,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"a0bab139-a3de-4652-b69d-35fc4b3e7c1a","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":118,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"2aedc204-fccc-48c7-ac53-895d71eb9c54","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":118,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"9795eb5b-4036-4049-aedf-e8e34b3d688e","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":118,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"f49efb4d-8d9b-4555-a98d-7e6f3f0b72ae","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":118,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"33a1ef5f-6297-4db7-86f8-d39ba318e17e","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":118,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"7a09f74e-554a-4c97-9110-d6dcd673db06","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":118,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"cd9ff135-8175-4550-8d05-0bfe19f1a1d3","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":118,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"7927e9d2-afe5-43b2-83a4-575ab697ccab","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":118,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"31756cca-cd6d-48a1-806b-0b402e50e85b","block_type":"box","text":"securities (","page_number":118,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"e6d2092d-4cdc-4c9d-838c-6cd926f94f08","block_type":"box","text":"e.g.","page_number":118,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"04a3b242-def5-4961-b1a5-3098426bdd5d","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":118,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"8f7604e9-11f9-4029-a34e-92f30343f7a0","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":118,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"6f963671-bce5-497b-9986-ad6343b33280","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":118,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"2841b07f-93b7-4443-923b-37fa8478997a","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":118,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"331630ca-f278-4356-8bb1-56d423607969","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":118,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"4ab2cb71-605d-47fd-8348-788cf875f68d","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":118,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"2d65bae2-7973-47dc-8102-cf902002ecac","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":118,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"bd001a9a-9cc4-4aef-978b-f3028b68c5fa","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":118,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"90e9aedd-22de-458f-92c9-f135aecbca4b","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":118,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"b12341f2-0365-4f5e-8fa7-9a3bc9994eff","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":118,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"6df4b0de-2dee-40e5-b040-57c03224c6dd","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":118,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"077b3e4a-cfc6-48bc-ae35-73364da7b028","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":118,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"90025e54-3f82-4116-b034-3fcc713ff9e0","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":118,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"5f99e18e-7f37-4fc1-b0cf-a088b4230b99","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":118,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"e45e660c-a04a-45d9-8958-a69d8e264999","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":118,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"33048775-d4fd-45f2-b32d-a52a026260c6","block_type":"box","text":"Yields and Ratings.","page_number":118,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"6747f621-f3fc-4d45-947a-fedda7ce99a3","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":118,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"150d3fc6-3b2f-4e5e-b5d8-728e7e2c9304","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":118,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"abe85946-0166-4e2e-8c0f-d92a35e5d3a3","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":118,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"3908603c-b5a2-4f2f-8a9e-770aad040a05","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":118,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"ec64049e-bba7-447b-9e9d-bd29b0d6a0c2","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":118,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"f0577845-2289-4dd8-8268-4779e8a839e3","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":118,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"fd747303-89e9-488a-b0bf-126a836fe1d3","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":118,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"e80c4621-28af-4412-af38-be2a1618d3c8","block_type":"box","text":"continue to hold the security.","page_number":118,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"6c595fba-c88e-441b-a27d-989921cdb9c6","block_type":"box","text":"Zero Coupon Securities.","page_number":118,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"2d1f9f77-c164-475a-ab58-5b1cf6d0e632","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":118,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"823cc7d8-772f-4de2-bc56-4f315373beb7","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":118,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"812e84f8-34a9-4154-bb04-6b895bf954be","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":118,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"dac73179-9c84-47e5-904b-523af409a44e","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":118,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"065947a8-d5f5-492a-80c9-948652a09384","block_type":"box","text":"security.","page_number":118,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"17020e71-a54e-4cf9-88ea-8b05082a9547","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":118,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"705c04b2-47a2-4f03-944a-0b4cda389e4d","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":118,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"cbc9fca2-a22b-499d-943c-c56e30fa046e","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":118,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"7210602c-b6ae-4548-98aa-7c79ecddd5a5","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":118,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"3aec3be1-9a38-4b6d-b7b1-87fef3b73e90","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":118,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"f95d22ab-0cc9-4799-9dc2-d68e8b9ebb36","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":118,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"f9c9b2bf-d69a-4ab2-9cce-70c8454b8c2c","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":118,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"9244474c-b7f8-474b-9e7e-1ae74711156c","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":118,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"047e08a9-47da-48f8-be82-e65c66318175","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":118,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"087bf8ec-761d-4ec4-8d37-93535e768e19","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":118,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"a5729d27-1cac-40dc-845d-bd16fb40f075","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":118,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"a40ea3e7-e593-452f-ae64-353d3b9cba46","block_type":"box","text":"II-80","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19e3d7e5-ebd2-4822-a330-fde3009a766e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"44ff535f-553b-46ed-bbfd-76129c7bb805","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":119,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"f3605787-bf30-4cc5-bf0b-6d6b62ccde72","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":119,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"99965bfb-3606-4cbb-8164-afd483ef62fc","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":119,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"1c0ea4df-650b-49c2-97f2-1337009e269e","block_type":"box","text":"intervals.","page_number":119,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"436e224d-9542-4a14-8e63-8612bc0c0aa5","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":119,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"888a3e8b-94c6-4a9d-94b0-f014621dfeaa","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":119,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"160da8c3-bdeb-43d6-84aa-b51fcb439ed9","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":119,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"7cf0d71c-8377-45bf-a0a1-98f955746348","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":119,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"e3e27670-3167-48f3-b61e-b0cf19737f2a","block_type":"box","text":"exposure to zero coupon securities.","page_number":119,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"cbba9cff-1a07-41e2-be0d-5c8bcd42a71c","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":119,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"da37ee6f-71cd-492a-b02a-cab71d1a4918","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":119,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"d5a5c37c-2457-48b1-b45b-faba27621608","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":119,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"af7322f5-a134-4091-9a11-6cc01dc9d567","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":119,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"426b6e10-41d3-4741-8b20-9c59eb8bcd6b","block_type":"box","text":"Suitability. (All Funds)","page_number":119,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"7268305d-f93e-4cc1-b270-ba6f8e584522","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":119,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"1c8b9a47-2412-4466-aae8-c18eab5c3d9c","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":119,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"abbf699d-1286-482e-b474-ba77d6b60290","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":119,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"67ff90c3-f6c2-4a74-93b4-37a43eabbd0a","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":119,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"cedccd1f-3423-4b44-815d-eab997a69540","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":119,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"58906101-4f6f-4ff1-8e80-b6591f26f752","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":119,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"989e82be-1247-4027-ae60-8d57636ff0fe","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":119,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"cb376b97-89d0-4434-bf67-cadbb10f6f47","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":119,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"8b689afe-134c-4dd2-b3f3-4a2d34ba5d98","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":119,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"545d365c-74b8-442e-97bb-e413f1bda37c","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":119,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"6d2ad85c-04d4-4b63-b6df-48b6cb0e683f","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":119,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"4eb2857f-5f63-4411-a05c-121a0d029bf3","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":119,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"78ce539d-e02a-4450-a6fc-84d4e30373d1","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":119,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"644081f3-ad8c-41f7-8a23-e2f084e3ca53","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":119,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"c962bdd7-b8cd-4f10-b85e-64139dcbf745","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":119,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"4bf3b192-045f-4f29-9b20-db2a734c881c","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":119,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"37fabaaf-4265-4327-894d-77596c334649","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":119,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"fc44371b-40ef-46ea-9ea4-18772291cf39","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":119,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"b8c807e1-149b-445a-8e41-83e7f9969e93","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":119,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"c80740da-df6f-4237-9845-6258b16256fe","block_type":"box","text":"(","page_number":119,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"59f2b208-af65-4b91-b52c-3c2de64b0577","block_type":"box","text":"i.e.","page_number":119,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"cce7082b-503d-4f85-9747-29c4a2f0a610","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":119,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"1d792d61-c967-4a90-97de-3d080cb73f22","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":119,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"b0db0b85-a255-489a-a416-19a3e2b900fc","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":119,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"1483b058-4c2b-485c-aab5-907b696c965d","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":119,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"d45b5273-88c9-416b-9ea2-7c42ccbce427","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":119,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"d594f97a-01fc-4938-bd87-41827fb4189c","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":119,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"f7418a3d-9905-4748-89db-b42c88d6477f","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":119,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"5720f686-4dd2-403c-a8b1-c00f41b56b52","block_type":"box","text":"regarded as the sole issuer.","page_number":119,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"495e57be-0e5d-4aa6-81a2-53c0bdbd69bb","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":119,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"bed7a273-825d-4db9-bb00-23fe5987f222","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":119,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"b3ac5a19-6cbe-4b11-8e76-bf8ff63b2b26","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":119,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"45914249-565d-42ce-9a4b-61a26e0133b2","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":119,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"e7e81047-7f35-4d83-9b68-cb0536d5c684","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":119,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"85e73ffe-d7b0-4399-8380-c1e453006981","block_type":"box","text":"75% of its total assets.","page_number":119,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"0d94d3af-6d4d-4388-87db-ae964ac56505","block_type":"box","text":"II-81","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7337f03-387b-4815-b0c6-4ef6a7e3f119","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87e2725b-2e6a-45fe-9820-5ae202b19b71","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":120,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"03b6928f-3003-44eb-b921-d311e3087dc6","block_type":"box","text":"Directors and Officers","page_number":120,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"55d223b0-0003-4cc8-b315-4931be86e92f","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":120,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"2f432dc5-7d0c-46bf-9895-863f15ae70db","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":120,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"1c0b03cf-f3eb-45a3-ad53-b043e98602d4","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":120,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"8793fed1-7ff9-42a4-bd48-1a33f4547986","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":120,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"ae65f173-1150-4641-95ee-e57ff0302fe1","block_type":"box","text":"Management Arrangements","page_number":120,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"d2450baf-52aa-4dc5-8d1a-890c7951ddbd","block_type":"box","text":"Management Services.","page_number":120,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"3429e0ee-3872-4722-aaf6-7eed99b33727","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":120,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"641c33a1-9e4e-4431-a265-61b69d6cfc49","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":120,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"6f069e26-4008-487c-9a85-0737fffc9c78","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":120,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"a81b30a9-27db-4a1e-bcc7-51fb4acca280","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. 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For","page_number":121,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"f97d55c9-94be-477d-aac9-17592945e477","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":121,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"b0b4e84d-146a-4eab-955d-96230f8a4312","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":121,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"1ab96140-02e3-476a-acc0-9e3f98856139","block_type":"box","text":"class on a recordkeeping system.","page_number":121,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"eeb43108-10cf-4f1b-a90a-27e66ab2b193","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":121,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"8a1a86e1-11fa-41b5-874a-edf65b0a1e6d","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":121,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"556c4096-f916-4588-8803-c93ac8f44c20","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":121,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"88976c4c-0ca9-4ea8-a8c7-295e24b99bd7","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":121,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"2e540b2d-cd7d-49d0-8c33-d3244fb2b0d5","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":121,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"d36f548e-887d-4635-92e5-f9a647495c1c","block_type":"box","text":"Custodian Services.","page_number":121,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"11395296-1e66-45a3-af8c-662cc95e2d36","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":121,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"e3cf58b0-400e-4716-8033-c1762aca6231","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":121,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"f0eb9ca4-6269-4f20-a122-a52fb25e4df6","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":121,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"4c816e05-8e45-4f7b-b568-db03bd50e8e6","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":121,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"fac2c15b-4fed-4eb6-8533-898810f1ba43","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":121,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"bb7e5f05-9eb2-4677-80b2-164163e1b9c5","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":121,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"02e2a4f3-2282-4ff9-9bea-bf933ab9170c","block_type":"box","text":"certain assets.","page_number":121,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"b0344cde-4533-4608-8410-e8b1c1ca752a","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":121,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"14d03e43-7443-4cee-af9a-869abd66af0c","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to certain Funds, on a monthly","page_number":121,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"0451f2f9-dc2f-4d9b-ad0d-cca877e1099b","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":121,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"5474fbfd-cdcb-42a1-b749-929d99b07110","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":121,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"973dc5c8-1f35-41e2-8ed0-e9b367fa2cf5","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":121,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"eb06ccc7-2244-4166-928c-c1366cce98ba","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":121,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"7a8fb174-05f7-46dd-a45b-719a9bb08c2b","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":121,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"c24243df-921e-4bc1-be76-1ee6708bef05","block_type":"box","text":"Fund.","page_number":121,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"830c46e0-4d79-496f-9c2c-a7d16e383ac5","block_type":"box","text":"II-83","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4886f2ea-c11f-4787-899c-08aa6eccbd64","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8a5b769-1b35-4bcf-a063-4bf4aaf5ea4c","block_type":"box","text":"Accounting Services.","page_number":122,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"1c5c6861-5e24-4a0c-8493-1931d2fb6a97","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":122,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"12fabc07-9bc9-4005-9b97-5890c004beca","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. Each","page_number":122,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"b49a0e71-bd40-4d28-a49b-07f0fa2c3b2b","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":122,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"e6c4b277-f600-4498-b2f3-d84445f4476c","block_type":"box","text":"Master LLCs.","page_number":122,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"7391c7c5-64d6-4e73-884a-56682856a84b","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":122,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"5b176437-d5ea-4fd7-8f21-04f471289c73","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":122,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"faf1c3e2-caa2-4abe-ab4f-e26ee44b92d7","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":122,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"f7062ecd-e0ef-412b-bbfa-bf5b52342e4f","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":122,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"1bb40741-65b7-47a4-aec3-1e7273106db1","block_type":"box","text":"Distribution Expenses.","page_number":122,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"f05846f0-a32b-4cc9-89ee-20800f6a27e7","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":122,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"00313e06-4f25-490b-9e54-f88f45df9908","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":122,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"09a4d811-c95c-486c-ada7-ac6ed3624d2b","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":122,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"6cb29334-9cab-4db5-bc52-bff4befa96ef","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":122,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"bea4a95e-6041-4fd4-94d5-808bdd9e8f2b","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":122,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"249f5b55-9431-4e2d-8ded-8b60f8e7c7df","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":122,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"c8a1ab27-afdc-410a-91b0-2f9566a430b7","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":122,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"7adc78f8-c89f-47a0-b0a0-6ef0a47d8458","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":122,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"a22c43ec-a8a1-4346-ad77-f6b9cc270149","block_type":"box","text":"Code of Ethics","page_number":122,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"7f89efe1-385f-4b24-b7a8-100e5cb4ba72","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":122,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"6afad341-bc3b-4c35-afc1-f1757e274f64","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":122,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"90c710ae-3e11-49bf-8180-dcb50b47b0bb","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":122,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"3a90b748-8176-46ab-80a0-00517f4adbd9","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":122,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"d8b42493-5ef4-4980-8eff-d77ab43d27d0","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":122,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"c598fadb-6a17-47cd-9813-8eced42f115c","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":122,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"05c4d593-1d82-4d32-a0dc-23f26668be85","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":122,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"614bad7c-8876-4c5a-8b6f-7c0cbc2d3501","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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BlackRock may have a potentially conflicting division of","page_number":128,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"fce4c532-1624-4d1d-aa33-5278853feac6","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":128,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"1eed87b0-4e12-4b81-8565-e62b6eb91a21","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":128,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"914ebd25-162a-4d71-8401-8aee59969e62","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":128,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"f9991c41-aa2c-4435-8a7b-2bc73d1119ce","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":128,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"82518759-d95d-4fba-b530-8c9c0ca68239","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":128,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"b42d3296-036c-4e17-b567-12adfcc9b85e","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":128,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"b15798ea-88fb-4d3b-b287-f54794934b83","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":128,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"bd75ba5b-afea-45fd-a46f-14b7b2323301","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":128,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"8209705c-3972-4ed2-8fef-559ce25c4e74","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":128,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"5a3332a2-730f-422c-ab14-af34e2569f82","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":128,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"ce288aba-4ac0-406a-abbf-166aaf80a6e7","block_type":"box","text":"II-90","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ce59b60-45b6-4178-8eb1-e2563b650b2d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc41cf14-3568-496b-a7b4-1114e86ce4cc","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":129,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"3c6101fd-f641-4edf-9fb1-3f49c5d740e1","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":129,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"32585212-6830-4c3b-9512-92d7e9e97c83","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":129,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"3ecfbfa1-3cf3-4e36-ab17-b0b4284ac01f","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":129,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"adfe4bbf-8ea6-42fa-a24a-d76c03df80a7","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":129,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"d297832f-3526-4acd-ab4a-0c40cba1f8b0","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":129,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"ea4f44fd-f73a-457c-937c-cb354d2eafeb","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":129,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"e741217b-03b9-4e98-95b7-dde4ded44859","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":129,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"6d1272e6-3121-4091-82ad-bc4ccb44d976","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":129,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"930b9da8-e09e-434e-9fee-dbfffc75586e","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":129,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"6d7c6ea5-498e-4239-9373-b3e34e63c019","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":129,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"baf5562b-3d8a-4a7f-9060-3a88a67bb56f","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":129,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"c6d4c89e-c3b0-4d02-8b31-6c1cfbf45b03","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":129,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"75e6355d-174c-4a3f-91b6-6b002cdcfc12","block_type":"box","text":"managing a Fund.","page_number":129,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"b063fd2d-1cf6-42be-86a5-1db68858c52f","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":129,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"e0694dd7-d895-434a-b425-dae9ec5c43b1","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":129,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"d39f55e9-3a92-4bb5-8467-8c3d3b1a405a","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":129,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"97021157-5675-4540-abe6-82e564d65fdb","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":129,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"5d102f18-506b-43cf-80f0-3631b85b3fae","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":129,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"5e87cf6e-54a8-4cbd-916d-ffb44a2c300b","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":129,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"e5206715-44af-4763-8f27-381c5078cbb3","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":129,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"187b67b8-31a3-4ef7-9ee3-de28c2fe0a0f","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":129,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"f376ffbb-17ad-41f8-9f7b-9525b9ca01d8","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":129,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"9c8cc6b3-7456-4248-80ca-4b3cf0a60db4","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":129,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"96c7c3f4-6096-415c-a4cf-bc757c430b7e","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":129,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"1838bcab-d46a-4f96-a9ff-7836a20662ba","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":129,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"84938c2e-9de6-426d-a6f2-7a6d7e529afa","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":129,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"81137b1f-72cc-4b9e-b9be-039827a13138","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":129,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"d5f16496-9e8c-4e62-9bcc-dc462a2eb149","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":129,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"9c1df1f9-4ec7-4d00-b393-1ff5415a6305","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":129,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"9b697f8f-d1cc-4232-8b89-ae18f91f102f","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":129,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"ed0ab3c6-c3ca-4ad4-af3a-2245a93009ca","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":129,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"50a10f31-0996-47a4-ad24-8a770f799990","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":129,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"ddf0573e-8acc-40a2-9d6f-7213a58d270d","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":129,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"1c1dca09-6172-4148-8d72-716f046ef880","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":129,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"870bded0-6e8d-4b7b-a3aa-c3810045c7e4","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":129,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"f002fb1b-0cd3-4f34-b6c2-ea32f582290a","block_type":"box","text":"under management for BlackRock.","page_number":129,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"9de53d0a-e9e2-41bb-ad52-4fd73d67b4df","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":129,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"7bc1ceff-11ae-499d-b9b7-b8d9abde8597","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":129,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"a05bd6a1-015a-4880-ae38-45fb3488dfc1","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":129,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"1600cf7c-e739-4ee4-9bfe-49fb5c3f67b3","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":129,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"c1c766cb-3d64-4883-b647-059d69d0f729","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":129,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"a3d1151b-964a-4033-a7b4-867b8cdfbc1e","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":129,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"97d54b74-1c18-48ef-aa0c-3e66f9e537d2","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":129,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"98ca9614-c3ae-479c-aa27-f7ac483bb4d8","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":129,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"1e5bf845-96e4-4d87-861d-c03acdd3cc68","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":129,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"c1da5f3b-1126-43d9-ac3a-42281a86762d","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":129,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"e9bedbef-48dc-48ce-94de-e0d60364b9a5","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":129,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"d2c5774a-cd94-4a58-a14c-796c3f2d3cc0","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":129,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"d55602cb-16cd-486e-a450-c8d194d5f2db","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":129,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"cd33883b-a3d4-4410-b531-a87fa1c4cf0f","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":129,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"a4090ab2-2014-4ba5-92b6-c35a9148e574","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":129,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"0c62feae-52a4-4c68-a49c-be2d5fcbc2ea","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":129,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"b6cc436f-393d-476f-afec-9d8769292d14","block_type":"box","text":"II-91","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f491bb4f-32d2-43f7-ad56-093a28baa29d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5d09bf9-7227-4229-855b-91c961f56d76","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"5db985d4-8d32-42ea-9b5b-732012de1354","block_type":"box","text":"any such fees or other amounts.","page_number":130,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"e9a5f6b7-b5e9-49c8-b633-811e48df6634","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":130,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"ac186171-7ccb-4033-8c60-629cec1ec6c2","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":130,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"e44c1cdd-388b-49ed-bea5-ece952808628","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":130,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"093ffcda-b243-48d2-a965-deb8162e9ff3","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":130,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"0af03baf-2e9c-4477-aad5-bb9c3ddd10c7","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":130,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"cf25be5b-94f5-4cc7-b0d8-34a6bb54926b","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":130,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"90e31f7a-3366-4d96-ae23-64246e310f0d","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":130,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"8872a31b-f40f-40c6-b821-7295137dfa45","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":130,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"a80e4287-9ffa-45c2-a020-4bf84ad2d87c","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":130,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"17f0f231-042a-494f-a196-2f753a8a09a1","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":130,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"1a33fe2c-e616-4dc0-a973-cec5825a9653","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":130,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"8c6fa60e-90d3-4d93-96f4-5c8377070b10","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":130,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"eea5a83c-e6c0-466e-a7e1-39db8939e70f","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":130,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"fb665a72-68ec-4051-9709-fa4c3e914aea","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":130,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"0eef61c5-3c49-43dc-b046-79d041db3356","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":130,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"c4c2dc8c-ab71-44f2-b31a-802562c24df6","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":130,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"72d1af71-c6f1-4575-a31f-5b0acd1cba8a","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":130,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"c2e2a1a9-1eea-47ba-ab53-0585e3f6ddcb","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":130,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"36ce8005-e9bf-4b8a-b70d-20f4a84f20c0","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":130,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"0ba3d55c-4850-41af-8692-541ee528b01b","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":130,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"b5c445ff-30b1-486e-aedf-f89d25a8ba0d","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":130,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"330d1415-e382-484e-aaff-c96289b33965","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":130,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"52f91009-6410-42c3-8a7e-635d35506a80","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":130,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"188ba051-0f54-4610-ab8c-d68e68a32927","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":130,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"fad9e4c7-9dfb-40c1-b549-c352c67f7fe4","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":130,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"24e3c65e-e0b4-4f55-a9fb-f6b0072acf4b","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":130,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"c6149fa1-5e6e-45bf-be34-ca8aea3e80a4","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":130,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"7292cb71-4e10-4e5f-8847-bc8b5b7af0d9","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":130,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"168c1024-5051-4aed-9a86-97aeb26ba461","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":130,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"90b21f13-b3b1-4ed0-b2de-61baa0c6e42e","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":130,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"b91cebc4-993b-4685-9690-065ef202a83c","block_type":"box","text":"regulation.","page_number":130,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"e8531e2a-97fd-48e2-905d-a47a605f6a32","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":130,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"59f1e25a-e690-4ad6-825e-784449c298c1","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":130,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"6c942129-ffa6-44a6-b873-e723fda64d07","block_type":"box","text":"various program limits (","page_number":130,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"150568a2-90b4-4511-a292-c129168cdc2a","block_type":"box","text":"i.e.","page_number":130,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"fa1e529f-d423-4ffb-9bd4-7610f6c79f14","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":130,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"547420ca-abf8-4bdf-9b42-d70f5a7de29e","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":130,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"6387b3e6-8517-4bf9-8ce8-a0d3e91b494a","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":130,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"019b752e-e334-471f-a0fd-483681b8b750","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":130,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"1a0c3ef3-aa10-4483-afc1-68dba724b68d","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":130,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"c24d24b1-70e6-40b0-a70e-20092852c243","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":130,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"f6980838-9da6-4062-8a7a-c95d509c227c","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":130,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"4021cffe-8fff-47ac-b70b-a939e8e45454","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":130,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"80a75910-df83-45ed-a396-7a8dc2429cba","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":130,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"adc964f4-5157-439d-8a78-beeaeb3883bf","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":130,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"dd0ecfa1-db4b-4f2d-b049-b573054f66a5","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":130,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"d67eaaee-574d-4e93-bf68-e0d5a5187450","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":130,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"05a649a5-db94-4626-9d3d-5f3e0280c448","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":130,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"c79292b6-b224-4aea-b5c8-a34cde8ecf0f","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":130,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"508b2099-37e5-4dbe-a5fd-7a707955daf1","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":130,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"be6bdb29-2ab2-4815-ab3c-93763be1ff32","block_type":"box","text":"II-92","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fc0624a7-ffd5-47c2-a959-6b45f720f05f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cb994293-0332-4e3d-97d8-f96aaad4498f","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":131,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"a86e8606-9ac8-40a8-baf3-434d094a5743","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":131,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"ab6434e7-d78e-42fc-b9b1-476b05544db3","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":131,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"99249d02-31fc-4340-a038-24fbf599c3a8","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":131,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"1e88b8c4-892c-467c-8c0d-b027a918b621","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":131,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"a01facfc-b5ac-4230-82fe-357429cd3479","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":131,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"3d25db9e-f0b0-43a9-adac-fd72a73068b7","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":131,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"8dcda0c7-f54a-4eca-ada2-387a7978c65b","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":131,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"f3ffd111-52af-405c-8eea-45efa9dc14bb","block_type":"box","text":"than through client commissions.","page_number":131,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"44d0fd7f-bd43-4cc8-84a1-ad38efd5bdfc","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":131,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"98b16efe-fa9d-4e93-a3f2-462f9dbf5f8a","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":131,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"8a41421e-00df-44fa-9e4c-18da5b265e10","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":131,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"ce6371aa-c693-40d0-bcd5-6e612f34efba","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":131,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"a028322f-b746-4597-acbb-ab9448dab564","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":131,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"2f1cc181-55d8-46cf-92f1-74587fb34406","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":131,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"24e2776f-14f9-4ce0-8b28-89196656fdce","block_type":"box","text":"research-oriented software and other services and products.","page_number":131,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"4b1f1931-56eb-4441-af43-54cf5ec12f8e","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":131,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"124e1252-7756-4e1f-8cd5-e494dd5aecec","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":131,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"b64374f2-f999-4303-8f8a-8d64a3431d74","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":131,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"24992e87-7bcc-4cd8-8c4e-464c566f0cea","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":131,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"723d0948-ec37-4679-978f-73a079f3343e","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":131,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"6020fc82-aa13-4886-b85d-83789463d26d","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":131,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"be4a8eee-ab21-4a19-9a4c-d0cbba4a5a26","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":131,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"03e93d9f-b91d-4597-9b97-de262c15b99f","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":131,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"b3894960-e3b5-4825-bc3f-bf4be9fd3178","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":131,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"1f37d937-d225-48e0-abfb-410d67c25c65","block_type":"box","text":"and services itself.","page_number":131,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"a5338115-f90c-4a4f-8e3b-fb433aacd9a0","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":131,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"d1f27a3e-ddd1-4ec5-89ba-98af3267db13","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":131,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"2e86c31f-da4b-45e3-a251-5769f944c98d","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":131,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"e5f0c921-4caf-4cbb-8ae4-cdeb55074b78","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":131,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"d0405dbc-253e-4077-90ba-7ef1b347374f","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":131,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"02c54aec-aea6-4a5b-909a-ec40c83f53bd","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":131,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"785e79e7-816e-470e-ab7c-77b21208d7be","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":131,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"612c1d10-5f97-4997-a73c-b109b7434507","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":131,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"746756cc-74ad-49aa-b634-411a4eededbc","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":131,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"7fa1677a-e46f-4d50-a444-c0683050bed6","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":131,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"8ba0cfc0-2588-49f4-9f12-984060b1a957","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":131,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"310b810e-c9c6-4de5-b7f6-0fbb2659a291","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":131,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"ebbad1d0-e28f-466a-8f84-f04b1b790a91","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":131,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"bfa1699f-1973-4642-b56b-8b4b2569e185","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":131,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"e09f820a-8f79-4b1a-97f4-9bdcb3543e34","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":131,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"ab2ee45c-7073-4bc2-acd3-7ce5272fc88e","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":131,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"a91666a7-9bc3-49fc-bf9c-5141111f5ca3","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":131,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"8792ecfd-bbb7-4bde-9ac6-b450843a9b01","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":131,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"52aa7452-7dc5-4bfd-8ea6-f24787501546","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":131,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"d0536eb1-0b35-40fb-b21a-8f8a9cf67483","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":131,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"ed0ac575-d2a7-4ac2-8b31-b579f3910274","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":131,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"0df07884-4668-4035-9a44-ebb16492cc7d","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":131,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"cc015769-fed6-49a1-be0e-0fb825e1770f","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":131,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"36419266-e323-4306-9ee7-4b4f410a72cf","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":131,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"e4a912c6-7f93-4d28-af24-e5c2336c62d8","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":131,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"489021dc-ac9a-4c7d-b8e0-e7a9bd08d4ea","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":131,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"71da971a-7087-4c08-9793-06856df4c2a8","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":131,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"12c9bb4b-6111-4b91-8076-e58161a02b6a","block_type":"box","text":"II-93","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4594f307-b291-4970-9732-347aa5a9d3fb","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71aec0ee-d6dd-418b-8028-aa5e377fffdb","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":132,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"3f02f443-b551-4d5a-ac89-c3fffdf4e375","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":132,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"302cbd2b-6891-4994-afc0-b9fd5c0ae04e","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":132,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"9bf73ecd-6f82-4a9b-b769-ee470e1874fc","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":132,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"d4a86655-6ccf-43a0-9781-d7ad7b9f2a56","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":132,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"5c796633-cf04-459c-8d0e-dbaaf89900a6","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":132,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"dd56d7f0-c106-42a7-9161-e0327c42e59e","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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BlackRock and its sales personnel may","page_number":132,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"b9aa18fb-1cd9-48dd-b22a-61417ecb0d8d","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":132,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"9fcf72c9-a521-4b43-bf01-ed48e1e2fa3f","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":132,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"757d09c2-9d14-48e5-8393-b9cd2e7b9f32","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":132,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"a093f341-6bc9-4d5a-a400-a5164e90d60a","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":132,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"2f52f3fa-88b2-4f68-8a76-d0adf12df8b5","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":132,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"79e2a1de-c167-424f-8597-ee67cdadf0e2","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":132,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"fa8f0e93-de80-4f4e-947a-89f078d865c6","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":132,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"8debd70f-6ad1-4ae1-bea6-a6b4dbdec4c3","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":132,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"b82f84e2-3801-4c09-a4cb-a4b62db05b49","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. 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The fair value of one or more assets or","page_number":132,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"90b36df0-68c5-4410-a9e2-736cda3b154d","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":132,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"6158d6b5-82fb-4c0a-a897-045e9d2606a3","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":132,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"fa7a3220-8912-4aeb-858e-9d4804097923","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":132,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"33391a6d-d7d3-47c8-a063-8c632a3d9807","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":132,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"c83e2fd1-201c-49bb-b334-3c0a467599a9","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":132,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"5a5a56f1-f0d7-45a7-ad2c-00a4c091d610","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":132,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"0f6309f0-405f-43e5-a725-601b1b374318","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":132,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"d209ed57-e9e6-42cd-8812-e2534a3ec36e","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":132,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"13be0b98-0d49-4613-8c8c-24cbd44eab5c","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":132,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"2e2eb2f6-693e-434a-b63e-bc491e66c8cb","block_type":"box","text":"some additional expenses.","page_number":132,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"b1314fd3-af94-4110-b4ad-0d4677ba22e7","block_type":"box","text":"II-94","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"124126a5-669d-4cde-9787-46ab8a612d9d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"504202d6-e8ae-4da4-a6a3-0a1bed085c37","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":133,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"3198027a-0c75-4d00-98b8-32b602f3a62a","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":133,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"a4b46513-7c87-4ce8-8ade-4355a4efc350","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":133,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"fe273cd3-c51d-45bf-a870-e408848ba389","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":133,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"20593ba2-4de3-462a-a28c-fa7845d3bd9c","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":133,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"2f1ba7fe-b86f-4c8c-b0e6-b994fb7091e6","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":133,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"ff32ca92-e4a7-40d8-8167-18292fe0a0cd","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":133,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"9d368a5d-7410-4da9-a2ec-6dcd39b1ef32","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":133,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"99fee7b7-ff7a-4f4a-8d6b-f582a8084c21","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":133,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"e5468be5-6177-460f-9451-a82a1ed5d117","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":133,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"db708f5e-8024-4a70-9bff-23f61807a257","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":133,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"31dc6d82-78fd-4087-afa1-4c8d2c60dad7","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":133,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"0e8505a8-36cb-4962-92b7-26b87d6af52a","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":133,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"84ec4a08-0361-4f91-85be-c250912acba0","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":133,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"dbc1170b-b45c-4d77-8371-f0da4a04b958","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":133,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"76112066-eba6-46f8-8f25-98d674cf77c3","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":133,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"6fe6052a-9835-4e36-b585-7f314ff698e8","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":133,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"16997321-73cc-4223-8151-414b07d38d1f","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":133,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"2a793f91-346f-4291-befa-56d36f7a2639","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":133,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"d57b65c7-60ca-429d-b502-12f9cdd9219a","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":133,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"0fc0714f-a194-446e-8538-028bad1b6a70","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":133,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"387f9aa3-5987-4a2a-ac23-3523cdbe7ffb","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":133,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"1991a569-a94e-48c2-944e-9c77acc4b712","block_type":"box","text":"public information about the company (","page_number":133,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"249078cc-c23c-4411-8a4a-f54e38a29e4c","block_type":"box","text":"e.g.","page_number":133,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"9069f989-54b8-4be3-8af6-157c3d44d334","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":133,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"efce74e9-4f4b-45ad-81e5-7b869a8c6357","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":133,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"bf0929d1-ed1e-421a-a9e1-a69d70194799","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":133,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"feb17cad-b937-4b5a-910f-c3e5c0be2955","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":133,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"de4e3b77-69d4-44f3-8cce-cbc79ca5073a","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":133,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"5825dff6-e603-4cad-b95d-d915b2a908fb","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":133,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"aa8feef1-3e02-4bdb-bad4-859f2d845eeb","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":133,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"35d54d09-54c7-4a2d-a649-d9117aeb02de","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":133,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"d2b88060-0751-4db8-a7fc-8a937e88de4f","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":133,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"72eec15b-bfee-459c-873d-0bae25a94c54","block_type":"box","text":"of the issuer.","page_number":133,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"99bfca38-5813-4fb3-9877-35f550ef121e","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":133,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"5cacf5fb-0d3b-44c4-a37c-92fd855046c7","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":133,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"260eddb5-5a54-43fa-a3b1-adc6801d3798","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":133,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"4a2626d5-9bae-4f5d-bd83-e59eebfb916c","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":133,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"a8716a48-dab4-42a6-a1cd-fed88fec2d05","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":133,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"dd416e57-ce9d-4c32-a08e-8bed11b2819f","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":133,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"b3f63a10-8979-441e-813b-d9bdb1df5d6b","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":133,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"fc88d84f-c285-4ecd-8c5a-cbd5870ba3b7","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":133,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"d514b7a5-131e-481c-b5b9-c034fbb50b87","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":133,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"42f7c7f5-aee2-4485-b18a-19aac9bf23c9","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":133,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"01abad7e-9da7-452d-a27b-929a75c801be","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":133,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"1cae9a86-a5fc-4f84-a44c-773fd2cbdfc7","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":133,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"d9db001b-507b-47ea-adf0-bd825b46e026","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":133,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"11729854-afad-4bd1-9c8d-68d738e8b7c9","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":133,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"471e1c10-d414-4f2d-a5bf-bab6929bf30e","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":133,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"b16d2aab-91ed-4585-ad18-25bd900ff5e1","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":133,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"021fc460-7499-4f8e-a05d-8f2e420f3d46","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":133,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"f0bcda2b-f9ea-420c-b7ec-943120bbf2b8","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":133,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"cf4fee37-773f-49c6-8b53-b80832d0e4dc","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":133,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"80b556ac-efca-4924-aac3-70df61082a65","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":133,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"9ad4c93d-e018-4e2d-865f-8b976c76cf4f","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":133,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"470dc6c4-782b-49dd-bf5b-3e5603152b19","block_type":"box","text":"II-95","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6d2a268-685d-401a-9b49-108107cf18cc","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46584ee5-c286-40ba-bd94-d5e8e499e69b","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":134,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"692dfbc1-83fc-44c6-999f-f3600a2e4cc9","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":134,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"30e50ba2-a4a0-48c6-9701-5313ae541c44","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":134,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"8bfa1f4c-ad28-47e8-8a9e-270a9a4ca801","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":134,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"02f93300-07c4-4502-9bc9-9442ed3bd6dc","block_type":"box","text":"a barrier.","page_number":134,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"f38ed1fb-b057-48e2-ae52-42fd3aca5628","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":134,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"1514ca6c-97f8-4671-8452-5a505769fd55","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":134,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"58da72fb-6881-46ce-b67d-1567251af152","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":134,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"4a2cb594-c7bd-4cf8-9611-5276dac96641","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":134,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"a7627950-675d-44b2-9e70-cc8c0e796f21","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":134,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"e2822a0d-09dd-4327-934b-a77f60950aee","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":134,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"aff0166e-9eb6-40c0-977c-866898e27cab","block_type":"box","text":"that operate in certain industries (","page_number":134,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"79d2c8b6-d13d-4fc4-b239-96a2b8921718","block_type":"box","text":"e.g.","page_number":134,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"7fdc32c6-c571-448b-8999-b42b515461cc","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":134,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"f2ca7586-d0b8-461c-81cc-06d5827047d3","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":134,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"25c47981-578e-4f1c-b794-8d03892fe299","block_type":"box","text":"e.g.","page_number":134,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"4fcd8bdc-84a0-4b64-bcd7-4966239a3f36","block_type":"box","text":", with mechanisms such as poison pills","page_number":134,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"c04478d0-0592-4e16-ac46-9cb09e870f5c","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":134,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"1a23476d-d496-4351-8682-4be585451d6a","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":134,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"a93da926-398c-4ab4-bfc7-54eec69fda42","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":134,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"103794aa-8d59-4c55-8ea5-473f72ddbf8a","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":134,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"61fd324d-cbff-4cf7-b26d-6da60da760d2","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":134,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"6c9288b5-5506-4ec6-8729-1384f5b9e293","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":134,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"dc4289df-6b18-40e9-b1e9-5e494eea0555","block_type":"box","text":"seek to make indirect investments (","page_number":134,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"29a3c5cc-72f3-4b96-991e-095bf86102e8","block_type":"box","text":"e.g.","page_number":134,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"d688f5ef-bc50-43fe-8c05-b07b5d40c62e","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":134,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"baa772b9-2b8b-4583-9347-dd574272568f","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":134,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"eba3ecb9-fb56-4c1d-9488-f9556f143d0c","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":134,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"961f0aa9-4044-4ef6-acc4-dd6c0be6cda8","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":134,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"a75e9f50-8a3e-49e5-9679-2821660ea893","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":134,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"afdad049-e9f9-4c06-a88b-78417bd0ca25","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":134,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"e5c6f8d2-8d2b-4e17-8e34-bafb0d8c6e45","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":134,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"5a3c317e-9581-441b-a727-5c2d752db921","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":134,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"18f151e2-0af7-4570-83e7-93d1cf45544d","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":134,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"37b15220-c6c4-4f45-abb4-707f6e4d3876","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":134,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"6b89710f-c7f5-4841-a2b3-9b591089367a","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":134,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"6c01b51a-46af-41b9-9e55-3c59cae73579","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":134,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"e1447e7c-776f-4067-8447-0212c7171382","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":134,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"37ff6fe7-f36f-41ad-9b53-fe166113056b","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":134,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"393be5f2-9723-4f8a-b183-1766fb5c58c1","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":134,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"271057e2-9254-4568-8a43-4cd1a53e8edb","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":134,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"26189722-a24c-4ae2-81ce-0d25dfeef311","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":134,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"e19b3208-3281-4aae-a387-ea7180832408","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":134,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"95f874d3-c7c4-469d-b9c3-341c1b3a44c3","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":134,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"8254ba4d-4401-4cf0-ae33-13831e956c2d","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":134,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"2e9affea-b88c-4b1b-adc0-6e0a39c85e0d","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":134,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"f62018b0-9686-451c-b14b-bbe7458c3c3e","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":134,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"6c7e8bd9-bcd3-4d3a-adbb-5da244c1534f","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":134,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"7986e00e-6b51-4670-8283-b3ea34c9546b","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":134,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"fb1003fe-e955-4f16-bfa5-ec69dfcad124","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":134,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"d9762b62-8b7d-4fe5-99ad-2ad4a65684f2","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":134,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"282b0d24-9484-41b8-8060-f7411a6cb770","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":134,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"2c06e372-fae4-4e18-9bea-243aba680637","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":134,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"611bfff6-624e-4053-8b85-4670bf29e862","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":134,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"7a0db4fc-0756-44cf-8093-61ec0d446359","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":134,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"5c356458-17fc-4de5-a0b2-053ef2700019","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":134,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"11a9ede9-35b2-44d1-9b17-02a073740077","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":134,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"3ceabf08-acd8-4140-bfdc-f51eecb1fa23","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":134,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"1660a121-3e38-450a-a67e-7c8be9721e3c","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":134,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"df70f5d1-c749-40b3-a763-a2697c5b2259","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":134,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"d843f11c-a7d3-45e7-af83-d48968387e13","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":134,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"2fe2b7dc-fec3-42fe-b729-0905ddf2a4c2","block_type":"box","text":"actions. 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It is possible that, despite BlackRock’s intent to either comply with or","page_number":135,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"36c0f471-831d-4ddf-8b00-30807446e401","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":135,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"09fcf682-060f-4386-821c-a6418c7342ee","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":135,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"59e0cbe5-52b7-4acc-b15a-8fc2914a24bd","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":135,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"949aa55f-d0fc-4d08-b4d6-23b59f2752c7","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":135,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"90086dd4-577b-429f-bd68-1e9f9edfaf94","block_type":"box","text":"strategy with respect to such security or asset.","page_number":135,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"8e84ab2a-7837-4cf8-87dc-c18b285e1127","block_type":"box","text":"BlackRock may maintain securities indices. 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Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":135,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"3e7fef14-9a55-4887-9b04-27c4bb0ff389","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":135,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"c7241752-5f06-4005-9a1d-95398adba5c4","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":135,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"03242364-265d-401e-8d5a-6ddb779d8d63","block_type":"box","text":"e.g.","page_number":135,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"198ddba2-0657-4bee-bab0-d7d93cb72c11","block_type":"box","text":", custodians,","page_number":135,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"a9ba4ac2-a774-4a9c-a125-05fd565c190f","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":135,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"93f62f82-8309-4780-a3af-ecf3bea64b64","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":135,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"38e15830-de36-4133-9706-4a08366f36f6","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":135,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"d26117fd-6d22-4959-ba6c-c37cf81318d6","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":135,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"06ba75cf-7160-4a67-a99a-350d858e58c9","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":135,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"64c12e04-9eee-4294-b5d6-4720f84fdae9","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":135,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"3d0ef724-03c7-4c0b-bbfa-90dcabe79824","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":135,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"8465f3e1-24a7-4741-8974-8690508128de","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":135,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"a7be9075-ffa8-44af-b015-5fa4c3f10b3c","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":135,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"337c2684-c14c-4b1e-b905-7e8b05da0451","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":135,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"de9bc3fe-4392-44aa-ade1-1a5744dbe234","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":135,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"1bc6c26d-80eb-48a3-8db3-22a332c1f20c","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":135,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"71e44d64-9aa3-4a83-a051-b3cea1961743","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":135,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"2c6b8236-7630-4b1d-96a3-a0145b1024a1","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":135,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"7d64438d-2198-446f-9732-3a1a787cb964","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":135,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"ebd13f5e-ac2d-497a-8b39-49fb6639b447","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":135,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"2cd5ceac-f081-4b47-b71b-c17430b0fc56","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":135,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"1c4912ca-a29b-4188-afeb-7adf02fd8250","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":135,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"a5d7691a-3572-4126-9bd4-7a548ed79f49","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":135,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"653f0d7e-618c-448b-a41d-b773ac5e2a0a","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":135,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"849f3ca6-cc96-4504-bd26-80f9f966a955","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":135,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"97eb283d-f72f-457d-b0ae-f84d7e4ad511","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":135,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"9b6c9dc0-867a-4ea1-8061-8f52e87ae4f2","block_type":"box","text":"provider.","page_number":135,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"a2789f13-beae-4f86-89a7-a17e85280d1d","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":135,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"74f4b68f-7916-4c01-9bd2-46de5a17bdf1","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":135,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"c6f5aa10-5382-48af-b3ba-d7bab866ba6b","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":135,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"f7bc21b3-f417-4870-a828-9e9240d35ffd","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":135,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"5ac6daa4-3c38-41cb-928f-56d12f28c922","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":135,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"3cbd5fe7-4bbc-4117-8e3c-3e8bd7b81d6c","block_type":"box","text":"PURCHASE OF SHARES","page_number":135,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"aa60dcf2-3f4e-42cb-acf1-dfe0de297f09","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":135,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"0c0a5320-d2d7-4fad-b4ae-2c215f2d137b","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":135,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"aafc3f1e-2440-47a2-9a1a-c88ca7d29928","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":135,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"53cd4053-b598-4a09-9293-d06dd5c995e1","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":135,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"70336d75-e1b2-475a-9a77-2d0f3ce71967","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":135,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"0672644a-b58c-46b8-9ecb-c9a972040fce","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":135,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"4abd908d-6698-40ff-bce1-50a8d6df158d","block_type":"box","text":"II-97","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"276d1fd7-ed67-4431-9d2a-1b57709127bd","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad76e483-1959-4ac0-85c9-c16697ec2f5a","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":136,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"4f4963a2-a1cb-47ec-b40b-829e0c49f0f8","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":136,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"c2b7f895-7e9b-43a4-a03f-e1bf837ffb1d","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":136,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"0e13fad0-72da-4df9-9e5f-49a8142e1624","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":136,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"789f449e-b4a5-41ce-9e88-971674f5fe7a","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":136,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"6c9bbe78-5893-4363-a850-9d797e64e46f","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":136,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"5b2a1609-7258-4c9d-a809-70a0bd023de4","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":136,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"a693f475-2218-4e81-be57-26411b0abc36","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":136,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"fcb8f4bf-b205-4f13-8bc2-2d7d1fbab854","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":136,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"fe3ba0de-a5af-4b8c-b4a9-3ef3009363ae","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":136,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"b44a54ed-35c8-4341-91af-90f5b0f7a3e7","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":136,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"72de8717-a406-4e18-86e9-81ec9d7dc2cc","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":136,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"336ad579-ba92-4c30-8dbc-ee453dd77c9d","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":136,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"402842e1-6ada-4525-9837-eae0e6a09826","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":136,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"3bea5141-b9ec-43db-aca4-d2c49ca76745","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":136,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"6aacbd10-a0db-4b42-b5fc-0c42351b4aa1","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":136,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"af234e3a-45c9-4351-9d63-bcc48c224a73","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":136,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"b0ac3dd3-45af-4b2b-9a3f-bfd088cf5827","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":136,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"312ad86b-45ca-4376-868f-1a1519d5b0ba","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":136,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"aeaaaeb4-4594-415c-942f-dd9882212f91","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":136,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"04e21acc-f680-4fef-8b5a-d95dada72095","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":136,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"24675d13-8ba3-4952-ae88-a65dc758bf07","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":136,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"da4d3ab0-df46-4e3a-949f-601aa0939c7a","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":136,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"c6a38399-9135-4ccf-9a7b-33cdf91d440e","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":136,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"c1f945a1-a2b7-4499-a7b5-635f076f4eb6","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":136,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"805d30ec-4959-47a0-9b33-05acf996803d","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":136,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"106d36bf-6e35-46be-a542-9bbae0d9670f","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":136,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"829b2569-a45f-4835-9fdd-2a529f3c261e","block_type":"box","text":"investment is $25.","page_number":136,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"d8467af1-a934-4234-91c3-f643050a3834","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":136,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"035beb3a-6c5d-4888-8c1b-dd8430a2a62c","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"9edcf013-3041-4c53-9587-6d0976f8416f","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":136,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"8d9537a9-ab90-47df-8b15-75b7f756ca7e","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":136,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"1398e111-16f4-4dc8-914c-ac1525d788c6","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":136,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"f0db77b8-2ddf-46c7-b6d0-10f2abf5a52e","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":136,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"09475c28-94f1-4e27-bf2c-5213b47e0053","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":136,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"a91412fb-3d2b-4d24-8af4-f520fe7a89e2","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":136,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"1b1c8727-eb0f-4101-a5ed-cea33943aeec","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":136,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"ea024285-a32f-4da8-9de5-f7dc15a29044","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":136,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"22fb2fde-c653-41ed-b89a-92d2f560f86b","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":136,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"ef69be20-251a-4aab-9c02-db3870dcb653","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":136,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"13593b18-e787-490a-a953-9a3ee523c39b","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":136,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"f05b2578-ad2f-4ed0-ac5e-9f0ce9239d26","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":136,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"40d5a7f2-2bd3-43e2-bd2d-b7f4c92b5dc1","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":136,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"2e06672d-d723-4f61-be5f-aacb6b1526a4","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":136,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"a2f4b661-2884-4a18-97a7-54d043b8c5ad","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":136,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"efc79e32-31e7-4e4f-bc4a-0a207a13d40f","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":136,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"0efc1a60-62b7-4661-8f61-fa4aaea44dc1","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":136,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"995c6a27-8365-453b-ad10-1b896e01071a","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":136,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"152f963d-6e5b-4ae4-879e-33e930642aa1","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":136,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"6b287413-5742-4369-afbd-218d0dde54a4","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":136,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"c4540254-2ec6-406f-8cf2-f91bfccb9094","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":136,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"1a0025b1-d8c9-428a-a435-bc1972167c8d","block_type":"box","text":"adviser.","page_number":136,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"96e94aea-a598-4f4e-8d1c-2eccf729ce02","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":136,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"bf8e589e-e153-4d94-bdf4-6914280b37e8","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":136,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"3be4c170-e8a7-45f6-8ff4-1c5fc7febdd7","block_type":"box","text":"II-98","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"70343655-dcac-4b74-aaeb-5cc3de09568a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"89b2646c-ba15-4f44-bd56-3821cc9ba15c","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":137,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"160d994b-0808-4e94-8eba-75718bcf03ed","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":137,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"8bbff387-62cd-4e77-b2df-3fb0ba06a239","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":137,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"5e6d773c-a1ef-458e-92dc-87bec055bbf9","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":137,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"fc517d7c-cc22-46e6-9618-a7a77e0d20c2","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":137,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"0b867f00-1ef5-44f4-a15d-04c51c1ca78e","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":137,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"4bcdbe83-f284-46e1-aea5-0bc418c4537f","block_type":"box","text":"also be restricted from making additional investments.","page_number":137,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"0329125f-b713-4f8e-8346-dc276fd0c8ee","block_type":"box","text":"In-Kind Purchases","page_number":137,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"d5689a06-90e3-41c4-96ca-b3668a9791e2","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":137,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"e6d645ca-0d4a-4c33-bebe-94a391d2854e","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":137,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"a04319cd-4759-4ab6-aba3-7538e87c2cbe","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":137,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"cb579d21-b7d5-4f5d-bbaf-8b2e0fc32c8c","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":137,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"256ced97-2c08-4d0d-943b-bfee5cdfe208","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":137,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"e7acdf7e-1bcb-41f0-99cc-554b3b3a45a3","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":137,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"606d0f7e-0222-472a-866b-dbd357306078","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":137,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"afd0548a-6649-4355-990c-37a65490340d","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":137,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"22cef58d-117c-4121-a6ff-b44db2feda11","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":137,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"91b6ae3f-64bf-4e40-b8a7-a3418774ada9","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":137,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"f614ae48-0838-4f80-adb5-1270f1c08300","block_type":"box","text":"has settled.","page_number":137,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"e96ea74b-f492-4f84-b162-ecd83fcb1f22","block_type":"box","text":"Institutional Shares","page_number":137,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"be7510c4-7bd6-45f0-9bc1-dbef6b4b92e7","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":137,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"380506bd-2f13-4fe9-8db4-cf8ba46294dd","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":137,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"d0e7ab7c-3551-4835-b8e0-8f40042aea31","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":137,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"89602e98-c1e7-48cc-b726-769c010c92d0","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":137,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"c05e25e7-fea4-4099-b930-9f65626cdafd","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":137,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"28ed06ad-a426-4068-b4ca-913bf9e05686","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":137,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"ea38c1b2-af73-4573-8a1a-acb2abf57bf6","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":137,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"bbd2033e-6dce-4c21-bd3f-2949f058c257","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":137,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"408b2e9b-f595-492e-864d-a776ce4f8dfb","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"c474ad08-91c3-4e27-9e37-e0779169cbb2","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":137,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"c59644af-aeda-4215-be19-e52fe2c2925a","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":137,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"49972749-1186-4504-a766-e3a1436fe497","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":137,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"4da9aca1-356e-4fa0-a541-8b162e1467e2","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":137,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"f49c5588-5b86-4d46-9a3b-d3aee1e003c5","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":137,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"16c9b094-a4b8-43a9-9541-2d977c21faec","block_type":"box","text":"these fees and conditions.","page_number":137,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"232395e6-d89e-44bd-b35b-2bb92cfc683f","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":137,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"2dac3f93-9ff5-4bc3-81d3-9c21f5dff0aa","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":137,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"68419c49-371e-4a4a-b580-eb0c21408a71","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":137,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"565ff8ad-a70d-4698-8991-56c8fdecb14a","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":137,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"630abca0-f785-456c-bf2c-7e26f82d44aa","block_type":"box","text":"incurred by the Fund.","page_number":137,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"7b5d36c4-5d61-4877-8dda-0a8a543fda71","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":137,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"ad3780d0-0a96-45ae-97a4-dec51f306a9b","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":137,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"90d20b88-58cc-466d-a425-c45db04fe066","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":137,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"2cef5e4d-45c9-4d69-a756-1f0e9926e361","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":137,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"e245fc19-14ab-40d7-a5ab-cef96d9b8e26","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":137,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"e095f15d-bb0c-43e4-a20a-5f48ee5b0098","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":137,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"f43805a9-d132-49c6-91b0-b03403471141","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":137,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"3828435e-1195-4489-b19d-044dc8832014","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":137,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"e8b058ca-516b-4ded-9ed2-22211bb4b6f5","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":137,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"05f405c8-9b35-4df1-ab51-75a1a7d7b2b7","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":137,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"99592270-2cf0-4552-99cd-a5950b52e0b4","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":137,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"9ee39136-84dd-4985-b508-54916ff20bc9","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":137,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"af39b85a-f0bf-490d-8310-a271bc66b3fe","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":137,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"def69a14-ed68-4126-80d6-c545f285d5ca","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":137,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"a7956347-519a-4f83-be91-c7847606b7d7","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":137,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"d56c3bca-be0e-4125-8975-2053d816b581","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":137,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"16b33928-7174-4256-ad66-c08da5bd416b","block_type":"box","text":"II-99","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"266f69ba-5318-4368-bc8d-209df389bdbf","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"68a190c7-aee4-40b0-aed0-4d53f1e47900","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":138,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"89853056-ec8a-4829-ac2b-821642c07919","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":138,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"e7253a00-667f-4839-a16d-9b34fb699935","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":138,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"1993ada7-9a1c-405c-8b05-a87725143ab2","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":138,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"aba66a3a-713c-47f0-a894-c2fa96da7c25","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":138,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"f12e5dc5-60eb-454c-b74a-ace9daf341a5","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":138,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"003d5e7a-798c-4ee1-9fde-5cba35d140e2","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":138,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"42f437a9-bb90-438f-aae9-203ec739975f","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":138,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"3e494cd6-d2e5-40a1-9c98-a42e32185a84","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":138,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"0955dbe2-4d5c-46c4-bbce-a09041e2f0d1","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":138,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"2c8d4bf5-ea52-4543-981e-118cc536d67e","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":138,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"47324eec-988f-410d-a3e6-3f586062e5bb","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":138,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"238ac4f1-c208-4b23-911e-82de4864b522","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":138,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"f6af2e82-d946-4ccb-856d-7542332e0a9f","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":138,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"67e94800-d468-46c8-b7ed-3182347507f1","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":138,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"1aae3920-eaf9-49a9-8271-2cd1908b4e67","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":138,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"a6065189-7c6c-4f57-bddc-83e853d1e469","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":138,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"a84ac6b3-de6e-4ec8-b695-24e886ca17cf","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":138,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"509d3eb9-ca3c-42b5-8723-646470a3f27a","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":138,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"393e290d-eff3-4dc8-9754-5fda48bc3ec0","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":138,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"1e5ff5df-1561-48a9-b345-dd74fc3be83d","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":138,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"c6469080-a9da-4b18-b34f-28bf7a7013d1","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":138,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"6eca1316-0e66-4eb1-9292-af252fe9aa6f","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":138,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"4025aa1c-aabf-4a01-8e39-4031639fefd4","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":138,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"d4f995ed-29ee-482f-ad57-573541a3faff","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":138,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"16c27b92-8879-462f-83b4-1608ee2d4ba9","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":138,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"29bb9513-38f0-4d15-9a9c-270f391b8a28","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":138,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"a8bf5a68-9eee-4db7-b61f-1041bf893c2d","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":138,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"f2e9b95f-059f-4303-b698-071440d7a5dc","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":138,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"9cdbdb6c-27b9-4f33-9f1b-1015bba8ec8a","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":138,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"0301f073-9d8d-4f6e-a31f-690bb227fd6a","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":138,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"bfd2076f-00f0-4507-ba19-d7194959e917","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":138,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"82824ddc-ab9d-42f9-8560-7eab2e6e4fc4","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":138,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"9ecb1a40-e292-4942-a539-d988f57a16ce","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":138,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"0983a86e-eb3b-492e-ba05-41a7154f1473","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":138,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"dcf3c973-4e73-45de-9e44-459a5825ba38","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":138,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"a1af06f9-79cf-4403-b04a-7775ed621a3d","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":138,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"8863a11d-d765-4bbd-a879-9e4ee17f4a94","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":138,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"44c5c999-5b36-4cfe-b1c7-e98d4c4020c1","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"4739faf2-86b8-483a-9d96-3f99dbd77ffb","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":138,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"5d779b1a-b6ef-4e8e-9e2a-31dbc78cdc1e","block_type":"box","text":"periods indicated.","page_number":138,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"9540d960-e2c6-41c3-ae49-bc8516b6cc26","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"3c40522f-83f3-4c71-b056-b31318898716","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":138,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"bb264856-e2c0-43d8-b439-d114b0f02648","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"0cdb81db-5f58-4573-9dff-63a09c7ed8b9","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"cc8a1ba7-4126-4af2-bf16-906a5202a205","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":138,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"e55ef98e-854c-4c84-9958-0e129f30a3b2","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":138,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"156829f6-3d85-4352-8f86-8fba2a8eab69","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":138,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"ebcb6a5d-f62a-45c0-bb69-4c8407eca868","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":138,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"2cb041fd-25db-4692-b7ba-18c3e88bd003","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":138,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"d1fb1860-605f-4948-9ebb-32cc21ba18c4","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":138,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"590c7588-09a4-4730-a798-158a6c805ca8","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"f66e89c2-b283-4188-8770-ce74bff6df93","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":138,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"939b880d-0998-4fe1-8eb3-f9ad45c14042","block_type":"box","text":"II-100","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"49416a34-863d-43d9-8dc0-cfb5725260b9","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53cf2260-d6a8-4a09-bd24-43c9337b2cfc","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":139,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"618b737b-9f56-444a-a4fd-63449a70f803","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":139,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"e45aaab4-e593-4841-9cc1-4794354a32b2","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":139,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"6f5b3113-6e16-4fa8-b5c1-89a445a4498b","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":139,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"205aa551-ebbc-4692-9194-0a3f9fb172bf","block_type":"box","text":"Reduced Initial Sales Charges","page_number":139,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"a34c28c6-3226-4bed-9790-1c7750e72c81","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":139,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"286ad04a-6a6e-4c91-ab1f-f7f6b7c1764a","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":139,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"724416ac-7b6b-4e9c-8585-a62f7c3f560b","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":139,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"471eb17f-44ea-4a98-a49d-4c5ddceae435","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":139,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"dd252470-50ac-423d-b9f1-88b0ec439db1","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":139,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"c7db4def-3e3b-4467-affc-e1ab02bdecc1","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":139,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"cae2c8e8-8455-4a98-936b-402c23776e35","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":139,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"e78c73fb-5764-4e5a-912f-de2b30f71972","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":139,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"b096d7a9-562f-48c6-bd54-25031ec89dbb","block_type":"box","text":"Reinvested Dividends.","page_number":139,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"25391ec7-c343-4f33-810f-c4fe98af40cd","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":139,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"7aea7472-d3d3-44d6-9064-2ce3d6686103","block_type":"box","text":"reinvestment of dividends.","page_number":139,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"1a633575-32c5-4eef-8c0c-324448ad5e85","block_type":"box","text":"Right of Accumulation.","page_number":139,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"b908f268-1c28-473d-a537-5ef01e28c151","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":139,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"1b146900-fb92-4a04-8345-e773cacfff57","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":139,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"8dbd2e31-e70d-4065-bad5-dafd64a72d72","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":139,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"68b0ac6f-4b05-4fae-acad-2caf14eb9aab","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":139,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"ca7110a9-3b6c-4b77-8fae-1032a6fff44c","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":139,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"15624033-94b8-4732-9700-8a3cd66d1e49","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":139,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"aed906e1-2595-4933-8c86-423a15b0d515","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":139,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"3ce1891d-432c-479c-9de7-4d857695817b","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":139,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"a3e30935-e652-4769-a84a-e129ab2b0f1b","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":139,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"0351836a-1a7e-4898-9d6a-3a072512f7f4","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":139,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"9e2c25f6-f784-46f8-a2fd-f8dbc2657d9d","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":139,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"7b91d45e-07fd-46b4-a378-8c5765ff6fc3","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":139,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"2abbcf5c-928b-44c5-84eb-2e79ef22743f","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":139,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"5acc83a3-61b0-476e-985c-ede8d1d3ccd1","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":139,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"3e715028-bbc0-4a8a-96a3-3be73f1cb82f","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":139,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"0d439342-74b0-45b2-bff0-054ed7b3117f","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":139,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"90284c20-47c9-4b4c-af5a-e7ab0ace1ac7","block_type":"box","text":"Letter of Intent.","page_number":139,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"72490328-ab7d-4d26-98b7-d1fb913efa82","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":139,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"2724c925-94cd-4c5d-baf0-67e1815ee35c","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":139,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"c5978611-9a5e-4ae5-9b44-97edd1b257cc","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":139,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"91da88c8-624e-47d5-80d3-d0dc463900a5","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":139,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"6b53fab2-82a4-4b4b-92a1-b7d04faf390b","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":139,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"4aa38c66-b6e3-40c2-9c0e-5a0230869743","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":139,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"03a5be7d-38c4-46ef-9e93-2874d7793f0a","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":139,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"4f558d3a-193b-421d-88d0-2c14070ffc48","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":139,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"eb257962-34a5-4731-af1b-fc3462429494","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":139,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"e5aedd9e-d0e1-4e82-97cf-2a15015d81bd","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":139,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"dbafbeb3-759e-4958-8bc3-3ef719eff731","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":139,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"6c88d3d4-5086-40c6-b98c-78ce6c9791a8","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":139,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"2ea007b3-1fbc-41ca-86f9-52550b6e15e0","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":139,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"ba9525ba-ad1b-43bd-98de-ec044b197ecd","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":139,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"bcee6d54-5ad9-4d52-b726-b9c9dcce400e","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":139,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"e074f899-b002-4247-9e9b-b47c70cc0164","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":139,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"306ed479-ef11-499f-bda6-702b24730460","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":139,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"180033e0-9f27-4151-ad73-808f4fef9e82","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":139,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"246114f4-dd27-454f-85d5-52466a9f8eb4","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":139,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"aecc076e-8cc1-4f50-bf5c-82dc4fd62ffc","block_type":"box","text":"Placement Fees.","page_number":139,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"234ac01e-3968-4b65-8637-f67779061e57","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":139,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"487d93a0-1219-4fa2-97c4-7e685401966d","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":139,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"fea33426-bc02-4392-a672-d9dfb845cfb8","block_type":"box","text":"II-101","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"88db1fc2-080c-4468-9b49-4eff1348d392","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4660d7f0-6d4e-40c2-b564-1cbca765b10f","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":140,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"84398ed0-62d1-4793-aaae-42f34cd2eba5","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"5ebec6db-b436-41f2-8b41-178b71affdd1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"37e18383-406a-4c3d-ae45-6ae505f4657d","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"573d9a61-d226-4cf3-a46f-e456a128d150","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"468fd3b7-fe98-4840-a7cf-cff4a8d3b21d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"f50de5db-dc01-442a-bee9-21437977684f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"a635c882-12ba-4858-89fa-f308ebbbf126","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":140,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"da842ff6-1ddd-4fa0-8905-f80e860998d6","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":140,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"00d5a790-69ac-408f-bdf6-a0a73fb36cea","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":140,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"b75e0d70-e225-4a34-9b76-36ce387215a3","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"c190f651-81ed-4396-b2b6-947d0fe7edbb","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"018ce6a9-c501-4fa2-bcd1-5d2978ecf85f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"928edc8d-086c-4a8c-8ece-c6a0ef208425","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"856bbbb0-0a2f-442c-a72a-96861754acbf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"0f6cbc19-0688-4493-8134-6734901a7e6d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"b7bafae2-e5e3-42c4-8f3a-e53dee83b092","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"647645df-b39a-4332-ba4e-f489240ca748","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":140,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"13e6da50-22ea-4a3d-aff0-7619266ff6c5","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":140,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"fc2ffa3d-002b-4f4b-878e-76bf199cc612","block_type":"box","text":"SM","page_number":140,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"bcf1b7f6-73d2-4c7a-9688-e1e610b12aee","block_type":"box","text":",","page_number":140,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"c68480f3-4194-46a6-bcd7-fc991920c60f","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":140,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"147eab74-b360-4f6c-bb32-62ea1e1cb31d","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":140,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"621afa9b-abf3-4b5a-9d13-ebb8f83e77d3","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"63d9a154-5651-4f5e-a61a-5ad191eb69f1","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"b2ad0995-adb3-4343-ad9a-8f334db8950f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"967f294f-a71c-40ca-8dbf-0a74ea6d0deb","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"cab0a62d-94e4-4fbe-a403-cfe137fbe9c7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"fc32e774-80c0-4a33-ae34-4cd5141e6661","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"18f2604f-a99f-4a64-8ec1-f6747f4e7035","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"9826f5c3-66b3-4051-bb22-e2055ee24942","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":140,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"14a6c983-c02e-4862-bcf5-3f53c46a9936","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"c35d8806-96af-4565-ba1f-bea5e13a8e47","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"1f191a81-dbdc-47ab-865d-c532d72e3f39","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"9f3d2347-7e9f-4c6a-983a-16a2e0f9afd5","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"967d737a-2766-43b1-8e06-3e2a372ee20e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"c58a486e-2953-43d0-8e37-e30c74bc3916","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"f8480b78-1763-49fc-8c1d-318650d5cc67","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"349d863c-e710-4629-bcb6-3fd9ab2f9203","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":140,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"ccc53639-f0c3-4775-85df-6cd215d6b559","block_type":"box","text":"may be up to the following amounts:","page_number":140,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"3e80bbaf-54d5-490f-abaf-30594e7dd441","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"a3567fa1-9e64-4d27-b2de-2776db4b165c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"b3e74344-84a2-4120-99b3-fe08aee19231","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"29cfbe3d-3728-41f4-a8d4-b3b5df1e3ac3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"bcd82a16-3829-4c4e-8aa3-793fbf4001b9","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"d890ae45-0f8c-40f0-a81d-70f9e1d99133","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"45d0c3ae-0dbb-4052-a0ff-37192ecee79d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":140,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"69ed7309-d113-4fc0-b9e6-19c26712c40e","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"dc606f88-0698-41d8-a41d-fb273281ff8e","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"a7b03bce-eae6-4281-aabd-156ab85b474d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"7b995918-a7ad-4d76-989b-8d58b94d1f46","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"75b640bf-6c74-45d0-9a41-6153e72aa7c6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"03ab1030-79d1-4040-b502-ccdda19e2b60","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"7127da03-daa2-464a-835a-a88afa97177b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":140,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"67c9dca7-f3f4-43ba-b05c-87a5cf1f92b6","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":140,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"929fab1e-b6c7-439c-8e08-b0b2a9ecf742","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":140,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"c7d0ed92-4dc8-45ce-aae0-e58fc1cc1ef9","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"470373e2-02de-4822-9856-a1c6b6ef0a0c","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"66a6eda1-cd74-4b33-aa0e-cb2436e647c3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"74699b74-63fa-4b8f-9518-d13fb45955ea","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"3094e1e1-6e6d-494b-84a3-8073564c0fc5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"e7339136-827c-444f-9981-d1e3e243cf03","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"7a5397ff-2379-4d0c-92f8-65682c924a93","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"d3270061-8baf-4dea-9447-60868b407f39","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"6773c896-c209-4e10-a49e-e1664b49c08c","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"41f1eaa7-40b1-4257-a890-e4d6dab4a2ed","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"869d2de0-fe7b-424e-b8b4-8d1b5e544c23","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"90f806c9-fa41-47ef-9910-43fc4d82d2f8","block_type":"box","text":"II-102","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"15eb8c50-8a5a-4cab-9136-4449ea2ce0ad","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b435aa09-d009-4d9a-b9c7-a9d22ef3159c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"e86987dc-9aae-4f10-b29e-cd5b9274c4be","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":141,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"7ef1dff5-7764-4a1d-840d-7806794b3186","block_type":"box","text":"the following amounts:","page_number":141,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"2e5c0b66-2001-4979-a466-1e117de3b5d5","block_type":"box","text":"$100,000 and above . . . .","page_number":141,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"dd61808d-5e1d-43df-9103-9ddbc03b1ac9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"338e9003-381d-4afc-969d-0e381758a603","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"d7862a52-b3fa-47a8-8d16-0a1e4fa50409","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":141,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"b595a531-9e91-4a85-8fb1-c11d42d4ae55","block_type":"box","text":"$250,000 and above . . . .","page_number":141,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"8f8d5cbf-fb03-4757-8166-6b0a39ae4a13","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"943904db-e77b-4792-980a-201986f5b846","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":141,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"d2e29ac3-73d7-474f-96ce-75b2b356e241","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":141,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"94d12b7f-a79d-40f6-b030-d078c0c16bc5","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"77857b29-f6c8-49f8-a086-3d51e7a9aad8","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":141,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"e62af79c-0355-449a-ab05-6d6a6bbf8188","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":141,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"14e50f47-ad9b-43bc-8e12-56134699846b","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"c2c12cc9-4fd6-42db-83f2-41a090a17604","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":141,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"d2356be3-1627-4865-b706-9a08d270bb1d","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"f3842459-f29f-4adf-b206-7080eb4e62f2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"9f6d2488-c5ba-4223-a9ff-8aac7d72a83e","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"6a747dff-90cd-48c6-a875-a99b9f76c0f1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"59ce7215-2e40-42bd-9ae1-aa2ff0c26468","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":141,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"cb288354-206c-40a7-9aa0-fa16da822760","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":141,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"a2bf92a2-8c15-4bfb-8052-b8768f16d870","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":141,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"849ae9e2-6d6a-459f-9068-3584c82af378","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"38f91aca-4a33-41fa-a2af-f80081900701","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"13deeb8f-8d98-4693-8368-14dae36fe702","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":141,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"ccd50495-fb1a-4cf4-ab1f-0ec7ca6bce2f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"e2be422b-7b15-465f-98bb-89c9ba74cae3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"c031905e-f4ce-41b4-8152-f0e9bfa258a2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"08c397ab-0bef-46ed-801a-5ce5a2035b68","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"5362ffcf-7759-4186-ac92-7be2f663adae","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":141,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"184b95d1-7162-4aa6-a8f1-4bc3a1aba582","block_type":"box","text":"®","page_number":141,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"f44342c2-f32c-4c32-af4e-588ce2d05bec","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":141,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"8e590339-a7d7-476a-b957-0e68d9c3ad82","block_type":"box","text":"®","page_number":141,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"93f1374d-bf84-4ec4-92bf-014130151daf","block_type":"box","text":"Index 2035","page_number":141,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"290176fd-9bb9-45fb-a346-c558496e9271","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"25c59950-aeaa-42fa-ba84-5d3bfccaddc6","block_type":"box","text":"®","page_number":141,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"c8f76169-92da-4feb-8b7c-1066f0fea2f9","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":141,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"596fe6a6-4806-4acb-8d87-f8c46d6f33ef","block_type":"box","text":"®","page_number":141,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"32078bb1-228c-4f0a-8ba4-97dc76889530","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":141,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"763b0660-00f7-4457-b783-77b72d350ad4","block_type":"box","text":"®","page_number":141,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"27aca880-417f-43dd-91b6-86eccea3e093","block_type":"box","text":"Index 2050","page_number":141,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"4398eaf0-1adc-431c-8c43-cadb9341e92b","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"c891d4c6-18f5-45ca-b0e7-bc8d8f9f40f2","block_type":"box","text":"®","page_number":141,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"0d758ac6-1503-4365-a3bc-bf0a809b3eb8","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":141,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"65e69335-b032-4cfc-aeff-d212ed0f5db1","block_type":"box","text":"®","page_number":141,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"2764b052-8c42-4b5a-a056-1abd333d60c1","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":141,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"f4ed5c1d-d18a-4638-9fdb-e6f416375227","block_type":"box","text":"®","page_number":141,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"300f65a4-1b0b-4f80-b308-f4aadbd3680c","block_type":"box","text":"Index 2065","page_number":141,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"ab6ab05a-ecea-47a4-8acb-636067266b64","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"718b3449-49f9-4667-8e27-07749ec3a035","block_type":"box","text":"®","page_number":141,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"8a7571ce-c390-4c82-96b5-8499f9b1ad15","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":141,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"e01b2633-657c-4a37-af8f-f0d28b808b4d","block_type":"box","text":"®","page_number":141,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"1e3cca9b-5804-4f8f-9aab-5f68fcb36557","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":141,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"a87bf635-03bd-43f7-9dbf-b25f42bf1127","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"4f3d6092-a9a6-4f6f-a6ca-8a18efc4ef63","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"71f99037-c980-47eb-b05f-0774eeafa756","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":141,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"02bcfd20-7b7d-4b4a-9ab9-3e1d5cb8aa09","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":141,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"9cef0d12-212c-4884-a55f-1b7276352175","block_type":"box","text":"SM","page_number":141,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"58dc1255-0034-4974-9c3f-5c1fcf9f3bfe","block_type":"box","text":", the placement","page_number":141,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"5547400a-4202-4477-ba4d-524abc383b17","block_type":"box","text":"fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"ff36bdb0-495b-4694-b9fe-1c4f3ce2bd5d","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"edb41db8-6d92-4449-913f-761f22c86bb8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":141,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"7a8143cc-751d-406e-b526-438ea5f697fe","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":141,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"9f5cf6e5-513e-45da-a1a1-c23dc8614a02","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":141,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"ef90730c-4b66-4939-b04d-9037c8f4b89f","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":141,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"eef2dd9f-dff1-47d3-b346-c1c2d9037056","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":141,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"2088280c-e0b2-4e25-acbc-797943b4d0b6","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":141,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"8cb3deb3-5066-4313-98d4-f39730dfebf0","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":141,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"e964b216-1ccc-4faf-ad13-296c6db7dd36","block_type":"box","text":"$1 million).","page_number":141,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"6cc72923-c211-419e-9f4e-4a2df30a9c9e","block_type":"box","text":"Other.","page_number":141,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"275c7022-f6ca-4fdc-9673-cf97aed1e88a","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":141,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"8aeabb2e-d25e-4e87-bc86-3f25a52efb01","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":141,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"764ea94f-0302-4085-ab13-278565977635","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":141,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"ce059c77-0467-45ee-9ec1-b6bdb7bb1e21","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":141,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"4039f949-6b7e-4751-a45d-7127bb9c7be1","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":141,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"441e2fca-6cb2-4e77-abdf-b7a4fd8a4f5b","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":141,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"a578f144-dcc2-4847-a25f-d04b160fda58","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":141,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"e17e31cd-8fe5-48f6-a33c-4990dde03c4d","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":141,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"2bba63f3-828c-4b34-ac2c-f39aa7c6ea03","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":141,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"4711ea98-b1a7-4e11-8376-e5ee82f5a545","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":141,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"55f8a7f0-fff7-4daf-9006-e0d3bd063b09","block_type":"box","text":"II-103","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fa194ab9-725c-4f61-be13-256f0d738479","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53b8d889-502f-4177-bd5e-fed2893ce3a6","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":142,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"ac7e1a1d-f7e5-4b68-a3b5-78c9c48d73c7","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":142,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"17de5533-3e55-4062-8074-14d63b102d7a","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":142,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"9ae06e05-5fcc-4eb1-be08-5106d98fa93b","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":142,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"910bbdc3-f7c5-45d1-ac96-04ff19a75f3b","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":142,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"0ed58427-ecee-4754-8cf9-a0e3c49ff2f4","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":142,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"cd2d0feb-160e-4519-a601-522a2953e10c","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":142,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"1c1b1acb-f01f-47eb-b4a8-c7772fd1fcc1","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":142,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"e695e138-fcc7-4029-8fe6-3f3d8df366eb","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":142,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"b4e9f735-b3dc-4cc8-ac96-ddc3a0f14b44","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":142,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"9235ca0e-6136-475f-8da3-45520f320f24","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":142,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"050c18e2-c38d-4741-97b4-5286d8c4c641","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":142,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"0e3b46d9-622a-4cc5-9969-7ac1e8025f40","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":142,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"ccc2a188-4080-44f7-8a95-284ff7939ffc","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":142,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"80c94441-4344-4e0e-81ea-ccd8e7bf848f","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":142,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"f5980a7e-bdc3-4fec-be51-b0eaf4627e27","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":142,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"dc84bfc0-dd2c-4d45-aa86-bb8e9c463ff4","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":142,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"0fec0f44-7198-46ce-8abb-e228f71508f9","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":142,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"1db91c1a-5711-42cb-aa54-8ef1da5e3c5f","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":142,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"1266d8b1-5059-40da-9629-401ad5a19e3d","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":142,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"d6546b6d-15bf-4ab5-915b-fa7dbce5585d","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"10d8c774-df84-48b7-8ced-c708b8829023","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":142,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"70e53273-5c64-4b0b-8393-968d11dad305","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":142,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"6db6e4f3-bdf5-46a3-a6e5-ac48ea35025d","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":142,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"5069fd01-83a2-417f-99dd-1b0041f9a500","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":142,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"bcbdfb17-b275-43ab-93b0-c733a4c9d95f","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":142,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"c353daeb-dd29-49d7-8efa-b721a2b4fe7f","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":142,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"6e499155-d2da-4c77-a7ef-8154beefcb3b","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":142,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"086a2633-bb70-4450-95c2-8aa8112a0ba3","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":142,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"e9a6c1c6-b5f6-44fd-be40-a706b2889e0d","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":142,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"8416da44-fefa-41a1-91e6-f12ad5ea87b8","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":142,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"47fac351-4ef5-4d5b-88aa-3674201b1db8","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":142,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"ff8233b5-dc70-4925-ab0e-a4bd4f3f4ac7","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":142,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"80a71d4f-b821-4485-bea6-dc34043b5371","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":142,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"2527639b-da9b-4f8c-8a7a-87a736fd30b3","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":142,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"da03ea8f-05f2-4292-819c-31f8bdcb470a","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":142,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"c31bbb88-3dfe-4423-8d37-583c9bcbed91","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":142,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"c8d53db1-7f39-4584-aaca-0b6da9115a51","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":142,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"53357955-b5ee-440a-9ca4-56116fe9073c","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":142,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"42acce23-9e5c-4805-9603-ef76688ce71d","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":142,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"bc3770d0-c831-4452-8320-54a63c21f41a","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":142,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"ff2f7a9e-3626-40cb-9699-9c0133d6e99c","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":142,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"1477522b-d448-4f6b-941a-fafe8e18ff11","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":142,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"8d185a05-958f-4caf-8ac3-b72b406ec4b3","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":142,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"1398e0d8-8567-4c3a-a524-2d3c169f417b","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":142,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"eb0b4322-30fc-41df-b222-d03a52225080","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":142,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"94a53b7d-9da1-4e2e-8388-6783d8c55bae","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":142,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"cb4e4886-6f8f-4933-a788-623b287df68a","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":142,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"b9debcde-da2d-4361-9ddb-3f112a022d86","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":142,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"78ba4200-24cd-46ce-8175-7dbb83aef461","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":142,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"4909b044-09ac-4ba4-8b99-a5d063b98843","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":142,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"02807e28-6119-4951-a681-576284e989e4","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":142,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"973425c5-7c2a-4817-a621-35e39bba30a8","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":142,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"4c67d818-b90a-4432-85f0-d6f81d327b59","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":142,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"caaf8a29-5649-4e64-890d-2b8334a20a8b","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":142,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"9df0bf0e-0b63-4122-9e50-59cf7b5b2877","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":142,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"04be0243-daa6-4889-980d-5d63e8fda4f0","block_type":"box","text":"II-104","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c32f77df-0246-4951-a8ed-12e5896fb08d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2457dbbb-d6a1-4811-84b0-0a5ad4e6e1fc","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":143,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"da549e2c-7929-4e59-a104-15ff874a8ca4","block_type":"box","text":"the absolute discretion of a Fund.","page_number":143,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"30e15499-d68f-4be4-b4f4-c648a3a8545d","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":143,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"e4b499c4-2bfa-4a36-9d72-d9c868c9b58a","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":143,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"68d0329c-7d3d-4b0f-adce-b7f79f3b1058","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":143,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"fa547aa9-a49c-441a-ae97-9bf7ef6d0aef","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":143,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"fc70a801-cf48-4fc2-8cdf-fb0340323a55","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":143,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"29a73512-46fa-42e6-be59-2d02bd661ef6","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":143,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"5051513c-7054-43c7-97dd-18502d9ff6b1","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":143,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"43ed10aa-c9d9-4e8d-92f8-0f40859828f0","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":143,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"5088533f-2c7c-4604-ba5b-4eb2c900757c","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":143,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"dbfbabbe-b0a8-49c4-a4ae-8946cfd0f510","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":143,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"ada2daaf-58f7-4510-87d4-5ac5abd73a31","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":143,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"f928bb9f-18ae-44d8-9e80-e2f47fff1eff","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":143,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"5cfb2687-39c7-4a39-a5fe-0443f3d106df","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":143,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"2dcac96b-960d-42a8-98fe-532afeace6df","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":143,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"27be364c-b365-4e8d-a67c-51ad8125a664","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":143,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"e93fc048-b0ef-4ce6-9b48-2a4d3b58ee16","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":143,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"7397958b-0bc3-457e-a77d-25f7e943d6f3","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":143,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"06302683-d552-495f-94c6-c43e3f873638","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":143,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"69e5ef33-eaab-424a-832f-d5cc745645fb","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":143,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"962a5fef-86eb-4842-950b-13037bd5c2f3","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":143,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"66cd1dc2-9249-4a3b-9499-3af04e0621b3","block_type":"box","text":"public or private investment company.","page_number":143,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"afe23551-4f2d-42ed-b3fa-d168bc236528","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":143,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"647a06cb-70fd-460d-a54c-1e679af87769","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":143,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"41de33f0-61e4-4af1-bdad-c2eda8d6a37e","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":143,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"e316650e-0f8e-4e69-a260-d3b2516d84ba","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":143,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"3380f2b1-1ec1-4c75-b56a-e39ea50bb689","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":143,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"c8ebd17f-0e06-4817-a255-81be5659f2ad","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":143,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"485f5685-40e3-42dd-82e6-6459c7ff8be0","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":143,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"7639c923-80cb-4211-a252-94707f20dd3b","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":143,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"46d0602e-6363-44b3-a543-f66c903b2e09","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":143,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"fe3d9fe8-4718-4a5b-8df6-65806fbb64d1","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":143,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"f02eca2d-dd39-446c-b69d-c63c620370c0","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":143,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"6ce82cfa-da67-4444-a1fe-7e95c4e4a5d7","block_type":"box","text":"intermediary associated with the account.","page_number":143,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"c96cad11-f1cc-40e3-bf03-2f3ebc1e0f19","block_type":"box","text":"If you select Investor C Shares, you do not pay an initial sales charge at the time of purchase.","page_number":143,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"48586af7-7bef-48f9-b60d-52c8c19bc85b","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":143,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"c1c4c0c9-a6c2-4f0f-b81f-76073ce53168","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":143,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"c332fa09-0691-4e8c-b1f4-238a2edc1b3c","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":143,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"923a0986-de61-45a9-b6a4-7509c1cea05b","block_type":"box","text":"CDSC shares.","page_number":143,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"5186c454-8a59-405f-bccf-6451017b0449","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":143,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"8994b7e5-c53e-4ed4-8a1c-44f69a06c41d","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":143,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"e92cc99e-f349-481c-9d61-9aeb920f5ca5","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":143,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"6be998ba-d9ab-4874-98d6-45392b239651","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":143,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"93b048a1-2262-4769-9f3e-412cc3297f82","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":143,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"22fb3540-98ce-4f40-934c-ca56dc3de9fa","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":143,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"59240c8d-d2b8-48c1-a8f6-aea165b0cdf1","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":143,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"d846d2ab-934f-4879-b516-c9821e2cd996","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":143,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"b5fe79e7-8f00-4440-9be5-05710f98cfa2","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":143,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"f77a6162-ed1a-4d07-a353-7de47d4be331","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":143,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"fc51a9bb-8a38-4dab-ace9-a7f156997aba","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":143,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"58b18ee2-346e-4eb1-bff2-6692e5107d46","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":143,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"37492f3f-9ca5-40d5-be42-b0126dde7699","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":143,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"7379dac0-db48-4342-a652-06f423873771","block_type":"box","text":"II-105","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"823c2bd4-cc49-4b17-af7f-19effca23648","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3590717-728a-4de0-ab91-01faed16dd89","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":144,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"1b918087-bd6f-4d9c-b62d-dd40a6d606ae","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":144,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"701b1a33-8eb3-4aa3-bbee-983ace2ea2ac","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":144,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"d2662ee5-aae0-4c89-863f-f185fc5b4a50","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":144,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"fbf0d205-2232-463a-a271-f700e4e3ee76","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":144,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"9d9fd966-7641-4197-867c-9a47d4d482ad","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":144,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"a7d4f21d-cfa8-4a22-9de7-16912624aed2","block_type":"box","text":"Investor A Shares.","page_number":144,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"3677462d-6444-4e8b-b7b4-1274f0a39241","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":144,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"4878a70f-3099-4e4e-9920-7cee33903845","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":144,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"a3f9683c-f8b0-4f30-a066-8be9a76a88f2","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":144,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"6d99bc8d-c5b5-444d-a544-2594f7cea04d","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":144,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"a18cc77f-15fe-42e2-acec-ddf5e143df9d","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":144,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"ec915c13-26e3-4518-98c3-cfdd0897ae6e","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":144,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"56715b08-a8a5-4f82-a33f-24a35ec1436f","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":144,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"886de081-846f-4927-be65-cc77add40e57","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":144,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"20d7f2e4-9ac0-4f27-8148-3590f004e4f5","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":144,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"6547c947-fbd4-4f6e-9e44-eb4e93046070","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":144,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"d4e9170f-4c42-444f-b196-e5b118db163e","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":144,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"d6f6d1fb-ffe9-479d-88dd-2e669bcd07c6","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":144,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"cd33d9aa-5956-4dca-9119-3719f424ac1d","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":144,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"d7bf3b1b-71b8-406d-9c26-180f588ba71f","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":144,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"ead648e7-271c-4c89-a6a4-c5b6d26f2397","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":144,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"e11fc8d8-c9ac-4520-9823-84540a12340c","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":144,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"9bb8d71c-86c9-476b-845a-13d8a9d9085c","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":144,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"c1ed3cb4-d85b-4ff3-a17d-e51af22eb02b","block_type":"box","text":"“Investor C Conversions”).","page_number":144,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"d62f3427-afdb-48d8-958d-8c954dd1289f","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":144,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"93d3312b-d27d-45ed-872b-0ce6010a2e97","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":144,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"c7e8890d-dad7-45af-8c06-9c509eb62828","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":144,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"8f3fe5a2-e366-436e-99ae-8f3dd083ee7a","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":144,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"80502bc3-3645-4700-aa23-e07d3e487260","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":144,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"94ee1cc3-6290-446d-8fe2-088e7f1f4df0","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":144,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"d037e7f3-9511-4db1-a5df-53e7ad1d2a5b","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":144,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"a6bb6b9e-92c8-43d4-b676-12f19454e515","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":144,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"7def5aa8-a51b-4ecc-a45a-b4cffb4168a5","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":144,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"e7c0ac5d-f85a-4343-a46f-d667709b88ec","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":144,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"7d975d4f-d9a8-457f-8727-cba4a65ce72d","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":144,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"dd6e7871-8bad-4985-992c-e818abe770ac","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":144,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"d1f61618-87e2-4326-af68-c5175a9909b6","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":144,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"6997d98c-2477-4731-854b-a0d0143669ed","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":144,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"76b84890-9178-4154-b44f-dc52162ac293","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":144,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"376d40f0-6ad4-4d28-99d5-a6ca7edae304","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":144,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"4bc68fa6-97f0-4de7-8872-d868edd68837","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":144,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"6d725111-f4a4-417c-a898-b992a035e27e","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"209b7737-74fc-4b77-ab22-8096a90f65af","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":144,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"af8e5951-d4ce-42d8-b51e-e4fefa1d7bbe","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":144,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"7b6f9c8d-c580-4c07-8ab4-f703ce379b72","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":144,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"b39d6a99-371d-4cce-b019-4592932ca588","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":144,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"50590a3e-a2a7-4903-b824-760f72f309d4","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":144,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"fadb5f4a-b40c-4cce-9eed-c92e20851066","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":144,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"fe231e18-cb16-4ad1-99af-fc64ebc22a21","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":144,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"deeddeb6-6ae9-44f6-99ab-522d35618195","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":144,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"27fe5882-a5c5-4b73-b115-f3580e34bd19","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":144,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"10777f01-e176-48ff-b55f-cf78688fcc49","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":144,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"ed233a73-4961-4209-844e-cbb399ed7903","block_type":"box","text":"II-106","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"17b9db27-27f7-4d44-b088-36d4c6ecc6d3","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94ca100a-f4f3-4745-aa0b-15022f67469e","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":145,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"77548ea0-c676-44d7-a0bf-9e0df1ebcc96","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":145,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"ad99bfe7-ceda-4fc6-9a35-cbf2c8fef1f0","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":145,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"caf4c3d0-0255-4303-96d9-e4569c86fbdd","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":145,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"6e7acb5d-431e-4273-974b-a7300d6c5cef","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":145,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"668fdcf1-693d-4381-a080-4c22c6c5970d","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":145,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"bf9534c1-80ca-478d-8c2f-6fac1ebdeef6","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":145,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"84d79f1c-5b80-4cf9-9c49-aee18be37199","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":145,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"fb2f13e2-f808-4fd3-b263-7f88a4eec308","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":145,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"612aca39-b628-4414-b4ee-0d7994499cd1","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":145,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"36b1fb07-3bec-4b18-b7f2-62649d3f5702","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":145,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"2553d5a4-2afa-409c-a6d4-a137bce26f91","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":145,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"afc41c0b-3060-4129-afdd-4b03f69d0837","block_type":"box","text":"Class R Shares","page_number":145,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"c55aa072-8c93-4382-a810-d8a25945c515","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":145,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"2724f57f-5da1-4fba-9108-3f3d8eddff6a","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":145,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"8a09941f-bb23-4e2f-ab07-7f72b795e2c3","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":145,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"9f31158c-e583-4a0d-8771-f503a9fbc17f","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":145,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"7c87cf3b-862e-406a-a151-f069ad033133","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":145,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"4d36c937-3b37-4fb7-ab04-198f1d884929","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":145,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"150684d6-1233-47af-9df0-489ce6fb792f","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":145,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"c6c3f4c9-787f-4622-8e14-11273a7a6835","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":145,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"c678ac85-c994-4ff3-a43a-d5404f68f839","block_type":"box","text":"Class K Shares","page_number":145,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"6e932fd0-e42d-443f-afd9-396edbddb276","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":145,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"e6246e6c-51c5-48a3-b266-eef638a3a7a1","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":145,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"139cd1ed-d4ce-47f3-b0e7-f170b6736842","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":145,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"54acbf69-7cb3-4a27-b6a0-d43bc885e8d1","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":145,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"24073807-2906-4819-b24f-95ae8caffadf","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":145,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"aeaa60ee-4895-47cf-b37f-5bc75110baf3","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":145,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"d904ff58-3f83-4ea6-b7bb-aa9f6f39fdce","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":145,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"5f4398c1-d2a4-4fab-8f40-4b131c5fba2d","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":145,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"90c1101c-cb72-4b92-b516-ce18aee91dd6","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":145,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"58133801-4ff5-43ff-b575-267aa0fe4bd7","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":145,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"b89494ee-bbcf-466e-9361-bde8ad475dc4","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":145,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"3b8442aa-b10b-4c81-9132-cfbdba3b8dd7","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":145,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"3fb3d592-4957-429d-9679-90819b8d06bd","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":145,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"57e05a27-5463-438a-a548-f49114a15b83","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":145,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"0f0453a0-53df-49a3-aacc-8c011ab18c6d","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":145,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"3f4ae311-a705-4e77-815a-7a8e52e01f74","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":145,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"286313ed-a14c-44b5-882c-0592b9d53845","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":145,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"7dc5378a-10b7-4e4a-93e4-f39c4844520b","block_type":"box","text":"distribution and marketing agreement.","page_number":145,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"f9ee9691-ae1e-4e2b-bdee-49c6607055c5","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":145,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"600bc2e0-6e18-4d09-8908-7e62cf297e5d","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":145,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"b0edfb44-315c-4434-b1bd-7fef47470bd8","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":145,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"7f5502c1-b559-456c-a1f1-d1944220be54","block_type":"box","text":"Class G Shares","page_number":145,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"ea6ec48a-e2c8-4697-b9da-74fe6922648a","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":145,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"9f38c0cb-bba3-4daf-8181-4bdf66312b44","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":145,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"65aa29e0-9321-4e0d-b3b0-f5e2b21b5118","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":145,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"0de51619-e31c-4154-802d-daec38240e0e","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":145,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"105343e9-129d-4df2-8796-4e5587cdb93e","block_type":"box","text":"eligibility requirements.","page_number":145,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"960b7a6d-8869-42c9-9b6b-93687cfeef50","block_type":"box","text":"II-107","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c730e7dc-b55e-47a9-9966-21f4a6694842","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0b3d9f85-cb3c-41d1-a9cd-e588ad4af56c","block_type":"box","text":"Service Shares","page_number":146,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"17f4bc3a-30ea-4802-a29d-b1fd79e3194c","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":146,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"8affae31-8ce4-42c5-99f5-142b09553803","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":146,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"e8f055cb-ac72-44f2-859e-ba2797a5f9d2","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":146,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"247c26e3-5aa0-4ab3-8434-bfb8345f3e5b","block_type":"box","text":"®","page_number":146,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"a91916ea-1baa-4206-bd39-84391e366eec","block_type":"box","text":"Fund in 1996; and","page_number":146,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"c207fc42-1b33-4378-b61f-0c89283c643f","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":146,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"6b52c6fa-1050-47a6-98ae-f51520f50bb6","block_type":"box","text":"SM","page_number":146,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"915de2f4-c782-47fa-ae14-c22b351a6cbc","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":146,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"c546a3c8-4b96-41ab-a3b7-f00d34a6f0c7","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":146,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"47741ac2-b1ec-4203-a000-d2a56cf50592","block_type":"box","text":"BlackRock Shares","page_number":146,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"068b79f0-5b3d-4218-b18d-0977114e19dd","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":146,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"3d615a5d-4b5f-44c2-beda-2a09f5809faa","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":146,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"1e3d213b-3b2a-48aa-94e4-c8a44fbd4e78","block_type":"box","text":"fee-based programs.","page_number":146,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"67d52de9-855d-41ee-b7c1-41fb8b489749","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":146,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"42affd93-7619-4659-a8e1-4ae2d1c5c5b8","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":146,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"5cf31419-2ee6-412d-89aa-0a12f774739f","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":146,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"98a31b37-3732-48f5-a094-883b64d4bf3d","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":146,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"e4e13a51-45bc-4fec-b448-7315c8b50cd1","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":146,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"b88d973f-d17c-45d6-85dc-96992f1a6f74","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":146,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"03af27a2-fa53-42ed-8ebc-91b0f266a531","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":146,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"071517f5-4879-4a1d-84ba-23e6d2d3fe91","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":146,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"3ac3b472-0413-47a6-830a-07ce60b3c204","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":146,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"fd4435bf-980a-4250-8916-9250297b4dad","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":146,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"c2e22e1f-4da0-457f-a840-263dde7706b1","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":146,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"7ba504dc-ba95-41cd-a75e-7532472d829b","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":146,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"7a03a6a6-419d-45f4-aaaa-76cfffcfa206","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":146,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"706b6749-2691-43b8-9794-cf8fc4986289","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":146,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"28c60b87-cf81-47da-b25c-e5531ee0b73a","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":146,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"08779bf6-94b7-4a99-bcc9-29275e75ffc3","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":146,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"c746784a-d462-4fad-850a-c43e45cd47a7","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":146,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"0d88aed0-209c-44bd-a423-081935c92326","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":146,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"52c76b40-3507-4118-a09d-cd871751cdf8","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":146,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"e80fd652-4357-4a75-b85c-c584dc29a936","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":146,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"c2e45827-3a48-4e22-a1d2-fd953bbcc961","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":146,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"211460ff-23cd-4c2e-aa5b-5afacfd83e97","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":146,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"c3bc7a29-e43f-4a61-827f-91ca50f2288a","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":146,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"d5de4716-e61d-4f17-9fc1-34a928ef482e","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":146,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"e338bb2b-4079-4a02-916a-f7c611cd9694","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":146,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"ca29396d-6c7a-42b4-ade7-c26b1a30cde4","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":146,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"7e2190f8-4e04-4f67-9252-1e7f7866c5d5","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":146,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"8c9b28de-2c3e-44ea-86a5-3d9c936ac06d","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":146,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"c1ab4914-8e19-4f04-9705-be8ea4bfcca6","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":146,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"389c8222-bfab-4f1d-92fd-90ed2d13dc9b","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":146,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"e716d7fd-f43e-4600-9d12-5954dbaad436","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":146,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"b30c1298-0060-4f17-9ff3-09625f06ef28","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":146,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"2c0e8144-37d6-4aeb-908b-7973c4f9d431","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":146,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"72f48bd5-3969-407c-aaae-854cee4c12ba","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":146,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"0bb1eb46-b1e7-4df7-84e2-4b3af81129e0","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":146,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"50ace768-5d7b-4f0b-9c7d-55803372dca8","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":146,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"4f95c60e-25cc-4546-81f9-0f420f7c561a","block_type":"box","text":"compensation for selling different classes of shares.","page_number":146,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"050961d4-0fc4-460f-be95-d4d491119870","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":146,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"6a82f2df-96d5-42ba-b73d-4b3728f34a1a","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":146,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"cf33ec7a-1551-4911-86d3-76179a59898e","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":146,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"b99623b4-7f31-4db7-95c0-6a091fa9f198","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":146,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"cdfd090e-a234-4c7c-b2de-6faab87400a1","block_type":"box","text":"II-108","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6a3d6e29-bc65-4947-9373-afe404e7c2be","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0bcdc2ea-3852-4685-905e-a7d29cafac3c","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":147,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"5c4752a3-a73e-4342-8de5-b59560b225fb","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":147,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"a370143c-27de-43f0-9059-9d5d1eca1d5d","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":147,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"a79166df-4273-44c3-8ae1-d22c1639a053","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":147,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"e1cf3e5a-2276-4ad4-a699-7053d81bf1f7","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":147,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"78262880-fb67-4688-9e1a-540ba1b32e44","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":147,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"06c47591-29ed-4d18-bc0a-fea891dcf0be","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"22809bdc-a56c-4b15-8712-6afa00ec810b","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":147,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"c35da5e6-cf76-4a6a-afdf-1256e067b80f","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":147,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"fe55d94e-c2df-4bba-a97d-e0f683bbac04","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":147,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"41bd24a4-2cbf-494f-b6cb-43dda61ed426","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":147,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"9612bbb6-736e-4592-ba1c-a17f8e0c8747","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":147,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"e811da82-22bb-469f-92ca-01ab8c878aa8","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":147,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"918a8cd0-e348-4663-b0d2-efde0b6f2ca8","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":147,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"aedb0c64-4243-43d7-b9b4-7d8d17047d61","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":147,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"d1bf1563-6d73-42bc-a63b-dbd875e521a2","block_type":"box","text":"easily accessible place.","page_number":147,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"1da3725b-3e54-4278-a5e9-fe6519fceeab","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":147,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"8f9e7a83-2070-4d98-92b8-c810a318dcb2","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":147,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"1946aacb-ed54-450a-964d-52c05cd79cce","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":147,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"27785294-5c89-4680-9ffa-027b12fa07d9","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":147,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"64695896-ecf6-40d3-b32b-67d0fac65d7a","block_type":"box","text":"fiscal year.","page_number":147,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"497a7c37-a8a1-474b-ba15-fca5bc4fe2dd","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":147,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"0538bd38-d77c-4597-b6fc-1ce829c5d656","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":147,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"3baf6c5e-cdc8-4e45-8a23-c09004c0aaa1","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":147,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"0478c64e-a0e1-493e-bc24-2e05ab84914d","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":147,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"0a0d4163-d61e-4835-a28b-0d6b025fbc59","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":147,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"2b37fd14-6648-4789-bc51-24c36200d885","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":147,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"12d8e07f-64b0-4639-8902-340f49f4a6df","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":147,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"f304d0e1-e0b3-4700-b2dd-853fb217361c","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":147,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"0b237757-af58-4da5-b573-9a6cbdc2157b","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":147,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"0d92df5b-4286-43fa-a0da-bfa07188632a","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":147,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"14d33b50-580a-49f7-9a35-622f6557a13d","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":147,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"98e41c96-79a4-4b18-a7d2-435f9db6a073","block_type":"box","text":"and Class R Shares of your Fund.","page_number":147,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"47e393cf-e4e8-4d88-a8f7-4d85265e7263","block_type":"box","text":"Other Payments by the Fund","page_number":147,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"62e93f44-91ec-4d98-ab3e-70bb045ea7b4","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":147,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"aac7191a-6c2e-4b7f-b256-8843f467a650","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":147,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"7e2c9643-4e95-4fd8-881d-d775398e97e4","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":147,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"a476e0b3-7974-4dae-af00-5a441eb8dd42","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":147,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"8872cf7e-87b8-4207-a25d-1ae338b3411a","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":147,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"2277ecb7-0078-46e0-8545-737be7ff7881","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"1d74da44-506c-4440-89c8-1944899a9c1d","block_type":"box","text":"of these payments may be substantial.","page_number":147,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"be44dddd-063c-4889-8e06-628a99ea6480","block_type":"box","text":"Additional Payments by BlackRock","page_number":147,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"86f4b09a-d507-4fb8-9c6d-d08209b6cae6","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":147,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"a46898f7-d018-49a5-9dfb-d0eb6bc08b35","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":147,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"cb169a65-5a7f-4543-b76a-3f5bc5ea955b","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":147,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"750c994a-e323-46e0-b223-b6e34eef48c8","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":147,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"835d77d2-bd7a-431f-adfd-cc9643484e2b","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":147,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"ab15c6f5-3624-4b31-b020-0657fe5731a2","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":147,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"0bd44d8c-c08b-469f-9057-c5ef49b532df","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":147,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"35c5d330-9e70-4f0c-b2f5-b1c90d626f27","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":147,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"2cff8129-f6a6-4db3-b58b-695de41b3c02","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":147,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"d9ca7e62-64ee-45be-8111-e0d617e0951f","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":147,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"c29facb5-7f84-4843-bda1-fa82127bc7d0","block_type":"box","text":"II-109","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7b11b5d8-9e51-437f-95f5-ce381da19e92","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a975c8e6-9603-414d-81b6-c39d4f7a7e00","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":148,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"b9bae589-846b-4c52-94e4-39880273f5ff","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":148,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"76f43297-c3b3-44ac-910d-39efcee9c1b1","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":148,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"6b99e9d3-7e0d-44f8-a0ba-b5be76b4ec3a","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":148,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"96d5012a-1d8b-4e6d-870f-85bdc65530b7","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":148,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"f1c42f36-8f3f-4191-920a-e2c01d4c53b1","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":148,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"af9e0b00-b68f-4b56-87c8-7e18f6473e5b","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":148,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"017a0d7f-5e20-42ef-958e-e65870a44830","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":148,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"5502b550-5ad7-4341-9280-0c3c5d5e39b9","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":148,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"1716b6fa-49b2-4492-bcf4-80247bd58236","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":148,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"cce29dba-bb33-4bee-919e-b08c5c14855d","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":148,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"961c99b5-5dbf-41bd-b292-6bde31c095ff","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":148,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"f6837059-d50b-4ba4-bd7d-39f930b823aa","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":148,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"0fe6b9bf-ec2a-4f66-9954-19e46cd0d22a","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":148,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"f1bb6170-b17d-4c21-a892-d097955d2355","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":148,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"1ac65027-2ed8-4e7d-b23c-d4666f618fcb","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":148,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"48b7415f-97f3-448a-8472-99a9bf048b91","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":148,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"6f318e98-be6f-448a-8886-4e98a2aa6b88","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":148,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"3184bb5e-6424-4c73-b7a2-83f7e9422ff5","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":148,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"46c005a8-9faf-400f-88e0-1de359297839","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":148,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"5a91e85a-2d1c-4470-8126-297a29d157e3","block_type":"box","text":"Funds.","page_number":148,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"957dbae7-b5b9-47bf-98da-8eda01ee4d35","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":148,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"fbe80f17-85cd-4618-b81a-60b381d08e50","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":148,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"c432b099-70aa-47c8-b68c-64ae153816ff","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":148,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"b481f551-ee4c-4722-b163-ba2626831800","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":148,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"b863cb3e-b201-4ff5-b4f8-f6a3c4202b8c","block_type":"box","text":"B. Shareholder Services","page_number":148,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"f7524635-3824-4832-bdcd-3ef0904c0032","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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Service Organizations Receiving Additional Payments","page_number":148,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"77dfb663-decb-48b1-9194-cd6280bd9e27","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":148,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"485dc40e-606e-42c5-a866-6e5cf91e4bed","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":148,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"599fc8da-e700-4395-9b95-3a19936a5e35","block_type":"box","text":"II-110","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4120c8d9-a3a4-4db3-b254-fac1c3d0cb4b","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f7bf9c4-5dfa-40a1-b733-1c3c409e6b20","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":149,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"b3676c8f-0d92-4528-8445-eeeddd18006d","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":149,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"ace70e6e-ce97-4171-8f58-0cbbdf4b38e9","block_type":"box","text":"payments 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BlackRock","page_number":152,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"b7b6fd38-ade0-44a1-83d3-169b877bcccd","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":152,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"5ee85cfb-64b8-4624-9bf9-73f6ec210a9c","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":152,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"bafabb20-2806-45b4-ab47-0fb56fc5b849","block_type":"box","text":"traded products.","page_number":152,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"88f80652-bdc8-49b3-bf99-4e8b23463d14","block_type":"box","text":"F. Conflicts","page_number":152,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"299bfce9-55d5-4e4f-8653-577dea091fff","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":152,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"97668312-d308-4106-a0c1-99fdfc72f858","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":152,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"8e12ad33-d79f-438a-bf97-6d0c22f1cbf6","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":152,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"e299ce7b-4680-46a8-855b-efdcfaafaa9b","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":152,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"6c15c074-8d21-492d-aa93-b8ff4c25c75c","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":152,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"d7be6296-f38a-4199-9903-28c795b33168","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":152,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"9b52d3cb-7baf-41c0-9a2a-c2cae5071eba","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":152,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"1752850a-8abd-4fde-b2f8-94c495826392","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":152,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"d5b075eb-b37d-426e-93c0-d81711288a07","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":152,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"87cc9c0a-631a-4e8a-8528-74edff351f70","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":152,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"16bb4ebb-a163-4259-a3bf-2ed0f9163f52","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":152,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"1a893d12-d062-49cd-91f0-16c375e50b94","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":152,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"5db666f2-09ab-4bfa-a9a7-07aec0d9f0bb","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":152,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"c731f424-3e5c-4539-bc9d-b21c2af78844","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":152,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"8da4733a-fdc2-4c6e-833e-cfdce0bd3c9c","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":152,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"51822d68-5692-45d9-ad60-64cf99fc2780","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":152,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"38e3d93c-3364-4587-b9ad-496cf03134f1","block_type":"box","text":"appropriate.","page_number":152,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"fc4f0695-03d7-474f-b647-9b684a462a13","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":152,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"1655e8cd-4ea7-41e1-a8aa-043687787a57","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":152,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"9e2c3b23-1960-4e8d-b137-c37f42d10e80","block_type":"box","text":"described above.","page_number":152,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"7885e405-dd63-4dc7-a4b9-4578df7effcc","block_type":"box","text":"REDEMPTION OF SHARES","page_number":152,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"6492cf19-4083-43fa-a697-cabb149f13ae","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":152,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"b0415773-31f1-4483-ae1a-eec0dcbf56e4","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":152,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"5ec46fe6-33cc-41d5-b15f-803e9ae87c6e","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":152,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"5b57bae4-3dd8-4998-be53-bfcd94a0bdb9","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":152,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"75a10f86-68bf-4598-a3a7-b2c513dd7ee8","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":152,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"eb8d48b6-d444-4438-b382-26486a87fb64","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":152,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"8e1ada23-2eaa-4ae4-b09d-00fed8c90780","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":152,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"f45d080e-19ce-4aa2-97c6-d3bb4eab1c7b","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":152,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"218d09b0-19cb-479f-8936-0c64e56d1522","block_type":"box","text":"II-114","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b0b94f08-4e1c-48f3-9b96-a686f1e1fc9c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9066cbcd-3aca-4cd2-9cc9-0950ef8bb192","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":153,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"02782da3-c9c3-4d91-828f-62c2fdf460b4","block_type":"box","text":"for any shareholder of the Fund.","page_number":153,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"c71a09f9-9609-4463-93fe-30b316ba09dc","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":153,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"5f0e3e42-a9a9-452e-84dd-318338d02d57","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":153,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"91237067-689c-4993-9cd8-78a2a50659b1","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":153,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"2d7131e5-b335-4e12-8740-d265f2546ca7","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":153,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"f80c022f-db19-470a-ae28-c20be7ec26c0","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":153,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"c8cdf53d-b246-46a0-aafa-e453b49177c0","block_type":"box","text":"redemption.","page_number":153,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"2ff3ef12-cd59-4c6f-8e4c-320dece8d9d7","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"4625abfc-d3b6-411c-88ed-1582b385679f","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":153,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"2e52c93f-6593-48df-b2f4-01f87d51cb21","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":153,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"06ff35c4-72b7-48ab-869b-dfa23e9b2b93","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":153,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"90b63f8c-d731-4d9f-b6de-63c04debcbd2","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":153,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"3eb90420-97ef-4998-80dd-d1b8f858093f","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":153,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"0be36145-fec5-46ca-82da-469f2809bb25","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":153,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"a30904be-8b26-480f-995b-de8c6afdc2c9","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":153,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"a7a61c99-6369-48d2-96db-70984d1439bb","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":153,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"2ce25a8b-6328-4224-8e82-37571d3f55e4","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":153,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"cbd50e38-0b45-432c-aa86-cd573851f19a","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":153,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"9b0b48e4-1029-49ba-8581-233f0c2a5cf6","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":153,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"26ced43e-fb80-479c-b460-2c9520832ca3","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":153,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"f2caffca-cbfd-4d48-ad07-cdb19b9cc500","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":153,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"1434e191-4f10-43a8-803b-8cc7645d3c57","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":153,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"a5f6e52d-6854-490b-ada7-c0f34fc2ea9c","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":153,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"c5b4324a-6a61-4783-ac01-007a235ffd08","block_type":"box","text":"Redemption","page_number":153,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"081b2de1-75e4-4909-8cdb-a67e2ab68248","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":153,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"c8b7110a-a97b-4191-b744-d6a02c36ee0b","block_type":"box","text":"Redeem by Telephone:","page_number":153,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"1e2131ef-1113-4529-a887-fd873315fe47","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":153,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"95c2ca00-8943-4caf-90ef-d6687f8bf82b","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":153,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"42637f59-71be-453b-bf5f-84579f818c98","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":153,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"8a6638a8-a1f7-4644-b53a-eb461fe9a581","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":153,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"ae64c15d-4d26-44a4-82c6-7a17b660f3c2","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":153,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"8a0e2354-2734-4877-8a8c-bf4441d70df8","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":153,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"0a7667c5-bc4a-4204-b93e-a5c14ecb7833","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":153,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"93e00f07-4c6a-4a12-84de-137522ca6f48","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":153,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"3a4e4d01-d7d3-460d-8bcb-48528893251f","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":153,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"09b44c3f-4357-41dd-8810-1172838ad42a","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":153,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"3b635cd0-43ed-41d1-8677-57643535f6a0","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":153,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"1dac41b8-0794-4bef-a769-9e16472b4159","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":153,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"22f844f8-b907-4f05-af12-3e4f6fe06aa9","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":153,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"6bb32aa4-2b28-4736-97b1-f6f3310cd4d1","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":153,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"bbfd821d-11c8-4eb4-a39b-0babc07188f2","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":153,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"2fafa4a1-2763-47ab-8434-16ea929e5200","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":153,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"56de0ee1-1d63-47df-8a81-792d3d07b084","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":153,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"c736fb8f-e8c4-49f7-9581-9bf05c6ceb7b","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":153,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"cc72ac71-42ea-4dfc-a03f-a44d4ce126ea","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":153,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"7fdcf211-fe42-4c29-b353-f74276a7db84","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":153,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"bb2656c6-c064-4248-a3df-08651bfdbc56","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":153,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"f868c152-3a0d-4390-a7cb-5753e0c78d39","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":153,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"1487440c-44d0-4920-bb5e-a47ff577496f","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":153,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"8a96aa86-b29a-4897-80f5-0a4016e7f4f4","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":153,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"40c3e7ce-025e-4e3b-8c53-167ee0c98d7b","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":153,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"2de9db07-a79b-48fd-9adc-5118f3dc755b","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":153,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"8976ce5d-31b4-4639-b97b-4cd6b5a5bb59","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":153,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"72789389-eca0-470a-9e16-038f29795e43","block_type":"box","text":"II-115","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ba22a95b-6472-4901-84fc-be784d23b3da","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90b9a355-e60f-44ec-bf95-b8b0f78953f3","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":154,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"562485bf-a041-4369-9645-77f0dd8d8734","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":154,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"ea9f081e-2fa7-471f-9f3b-e763e20de34b","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":154,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"a74527d6-d945-4c13-aa65-5f5e25a43fe3","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":154,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"03d62e1d-9df2-4c5f-a93d-33e12a262ee9","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":154,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"41bd7d32-d4c7-427c-83f5-70bf164420a5","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":154,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"896b22ef-5419-46c4-bcc9-a648570688c2","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":154,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"e532b09c-ef3d-47f8-adf3-8124b7aaac3d","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":154,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"13ee960a-6217-4227-b89e-c3710de6d009","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":154,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"65c7362d-e704-422e-ad9e-910fb95e4e9a","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":154,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"ee96a383-91e2-4c79-8862-a70218a9436a","block_type":"box","text":"Redeem by VRU:","page_number":154,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"6cf0f208-9506-4255-a2cd-6c92adafa3ec","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":154,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"6481a649-d904-44b3-889d-dd0c36487b67","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":154,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"9fee3898-d499-4460-8112-9877957f3516","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":154,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"1705bd44-81db-4a98-838c-6be21d47ec17","block_type":"box","text":"Redeem by Internet:","page_number":154,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"078f74b9-2548-454c-8efc-f1602f38de41","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":154,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"0620e75f-b17d-4057-8d4e-6c74397511fd","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":154,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"f491b51f-ccff-43c4-ba80-148ce30d2865","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":154,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"27323757-f300-4584-a448-c9c08916ebb7","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":154,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"9d9023dd-cca0-4569-a009-935318c265ab","block_type":"box","text":"institutional investors.","page_number":154,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"46c5f5df-a5f4-422e-a948-573658467c77","block_type":"box","text":"Redeem in Writing:","page_number":154,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"0dd541c5-bfcb-4147-9b17-72751aa336b7","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":154,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"bf48a219-9762-46ee-b407-62fdb38a93db","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":154,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"afda12d7-77c1-4588-87df-1ce25ccd386c","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":154,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"443eb2d8-550f-4de5-ba67-f4d8506f3c07","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":154,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"79bdbd67-c72c-4f0e-89d1-9d6e5530d912","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":154,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"6adccd11-cf92-46a3-9d98-af9123357a99","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":154,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"04db9117-64f1-4cb9-bc9d-2052cf2dc924","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":154,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"cbeef482-05c0-4e84-88e4-da0e833edc7b","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":154,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"406999bb-9b31-4976-a1fa-2a6cbc41e3bc","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":154,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"5696c4a0-d832-4bda-8b47-3b73f96639f7","block_type":"box","text":"or wire to the bank account of record.","page_number":154,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"77e3a24c-de8a-45de-81f5-5f58bf5b2378","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":154,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"4c1d3d1d-4855-4b6d-bb8b-d2acec796060","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":154,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"3b34254d-64e5-4481-bafd-582b5b5849f6","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":154,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"8c6e778b-d547-458d-950b-855dcdb6e879","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":154,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"7c06d809-0c20-4ea9-911d-516e17711a75","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":154,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"c5ea6b1c-5b77-4e0e-9337-b2ccfa04aaf1","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":154,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"7fde6122-28ba-4398-912f-4679cba7929c","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":154,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"699a2481-e025-45bf-a90b-10569419dac8","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":154,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"3852ccdf-3e8b-43b4-baaa-0ccd40ada810","block_type":"box","text":"redeemed by the Fund.","page_number":154,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"b7094dd0-1169-4318-8557-ad3be1444ce1","block_type":"box","text":"Note on Low Balance Accounts.","page_number":154,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"2d828a16-f628-4b8e-bb8d-4316262cb54a","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":154,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"b3b41078-ffa8-4f79-94ff-46592af0f5b9","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":154,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"463b793c-b105-4347-9928-947a7a728945","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":154,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"3f428407-ae09-4884-b366-8872816948ed","block_type":"box","text":"for any reason, including market fluctuation.","page_number":154,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"43e5f3ba-f74b-453a-a9f4-d3d78cf0e66f","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":154,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"5a824346-5495-493f-871a-a720dfdf20cf","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":154,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"72df020f-60d8-4292-9d32-fa8906901fe7","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":154,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"4f390cfe-b750-4993-9b49-582e12c2280c","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":154,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"57625932-222d-4882-83f2-67bdc07748cd","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":154,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"c1e2799b-ca5f-4037-b5d1-c7bb404440c8","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":154,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"5855d567-2baa-49f0-aa81-c2eda64e6f1b","block_type":"box","text":"Redemptions in Kind:","page_number":154,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"24cf4c59-5549-4c9a-b8db-1c2b810eb467","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":154,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"d3dbb228-9e4d-41ae-bccb-267892046ec8","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":154,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"b4f17257-b363-4421-950b-6fe2c6a92226","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":154,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"ea6e869f-74a0-42d2-a007-048d59d1239b","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":154,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"c2ed30df-8b8e-490b-afc2-75074401209a","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":154,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"db7b3f89-fd9d-4d07-b834-866c7f7f7bcb","block_type":"box","text":"II-116","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0fe38c31-455c-4ebb-9175-3d0e9e405c4b","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f9a255d6-2b3c-4116-932f-6f55a5a2ac50","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":155,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"f0493198-f704-4a59-a606-3c6ae67f920b","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":155,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"4ba6d629-7b0e-46a2-a96a-5a71d00be937","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":155,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"92899996-d7a9-4666-aa4e-933383806119","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":155,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"564d5672-4c2f-4980-ab7a-542c1e84bfc0","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":155,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"3749f610-2790-405b-8758-1a83c685a502","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":155,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"e8067455-3040-4ab2-945d-1b4b674c32e6","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":155,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"aa61620d-1c8c-429e-8dae-9dd5769dc3c6","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":155,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"a6533329-631f-4608-a700-6a95cfd811b1","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":155,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"9151f687-e34e-4412-8431-3b14e3d83873","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":155,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"36c09657-d6e3-46b0-9ae6-a6c0ef68483a","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":155,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"b0c99b93-3c99-49dc-873e-4381bf5fb30e","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":155,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"f546f543-0b5c-478a-83e3-02d147b59538","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":155,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"59724c4b-b545-4c4c-b5fc-4463c36e92d1","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":155,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"f9a9def9-b18c-4914-be78-6b5217bb8fc0","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":155,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"acb980fc-b93e-440a-96b4-f228b194fdef","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":155,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"2b61e72c-9d85-4498-8507-cbee16af1b0a","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":155,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"92b35f54-b1e5-4878-8d38-aa0a4ff6ae67","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":155,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"e6867026-2fa9-4fa4-883b-b9bfe30c7231","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":155,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"84a73ecd-3500-44cc-af61-15846adcdfb7","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":155,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"a4e86970-b424-42d5-93cf-fd815fc39065","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":155,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"56f15731-84a4-41f5-bf23-82d03d3851e9","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":155,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"b46c6be9-9705-43e3-953d-832c1da1a745","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":155,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"f2bca212-5ec3-4cda-bdf8-139f971277b0","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":155,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"dc07a36e-d3f5-4275-a7e1-1a12797d31b4","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":155,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"b52eabe9-302a-4264-a533-f005b73cce97","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":155,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"b8a0969b-42e9-4baf-b193-109007d90f8d","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":155,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"5e1c9068-6e13-4521-a945-278cd2e13a3f","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":155,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"0de5f93f-f5a3-4928-ae29-9c0949c35f89","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":155,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"5d485fb3-5c17-49ac-aa81-7939930ff09d","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":155,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"374cd7da-4ff1-4617-8003-4482628e1553","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":155,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"c1421c1c-b28a-44d9-aedd-4d3d55fd1843","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":155,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"014ba6ef-5922-432a-a7ee-3da0d7eacdb5","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":155,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"c755c689-c490-44c2-a948-5c81e05cf7ff","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":155,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"cd53d53c-afdd-442a-9157-5bef0101da4d","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":155,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"c2ee8bc7-8d87-4147-90da-b9cc5c3e5fa3","block_type":"box","text":"Repurchase","page_number":155,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"e0bf1a33-861c-4a03-acc5-c2257f9a05d6","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":155,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"1f359977-45f0-4d02-929a-fac5078488ae","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":155,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"552acf7f-4edf-4a48-8176-28e26c81c3a8","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":155,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"c2a3ab0c-c1c6-47b6-8967-a81e1422a94f","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":155,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"71a6a697-c252-486b-b3d8-656ca317b6c4","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":155,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"cca03759-cc43-4fbb-8265-78816d73a818","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":155,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"71adb2e3-ddcc-4540-9a52-03d748838c3a","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":155,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"304d57b7-c9fa-4309-a581-50f76d0d6e0f","block_type":"box","text":"next business day.","page_number":155,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"eafde9f4-702a-446e-a89b-c46d16b37f4f","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":155,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"b02711e0-a347-46d6-91c7-ca37eaccd124","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":155,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"2951f508-fd52-4fff-ae51-446d67eac91b","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":155,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"b621060f-1258-4d1a-951e-784ea87389e5","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":155,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"d47985a4-8cf6-4e30-8d25-4d9922fd7dd4","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":155,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"1ec0320b-7fbe-45b5-a01f-b5a4c4158817","block_type":"box","text":"redeem shares as set out above.","page_number":155,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"d20a0ef7-d56c-4e3b-890d-3e995e8fb751","block_type":"box","text":"II-117","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"68104db7-185e-4154-86d6-8b7017b7cde6","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f0ed784-1233-4cf0-8af8-60ae8f569eb7","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":156,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"045536ef-d5e1-4ba8-92c6-1e5846103a4f","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":156,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"bcdfe652-a82b-4bc3-95e6-29e82a543e73","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":156,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"61425ece-cee0-4224-b78e-35c7ce03311e","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":156,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"4aa00a53-354e-4bf0-b805-05b6b52917df","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":156,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"2a516a02-2492-4973-b907-de0a3d686f92","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":156,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"7959e78e-aeef-4b8e-83ca-b642a91657b6","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":156,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"fb30dafd-05e5-403e-89af-ce2c910baace","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":156,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"a79eb71a-ec19-47f6-a330-b20b1ee1e290","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":156,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"d4e91d25-7f2d-4975-9ba4-c45eb0613a64","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":156,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"a4b0a175-d728-46ea-a8f5-56fbaf85a935","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":156,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"684ee1e2-12f0-47ba-a34d-75156900cdc2","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":156,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"1eb9ab48-287e-45c0-a380-acb7e9ebebe0","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":156,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"b70a3826-462b-4388-86fd-95c89eed5b1d","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":156,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"a7068fea-9ab8-48c4-b40c-d1cfe12d1d8e","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":156,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"85c9eb26-2d8b-4d8f-849a-8e23d6713d12","block_type":"box","text":"Investment Account","page_number":156,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"bf89e91c-f9da-4229-8bcd-a6b57e544986","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":156,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"04579297-fc49-47f8-8dda-8fd4bf262d3e","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":156,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"ae4b6089-c9a1-4130-b514-22dd2e03e7f3","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":156,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"980f2e2f-7da6-4e8f-b37e-abec6f2a6fd4","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":156,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"d8ae3b9b-54c2-4bc8-86bf-8abd001b6318","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":156,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"52f8acbb-74f8-4657-9c32-b2f250871c7d","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":156,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"3272f0cc-f51e-4f96-9745-299f2bf1d840","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":156,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"823bf1e3-ce0e-4148-ad32-5c9ab5169b02","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":156,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"c3e5f3e9-8f3c-44df-89b6-91eba0f05be0","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":156,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"2c3f7236-62a3-49b4-9ed6-c26c41bdf699","block_type":"box","text":"automatically at the Transfer Agent.","page_number":156,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"fdf9e16c-643d-4093-a26a-7cfb18999460","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":156,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"95e19ca2-b2b1-475c-bfd6-c38cc4300da5","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":156,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"e139eb13-c956-4a18-b376-12389f05ceae","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":156,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"cc797067-3e28-45c8-baf9-b500eb7a28a6","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":156,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"b07148d0-990c-4805-affe-624cfaa95d35","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":156,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"9f88aaa4-83e8-4c1d-9367-11a96dc26971","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":156,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"dc099446-0452-4345-9a61-57b9f7f15264","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":156,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"3fc13861-de94-48f9-b8b2-f897c4ef14fb","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":156,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"9ba4f9a5-941c-42cf-ace0-367c70d4cd41","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":156,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"c86b63ef-cc63-4e4c-9a3e-a576728a77e0","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":156,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"de76bf4b-cf84-4cf8-8a57-2b7a8d6f20b3","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":156,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"7be6deee-2caf-488c-b1e4-e593cf9c2aad","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":156,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"48df38fe-d283-450f-ab62-5eb6958526f2","block_type":"box","text":"issued.","page_number":156,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"42ee209e-4a29-463b-81a8-16b5d9032ef7","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":156,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"708bc925-9afe-426e-bec1-97f45d0b5c0c","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":156,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"866357a8-6fd8-492c-b9a8-6ee2ce7a8ae4","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":156,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"2a3f2bd8-68fa-4769-8b79-6e25c3ba4338","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":156,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"4c97add4-f78b-4c3d-88fd-3dcfdd3011fe","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":156,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"b429e0db-0a3f-41b5-bd16-4652fb5b1df9","block_type":"box","text":"Exchange Privilege","page_number":156,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"200f98b3-e1ce-4da6-90e3-78fbefc91319","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":156,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"18f42017-940e-4b5d-b881-2edf833b7f45","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":156,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"425a6a7d-a726-4dfa-8f41-0b0bf2c334da","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":156,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"6a8a360f-4b50-49f6-b87e-093831d20ed8","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":156,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"cc0caa39-dee2-4af3-b11d-92ca73f61515","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":156,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"a3c30cde-e951-4588-bdea-3260fb944351","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":156,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"c8c30f74-6bcc-4947-894c-e654369607aa","block_type":"box","text":"II-118","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e594f449-4f5d-4b33-a16a-e021f58e060d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"260a1dda-5afb-4a48-a144-4024d85d025a","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":157,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"794e090f-d1fb-4557-bcff-abc57f29e3ab","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":157,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"4e169335-14b7-4780-a1ca-9a1a18af6fcd","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":157,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"ed0143a3-fbba-47f6-a95a-626379a74a33","block_type":"box","text":"Institutional Shares","page_number":157,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"6a5db5d4-aeec-45c1-b5e4-298f67a07e65","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":157,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"8fe892c2-fbed-450a-932e-64c498cd60c2","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":157,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"27953087-0940-4a4f-933e-835198189933","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":157,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"fa14b554-3023-4f20-8cba-f00efdde8d9a","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":157,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"fdb2f9c1-125b-44bb-a86f-345f7e36e080","block_type":"box","text":"for Class G Shares of other Funds.","page_number":157,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"3a2a99ab-31e6-4f97-8aed-cab0eafe9a9f","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":157,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"bc743abc-514b-4aeb-8938-9f0d71643736","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":157,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"1f3622d4-c7c3-4a20-aee0-f4498059c2e7","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":157,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"eb14b618-f110-4d41-b98a-dfe82ddcf254","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":157,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"efd56176-ca57-440e-932e-8393ef541cb8","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":157,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"5af8ef6a-acfb-421d-a632-e39b1f93adfc","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":157,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"7e6ea215-c10a-4472-a2f3-2042571ff938","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":157,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"a595ac12-a5c5-4ed8-a7ae-b11907edf4a5","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":157,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"f5798ee8-8e75-401d-aba3-6090b349314c","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":157,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"d527c88e-8af1-4aa9-a04c-a72177708050","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":157,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"821dc583-f9a3-4c7f-8545-1274a65b79ca","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":157,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"8bd5e9f6-aaf5-413d-8f6c-a100c88acfd8","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":157,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"3191358c-b7eb-4045-901c-3f1e355b1cb8","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":157,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"b808ba5e-d94c-439a-aa62-f022354ee7b7","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":157,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"acee3e2b-b807-4843-9dbc-6fce408a4362","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":157,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"0af2dd67-5f82-43c7-b7b3-db53905a0b20","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":157,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"3379939d-6646-4ea8-8d01-6e62f7b7f3f7","block_type":"box","text":"Exchanges of Service Shares.","page_number":157,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"7823a2cf-ff26-4231-80de-d5c58d7ff9b8","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":157,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"f1ff2463-0692-4902-a1f0-b1f7a2a6a59f","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":157,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"ef6e4039-2857-4d98-9dff-de6bdb20bed2","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":157,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"73194700-6f27-4843-a8d8-255451b8843e","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":157,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"3892f9eb-a302-4c88-9e65-c0e79b315c83","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":157,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"9b72a2f1-714c-4d58-a78a-d421393601b8","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":157,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"21d8cb44-ed8c-4547-87e4-a7b37b00094d","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":157,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"3dbcbc7a-e393-4c88-8afa-65a9cc128cc8","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":157,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"69a4dc74-3c1b-45be-a54d-857e63fdbe13","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":157,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"5d74afc4-a3ba-4cc5-b392-7f88b0254582","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":157,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"0cabf533-7be9-44b2-8dff-a9e491e57d9b","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":157,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"7fe89c28-cc8e-4be1-a030-9cbbd2751fed","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":157,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"690d66ed-bf88-486c-91e5-171cc70391d0","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":157,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"621e1369-593c-428b-bc08-679d5a52077a","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":157,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"fcaf6202-52c6-479b-ba66-3b6af12cebab","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":157,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"5c8a9fff-0131-458e-b3f2-c11810f32618","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":157,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"deec1430-64bb-4155-939b-5ef75b354cb4","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":157,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"c42c532f-c4dc-4d9d-99a0-be3baedd0b08","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":157,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"0917bd30-c14c-434a-93e1-ba6be0b493c4","block_type":"box","text":"exchange.","page_number":157,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"f2c841bc-54c1-4d29-9723-3d5239c61638","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":157,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"7b910854-2f5d-4179-a6cf-e880bd4db0f8","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":157,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"9707ff75-3785-4292-8b72-a9cd0da0a028","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":157,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"bda46a50-2cfb-425e-aa7e-5be9175025a1","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":157,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"c8a5eb5e-dd8e-462d-a72b-fc88c09730ce","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":157,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"9ac8543f-453e-4f03-b8ee-155e3f23c081","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":157,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"97b67387-7861-4555-b23e-cdf9702e53f9","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":157,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"56c29c4d-1aff-47fe-b7eb-1125df08944a","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":157,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"82cf6436-7976-44be-8a4b-5dfbae41d1f1","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":157,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"714e0133-80a5-4b33-96ab-919fc57fc130","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":157,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"ca5441c5-2af0-4848-a5e9-3488d6d4bc0d","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":157,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"113c8770-6ab6-4e77-96af-51eefc20de48","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":157,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"9a406499-dedd-461d-a8ea-95169aefde89","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":157,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"53d10f3b-eac9-4be5-af16-2f590a74120d","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":157,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"664f39cd-b10b-4a41-9522-38ad16bd2ef8","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"7361189a-6661-4f3b-a568-493e9d1b9dd5","block_type":"box","text":"II-119","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"72c43768-b95f-4dfd-9ccd-8b36ddc7756d","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"adc65b0f-08f3-402b-ae64-16a5f94afc88","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":158,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"de763342-eea6-454e-807d-cf3bf352e8cd","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":158,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"824fe05f-e41e-4649-93a0-215c854cdb05","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":158,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"038a0360-5f6d-48c7-9618-a344d907e906","block_type":"box","text":"Transfer Agent in writing.","page_number":158,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"a383a0f3-f81c-43d4-8c1e-6526c426adf6","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"7808045e-e300-4cd2-8a10-2725a4472dba","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":158,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"9e0e8aba-8d35-47f9-bded-56e7b54348d1","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":158,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"4db481db-9e29-4cc6-9a63-67a0881a3c7c","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":158,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"651fff0d-2ab4-4f55-ba5a-b561ccdf3314","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":158,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"75a7aed2-d44b-4c8b-8d38-959f17285049","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":158,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"cc3ab945-e79a-483c-9766-944f1d45fb9c","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":158,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"308c4d08-2282-455d-a78e-e57bd8132e24","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":158,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"5b99f25b-0840-439b-9849-0983a342c7f5","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":158,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"7873dc68-af82-4080-8eeb-cdf03efc11c8","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":158,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"05a5750b-3122-4503-a2b5-9854df4be441","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":158,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"fa279c92-424d-4265-b45f-12ff17e9ab30","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":158,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"d2bededc-a534-490a-9b89-135508dc13dd","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":158,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"e2ee062d-8c37-486b-a49e-306a0ccacce4","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":158,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"ecf27aa6-8098-4752-a65c-59722f2d3494","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":158,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"f669cb86-a1bb-471f-ad15-1d08de412e27","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":158,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"ac21139b-0b84-43ba-a3a1-dd25050117a8","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":158,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"5a60bd53-af87-43ba-99e9-882e5255797f","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":158,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"92c000af-2614-4b3c-a755-fe2966a4bea4","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":158,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"1cb645be-91aa-43e1-b52f-eef0fa1961dd","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":158,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"e92aa874-5475-4087-93ac-a8431ef14e3e","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":158,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"6c9842ba-57fb-4817-bd53-83a71798cc40","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":158,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"705563b9-8154-43e8-9029-06ade3d95262","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":158,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"46531fa0-5d16-4fc3-95fe-ccbd55e7f25c","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":158,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"d90a8ccf-0a0f-4f4a-a075-83ac4dfd90d7","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":158,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"21eda03c-f83a-4117-b01c-862a4c512444","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":158,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"18710518-ab05-4fd2-b797-9e8a2cd43269","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":158,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"8f3e750e-c903-40cb-b498-89dba80d5e0f","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":158,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"f6e5ab64-3b5f-4df8-9657-877c48e18b23","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":158,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"b5e629d2-f11c-49a7-ba20-1984c9527666","block_type":"box","text":"may be distributed by the Distributor.","page_number":158,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"d8b37490-4042-4e6c-981c-8eba68d27c50","block_type":"box","text":"Participation in Fee-Based Programs","page_number":158,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"bebc76d9-ada6-4e04-ab4f-5edf5a39e152","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":158,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"b5f87afb-4786-4606-aec6-aa52ce543931","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":158,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"ee4c6f17-ae76-4c20-b2c5-4d4b12439dea","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":158,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"f9382241-3f40-4a27-9500-08a618c1a5ff","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":158,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"0a21041f-8255-4e36-a2ac-42eb444c14cc","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":158,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"2d781094-d77a-4fd1-9079-6b15366b7792","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":158,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"f15f22b3-a81a-4c4e-a3b1-16a85555d6a5","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":158,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"2da5f5c0-bdbf-44d2-a565-4bfdeed85ce1","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":158,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"5f65338c-6f0b-4efa-b1b7-15ec610ee7d3","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":158,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"08fe96cd-0ae8-4998-9654-cafce6786895","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":158,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"c376e48f-afe3-4d2d-a334-2d8bc5c38f53","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":158,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"4db477e1-aef4-4a92-bce1-fde3e75afdb3","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":158,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"70dcf954-9819-4f20-b3f0-cf8bd48890d0","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":158,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"045c0e46-82d2-4c42-9ac9-5a4f569dd1d3","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":158,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"e38600c7-d78b-468f-ae3c-a921b21fbb2b","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":158,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"46fcd877-2a07-4200-a538-e4f03d41c61a","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":158,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"0bfc698a-616a-4c4f-9297-898dcdc486f3","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":158,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"d0d1f2fd-2811-4d61-930e-7affa41ba2e4","block_type":"box","text":"II-120","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d89b7320-df61-4db7-b249-4be2f497170c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e9f1c9f-83cb-4594-bc1c-74ce95ac497d","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":159,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"63ff157d-91fa-48c0-9dd8-c71b1275bdc9","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":159,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"7d032b4c-aefe-4f35-80b0-e67358ae6ee5","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":159,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"6a7d1928-d94a-45b2-b69c-694a6ea29daa","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":159,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"dc41dfa7-82a9-4068-840a-88cc1097e293","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":159,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"3be7506a-d158-4e2e-b5f7-dde215a24db2","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":159,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"9bc0a038-d5c5-4af8-b1e0-bee2376a1453","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":159,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"8f5162ac-f618-475d-a1d6-d119d584095f","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":159,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"24b2fb5d-51e8-413b-ac94-630b5f226bb2","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":159,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"a4535cc9-dfd9-47a5-b38f-2128d28a1430","block_type":"box","text":"information.","page_number":159,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"05984bca-bee8-4ee6-be55-edca4a6005b7","block_type":"box","text":"Retirement and Education Savings Plans","page_number":159,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"298c9f96-29fe-4e59-98e8-1fed2d87b150","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":159,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"b6eb855b-a961-4bbd-8b37-ced1e53fdd03","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":159,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"43360981-1070-4b25-a633-4232ac55f532","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":159,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"889f3091-d641-49dd-b958-fcfb71c70638","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":159,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d3a86618-ed8c-400c-bda9-e77deccec6c8","block_type":"box","text":"your financial intermediary.","page_number":159,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"68499d48-d1e2-40a6-9ffc-f6b78a3e64be","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":159,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"3b9067f8-b196-4ece-bd3e-d1339c5d21eb","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":159,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"78390533-9fcf-4cdd-b17a-dc1588fab0f6","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":159,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"b54f6256-2671-4b42-960a-cd395b24862b","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":159,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"308f2632-e157-4890-beae-c4e051260229","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":159,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"32726417-fc33-4b92-9386-347839610f6e","block_type":"box","text":"Automatic Investment Plans","page_number":159,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"d0585552-913c-40ce-a2e2-236f122970e7","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":159,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"370594c2-c756-4a6a-830a-99bd7908653e","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":159,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"7e43bc40-fa5b-4a3d-a83a-2b54db559d11","block_type":"box","text":"®","page_number":159,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"1dc85b43-f9f8-4baf-aeaa-8c53d542915d","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":159,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"f4618b17-5edf-4b2d-b3d0-64748b0659a4","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":159,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"1feea0ba-ac51-4dde-bb8c-0c4c5c7d8357","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":159,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"22998221-f5b2-4809-b6dd-f781a5caf8cc","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":159,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"09189107-2a78-46c6-8394-250b87c30b13","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":159,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"d2d64eeb-69f5-4220-9402-e087f7498a18","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":159,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"5acec932-2beb-4c06-8765-1afcbce953ee","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":159,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"b7d1d6a3-bb73-4fcc-9054-fee46540984d","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":159,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"a4a1808d-ea67-402f-b172-138b8e445442","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":159,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"91adb46e-1648-43bf-8d78-cb962c7a97e7","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":159,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"288449ea-1d37-4d2e-ae43-d99a0152cad9","block_type":"box","text":"Systematic Withdrawal Plans","page_number":159,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"5f009c63-131a-45f6-ab2a-868a3576732e","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":159,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"0c8edaad-373c-4190-9f2d-42f97a59ae3f","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":159,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"a2b84b9c-abc9-496c-87cc-0cb9f4ae54b9","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":159,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"a0f1ed45-de38-43e8-b347-7bd31ad3728a","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":159,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"19a1b310-2cf8-4fc5-82f3-c82a5c8a3113","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":159,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"b75c8684-6f87-4103-a367-e38067354db3","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":159,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"4251351c-eb86-4015-a3c9-7a3f68f2f3f9","block_type":"box","text":"www.blackrock.com.","page_number":159,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"50dd4ed8-55dd-4e72-9d03-f05d30de3cce","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":159,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"29782013-ab93-4e4a-b1c7-45cc7be30482","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":159,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"ea12c84c-e4b6-406e-a628-a715881df0f0","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":159,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"9b3f93dc-453f-42ca-9d47-ce245a771754","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":159,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"8e98755a-ec51-494e-975a-e21ac3f82cb6","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":159,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"e1db1aea-57af-4e5f-a425-c55112dbc627","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":159,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"ffc2968d-8e14-4dd1-b1a7-0fb50c1715cb","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":159,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"ad6ad6dc-ad0c-4b50-aeda-a211bdb0703f","block_type":"box","text":"II-121","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f22263bc-77e8-423d-81f2-c3193af7da1e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76501684-ad8d-4218-a957-6f5cc95b6ff9","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":160,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"431ed57c-1a49-41d9-9932-2df8ba541d82","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":160,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"194cdc7f-2c16-4160-90bc-91638561211d","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":160,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"0dabef55-e951-4837-b65d-e512ca1f0a8d","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":160,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"972ad30e-6913-4cee-bbe4-8b2cac20c41d","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":160,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"29d6a395-8b22-47d5-9599-8f94730b362b","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":160,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"692d56e1-77da-42c8-a48f-7e221dfe8dec","block_type":"box","text":"Dividend Allocation Plan","page_number":160,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"118db6b3-bff6-4995-8aa2-8786e5256534","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":160,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"64d217ea-0f03-462f-9b91-42071ec0ef52","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":160,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"f9f05b5a-25c0-48f7-8800-e09248868f5c","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":160,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"ee4a2e24-be13-48b5-8ecc-d483a5e02a7f","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":160,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"8abe9648-41ca-4334-89ca-4c2ea2d51ea6","block_type":"box","text":"PRICING OF SHARES","page_number":160,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"327e28d1-9d4c-438a-b8d3-e84e6f5f2dd2","block_type":"box","text":"Determination of Net Asset Value","page_number":160,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"39e83ff6-426b-41e0-accb-ca023bb35cc2","block_type":"box","text":"Valuation of Shares.","page_number":160,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"a129b0f8-b1dc-44d8-a9c7-aa49d5f5b034","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":160,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"8d39fd02-8d4e-439c-886c-e8de51c8e83b","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":160,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"2f91951b-470a-44f2-9cfc-339748ab3bbb","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":160,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"eebdd3c9-18a5-4f9e-87bb-bdd0e565190f","block_type":"box","text":"Equity Investments.","page_number":160,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"5fc4d104-a78c-40fd-8c0b-f2839c8556a9","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":160,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"42d9448b-7b8f-4dd5-b0df-5634d2fbef70","block_type":"box","text":"e.g.","page_number":160,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"6a987f77-b0b0-45f5-8d12-2653433849b1","block_type":"box","text":", NYSE), on separate","page_number":160,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"3c6228e7-4f3c-4321-9ae4-7b0792013d55","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":160,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"aad95c4e-4521-4987-9ef7-1cb1364b8032","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":160,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"8de59b32-9490-4601-b4df-60a848750fe8","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":160,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"ce7703e1-4fd2-41a7-82c0-a2577d773392","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":160,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"36d89975-fac1-482d-9c19-c41f58931c6a","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":160,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"01944368-1505-446d-a728-ef674c5c1d99","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":160,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"2a48fccb-c986-4ce4-85ca-f3572d81cdd5","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":160,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"7952d9da-74ee-4efc-9267-9712fc42bd04","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":160,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"13038733-18f9-4a23-9b48-4839f9be198c","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":160,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"b68c104c-88e6-4c83-b426-c8db7768c0af","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":160,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"33308366-6074-462d-9fe8-fb10d82e9120","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":160,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"8baa3796-2a7a-4e3f-9914-689d73ebc2a9","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":160,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"fdabb80b-457e-4934-b606-5fcd4a2c265f","block_type":"box","text":"defined below).","page_number":160,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"c51beb37-5965-4fbe-8203-3ddf635da26a","block_type":"box","text":"Fixed-Income Investments.","page_number":160,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"41c8da9b-57ad-40e7-95c1-4079fcbc7916","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":160,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"f345d72e-6c80-4c82-9a28-f17c364567a2","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":160,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"0ebdc3bc-a659-4d11-aca0-a7032c160cda","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":160,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"1fe805fa-160b-452e-bfb9-dea4672bd407","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":160,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"670cc3ec-cf21-446d-a2e9-086dcba57289","block_type":"box","text":"e.g.","page_number":160,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"5e69aab5-aa86-4913-9553-2218d850509f","block_type":"box","text":", recent representative bids and offers), credit","page_number":160,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"9deecebd-86d3-4584-817b-53160181406b","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":160,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"443a405c-8b8c-45db-af51-7e58dc5aca46","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":160,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"7c3c88e6-7f9d-4ff9-a4dd-a079db213b40","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":160,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"5cc7a3a6-1fa9-4186-be92-f59c2f621f3f","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":160,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"ee8b4d4a-4903-4cdc-b78d-96fa12bc3721","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":160,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"2f162d05-afbe-4607-82b8-b33e0f8d996a","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":160,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"2405a74e-f076-4aac-abe7-1077f6ab2acc","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":160,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"d8ace710-8177-456d-addb-4d9e848ebd12","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":160,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"59a00174-e072-4c02-9e6c-576ba1d1e56a","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":160,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"93c03064-06fa-41c5-86b0-3734a9c39199","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":160,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"6bf70ba4-7098-41b9-b722-135ee7db8fb6","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":160,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"a2d577e6-ba70-47f7-9b76-80f031ddab87","block_type":"box","text":"attributes of the tranche.","page_number":160,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"509bec14-184f-4606-aa98-835b21cea87b","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":160,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"53b64a12-8084-4236-9df8-0f132673974d","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":160,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"fd736a2c-fdf8-4b5a-b287-80a0ae4dbed2","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":160,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"656dd37b-ba5f-40dc-8987-7ddae776d6c1","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":160,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"26770436-beac-4881-b729-e5627ed8ac45","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":160,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"5a2f2411-b94e-4023-91a5-e20df918d118","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":160,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"14bb0608-c566-4d0d-bb72-f162a43e3d5e","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":160,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"ff459560-7f48-4998-a6c6-7f1af20b002c","block_type":"box","text":"II-122","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"be0604ae-d27c-4b5b-954b-63f93ecfca82","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5265492a-71ca-4463-b624-ff611a35fd92","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":161,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"2e717426-e1e8-407f-944f-ed2d4babb1dd","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":161,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"08d2bb69-2cd3-4023-9d2a-c5c8bad71b7b","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":161,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"6c17c17a-0f59-4530-b8c4-e4adf9479b49","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":161,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"d34e395e-428c-4aa6-b7c5-575e6398130c","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":161,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"372a2149-2d75-4575-ad8a-dead8236aa71","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":161,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"5e87e466-1d96-4e58-b9ef-9ea11194d7a2","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":161,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"512500be-8f5a-4114-9c87-21915278d688","block_type":"box","text":"Underlying Funds.","page_number":161,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"2bcb52c7-8f0c-434d-95a7-34a2805bc929","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":161,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"5c3af184-2df5-4557-b6b7-9a39f07edfd2","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":161,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"9ed34314-4516-49e1-8004-8e21f5eb748e","block_type":"box","text":"at their most recent closing price.","page_number":161,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"d135329b-49b8-4885-9e3e-19a1bd08815a","block_type":"box","text":"General Valuation Information.","page_number":161,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"173ef2b1-2a30-4b7b-a784-5cdcbfc62649","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":161,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"5ba440eb-7895-44ba-803d-be0b98eb03b3","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":161,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"474210b6-49e6-4069-b5e3-ec1da11217c9","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":161,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"63a9996c-3c7f-4977-be7d-03b3a49dba39","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":161,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"774d18da-e780-4749-9641-a8146fdfb24e","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":161,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"14753653-cb83-4485-ac97-24dd3d832a4c","block_type":"box","text":"the revision.","page_number":161,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"479ede02-f2e7-4bb8-bf47-51746dac7902","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":161,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"3ee42911-db9e-409c-a08d-fef4bd9f9747","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":161,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"b2ab5bd2-1a4f-4fbc-a4ed-bbb7c2f41cc6","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"953a83d3-01b3-4a94-9aec-bdd8ca03cc81","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":161,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"92ef2b63-618a-4c90-9656-e53d35c35d67","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":161,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"860f2702-f765-407c-81fd-ab8004fc0773","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":161,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"fae30aea-73ed-43dc-90bc-a0b8866635aa","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":161,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"4cf5c7e5-212e-4f2a-a7be-cc72503fbcb2","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":161,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"a50bd87b-6a0e-4d17-8cea-14295e29a34a","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":161,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"f0acd400-194c-45c2-b664-303a461c1ed3","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":161,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"10f30130-176f-42bf-9811-55e68381d4ab","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":161,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"21d79140-bfab-40b5-9e5a-0cec91a53395","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":161,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"e5066b59-80f4-4cfb-8bcc-cf5a6e9fe21c","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":161,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"1d68f8fa-f31a-4bc4-867c-c4404678dc28","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":161,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"59954aa0-71a7-4853-9d4c-6d71e4c86ef2","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":161,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"c4394f14-7312-4ba3-9e64-c4aa0d5a0192","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":161,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"7f7a8c7a-6b52-4474-a2a3-1d553544fc83","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":161,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"3410d7f4-b8ee-4b56-96c8-4894656ec288","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":161,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"809aab7a-de19-41e6-83e9-0c7dbfbe236c","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":161,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"6477f64d-3017-402a-a5ee-2598f9269ce7","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":161,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"d1167ab7-b83f-4c42-811c-b1b445f3c0a9","block_type":"box","text":"Fair Value.","page_number":161,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"82f4629b-9bde-45f1-ac45-5b0abdbec98f","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":161,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"1da939a0-3421-484a-ac00-a0dea443cff2","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":161,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"f174c676-8af6-4aef-a9f2-b48623f8cb0a","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":161,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"05673bdf-33d5-4a95-a757-4ec7993ed365","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":161,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"7213cfb5-f12a-4fdf-b8c4-58f786e12827","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":161,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"66d73b21-21e8-47c3-a2c6-e5161605b994","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":161,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"2cf323ce-4f65-47c9-848f-0e437638ef8e","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":161,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"6234aa02-69c6-4e0b-9939-28006e5b4eae","block_type":"box","text":"(","page_number":161,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"7038dd03-a4e0-4a1f-b1aa-577ccdb23c57","block_type":"box","text":"e.g.","page_number":161,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"cd931a3a-35be-48ae-9e69-2ca9017587fc","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":161,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"e6495532-08b2-4c66-8251-9d6f9de0d0fd","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":161,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"46fa9d15-4a3c-4989-8d10-717c87d82d83","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":161,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"9345187b-b1c8-4922-89a3-781d184163d5","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":161,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"6096358f-c088-41bc-9459-6ff508404ea6","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":161,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"521a2129-8be4-4d47-9ae5-f1d99ffc1c3b","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":161,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"1a42c1b7-ac0f-4144-8d29-9f8de0c196b4","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":161,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"60274886-c243-4ef8-8ef4-890ee4989e0e","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":161,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"588c923e-4926-468c-afbd-aa2292d62b79","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":161,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"43ea74b3-bb9d-4249-a768-98436984d6f8","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":161,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"07dcc3ca-14a7-4007-a675-5b7d1d093ffe","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":161,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"9b828658-e2a2-4fae-b816-0daf6ad1fe28","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":161,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"87570356-7d92-443f-aa6c-196d5c6e3c55","block_type":"box","text":"II-123","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"097f0372-61fe-4d44-a7ef-2e7dd2d2c9bf","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b947b3b2-3d19-4526-9e4c-f151f1b89bf2","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":162,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"8492d718-713d-4994-af66-28a6e6a6be30","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":162,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"b82e3251-f2b4-464c-b8e3-c5e415f641e3","block_type":"box","text":"pricing time.","page_number":162,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"c38f3410-af34-47b5-9a30-7b79c9e51bfa","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":162,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"c5149a7b-d327-4d89-b1f1-2355704a4ca7","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":162,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"bf1ee450-4814-4876-abd1-3546c1992e2f","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":162,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"c4e57a63-1887-4398-b9a4-db1a6364c376","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":162,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"2e725d28-9d93-49d8-af78-a5407f766a89","block_type":"box","text":"assets and liabilities of the Funds.","page_number":162,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"6d1c87dd-0978-4fb7-959d-cd3222b62597","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":162,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"f99f9ce6-35ce-41c2-b0fc-688b4cfc5360","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":162,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"69267f4d-96ef-4afe-8fb1-5ad5524a162d","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":162,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"f84730f4-d9ab-4106-bae4-7c05238f2727","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":162,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"4023b352-278e-4364-871a-626600bbc057","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":162,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"172a1b9d-1530-43a7-879f-b27879b83f6d","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":162,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"cc22f163-d424-4424-aa9b-297ebaac3b7c","block_type":"box","text":"valuation models.","page_number":162,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"91cbed72-81f5-47b8-8393-89e332aed472","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":162,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"da2e17d4-6e4c-473e-a414-dc1b898790db","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":162,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"592d07b6-4dfb-4ecc-b3d2-8e55989ff6c2","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":162,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"2949c331-1491-46ee-978a-2a9fe00a0056","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":162,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"97921264-b393-49df-83d3-3edf3f54dbe8","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":162,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"4ffd46c3-1011-4d13-bcf8-0d005df60308","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":162,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"eec9b389-48fc-4b3b-93f7-71f74500caf2","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":162,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"2bc58294-e184-4abd-a2f8-f5790ae7a105","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":162,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"b4bbef3d-c900-4556-bb5e-576906eb99d0","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":162,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"4f389a42-f569-41d9-b1c7-f40ca9127b51","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":162,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"0406720f-5bcc-490b-98aa-70d110b8ac64","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":162,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"9b872769-ea77-413f-bb61-856e78448a4f","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":162,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"0a4240d6-8cbd-4194-9279-bc3528acb848","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":162,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"297bd14b-9fad-4142-98b6-769daf63120d","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":162,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"6a39dbf4-6248-45f2-9ce5-1093bb1207da","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":162,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"924be3c8-eee4-44b4-92c5-d7c725b159e5","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":162,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"809ee6e1-aac5-4a01-ae72-25e32a040e05","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":162,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"3396cefa-5080-466e-a66f-15daa444bab2","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":162,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"f0c80543-d036-4874-bbef-f81bdbc6c16d","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":162,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"d44b4faf-a2a6-4b29-8eb8-0a659bee9572","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":162,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"34204a5b-8867-4813-926a-45ec0e1d1f86","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":162,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"e5b20f9b-20a7-48c8-bc3c-ec76e5f0d890","block_type":"box","text":"party determination of fair market value.","page_number":162,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"7390e8ab-8cfa-4265-b2d3-fdd0b58e1678","block_type":"box","text":"Computation of Offering Price Per Share","page_number":162,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"0416cc0b-8b4c-4aa9-ae6d-8846f3241bd7","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":162,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"b0be0585-3fc6-4c6c-b3e9-19e524582a91","block_type":"box","text":"the offering price for shares of your Fund.","page_number":162,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"87ddd6ca-2b41-4545-8549-388cea4f5487","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":162,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"833a19ce-0c4a-4903-aadc-c2fdf5527aaa","block_type":"box","text":"Transactions in Portfolio Securities","page_number":162,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"0e5ee469-ff61-4aba-b1f6-ef1691b16c00","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":162,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"29b7c834-0925-431b-81f9-85b4508407b2","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":162,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"d3807d16-3710-41f5-bbf2-9bb46c33c4b8","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":162,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"7d581e25-7e45-43f1-83da-834a87c07f8d","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":162,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"17e94bdc-f54a-4956-971f-0d0bbf7b6595","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":162,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"ced2e2f2-d74e-44e7-bc02-fc0ce5904bb1","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":162,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"82887ea2-fdd1-43d3-b645-95f02cee3a08","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":162,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"2019a221-a052-4296-9da7-9772c78c6044","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":162,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"ae69d0a9-1c8e-4b9d-ae4d-56f6062cccff","block_type":"box","text":"II-124","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ad5ad066-8d8f-40a3-973b-de6ef77de4cc","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db3f353a-ea86-4c4b-83a8-0d30fece1d18","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":163,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"6bbcc70c-48ae-49fa-9306-365a61880d93","block_type":"box","text":"reasonable in relation to the services provided.","page_number":163,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"6400fb21-b1bf-4077-9156-13a2b0f22d96","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":163,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"921358aa-62eb-4c80-9b65-b4261074c51a","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":163,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"d30e68ee-8946-45bb-b03a-4e1f46598808","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":163,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"b95a7781-5343-44fd-a9fd-7d06cbdb4b33","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":163,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"21b76364-d110-4c90-9741-080e4bdb2180","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":163,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"d02e39ba-20c8-4838-bed9-0f71dbaa20ec","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":163,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"f65a4a1e-f933-422a-a102-6682dad8e729","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":163,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"58f5ac4a-a8d0-485b-8fa0-c77856c0be29","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":163,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"a9baaa5c-8993-494b-a05d-57cdb6d86ad1","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":163,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"6b969436-6c79-4182-af6b-271f79f02d21","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":163,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"f39e9fc7-dea3-4225-87e6-2511688542ce","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":163,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"7cf39427-c789-4ec0-b71b-1c40c18f47f2","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":163,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"68a6935e-9fdc-404b-80ec-f60074f0fc82","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":163,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"e14a4a97-74e5-417d-bde8-cdbe57b56f6d","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":163,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"d4e0420f-a1bb-4c82-a1ad-b3c3077fc795","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":163,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"461b0645-b132-492f-b85d-82d3d110640f","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":163,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"d235585a-d333-4c75-b9c0-3227155bb937","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":163,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"0b9e14ff-2b38-4dee-a808-0b6bdf252474","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":163,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"54dea5b1-0dec-4b2f-ac83-1e14eef0de7d","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":163,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"e83f67b8-8aa1-4552-940a-247ed78a9d48","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":163,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"0f527c82-a5ac-4af0-8618-00156fc3fe19","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":163,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"7131a05e-13cf-4d7e-8372-92d21c8810d0","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":163,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"68fac734-9ced-4ca3-8d48-625e19d8a461","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":163,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"9e7e41df-77e9-4113-87ec-5c8201868b27","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":163,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"263a8b2c-cea2-4041-b9f3-8e3399041493","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":163,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"a3ceb138-1873-439a-a69d-fd20f9843424","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":163,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"71ba21b4-43c2-46e9-971f-74ac9e6ab437","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":163,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"1f8489ad-6b9f-417e-a0d8-2ae6530e122c","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":163,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"6b2e80dd-7785-4bfa-86ab-dfdf7cbeebee","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":163,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"b61e8eeb-ac04-4679-be41-f2851c408ccf","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":163,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"74ad758d-a3c5-4631-af3c-7b6c7bbbefce","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"03d8061f-15c1-4c34-800a-385177cf4320","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":163,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"a82ece17-0865-4607-a33b-a53b5231a85c","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":163,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"1f08d206-264a-4c02-b3de-870ae4f27d37","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":163,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"1a06bfdf-e400-4d8c-a41c-b2e8ac784ad5","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":163,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"129583b1-048c-4781-8d93-ba6801c32513","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":163,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"947362a6-a21a-439e-9062-c2f9551e36b9","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":163,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"5c6ab7d0-d8a6-49f1-a404-a7773ab77593","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":163,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"db8d4138-7503-421b-8c5b-20c57619ea52","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":163,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"0159c972-512e-4983-9299-61c8309f3deb","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":163,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"dffe1acc-1b4d-47fd-af03-a015fcaffcc4","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":163,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"aa596d33-bf6d-43f6-8573-79014fde667a","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":163,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"c4f8276f-b786-4f95-8b5e-7049152d38bd","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":163,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"3a3fc918-f6e9-4c8b-bfba-d831b5f9001a","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":163,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"93ba5cae-34f4-47f1-aae2-69b10d194f31","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":163,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"be29d475-5f21-4e8d-b1de-daf45facce0b","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":163,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"33c941ad-fa0d-4616-a77f-3b7e6063a0cc","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":163,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"bd7550f7-2736-473c-96ec-3ea16960a059","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":163,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"eb86d4d5-4d8a-4803-9032-ca08b9309018","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":163,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"fdb34967-9bdb-4a27-b26e-55d666d18d66","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":163,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"8f320921-adfd-4c2a-b8c3-07d42e324394","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":163,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"1d8fe1a5-8ab8-42de-99e1-15113467e937","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":163,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"a53a6903-ee4a-4546-8f51-afa3147267f8","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":163,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"de2f5a2b-da78-438e-ac80-ae6b6dbfd82c","block_type":"box","text":"II-125","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4f0283ae-b59b-4ced-95f8-0e44b486af01","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca3b4853-496c-4b42-adc3-655a6e3d5248","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":164,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"62773184-02c5-4db5-b025-fa9564b5e1e9","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":164,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"2e5fe70d-be19-4637-b7a4-7a79161ac77b","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":164,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"ce726ac8-7da2-4274-92e8-f9142bf1d316","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":164,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"61147eba-37ff-48c5-8c3b-f37bc6f2590a","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":164,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"63af4951-7215-4062-8431-67cd420bbfa6","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":164,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"24dc897c-3ff5-4e49-8878-807d31b6b03c","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":164,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"254c27a7-1b34-4a26-92e8-41526d34de3b","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":164,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"7ac9d770-9992-438c-b8b8-fed840576615","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":164,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"57827f7e-aff8-4605-b4fe-975f0e17e4f9","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":164,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"616a6272-30f2-49ae-be41-04099a747de9","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":164,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"d8b33d39-b17e-4b12-9a32-1ee3e102d0e4","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":164,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"fa139c69-a549-4262-b378-f769f029aabc","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":164,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"6582d9a7-1ebe-4dd9-b74d-65db98708020","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":164,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"fa99611a-da6e-4a9b-856c-50cf3077497e","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":164,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"e3e4e36c-b506-4be9-888a-06e2cdcd4131","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":164,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"181ec4c0-7ff6-4a90-bbc6-e735559a3552","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":164,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"2496c35c-b298-4023-98a4-c37f51f9c81c","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":164,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"bda76169-7737-49d6-8b01-6fb649425861","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":164,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"e1d7fc0a-bddc-4003-a093-be1f13f710c6","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":164,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"1206d302-f94c-4cc1-9159-1ff13cbfd787","block_type":"box","text":"brokerage.","page_number":164,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"f5e85517-925e-433f-b2eb-ef6d2721b62f","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":164,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"8e305aab-5005-48e1-b8ee-f61eec501f4e","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":164,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"889882ab-ca2e-4c81-831d-7dc1285f29ac","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":164,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"8145a207-bef6-4a81-ab81-fe4ef160bdaf","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":164,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"b103c27b-405c-4100-8185-d64b7760fb95","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":164,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"8bc67b85-079e-4243-b1e5-b3e4f2004c98","block_type":"box","text":"Section 28(e).","page_number":164,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"647a5d98-f7dd-44a8-926c-d841b950b388","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":164,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"a4b92244-f0d5-4d82-9f88-96856af928c0","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":164,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"f9a7cae3-9464-4feb-ad20-6c2227616e4e","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":164,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"8609cf8c-6f27-44ef-81ac-dec4bcdd9601","block_type":"box","text":"execute transactions for those mutual funds.","page_number":164,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"7904b07c-2ac0-4951-9791-b28b4cebe0f8","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":164,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"7ae9e163-2059-4f65-9392-07bc193e8ea5","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":164,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"32ec32e2-eb89-40d2-96b6-01cfb5f92c7d","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":164,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"515b00f1-4857-4550-a304-30ecbb1d6ef7","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":164,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"3dcb1014-c5d4-4c70-b51d-e64284bc486e","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":164,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"d31b8cd4-dfb3-48a5-8fe3-a776a40c3903","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":164,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"707b5ac3-4065-4a00-b59c-7b8d9521091c","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"fab09858-fb51-4920-ba17-202514d5d10b","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":164,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"f2cb388e-1490-4c48-8848-c01b9ab5580e","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":164,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"daaec54f-a4d4-450c-8149-e3ede8e9cce5","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":164,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"597a79a4-3cc4-49b0-8096-b8edfc543028","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":164,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"6253499b-8ac6-4d26-a5d3-7799c22d8e99","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":164,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"212f72f3-56d3-4cab-82e6-fd8af5bbcea2","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":164,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"870c873f-e10c-44e7-afab-93a565f21301","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":164,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"203c7da1-baa4-442f-a6fd-b90e26542caa","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":164,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"a8b5b3dd-2eff-43c2-80b5-bb925bbb58de","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":164,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"246cd700-cae7-4e85-a997-ea9cd3618681","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":164,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"c3830608-ecf7-44c3-8181-d3ae890ad0a0","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":164,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"1af80fd2-58a2-432b-ad9d-1d0c7507efb8","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":164,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"cfdfbdd1-00be-48bc-9a84-a397a039ebfa","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":164,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"81589731-a21b-4989-a2ce-288ccc397b21","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":164,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"0ae0efc7-e05c-41a5-b47c-b858a704efc0","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":164,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"ddcd0f84-815c-4756-aae2-acf419097337","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":164,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"0fff9a0f-acc7-4359-a9df-3a6271a59e2f","block_type":"box","text":"II-126","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4026b686-2e5e-4ac1-ac88-319afccf84cd","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ecc176df-392d-409f-bc4e-914e5a154023","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":165,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"7191516c-fccc-4817-8d14-d431ad7c3c9c","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":165,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"333002b9-6cae-4d5f-aaf7-1076ca823295","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":165,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"aa694869-5d53-4baf-a278-20be4b913431","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":165,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"5fd7e558-0c82-4624-aaf1-e75e3cbddc02","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":165,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"e6a321f4-c463-4730-bfeb-1c33a7d7f53e","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":165,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"8efdf14f-d89e-4499-9835-0946b3668f04","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":165,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"163e19d2-55fe-40b5-bab3-a679e5687198","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":165,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"0d879a5e-0287-43c1-917a-e43baff80950","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":165,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"23c41eb4-e072-487e-ae44-bfdb0dad8ac0","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":165,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"d25cc13c-8780-48a7-842e-12714487000c","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":165,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"8d6d9cbe-2348-459f-a9d1-3dacc9e195f8","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":165,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"b6d2c753-e446-4449-a3d8-c4857171598f","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":165,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"ccef896a-ce01-4c19-9072-0b4f7bdc8210","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":165,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"116e581d-5802-463d-9bc1-07e350cdac8c","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":165,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"8a28c69e-410c-4077-b89d-77e9785c4e35","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":165,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"cff2c5a9-57ce-4d7d-8a34-493d93f01702","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":165,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"7d0eb6c0-26ba-45c0-8aad-36165ccbe8f5","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":165,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"8ba143ac-f473-4ef4-b04f-1eb55b43de2a","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":165,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"4f46a7f2-db79-4812-8105-fdbe0dfcb6c3","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":165,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"0a566f0e-3ceb-4189-9e13-eebe9f0a091b","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":165,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"b6adf467-1ba5-409c-8aee-aa6ad20f42fb","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":165,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"89f7bbe7-5f99-4656-a743-76f6b2410224","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":165,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"b21f6bdd-b77b-42f3-9d09-b83d0e8bf946","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":165,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"2216c279-6642-4a32-9ded-2de70d3678fb","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":165,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"2de467e5-af65-48ab-a713-2ec58e6047e3","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":165,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"dbdbf4e4-0e6f-4aae-acaf-a03a41c16b6d","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":165,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"37e6b243-8715-4672-8ff4-ceba412b116c","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":165,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"e6b6e74c-bd35-47ab-a8a8-85f08b3db9e9","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":165,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"5ee95dcd-def5-4b1a-ad79-e1f285cde1d3","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":165,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"23d7b22c-9edb-4b65-a0df-437a5df84a5c","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":165,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"75163e8b-3049-4ea8-89a0-1427a33fe8b6","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":165,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"caab600d-6212-45d5-afc5-e367a73de3cb","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":165,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"a6c81caf-3f18-454c-a30f-7a50a9797dff","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":165,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"93301d67-4059-4bb4-bd3a-2bd21dbe979f","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":165,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"1aadb455-d4e2-4e37-8b12-185bb7d90131","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":165,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"35b480b4-31c2-4798-ad09-348d9d578711","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":165,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"85f3f06b-de86-403e-9538-c2864c83a068","block_type":"box","text":"accounts and compliance constraints.","page_number":165,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"2ee754c7-b36d-4e4a-b8fc-b92184b2f623","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":165,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"c535733f-b91b-46d7-a15d-12b9c7b4009c","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":165,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"5c2df204-3926-4cad-9fc3-80990567a131","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":165,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"5d78d2f1-dd1f-4a73-98b4-14a97748a1f0","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":165,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"80577b2b-0954-47e9-8662-38e48d6c00e7","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":165,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"d53d5a0c-b2a3-44f5-976e-77b7c68f8c36","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":165,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"4f452dd2-405f-4391-974a-9d2bfb4fef1c","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":165,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"66967376-cc78-466c-9038-6cdb4c6b5820","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":165,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"02e61f52-d6d2-42da-b412-7ba636e3cb37","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":165,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"193499bd-2c79-4b06-b4f0-cbf3c1ad2682","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":165,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"086e2a5f-9944-40e2-a276-a9e4ccf9bc0b","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":165,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"bdd01d71-7151-4cf6-b7f9-5b8f9aded9ae","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":165,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"3f25f277-3862-4f30-a6ac-3900a657304d","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":165,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"86a735a5-5bcb-432f-b56b-1d9dd27f931c","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":165,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"9077968c-027e-48bd-89b6-444d0aba786b","block_type":"box","text":"clients may be used as well.","page_number":165,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"b9311fb2-7bab-4792-af62-8c24048843cb","block_type":"box","text":"II-127","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"12b679ea-c26c-4ab7-8f77-f21feab8dc9b","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3c4b83b9-37f1-4ab6-9069-372b3619dbcf","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":166,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"4dd4884b-0125-4739-a344-133589a33045","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":166,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"aca9f91d-fe2f-4f77-b983-3bf0f7f193cc","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":166,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"b4a7528d-d55b-450e-8f90-252183fc4676","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":166,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"e3639199-fc24-4eb6-8e87-395c5e8de4a5","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":166,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"86a8a595-52f6-473c-9fef-471d117079f6","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":166,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"4529bb9a-316d-4d66-8532-5ff0d6147d04","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":166,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"6aa01c4d-bd95-44ef-98c8-ce4207aa262e","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":166,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"6bc1ea33-9af9-485c-bf19-5d61155f152c","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":166,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"07c58cc8-9c26-47ce-95ac-84992103def8","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":166,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"f9fb6348-5edb-4a26-970c-5144a04b5613","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":166,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"ae0c51ee-a928-45e7-8573-c060f9dcbd5e","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":166,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"05e09f61-df22-44f1-a9ea-8e5702261da8","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":166,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"0020d11b-efa7-482f-9160-49e6baef2c18","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":166,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"83cf97b0-ee21-4b54-b416-7aaf23d2f166","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":166,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"125cca63-1974-4cce-a8c1-f1faab59d382","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":166,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"7ff28ac5-e058-4ba5-938e-6043233c0b67","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":166,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"91e80725-6e98-4838-9e9f-6f81eb0a7cf2","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":166,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"b1fa2e39-2d1f-46e7-853f-4ab4a85d435a","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":166,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"fdf36798-67ee-42c3-af2f-95bc5107e3f3","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":166,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"9dec7ded-fe2a-4246-b917-66b9ec709a55","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":166,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"a32b0b4c-7b3c-45fc-94fb-dda875a43f08","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":166,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"7ccd0e24-64cc-48e1-9080-2a3a57d6c217","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":166,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"9321d4aa-e477-42e0-98de-abdecc849c09","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":166,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"edffcbe0-a3af-4b4d-8e79-85380603acf1","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":166,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"f3ad01f6-3cb1-4585-8cb7-ab880852628f","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":166,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"66b26500-821c-4bc8-bfdd-57ebe088b7a8","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":166,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"78a3e2d3-376d-48d8-806b-a1eb756c7847","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":166,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"24d1504e-f40f-4759-aa71-143ceea25981","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":166,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"16f3d8a5-2424-4f80-8f8b-8310d1c82557","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":166,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"56db213e-d58b-4462-873a-26848a6db6d7","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":166,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"28714428-9fe5-4f52-bc66-1347a6814c88","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":166,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"a810b9a6-80a5-4473-b7aa-4eced249969f","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":166,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"8bb606dd-02e7-4e19-8883-dabf7cd80f60","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":166,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"fc82fd0e-7cea-4ddb-b350-92e7905a3e8f","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":166,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"c29c0206-4383-484b-a628-dce264d44a91","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":166,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"d2bedcb5-98d9-4341-b128-b5a2bd48a2cd","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":166,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"17e2d63f-1624-4595-aad2-06bc4c1bcb1c","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":166,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"6371b6c2-66ba-4b17-bd72-6a4e7848d723","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":166,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"4088f288-554f-4e84-b486-001135976632","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":166,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"9f2e9675-496b-4efa-923a-0687cff4af42","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":166,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"24e1fb52-17c0-45cf-b203-268e98557ab5","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":166,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"92846484-3451-46d5-b02a-30e0b07e6faf","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":166,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"6f924ec6-349b-43c8-964a-03fe3109e916","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":166,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"b66714b1-3225-4c48-9819-646f9bb47283","block_type":"box","text":"Portfolio Turnover","page_number":166,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"52c70ae7-5af1-4e43-a358-c2499b3fe737","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":166,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"bb1abf8a-f8fa-4606-b35a-1fca48f4171f","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":166,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"01196fcf-8fac-48c7-bea5-175568642b46","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":166,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"1c553e0e-e328-4011-afa5-db9d5aa3e4fb","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":166,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"22ea610b-6222-46e1-99fa-0de3938e5f48","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":166,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"e38c900f-3ded-46a5-8a69-3876f8b12907","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":166,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"2ac29dc5-edc2-4b42-b9e5-f45ebf02d6d4","block_type":"box","text":"II-128","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cf70a2bc-12a0-4a2d-a6ee-a270117dfba7","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec1fe267-1bef-4be1-9e82-33d179f01339","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":167,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"4682b350-1477-4723-99b3-ffa368d2200f","block_type":"box","text":"Dividends","page_number":167,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"b9e7feb8-070b-4add-afbf-087a41dc1057","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":167,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"14972a89-fe4a-4ed4-a0a9-3b167602159f","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":167,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"03b8fe4a-1e6c-4ecd-adeb-25623c6261e3","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":167,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"0a018aea-a3c8-4c49-89f0-3ccbb4c29d3d","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":167,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"fe3b2306-70bd-4ddf-98ed-44df095a858e","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":167,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"924115b4-fceb-47cf-996e-f5d8d60fadb0","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":167,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"39190e03-681f-4e53-9f57-56af58448769","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":167,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"246fe058-fac6-4dfb-b380-d4c81e942efe","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":167,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"a1bbab2e-8abc-42fd-808e-abf6d7542938","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":167,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"8162f8ae-54c5-457c-b240-94a7e924eac2","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":167,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"624e70cc-a8e6-4716-927c-9bf533b4a852","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":167,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"963da9ad-f50c-4cb7-a3ec-2b0783b66fbb","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":167,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"12095659-f7e8-4986-acad-8605fb508c89","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":167,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"6e1b8664-60f7-49b7-b898-6194003ae77a","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":167,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"383978e8-4c92-4208-8288-ed09eb6eebd0","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":167,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"37a07815-1b0e-41c4-b112-ac4453e0b5ff","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":167,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"20075ef8-7fc2-4082-a0b7-720dc5a2a13a","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":167,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"5006e528-71e6-486c-9ceb-d6a19e25b72c","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":167,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"65edf355-91d2-40cf-b4f6-99cac23d8577","block_type":"box","text":"Taxes","page_number":167,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"e4b2918a-c348-4f17-b0c7-2c786a5708e9","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":167,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"069c27eb-cc6b-43a7-b4ca-51220d4f1145","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":167,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"2fabd04e-3ae9-4c01-9b64-9d831909b1fe","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":167,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"a22e83fe-9f4f-4fe0-8186-2d2ae1efe7b8","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":167,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"452fa5c2-e7c5-450d-a3e2-abe0a0050f7d","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":167,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"b67a83bd-91bb-423c-81fa-12b618dc9d8d","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":167,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"7670b561-d0ef-4677-af1d-02dc0d67839a","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":167,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"6becf198-4957-4065-a977-25d941d262cb","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":167,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"666a7600-8094-4bd5-a8d4-799742111d10","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":167,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"3dffbbea-ed1b-495f-9a8e-2059bbeccd27","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":167,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"0a0ef442-54ab-4101-aec7-87f9fcdde99d","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":167,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"14bcc8e3-4529-4880-a0ff-1377e98ef0b6","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":167,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"59fd69a6-8cae-41eb-ba83-35225cf424a4","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":167,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"194988e4-0447-49b1-a3a1-5d53fd059764","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":167,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"553cd292-b2d6-4996-ad5e-04918adb5734","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":167,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"6f819384-fef3-4711-96b4-1c6c99785432","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":167,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"fd64212a-c26b-421f-b0e1-eea70f9fb803","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":167,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"5cfedc74-40aa-43b3-9e45-3365821c21ed","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":167,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"af5fdeaf-3832-47ef-8e78-a2c28b4b0da8","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":167,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"7cce2cdf-22b1-413c-bfd1-b972fa35a224","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":167,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"256de98a-d893-4119-a6f4-a31080684bb0","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":167,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"e262b985-8ad0-4f5b-bdae-f58add6e2b6f","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":167,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"c5738b91-814c-4b8e-a6a9-b712c8b88af3","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":167,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"d842573e-427f-4468-b981-76955be8f3ce","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":167,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"91d80009-a1a8-42ca-9cfc-33f9954441ee","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":167,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"402b2353-3a77-4f3f-9794-1d851e8b6e1f","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":167,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"8370b77c-46ec-4203-979b-6ca91a95cca3","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":167,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"f2d7f79e-84e1-4326-b581-09e53db07e9a","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":167,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"5bfc41aa-62ba-4d5b-924e-dbd490c740ea","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":167,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"00570753-f6de-4801-822a-37537cf7b7e2","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":167,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"8d68f814-55e5-43c4-88d2-d331085a0606","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":167,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"18df94da-2c17-49ac-95f8-7a0d72048a2a","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":167,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"cdc59b50-0fb5-4501-88e0-597b291626fb","block_type":"box","text":"II-129","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"62580008-c1a8-4aac-b756-f304933717e1","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d05e41c8-4f83-42d2-911b-61e469726980","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":168,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"6d604e03-fb6b-4f54-827b-baae6be65e40","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":168,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"8a91763d-e0d4-4671-8bc8-8de4cedbe548","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":168,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"d45c48f3-270b-40a2-85c9-2d0cb1a20cb7","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":168,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"56d5f737-cdc8-4898-b116-e5ceab0506fd","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":168,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"3045b8e9-5a68-4e58-8a15-73b090837e6d","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":168,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"3f97385d-a286-4168-a2a3-48686220c7d9","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":168,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"1ec9c033-ad1c-4919-a2d4-dddae90427f0","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":168,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"9bc9f272-5105-4aaa-a8ab-ba2a2902df1f","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":168,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"b0c32ccd-e214-465a-ba41-5ed1b3dbe6a4","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":168,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"05046160-7a72-4cb2-9261-e2f43caa8ad6","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":168,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"c0e0c4be-d09b-4a9b-94fd-f51f7ed1fdcf","block_type":"box","text":"limitation.","page_number":168,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"ca8c3284-07b6-4b75-9c2b-bfd80e4003a9","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":168,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"233ec972-f51f-4e06-b48d-7e6dede22b5b","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":168,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"2fbf64a2-b032-4dff-a717-71b55194c4e5","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":168,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"ed4d984e-259e-497c-976e-2b3f50726b0b","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":168,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"1b937d58-b4a4-4e46-a21d-3eae9b1ab3fb","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":168,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"e1c69cc8-d386-43e9-9be1-cb4c4d900f1c","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":168,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"a1228b22-ea2b-42db-ba85-8ebf020b4125","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":168,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"683d3c6c-3432-489b-a418-b559341792bd","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":168,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"7419e77b-4b22-4993-9990-5db896e1b43f","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":168,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"ba37b153-aab6-4813-aee2-cd96edd4ad11","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":168,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"74ed6729-6a8a-466e-8120-387f0a79cbcb","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":168,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"98c7f8f6-ed1a-4afb-b304-4912ac2563cf","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":168,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"f318b2a1-52a0-4fd2-9237-07f739c5f2cf","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":168,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"7f9d762b-598e-40dd-bd87-3d238070aa49","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":168,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"7660d717-7767-4813-b048-fed37adf0c8f","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":168,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"888a6748-2c8c-418d-814f-cc89c6d6795b","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":168,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"d67a16eb-cdec-4cec-b5c8-ce35a5cd0684","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":168,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"85241ee1-51ab-4cdc-bc47-6beeb0c1659c","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":168,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"f710da3e-b4e3-4903-b77a-c36cdf50bb25","block_type":"box","text":"constitute “qualified dividend income.”","page_number":168,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"4664128d-b292-47a4-a79e-e7a41ad5f160","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":168,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"3a3c8442-cde4-47ef-a4b7-37eaefde1d11","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":168,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"8a95874f-96f4-49dd-9473-cbe31cfcfab2","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":168,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"baeb642a-cace-48fc-8891-959fea867a0f","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":168,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"de5f0b7a-5f38-4c3c-a4aa-f82bc5dbf5a4","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":168,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"4cc0d380-3eae-4eb6-9ace-f9c52338dc10","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":168,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"fd122220-a99b-42e2-aea4-bf2292d978db","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":168,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"2a7c9649-076f-433e-a4f7-9ac18019c7a9","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":168,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"7a3bd508-49fd-4a97-be12-60c1c11d8d07","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":168,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"6cf8374d-d66c-49a0-a950-7a22e258ba50","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":168,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"4b1696ee-1980-43dc-8322-14f68ae39495","block_type":"box","text":"against their taxes.","page_number":168,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"ad17cb0a-f2c2-41f9-bd23-587d03b1e2c4","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":168,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"ec198f11-364b-4747-ac64-b0736c750ca5","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":168,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"5b25b070-c27a-4c49-849e-5b8aa0d8b3c0","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":168,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"66ab05f9-1cbe-46ba-b73b-004b492eafbb","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":168,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"2e2fcd87-d2f9-4f51-9938-d43393704e71","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":168,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"5f5fc45a-2005-4a5a-a000-81576a36d212","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":168,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"a4c8571f-4e22-4331-a7d6-a4c8f02aae76","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":168,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"fa6c5ef9-d4e0-4ce6-b67f-9288093a471e","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":168,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"5873bb49-88ce-46cb-a213-1046ef25567b","block_type":"box","text":"dividends received by the shareholder.","page_number":168,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"8f351ba1-43f5-4c7d-abd1-21d8d9225e1b","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":168,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"466729d1-c0ca-479a-b543-b94636a9c0e0","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":168,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"f8bb91a9-1664-4816-8ded-a4b5ef36bdd4","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":168,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"5d184d24-088a-45b8-aac6-b7157a830dcb","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":168,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"d0337bc0-1ee3-4c09-9e87-48ccf7820a55","block_type":"box","text":"II-130","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"657caa43-fc44-4e82-933a-586f0a36a5e4","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"886b8996-cec4-4fe7-ba00-94c412ccd497","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":169,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"0ba65130-75c0-46cc-ac3e-e9021d945f64","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":169,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"c731c913-7382-4b6a-89d3-e10537455cd9","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":169,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"0e8fe9ea-cc33-495f-8190-8f473a8f071f","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":169,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"e0613b19-1b9c-4ecd-859d-565ae4222762","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":169,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"88734588-6b86-4c85-b927-8f586eeb5b36","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":169,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"10146095-c8f3-4461-8772-425921bb013a","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":169,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"85da8f6b-e98e-4a2d-af6e-a601a321e8a5","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":169,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"ad4a3242-3925-4107-9d90-a6cca45c10e7","block_type":"box","text":"taxable year.","page_number":169,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"24eb235c-292f-483a-9149-997e2f6c4998","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":169,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"2a6337ef-49da-43e1-b64e-b5d0a7c4fa78","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":169,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"d91cf191-805f-4e1b-ad56-c240084a209f","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":169,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"71c26cef-763f-4360-b900-ad9241886ae9","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":169,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"1da14c00-049d-46e1-aba6-c5c017e2e518","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":169,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"df9d48b1-4ed8-4097-ad9b-7cabdf6163bb","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":169,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"9299fc52-83d2-4715-9bbc-e04cc5231856","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":169,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"bf29cdc2-fac2-46ae-b6e6-d05fef2af42c","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":169,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"0b74d6e2-cafd-4bca-bebf-313edfd5989b","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":169,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"a3ccf92b-4a44-48f2-8195-17d327b2d28b","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":169,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"d4214c40-c660-4033-8420-0fc6ca64d154","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":169,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"00f801c6-e103-437f-8b6a-08db33b2324f","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":169,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"fd7d3ff5-a123-4beb-a3ee-b77ecf7299b8","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":169,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"b9892861-0334-4859-ae4b-3820d4dc98f8","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":169,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"ae5b9be0-809a-4c87-9bb6-aa5c6b4f419f","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":169,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"f734101c-de96-42ea-bb76-034bc05b5eb7","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":169,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"15873107-ad74-4a43-9191-138e4204f03d","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":169,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"6c3042cb-228b-4795-8702-6b74df5ae59f","block_type":"box","text":"special tax rules that apply to their investments.","page_number":169,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"585a2cd0-44f4-4a11-a2d2-e0e9646a921d","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":169,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"cf7701e9-a1b3-449a-9c5a-8ffc94125cc5","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":169,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"15916733-4c5c-479d-8149-586108b286d8","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":169,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"7b885e66-a22e-44dc-b6c4-ed00b11d716c","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":169,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"c5c5195c-91ea-4a01-8556-e0c96c568151","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":169,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"de4c2752-8799-42aa-bb0b-f4e0ce2dbcd5","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":169,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"a2d9b014-5f1a-43a2-bec9-fd0861900596","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":169,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"b8972239-6e36-4998-86ee-85effadd4651","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":169,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"be7fa28e-50aa-4bd4-9464-efb1b54eb4ab","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":169,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"9ed2314b-999b-4720-876d-7c83282f0feb","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":169,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"ec205cf2-ac86-4ec6-b741-3b30dfb83349","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":169,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"c47064c8-091d-46b9-8a07-e4dab00ee610","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":169,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"234c78dd-0839-4bf6-87c8-3985956ee5b6","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":169,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"628453fe-62fd-43bd-a2c3-cf2bbedba16e","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":169,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"a74a8e9e-b705-4fcc-98ca-a926b37ec8f7","block_type":"box","text":"redemption of such shares.","page_number":169,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"adc1ea7c-4a5c-4d77-9a2b-6164e9867a1f","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":169,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"c8a292e4-8920-4ef8-821b-2333c0a45b53","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":169,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"6b59fbc9-eeb4-48b1-8956-9fc42886cc49","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"f3e9e5a2-ded0-4c26-a33f-fc2aa0e73821","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":169,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"e67a862d-88db-4307-ab79-95e9d57d260e","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":169,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"319d41f4-425e-456f-9211-d66bdbe030f3","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":169,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"ff412d3b-3e98-4444-967e-601286a3472b","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":169,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"f97a932c-b4b9-45af-aa92-f4ee9351e43d","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":169,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"9362e6dc-a283-43ff-99a8-0b914dfd054b","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":169,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"710bf62d-174c-421c-90d2-8f585f1b3c6f","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":169,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"5c8b1785-2c19-466c-b4b4-4f16ebbbd6ac","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":169,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"4268f0f8-2ea1-49f4-b5eb-6b0d2727b1df","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":169,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"36084890-3cfd-4819-8294-4cffda9cd664","block_type":"box","text":"II-131","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bf4f120a-aeb5-4e46-8298-96557110705f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ed6e33b1-053c-4967-a753-b247fb97fbd9","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":170,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"7a9226a3-76ae-405b-9bf8-de18df0e75ff","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":170,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"5a555c8b-c008-4d1a-8678-7fda23748a83","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"3eec40e1-e49e-45aa-8e85-a8ff3b7d5ab9","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":170,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"271b0a3d-fc80-4688-9fe4-72ffe796ce6b","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":170,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"fd31887b-3476-4d5d-90d0-c2d2a1a0b81a","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":170,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"5c1d848e-bfd2-45ea-8e61-cd7eab7500ec","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":170,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"285bd3ef-6504-46ef-adce-c6799d99f948","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":170,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"39b4acd0-4665-4842-9eb3-9e6e41ea551d","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":170,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"093cd959-6a1c-431a-8168-d6fb5a2b1992","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":170,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"628ec5ad-8caa-43b9-96cc-84978703da13","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":170,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"6a23be63-bbb2-4a99-9b87-38c6eb7a60c6","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":170,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"de631c66-45ac-4185-8729-271a27bb6fe5","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":170,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"c5056343-13cb-4b86-8899-8ceaac64b063","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":170,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"ad1870df-4dc2-4c61-b404-2062f0869e63","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":170,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"6fa15279-2ce1-4898-9c25-41ca6dc2e963","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":170,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"831b38c2-91b8-4f60-8461-57952728b7ed","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":170,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"153345c8-24e8-4641-908e-87e8d66fa1e0","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":170,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"7f8a2534-48a0-46bf-898c-2ceb60d1b58c","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":170,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"8e56325c-a166-4741-b694-adcec9ce5d7d","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":170,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"ae9c9ee4-3ce3-496f-bb06-75c33024f3aa","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":170,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"cb183889-22f8-45e3-93db-e94e5fa590c6","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":170,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"f442fc91-94e7-4df9-ac7c-cc52a348c440","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":170,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"9f61b351-d4b6-4c0b-b5f8-5270f6a178e0","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":170,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"5e4e937d-ba0c-49a6-9c73-3ceeb240365d","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":170,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"e897fc7e-3b11-47ef-ad14-349164704f30","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":170,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"bf6a813f-f419-403a-b725-a0af1468132e","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":170,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"993ed7e4-e5c7-488c-9128-5cee8e0a5068","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":170,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"c9893c69-1983-4ab6-b042-7c335b36530f","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":170,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"99fb60b0-2980-42d6-adb2-4f8512631e6d","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":170,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"94ce8808-c54b-4ff9-b6e1-b1da636ab2f4","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":170,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"4493c97b-3081-4aca-a9bf-dae899dd249c","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":170,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"0e24bf11-928b-40a2-927f-80155fa3dd58","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":170,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"9c0be581-34e9-4d7a-92d6-db84d84ce60d","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":170,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"4bd8744a-f6b7-49ee-8af3-4ca1dd3dc30a","block_type":"box","text":"in subsequent taxable years.","page_number":170,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"9bb25be7-c685-4e9f-adf8-9ce20004d933","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":170,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"937a0470-4194-4f2b-acb8-c0cf4a090fc2","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":170,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"638e1a35-35f8-4a43-8c5f-6dc533699c74","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":170,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"18c53781-d625-45e3-bdc6-72e8b4c494f3","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":170,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"e3178682-0c0e-4d68-81b9-2a7f152559bd","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":170,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"d76c7a00-ef9d-40b9-ba31-08aed8c5b49a","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"caed2820-109d-435d-b9ce-6514b39c3327","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":170,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"9de88119-385a-4aba-8c2e-9f8fe0b51adc","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":170,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"05ce1856-cbd1-4a85-b98e-3a90fb9a9db5","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":170,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"81351aa9-50bc-402e-ab8d-cbab7ce5572e","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":170,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"1578f954-ab2f-4db2-9fdc-e6e2d8bf5104","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"1acf5f2a-f49d-4e98-9bcb-d3eee7ea016a","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":170,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"cf05a3a0-8bdd-41a0-ac39-5fab9ec09bd7","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":170,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"3236b017-aead-4028-b9bd-401d00dd09d9","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":170,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"4de600f8-694f-4024-a775-546155146b93","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":170,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"5b92c0a1-9f8e-41c2-8e2e-a14a74557e53","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":170,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"7bbae96c-e182-4847-81e6-c6a2ee4f7a9c","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":170,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"ce992093-5010-4d2c-b97b-912607e4c95e","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":170,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"15e7dd6c-9f2a-47c0-b192-5963e49cf60e","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":170,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"4708e4a9-b8d8-4845-ac84-8526ec06af32","block_type":"box","text":"dividends under these rules.","page_number":170,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"97f22c33-9b98-42cb-9110-55a6037bf1e9","block_type":"box","text":"II-132","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"43e7b2d5-e9be-446f-9c1a-41b4408459e2","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c61225b6-6fdc-448e-ab68-51a06d90dde8","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":171,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"24ca2c7d-fb07-4cfa-824c-374897e3b1c0","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":171,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"c611f534-fb1a-4839-893f-7a0d05360303","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":171,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"35890956-d822-4b70-adff-f11fb4f6eb64","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":171,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"4a9f769f-c577-485c-bb85-4e4d267ff402","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":171,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"0c1a7ef1-377f-4b48-b201-d54595534a16","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":171,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"77b3f231-fc47-4e77-8cf3-9337023f6b9f","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":171,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"25432709-a226-4174-b19f-a02286239321","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":171,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"a7bbe365-1b30-4fa2-bee7-26f85c9e71a7","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":171,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"69094ece-b6bb-418d-a2b1-ff426a1b0635","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":171,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"96343196-991e-484d-8968-4cfb7c1a0663","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":171,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"08662f9a-0d5e-403f-87be-9541ac6a8a60","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":171,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"c24a43a4-795f-4526-8503-b8a1c4b6676e","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":171,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"b2d4d83a-09a4-4db2-8633-b1d29e024e43","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":171,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"2c3a3759-d419-4a70-b348-86949dce9054","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":171,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"81697275-a8ae-4b8a-837d-2db954c868d8","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":171,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"28992b6e-9a82-4cc7-855f-eff99ac3eb8b","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":171,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"5baa22c5-8e59-47dd-98b7-f11c618a5eb4","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":171,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"1f9dbe90-91e8-4e55-a6e7-adf45ea79c4d","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":171,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"ab0073d8-cdfa-4f8e-ac6f-54356b6d7737","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":171,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"bf1b9470-684c-4256-ac8e-1e4d16b08829","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":171,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"82e5e18d-a40a-43ac-a52a-3c062f6072b9","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":171,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"f05c0f76-5a73-40eb-ad98-0c91f4ef05d3","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":171,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"742cca89-b704-4c2e-9b97-67bf839c3813","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":171,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"ccba851b-59c5-4723-9f0f-0aca472476c5","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":171,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"51c8bcc6-75e0-4a2e-b137-ea3c51dc66c4","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":171,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"dcddaec7-0441-448c-a7f2-87f16f9c9ade","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":171,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"e2ad06a8-d77a-4de1-8f46-35e8941101e2","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":171,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"771dcbb7-bfdc-45bc-bf2b-3b8e65250b36","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":171,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"a8347b76-8333-4faa-8f68-84e28758b8e9","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":171,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"3b009c2d-8d58-440d-a185-64a1edac3a20","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":171,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"a8c80273-433c-4c26-a5c3-644f0c2d39e5","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":171,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"211a40a4-0813-46bb-a5bf-81f2d2cc2371","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":171,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"9c2309c0-93ed-4e98-8ab2-5b1be2b85f77","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":171,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"066301d7-4f9f-4b52-a7ad-00d5b7442beb","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":171,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"05f96879-0c6f-494e-bba4-bb31ff8d7359","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":171,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"1f9ede60-2787-41f0-b471-19b01e308408","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":171,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"97c3648f-770f-4776-8ad0-344c2a73e700","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":171,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"4f001f0a-5192-4357-857e-d39d2a1fed72","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":171,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"cd66fd64-69eb-4d0a-9a25-7655cc7cf9e1","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":171,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"f5008dc0-ac51-4a4f-a034-6ba3e3f8e926","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":171,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"0ed4b8ae-fa05-4a11-9311-4efec25b549e","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":171,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"a690194e-447b-42ef-935f-022576a6fa39","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":171,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"d418d14e-e91a-415a-9114-f25af114b912","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":171,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"a6d02e3b-50f5-437b-8bcd-c8d377e5d526","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":171,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"5bffb9f7-5a59-406a-8697-d67e237e7eab","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":171,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"1e84596f-13cd-4a21-95d0-22100c2c7b3d","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":171,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"6dc0a0d9-9eb8-473d-a49b-d37c32364e89","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":171,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"71762d0b-5d9f-4c88-8992-50c1cafd3cd2","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":171,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"a0eecc1b-0de7-40f7-8dff-f8859bc734b6","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":171,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"a4031d96-aa71-453a-8923-1450bb3cb139","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":171,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"744c6bc3-3f1b-4a0e-a273-9f1f82fafdcb","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":171,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"15af8721-3c03-4d12-84c6-d396ebf955f2","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":171,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"37cb9954-fe8e-4fc8-9eaa-a7d48f3b9ac5","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":171,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"41671210-c0aa-4be3-806a-83624b43f264","block_type":"box","text":"II-133","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b19745af-71e0-4304-9ee9-525853087ea0","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e5ce1c4-095f-49a6-b96f-73c25fed0b60","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":172,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"6f1a6681-72f7-4864-bbd0-c1c04baa743a","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":172,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"18465978-e7e8-4b5c-ac80-93820fb4d932","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":172,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"edc0ce15-fa8a-42f4-8431-2e0c85f091dc","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":172,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"8f7ab50a-d11d-40be-85d7-7df07a2a07e5","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":172,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"bd72350a-0b8b-4ca3-b8fa-4233d066c7a3","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":172,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"a0a47458-8332-4e9c-98d2-0d19b1f84d26","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":172,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"36d0bc8a-e385-420d-9d14-ea866641b33f","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":172,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"6f041740-8c94-4aed-ad68-9b6fd53b076c","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":172,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"2ab143a9-2784-4614-a668-d758d7f00bed","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":172,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"1da75ad1-5587-4cf4-946e-1798f437d784","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":172,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"3868b8ae-b168-45f6-b163-27358e834364","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":172,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"f74e68a3-995b-4d77-8b77-9f18e0bfa131","block_type":"box","text":"investment opportunities.","page_number":172,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"342b2fec-abf1-4adc-a57f-616f2360e6f9","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":172,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"3feea2f0-9261-46d3-8f08-11feeb37a5a6","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":172,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"ef5d026e-28bd-4c5a-a243-5556c0255ff2","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":172,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"5024968a-cd90-4199-8bdf-09771d204933","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":172,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"b2825cd6-e15a-4a27-8edb-cc66ef8e7f0a","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":172,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"ca542459-e86e-4d2e-81d8-a256b99285ae","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":172,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"f8a9ca9e-ea94-4539-b50c-bdd13d05c128","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":172,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"9e422d29-01b5-4e97-8f22-e42041f9a0aa","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":172,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"d283a29e-2ffc-4959-9571-d8b5f6675a75","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":172,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"8fb88ed6-1882-4013-ad83-35488b7a0dde","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":172,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"f2e5e774-551f-411c-9fdc-21008c51eb54","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":172,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"1cc5a3c1-5c09-45ba-8074-383febf6acfd","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":172,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"f30ab829-caa2-40e7-8f2d-f87225801722","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":172,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"83f49ee6-be86-4715-bf6e-9a2b4581fe00","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":172,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"0d143d56-3e83-4c67-ad65-6c5470a8168e","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":172,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"e19d9f75-180b-4853-a014-c08d7c0e50d7","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":172,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"cdff8094-9dcb-4794-90ac-4685c9c995ed","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":172,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"65c6e5f1-9fee-4b8f-b613-23182400fea0","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":172,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"88f6c1c9-e1e7-4fc5-b366-84fe26b3d967","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":172,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"dd2adcd8-3f09-450b-b398-05e0b029ae11","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":172,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"ebe85a7a-8ee1-4785-b9b1-0c9cfd6dbfe5","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":172,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"8c8e4d32-147b-4bd2-84d7-46ed7acac624","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":172,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"e17eff95-4de7-4511-91f2-3c95a0f36cdd","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":172,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"0a93fc11-af84-4ee1-b119-1f10249291a4","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":172,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"9815dba1-bf3f-41cb-a591-93caece9fd48","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":172,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"29d696e5-ff1e-4993-8ae4-d7f0dbbcee31","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":172,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"ec2c84d1-28e5-49df-977c-91e7d7703cce","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":172,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"2c6bb3b3-1036-4db0-8448-edf384171df3","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":172,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"d99235a4-4770-4595-a5d5-273677eea189","block_type":"box","text":"positions in its portfolio (","page_number":172,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"eaa51849-91d4-4737-8cd6-9a495080bc99","block_type":"box","text":"i.e.","page_number":172,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"7c0a9e2d-9f12-4f6a-ac9b-dc66f3c2651c","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":172,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"586b62da-1f28-492f-a708-023c2eb25c25","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":172,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"6e54f760-4a4e-4e42-bb64-bdd152daf46c","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":172,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"1082b966-8e21-496c-b77e-0496f91f8f70","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":172,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"62ef85a5-cbda-48be-a61c-4ede0ac0b42c","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":172,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"ad9fdc1a-91de-4797-9d81-7bf7f2d09dd1","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":172,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"0fe38875-4646-4c10-9ea5-0f3582d04ab5","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":172,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"417b2682-a9c3-4880-8c66-85f694296d70","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":172,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"8270c6a4-d3ac-43b8-8d6b-51f4a95f19c8","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":172,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"7da4d832-c446-449b-a058-8f4d5fc83a4b","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":172,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"8c46ca17-d698-49a0-bdff-2821094653ec","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":172,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"a1dfc6b6-53cd-47d7-90d2-fd93187a8654","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":172,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"fa474f56-faeb-4e2b-b34b-2006dfae07c9","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":172,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"e5d29ca9-d7e2-47f2-ad79-8ba7f6e62dc5","block_type":"box","text":"II-134","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"92a7807f-0478-4fce-a617-c57556ff8f02","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"838b3700-dac0-407c-b472-4091bd185087","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":173,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"2a3217d5-148b-4f8a-8f17-216e03e76529","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":173,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"f3a3cbfa-c932-4356-b057-2072260b0eda","block_type":"box","text":"capital asset.","page_number":173,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"443e8db4-b4d5-4df3-b48d-7819cf1cb36b","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":173,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"39ddf65e-3fcc-48e0-a453-c54f49260f1d","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":173,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"bd029b1d-7382-4be8-85b3-91d4f261a77d","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":173,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"21a41348-7614-44b7-a493-bbc4ab71688b","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":173,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"23c53562-639f-48a6-b7e7-d1aaf190abe8","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":173,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"779a4ee2-c8de-45d5-8819-19e864b9d6fd","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":173,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"8a2cb778-c8bf-4bf1-9cd4-4116b1ffb386","block_type":"box","text":"Fund were to invest otherwise.","page_number":173,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"42328960-1abd-4d9b-a355-73fa3bca2551","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":173,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"817fb73d-4827-4256-b638-e0b1dfde34e2","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":173,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"fd55b9eb-36fb-40d8-843d-0aba35ecbb1d","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":173,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"322e9d26-4116-4fe9-80b7-4f325047f944","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":173,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"9125b3f1-d93d-4088-a038-e8088b3e83ec","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":173,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"f06797d4-a2ee-412b-a31e-15accc19f0d7","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":173,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"992eabdc-8222-4f7f-a2e5-63f882b40d57","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":173,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"9e4cc43c-8fbc-4f81-9815-627db44a3eb9","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":173,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"f75fbddc-4cab-4289-bd64-d8fdb54a13d6","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":173,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"8eda8811-35c0-4f40-8dcd-0b46c3f38465","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":173,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"5d4e96ab-08d7-4fc4-9bd2-e81e539b003d","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":173,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"0467299a-f8a9-45e0-9392-9bcf85fca13a","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":173,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"20c573ef-97e0-476a-a193-b159dd541803","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":173,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"b70a90cc-fbfe-4a65-8e55-c4149a64e550","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":173,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"72a4aa55-d7cb-461d-bf07-1cb8c06aebb3","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":173,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"9cb83ad6-2215-4998-b7da-f355f57db169","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":173,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"b4771b92-fd84-49ce-8eee-0c9b255f6651","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":173,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"be7978b3-5822-43c3-9960-14f7fd312ac7","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":173,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"1fb6d741-54a3-4519-832b-c77eeb5a2b83","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":173,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"005cbef1-0659-4ac0-ace2-ca3a520ad856","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":173,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"94583b2b-d8f9-4da2-93a5-3c5bea195de6","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":173,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"9a8c4c51-12b5-44d2-8f08-11d32aaf607b","block_type":"box","text":"PFICs.","page_number":173,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"3d12dfc8-09c8-4bce-8b05-fe9a40bdb0de","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":173,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"d62892ba-bf35-4445-916e-ee26ac3f0e5a","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":173,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"ba429052-f4d6-4041-a1e7-d4770147e198","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":173,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"02486f29-8bb2-48fe-8cce-1aa81e911e21","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":173,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"1ba0e6e4-a0c8-45d3-ab6a-52f21eb126e6","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":173,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"32fa7eda-ec5e-4f3d-85ff-c27561d73359","block_type":"box","text":"difficult or impossible to obtain.","page_number":173,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"8a7b74ba-6174-4cc0-99b6-3d6d36d406dc","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":173,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"f1edb3fd-a13c-4818-aa2e-c068de3ee647","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":173,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"561d3aab-c81b-4d49-bdaf-3afe5e27e7f9","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":173,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"2ed7dec4-4483-4834-bc9d-7a871fdcddf9","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":173,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"acda8420-5e9d-4bc7-bae7-d73dbac65aed","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":173,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"65c3c6f7-d54a-4d15-8a39-9d5fc5ec3041","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":173,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"1b5dc780-7363-4b39-b827-111e73b5b7fa","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":173,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"c5d27526-f687-4279-b18f-d6338ec58eec","block_type":"box","text":"Municipal Funds","page_number":173,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"67775fa1-a420-4473-9271-f4e4b0c81851","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":173,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"eb571c45-cbba-4cb9-96d3-50b237e918c0","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":173,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"17f692c7-bd73-4ace-977e-180dda18198d","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":173,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"b3272ff7-0fa9-48d1-b8b6-2eb78491b9f8","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":173,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"0087e555-f838-4487-8854-eea0f85c1da9","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":173,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"6b781993-2379-4aac-bc07-15c21081151d","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":173,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"44eba5dd-41a8-4559-a6d3-ab187f0dff60","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":173,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"a61f6ef7-277b-4419-9a83-93235603ace6","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":173,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"abca3c78-e7d8-4566-baa3-571812e0f64b","block_type":"box","text":"II-135","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"53111acd-f937-439d-83d3-fc7d49b4c1ea","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a1601e9-cc3e-420e-99fd-565e361fac6f","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"ad939702-c977-46c8-97e3-57915f30c49f","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":174,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"dcfabaff-2f04-40e4-9d5b-714e258ad68d","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":174,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"12d252a6-63b6-4d20-bd80-15091fda1e03","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":174,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"068b8d02-666f-463a-83b3-a8b0551a7616","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":174,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"37521255-787a-40b1-8a41-be41feb63ba3","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":174,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"ca89edad-a138-4add-8d4e-2749cce8e8b3","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":174,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"6bca5d3b-7320-4c31-82f9-4ee7590d4107","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":174,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"4ec51afc-b80b-4c3e-9fe1-6e09d99191c4","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":174,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"69697354-dd7d-4b7f-a574-e592ac6748a3","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":174,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"c9b28ee3-f552-471d-a972-56379c4c375b","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":174,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"90774b13-4c08-4121-909c-ea593cf4784b","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":174,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"97d56c83-1099-429e-85cb-efe1b87a26de","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":174,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"77b094bc-45df-4194-8c59-bfc7a1b32e94","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":174,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"65da8396-1c49-4c41-bb20-4eccb9f4a4c6","block_type":"box","text":"constitute exempt-interest dividends.","page_number":174,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"2864f092-f101-4354-a607-9e50f8068715","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":174,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"684f3a89-5932-4eae-98f0-fe0ec7a5467a","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":174,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"d13d0359-c6e5-4200-8ff9-4cb37f80130a","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":174,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"81b7da8d-c9d1-4a26-a59d-5e9bafe7d20b","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":174,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"2c08df3d-2f29-499c-8016-9bc51f9fc0cf","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":174,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"0ad7a498-5863-4650-90fc-c27c77631b64","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":174,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"10826ff4-df65-431b-af0d-41c233e1f82d","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":174,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"db9e912b-a19b-4105-9562-068e63285c92","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":174,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"74b74dbb-6095-4d76-9ade-402772d00f11","block_type":"box","text":"income dividends received by shareholders.","page_number":174,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"fa168171-8a39-4c42-9c50-1c2ea27a4ec5","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":174,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"a5535d2b-fbd2-466e-b386-526482672c63","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":174,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"4b3a000c-3850-4542-bdd4-f5712b01d3b0","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":174,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"ce5a2d1f-5357-464c-9c01-596e5255e744","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":174,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"4eabcc64-5952-4f2c-bf71-b584f3f2cb33","block_type":"box","text":"the accrued market discount.","page_number":174,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"a4dae30e-d0d4-4cc6-b89a-a1ea2ba77dbb","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":174,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"ee438ff1-0859-44cf-9488-bf356b97b251","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":174,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"db6a0862-ab67-417b-81a5-afe636df29b4","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":174,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"62594bd0-97c0-47ab-af5d-feef9a74053b","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":174,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"df97ce80-fd57-481d-90e1-58625c903c80","block_type":"box","text":"e.g.","page_number":174,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"d0f927eb-7bb2-4694-a4ce-2df3806b9484","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":174,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"a1061f23-351d-478a-a5c5-bbb113c3bf96","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":174,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"31e2f9f4-1f4e-4dcb-a619-e3bbf6dd82ef","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":174,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"30241e9c-7e14-435f-993e-b244926f8637","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":174,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"16304eb0-7ef2-433d-aded-d6b576b4929b","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":174,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"605cc6ac-52b2-4a20-804b-33bb5be37393","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":174,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"e757d276-893f-43ac-a5fc-c50c891dbb91","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":174,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"ff23b89a-b0e6-4ea4-92da-cf4cbe15a97c","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":174,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"d0a363a7-aaae-4574-bcc1-a7f1eb2924b7","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":174,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"caeeb8e1-80f8-432c-888b-ba60f69e4f07","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":174,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"382622c7-3307-478c-86bf-53d276f1c031","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":174,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"beccadad-dc38-478f-818f-8dca59433725","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":174,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"0f46c2e8-a35f-479b-a4c0-edc5fcfb4b48","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":174,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"abe7596f-20c4-411d-808f-2bb2aee378de","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":174,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"b4332c2b-6e19-4bd4-9568-a79a634a0955","block_type":"box","text":"within each applicable state.","page_number":174,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"8bc0f0ef-d6c1-4535-a582-46a0385de186","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":174,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"28e21517-ed24-4c15-acfe-80d4abc15425","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":174,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"90c21579-4f71-4c40-a8bb-73a8cec7f163","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":174,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"5b58ceac-184d-40e1-bd89-46c2cd5805fe","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":174,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"b676cb7b-ed43-4ec6-af9f-0c41d9ade6bd","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":174,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"5a225076-e5cc-4d4d-8368-c37ef00aa4af","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":174,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"a82cd066-9cd5-43fe-a1d6-3e725b54d1b8","block_type":"box","text":"II-136","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1d8ffa03-70dc-4dbb-b999-c5bc86cffc34","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b11408c2-9590-409d-af91-c1575987bcb8","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":175,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"173396d3-9162-4f45-9f86-ab7208ac44a8","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":175,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"7fe8e430-d45d-470f-8317-f31a960ed2be","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":175,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"a33c34f3-545d-4d17-a9b8-dcc2e950d6d0","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":175,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"8d63ddf9-8ea3-41fc-a1c5-e1070dad32cf","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":175,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"c95ed30a-89a4-4784-b28f-75eee64afed3","block_type":"box","text":"exempt from state income tax.","page_number":175,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"96fbfe72-0a55-4021-bc9a-9c58c4486835","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":175,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"358a8d9e-b246-4cb7-a3c3-a368216cef5a","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":175,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"e6b73360-889f-4d77-8269-3d67402eb1ed","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":175,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"9772da61-6933-4faf-805c-fd84c7f64fb0","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":175,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"5a88c133-ad4b-4579-8c7d-605432e9688c","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":175,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"732f28fa-61c2-46a1-a93c-b46392e615ff","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":175,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"1c7d4d06-8190-4995-8d00-cbe9c86a475c","block_type":"box","text":"decisions may have a retroactive effect.","page_number":175,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"26f2ff20-4710-4b7c-92b4-4bb4311417f5","block_type":"box","text":"PERFORMANCE DATA","page_number":175,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"7dde4549-2b39-4ab3-b2bc-a85da20891c1","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":175,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"2ff36f99-b2c6-44c8-adb1-337a0bbefd54","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":175,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"5450e07c-ba6f-4edb-8aea-060ca8b7a604","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":175,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"24e27ffb-111a-418d-8958-1e138b8b2edd","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":175,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"50845778-eff3-44c8-be4c-283fd69ab2d3","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":175,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"4d0166df-d45c-49c5-9dd7-d2173608d83d","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":175,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"3c1b85fe-7246-4a16-b595-2b4bada6b7f6","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":175,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"06bb4173-ef32-4f1f-b9be-e5bbc533eaa6","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":175,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"d342371e-a461-4915-9596-edc4d4f58360","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":175,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"3d158ea7-b7a6-42f0-a151-5a08ca591425","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":175,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"d0f2c991-828d-4070-a459-5fe9532fbdcc","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":175,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"5dcbd9d0-0523-45eb-9e45-6edf50a4f5db","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":175,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"5e75afc7-52e4-4e8b-b695-2ded51c28126","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":175,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"51776227-e3b8-44d4-9c1e-31190f1a9b99","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":175,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"7b5b3bfe-b485-4f28-9c90-d97fb78a77a3","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":175,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"c344f32b-5da2-4ed7-83bb-f356df575ad1","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":175,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"9cebbd1a-26ec-4761-bcd6-042ca3a2c2ea","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":175,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"a508348b-68ae-4f07-a6ce-ce4b600af09e","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":175,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"3202c38d-8928-4d85-8a7b-4fb7692f66cf","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":175,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"33f516ea-c7f0-4c61-95b1-7390262e5157","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":175,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"bdf599e2-065c-45e4-9a2e-c8b11382fba8","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":175,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"af7c9ae6-b30c-4354-a5ee-652f12df91aa","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":175,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"14866d3f-3e71-4ec3-8568-5e6129a5ca9a","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":175,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"db8d732b-5d97-404b-a5fd-218a9e7a2c84","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":175,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"16dbdc89-3630-418d-b2ab-08d7b09dd219","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"f6cb64d0-d317-4748-bb53-81cbcf3c5cef","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"51d001a1-fd96-4fa6-b859-b6e8864f401b","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":175,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"e4f8f299-f66b-432b-8f5c-21c89bcace88","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":175,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"f3da6755-6d39-4185-a4bc-338c898be24d","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":175,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"eed70e9c-1843-48cb-a50b-a114b7ea32c4","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":175,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"1fc50cc8-ec9e-4559-b65c-02e61e3aab8b","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":175,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"a2443526-9bb4-4446-828f-3fa2dcc1d69a","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":175,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"2cbde8f0-2e44-4c2b-b191-8c8ccf5ed812","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":175,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"9a0e9b1a-2e4a-45d0-bd9d-4ccef47807f5","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":175,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"b2657ce8-063e-45c5-81e4-d65b3a524e97","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":175,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"22c99527-faee-4685-b8a9-26b12eb29f6f","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":175,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"bde93aaf-58f3-47a4-a637-042979c65d5a","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":175,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"d4c4429c-6c8c-4b71-8308-59772e53091a","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":175,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"0f4c1129-6c92-402b-b9f7-6bf82511a311","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":175,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"1e636710-f868-4cfe-b9e8-ecc2d9955a94","block_type":"box","text":"II-137","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"78b61669-cf19-421f-89c0-4656899aeed4","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"537d667b-3398-4a0a-a70c-6bbf83d0ebed","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":176,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"b4191dfd-cd73-41a3-8d11-b86142fa7705","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":176,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"758732a2-76ef-499a-86ec-63628d368b66","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":176,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"8f7b6bd6-a92e-4320-abf9-a853f47f603e","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":176,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"9d9d3167-60b7-46e2-95c9-c380ee60fca0","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":176,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"24e0c7b9-5793-4896-bd65-1e480b92f1f4","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":176,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"e52563e6-cb85-4a3d-90ac-0908e91ff65b","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":176,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"63854d22-f612-4f81-88ff-9ff3e7f1c34c","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":176,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"66c28baa-8bdf-486f-ab4d-1468f11ce533","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":176,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"280529e0-3b71-46f5-8d1d-754816681db3","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":176,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"2286d403-5504-40dd-b5e3-fe7b8a669b42","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":176,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"45a39583-41d5-463f-99d3-4bdecf3fab40","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":176,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"3647af2a-180f-4950-bc06-8ff5a01df665","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":176,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"95954a0d-088c-4432-af53-d7bc54ab22d0","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":176,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"8348f6f4-e320-4629-a0d2-1f0c1c5d4736","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":176,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"c04d5de8-810f-40db-93f8-41786b30be7b","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":176,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"f238e7d2-0a88-4803-92cd-0cf0a88e5bdc","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":176,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"bfdeeedf-c8ce-4a1d-a669-d593cbfbbd0a","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":176,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"2127b20e-19e8-40da-87ee-36692281c234","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":176,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"8b397829-8b0d-4176-bf1f-0136bea88029","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":176,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"6a75d0de-8a96-44d0-a461-aae5f7cd3460","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":176,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"4963c0f2-d658-4714-98de-112f26c4f306","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":176,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"eb376941-f4a6-4dc4-a051-b0d82bbe2487","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":176,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"a8147194-1542-464a-bc86-c60bf31f38de","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":176,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"01232f96-101e-497b-b857-8bcc84f177da","block_type":"box","text":"less than their original cost.","page_number":176,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"35a69f44-6ed7-4528-807f-400ccd04dc3b","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":176,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"847cf8de-6099-49fd-b5cd-b9b67870c846","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":176,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"8ef13958-0b82-4673-b684-1c8bf9af280b","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":176,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"8eecbbc9-9aa8-470b-b670-dce6cde29c07","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":176,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"43965627-f793-4102-84ef-d26006ba0c51","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":176,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"550e7526-179a-423a-b7c8-be280db884d7","block_type":"box","text":"lower amount of expenses is deducted.","page_number":176,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"6870c649-910b-48f1-9045-d51de1eac7ea","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":176,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"13f94b34-e542-4475-8f67-4d2d983c7479","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":176,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"ea4b03bf-edc5-455f-8d2f-293b3ab19b40","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":176,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"83116ed7-ff0b-45da-abaf-f442ea9d1091","block_type":"box","text":"Money Magazine, U.S.","page_number":176,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"e6b1b0cf-71c2-4d65-a537-f3654ba94875","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":176,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"bfc3f4a4-62d1-4318-a898-b79f3858ddc2","block_type":"box","text":"or other industry publications. When","page_number":176,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"859d2009-ae03-46cf-899c-10eb2d972188","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":176,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"2bf3468d-b753-45ea-91c6-5f248a6f95cc","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":176,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"451eb691-7d30-43fd-b2e4-d4036ad39012","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":176,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"1bf500de-093f-45e1-8417-e51ae4ce2326","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":176,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"de9bc982-3212-4fc6-bc11-234a99b46162","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":176,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"fab03df0-a704-4b0d-a106-fd3ba7621883","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":176,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"9fa67d5b-6e97-4b58-b5ee-35613788da33","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":176,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"d530d66e-d793-4def-94d8-9960ad17ada0","block_type":"box","text":"developed by Fund management.","page_number":176,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"2bc9d13d-3e20-4f61-b018-0bc51bfdc538","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":176,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"56c26b6a-4dd4-464c-934d-044ecc1c6f5e","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":176,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"36810e20-fc82-4d76-ae5d-c82906f35f5b","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":176,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"deca7093-f862-46ea-9b12-b4c67c51bc12","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":176,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"ae1a5da6-8de8-4851-aa3f-67a73301ee30","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":176,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"addf715c-736b-4f06-bdff-804ee892dfbc","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":176,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"1fa27017-aee2-42e4-9751-c60463efbc78","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":176,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"d6c1c6cf-d654-4459-8ab9-b5755ddc294b","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":176,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"e009080f-c10d-4e7b-b24f-fb514a171581","block_type":"box","text":"II-138","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"70b8c81c-8894-4cf1-8649-578a0b6214bb","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c11b0d5c-f4b1-42aa-8410-beb9ebafe2b0","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":177,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"e307ed7c-3e0a-4322-8e85-a668991363ea","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":177,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"51877854-c8e4-4a9e-86a7-f34130536518","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":177,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"10d60949-88a6-465c-bf6b-2f6e7c4944ce","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":177,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"2f050c4a-7789-4255-b96f-c238daf6e219","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":177,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"8ab8dd97-ea88-4076-9290-e5a26faf2403","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":177,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"e79b76a7-2e55-458f-a277-6915c385d109","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":177,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"7a774da3-6cbd-4dff-b8a5-81b565814383","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":177,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"12698ec8-479a-43f4-9f47-e0a7faec893c","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":177,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"21d791e6-21cf-4571-9c3b-9c60f9524a9c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"dfe07db3-bfbe-4dc7-8dd0-2ea5dba76ca6","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":177,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"e8d20320-ae52-49c8-97cb-fe8f5ad3914a","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":177,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"c49ffbd1-9079-40ff-be2b-3ee7dda468cd","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":177,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"6b78b21f-af85-4198-8655-9cfaf4bedc7e","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":177,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"a671f6b4-9a09-40cc-9669-b63a3f8e0151","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":177,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"63172b42-374a-419c-a358-010259712284","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"36b98fc7-b985-4a01-baf4-41bbdfeb9f49","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":177,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"c5d273b5-75b5-478f-8f43-43e8de81a050","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":177,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"e9379b61-5260-49fb-b21f-cf6f28fe8249","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":177,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"05add97b-1ba7-49fb-9448-2f7df03bd687","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":177,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"0a95c2eb-4fc4-466a-8c80-44566e57d2c4","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":177,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"0db9e500-ea63-4450-971b-e4b264f82d7d","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":177,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"7d876083-278f-42c6-81ef-9a64f22d7b45","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":177,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"5b0e4dee-2d9f-456b-9954-f42928bdfeb6","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":177,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"e4fef38e-660f-40ce-8cda-4d4d58d9eb68","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":177,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"fbbd579e-0670-42fa-b68d-afb423772922","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":177,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"ac7c3458-dcac-4c5b-8f98-4875e1c31306","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":177,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"d1d5dc68-f166-4144-b3af-11103e6edc86","block_type":"box","text":"GENERAL INFORMATION","page_number":177,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"59cfcfe2-4e54-483e-962d-fc307fd3b87c","block_type":"box","text":"Description of Shares","page_number":177,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"ed2ce507-199f-4200-8711-cf91338d1648","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":177,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"b7cd95f3-9dea-48e6-983e-b52fce4b37f7","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":177,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"bb895917-9e3c-4175-b1d3-b6cd21530abd","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":177,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"b3dbf447-df72-45a1-9a77-928b99cb6d39","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":177,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"0110928a-ba0b-4001-8b42-6e3d382176f4","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":177,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"d5617c9c-bf16-482e-bd46-2a91031694ba","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":177,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"5ce2cdf4-11c3-4c39-ab8f-409d458b2651","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":177,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"09bbb78e-8e33-444d-b0e7-9ff6218c97a9","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":177,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"79fa0dea-f2f8-4b50-ab2d-52954074e8bb","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":177,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"32ceb17c-792f-4644-b43b-a353e889b813","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":177,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"a1d975c3-2462-442d-a7ad-1d2a69de7d17","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":177,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"20f93696-68e7-49bc-98c1-f505641c2f91","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":177,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"4493456c-d3a5-453f-8850-31123bfc8bc5","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":177,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"e5898807-29b1-46eb-a88e-b5f3deb0cfc6","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":177,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"72179980-6f87-4583-82cb-60096c90cba9","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":177,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"0456c4b9-59b2-4aa2-80f6-569d5a42fdcb","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":177,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"cdfe64df-293b-428f-a76a-7b617c80cd3e","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":177,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"0608a784-a1f9-438a-8dfb-3936a0da96dc","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":177,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"9267d4c3-7835-4d05-8f4d-094ea1e18285","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":177,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"9c0fe930-b1d9-433a-ab11-221dc6566074","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":177,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"9f0549e5-e87f-4b49-953d-fa2096b3e7ff","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":177,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"e2184afa-2900-477c-bfa8-72166e0bf664","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":177,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"585c5e74-ae40-472f-ae89-ff8d10ca3c67","block_type":"box","text":"II-139","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"398643b5-d27d-4992-b96f-9ad7fa4866ed","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5404543e-e142-4148-acb4-64a895f96999","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":178,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"f24d86d5-3d2d-4125-9b0a-49247558c898","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":178,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"9790ddbd-dbb0-432c-aa63-bfd20a293592","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":178,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"adc05819-0c54-46b1-b621-3ef1cace4424","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":178,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"20c2a687-79ea-43ec-a65c-b33555060551","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":178,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"33909aa8-16e9-4234-a32f-a3e321584188","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":178,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"16de43f1-a6f7-4d5f-b529-3fbd4bbfe9b1","block_type":"box","text":"Additional Information","page_number":178,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"7a509cf5-55c5-484a-ad4e-77b668f58fac","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":178,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"98e1e855-86b9-42ba-93a0-46ad29bd3cf3","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":178,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"fda5752b-2394-42f2-8f0d-f4c54ab457f9","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":178,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"d566b3d0-e560-4e22-8852-93943de950ba","block_type":"box","text":"such name to any other company.","page_number":178,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"9bd1a153-0248-43f4-9e0e-1fdc83670109","block_type":"box","text":"II-140","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"85fab56e-90b6-4267-bcff-136fb282b311","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2686e8a7-3de8-4099-8b83-3a52909eb919","block_type":"box","text":"APPENDIX A","page_number":179,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"0f41c7c2-eeed-4fce-bcb3-3f3539a1258d","block_type":"box","text":"Description of Bond Ratings","page_number":179,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"c61bc7f6-4a87-473a-9c8d-078f083a05df","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":179,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"4321e448-ceaa-48a5-8b23-3075129f3d76","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":179,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"9b29f105-a846-470b-8163-d6980bc8daef","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":179,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"8585dd19-8f10-46ab-aa66-6eb940f38418","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":179,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"ca06cef6-dff1-4986-a9fb-9b67699a7d77","block_type":"box","text":"securities on a particular subsequent date.","page_number":179,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"a03da326-bd56-4566-9790-0d3264b1a3c5","block_type":"box","text":"NRSROs may rate specific investments (","page_number":179,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"347194c3-f481-493f-bfae-b349dcd91d4e","block_type":"box","text":"e.g.","page_number":179,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"7d2f6741-c871-4cd9-ad8c-066b641cc859","block_type":"box","text":", bonds), issuers (","page_number":179,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"eecef7bf-a2b6-44e7-a3e0-34010cd19899","block_type":"box","text":"e.g.","page_number":179,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"5efca129-ac66-4a22-8815-1d8062178a4b","block_type":"box","text":", corporations, governments and financial","page_number":179,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"9fc43499-0a3d-4514-aefd-262b20ae291c","block_type":"box","text":"institutions) and/or programs (","page_number":179,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"78b3a277-6bee-4527-ae20-7e2185315b06","block_type":"box","text":"e.g.","page_number":179,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"e4ea7013-77f6-4f53-b4c8-616767e2757a","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":179,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"ed29781f-16b9-4e3f-b4c0-8e930038ad72","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":179,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"8dde2bc5-f60d-4967-bf46-44057e87227f","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":179,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"12281573-bd0a-45e6-9ccf-24d3a1a6ace6","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":179,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"175a7ca3-a10c-488a-87dd-6b41fcadd5ce","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"1067abbb-08a3-493f-b930-942b73ae0ec8","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":179,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"d807e86a-0fdc-40a2-8b1a-607f0e8e511f","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"a66e032a-e804-4c48-a9bd-01a673b76232","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":179,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"365422ca-4297-43b9-a99d-c6a2dbcbf1fa","block_type":"box","text":"security (","page_number":179,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"a732bbb9-6211-4b9b-82d9-181d6ea0df61","block_type":"box","text":"e.g.","page_number":179,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"41934fc6-df8d-499c-beb5-f702a3a13e1f","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":179,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"46043605-411b-408a-bdd1-0c14f58a1791","block_type":"box","text":"highest of the multiple ratings.","page_number":179,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"45b3c18a-be19-4614-9882-780d76b6c153","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":179,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"ec8bf18d-1b3b-4be5-871b-848c37df6e3d","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":179,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"7dc35041-dd27-4948-9493-ad02959aa997","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":179,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"b0f2d650-c7f4-4ba8-aa72-dae1b17d704d","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":179,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"40b692c9-926b-41e0-a70b-4b13d36cfb67","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":179,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"4b1bbd91-9bc2-4377-b63d-cb15fe119c37","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":179,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"bc03ba72-0376-48f7-80df-2b5cc2f13dc0","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":179,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"b1aa19f2-7d41-4ed3-b906-1ae99ed7ea10","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":179,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"052274c0-90ac-4fc5-b180-bc797c820bba","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":179,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"50f77867-a8fb-4c7d-a262-36089297e4c5","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":179,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"e5cb3bf9-797c-4942-bac0-45a68a7ff626","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":179,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"95911bef-e12e-4956-80af-33d80b38b53d","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":179,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"a1a39cac-f90c-413b-9666-cc472c94ee68","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":179,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"31473616-5706-45b1-a62b-993b85edd603","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":179,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"b6cd3021-26ef-446e-abe0-dfc31e7c1ea6","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":179,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"f331c9e6-4753-4a72-971a-6ac778913e56","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":179,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"d5179f2c-1aaa-454f-bdca-083693fe0f11","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":179,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"a5f9ba7b-9499-4a3f-b45b-645b1abd2385","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":179,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"545bfcf3-78f0-499e-a2ea-3066cbf15ee5","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":179,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"d5931e3d-3db5-4ebf-999c-82fb8c575bd7","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":179,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"ab2c4bdd-4056-43cb-b3cd-4a220feb5ac1","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":179,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"c4539262-9fe4-4a6c-84b5-6b21f7516f07","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":179,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"4edeb00f-e488-483c-9855-804d025940df","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":179,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"28121643-8ba6-4505-b587-c2f94a00635c","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":179,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"27e304b9-54fe-494f-95d9-a7f5ba85b384","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":179,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"c7e98fde-195a-4e73-9a72-0a3288019f85","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":179,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"6831bca0-6358-45a7-b71b-a7bedaef17b3","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":179,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"890a6f58-8116-4e87-ba26-d5d58d1bb9e0","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":179,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"6824d84c-d823-47fd-a194-35521831bfea","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":179,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"11b51807-95a6-4931-91a8-7ad49395088f","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":179,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"a6ecc477-3349-49a0-a73e-d04fa7f35dad","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":179,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"9cbc5810-987c-4958-bbc6-2866f14d5884","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":179,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"92d3cd76-43ef-4d70-a2e0-9e8477beecd8","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":179,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"ea5678d3-b19d-4ba6-8576-32996a7e90b0","block_type":"box","text":"upon standard sources of variation (","page_number":179,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"c6e81b52-8789-4e63-8d67-63b0f4798678","block_type":"box","text":"e.g.","page_number":179,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"8883a9cb-8746-44fd-9d93-7155fdaec530","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":179,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"b0d0dbc7-9220-4503-910f-a5cd56e38467","block_type":"box","text":"A-1","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"7bf8a5ba-50a8-47ed-a786-aba0a677aac3","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f224b6c-7791-499f-ad09-4f74e1952fab","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":180,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"51ee54bc-155c-4e0b-aba3-f5124a00da10","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":180,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"4f429963-b86c-46ca-b9cf-fcc13e5cf55b","block_type":"box","text":"e.g.","page_number":180,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"9aa2f417-61a0-4362-a590-60825c49db23","block_type":"box","text":", equity indexed), absent","page_number":180,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"4322c462-0315-4273-9232-35f5a5aefc15","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":180,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"ded4f06c-61f9-47ad-a031-d388a7093203","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":180,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"21f80916-d47f-4808-8f5d-dfa483ee85f3","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":180,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"ea131628-35ea-441a-9e41-f71b40e088a4","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":180,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"fe31ae9e-2038-4e99-a107-87a634ca8adc","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":180,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"bc85b86d-2ec0-413d-b33e-71899573228a","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":180,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"c4d1d3be-76ff-48df-9928-704a1ddc3800","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":180,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"a5c59b42-2b85-4ed4-8c23-85f14e0328e9","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":180,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"056e518a-7f53-48d2-b907-ae5b00106e44","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":180,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"cf84a82f-0fca-4a61-8494-bcef370b2799","block_type":"box","text":"i.e.","page_number":180,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"8bc83e5e-4288-4fa5-934d-9eea9854e299","block_type":"box","text":", ratings on nonfinancial","page_number":180,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"b11189f4-8608-4f0d-9a14-5761f0554ba9","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":180,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"9a53ef59-3399-4c10-984a-27605bb14ecd","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":180,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"06bd8e4f-8cae-4a89-8a14-ce94eb128258","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":180,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"3ca40fdb-a4e4-41f9-9733-2cac8fb9112f","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":180,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"0353f74c-4d6f-4536-bbf1-e86424b0e69b","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":180,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"cc2df979-b063-4f1c-87e5-03230790d146","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":180,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"06e130bd-a1ec-4c03-9965-26b46ee1572d","block_type":"box","text":"of time.","page_number":180,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"11cabf06-cc2d-4e58-bcd3-540252c0b457","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":180,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"d3252e05-24ca-4de2-82f9-187ab3c5979a","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":180,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"20007670-9243-4da8-99d8-dc92c9bcf84c","block_type":"box","text":"risk.","page_number":180,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"e0ea40cc-2bac-40e1-af38-f6270c412dee","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":180,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"35c6b365-25cf-4340-b4b4-8702f38de6c4","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":180,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"5a4c0114-8184-41a6-b9bf-7967dd7d2d34","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":180,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"414f9074-6731-46ec-b26b-7a7974c63414","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":180,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"e22cc4e0-17a4-4a76-87c5-cdc2eaebdec9","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":180,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"a7b3e3b9-2e64-4999-83ff-461a32ae49c6","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":180,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"d00338a5-45a5-4036-859f-c444ecfaaadf","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":180,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"ed1adc0f-e928-47c2-8019-9172b2fdedf6","block_type":"box","text":"credit risk.","page_number":180,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"6aa72535-47a0-455b-895e-cef4951847e9","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":180,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"0a55a57b-5298-49f7-bc8a-ce1ba2d06672","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":180,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"918a8740-424e-4a86-903a-42faa9c46f2c","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":180,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"77dd13ae-bd6f-424a-bd2c-e6bf88dddc20","block_type":"box","text":"of principal or interest.","page_number":180,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"3192dbef-8228-4490-9c50-d2ce4162d166","block_type":"box","text":"Note:","page_number":180,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"91f9f1e2-0a17-406f-b04e-59d80c9a5705","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":180,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"e0036d0f-9697-4155-b0de-f77395e73994","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":180,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"81cfe668-fb39-41f1-b572-025fc9638f7d","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":180,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"e7f3fae1-459e-4706-bbc2-de4cf8f735f2","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":180,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"bf8db6f1-2f2a-4e5d-8004-918bb71aa21a","block_type":"box","text":"companies, and securities firms.","page_number":180,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"222e0e7a-ffa8-456f-84af-28305d447242","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":180,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"92f43524-174a-488c-87ac-7a762cf9d729","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":180,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"98578c63-a578-4bf1-b579-673c2defbbf4","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":180,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"c5a98a71-0527-445e-b1e5-d6984712b539","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":180,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"9900fb3d-c0dc-45be-8110-123375a4f357","block_type":"box","text":"that security.","page_number":180,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"4dff0023-7c61-484b-81da-6b667d5be425","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":180,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"c480193d-0964-47e2-bf23-0627a0ebac15","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"7c662729-a01f-4a0c-aac9-5616451ba1b7","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"f9d1c097-9598-4f47-a7ee-a1521b795629","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"05a0ded6-af39-467c-b915-5d32687b232f","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":180,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"6a408f89-868a-43dc-a7c0-8ddd1792c238","block_type":"box","text":"categories.","page_number":180,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"374f4c7f-64f5-40f3-8509-e015f35cec1f","block_type":"box","text":"A-2","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"b248d893-8e41-42eb-bcb3-00540e1c878c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22dc9aa0-c4cc-46ca-abe9-9a0cd72dcdda","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":181,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"45f24b9c-7546-43d8-ad4e-36c63e1b3d0a","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":181,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"1e63ea75-b238-4bae-bc7a-ce874081a087","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":181,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"e61935c1-33a4-4e0f-9e06-41be5042b13b","block_type":"box","text":"an issuer’s self-liquidity.","page_number":181,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"62d7086a-89ee-49f5-ab18-aafe18b9ece7","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":181,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"6ca4782f-d806-424d-9f52-9fd3a1411f6f","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":181,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"5654ebf0-f01d-4c8c-ac0a-f6bf38ae2939","block_type":"box","text":"MIG Ratings","page_number":181,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"cf93b9c9-5d61-47a6-9519-7a165ddd14a3","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":181,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"ef402aa5-1130-4166-872b-8d07f8e4146b","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":181,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"4060d386-59bb-479b-af27-561bcc6b7636","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":181,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"cbc8ffda-aa51-4b96-8152-db9157178a89","block_type":"box","text":"MIG Scale","page_number":181,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"3e003090-da43-4ede-94a8-80d2a901a519","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":181,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"c051437b-d4b2-4adf-ab5e-f5a1ff950bbb","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":181,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"d1c7cbce-5664-4718-beec-bd9827d31e40","block_type":"box","text":"refinancing.","page_number":181,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"9effdba0-5d28-4684-939e-0bc56212cba0","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":181,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"4a348c45-cf3f-4a92-a752-0b37ea747760","block_type":"box","text":"large as in the preceding group.","page_number":181,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"33d07b9e-3a40-41fd-b3b3-946bb3a44c37","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":181,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"32e1370e-ec45-4957-8633-3ad0a16c0365","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":181,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"c02cec09-9add-4e1b-9fda-e3f91ead8eb5","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":181,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"bb6618e3-8d60-4515-9ef8-97049236bdaa","block_type":"box","text":"lack sufficient margins of protection.","page_number":181,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"9e5f7eaa-a916-4300-9977-edfd230b0d3a","block_type":"box","text":"VMIG Ratings","page_number":181,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"257c4a9b-09e5-4bf0-9a13-2eb542545b8b","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":181,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"bfb94821-1425-4a2b-9900-2adb86083faf","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":181,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"be035f89-3611-44b9-b16e-7429fe452cbd","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":181,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"ad944503-7beb-41d2-8a02-12457d2f52f3","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":181,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"074f4e62-496d-4b77-8370-ff1a4e099f42","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":181,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"78ca6105-c207-4afb-8ecd-eca03ca974f7","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":181,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"7f22e2bb-2cd3-4e70-9d03-04194191205e","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":181,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"20b95aff-db98-4cf6-b0e0-0cf19e014b0c","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":181,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"7d7e3f37-29b9-4dc0-9163-69572582efc4","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":181,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"c9f579e6-3a78-451d-ad6c-9377b792b51b","block_type":"box","text":"grade.","page_number":181,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"713ad368-f6c1-4be8-9ad5-1937e361bb12","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":181,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"b8b3cd8d-5c10-433d-be30-7b4711625175","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":181,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"053e5163-fc09-4ec9-8275-1b9af7520dc4","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":181,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"096709f9-0fe7-4e01-b832-822f1173f2ef","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":181,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"8c6495ec-8650-46f8-ae7f-a7af70567b7a","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":181,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"5291e3e9-a8e1-42f3-92fc-54bdc82c6fc1","block_type":"box","text":"liquidity of the corporate obligor.","page_number":181,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"55baeb9e-1b48-408f-b14b-f25bf3c35ca2","block_type":"box","text":"VMIG Scale","page_number":181,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"b1a3dfa8-faa4-4341-a895-fd496c0d1d67","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":181,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"60618987-20a4-420e-8ef1-090b97784806","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"9f85d8d0-1442-4ffc-9220-1ceb7279702e","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":181,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"952bf854-1b3a-4580-bf83-1a3957d7bfb4","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"8024e507-007a-49b8-be84-7a07b5e6e578","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":181,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"88d1a2a5-9e3a-446e-98a9-b73a618b834f","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"f503c706-060c-474f-b452-838ca67e9920","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":181,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"b34b28a6-8ab1-4daa-b014-75988689e365","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":181,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"c068036d-f50d-4638-b2a1-02df0989b89c","block_type":"box","text":"may lack the structural or legal protections.","page_number":181,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"f6d367e1-ece5-46d1-99fa-b819e2ac44f5","block_type":"box","text":"A-3","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"6ac90ab2-3687-4ab6-95c5-eb438ff61c6a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"837dcfe9-bbb1-427b-af30-51bfbe0d69ab","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":182,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"e8377a5e-ea50-4e47-bfec-d3a56cbf8851","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":182,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"61214e4d-4996-45e6-9468-cf1f57986703","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":182,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"058b5a56-1dc9-4a39-a99b-24cf25b71120","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":182,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"53789ecb-7d76-4259-b7ae-f387f906920f","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":182,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"f14b80ed-b105-4036-9f17-710a4c8f8cda","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":182,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"9835624c-3175-482f-bf7b-25d4c8c444a4","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":182,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"8f7fe4c7-1dd8-4a96-9e96-8f87d87baf47","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":182,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"74964691-6342-400e-9343-7bfa9f1339fe","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":182,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"be1f9ace-1909-4f4c-b9d4-c05530699417","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":182,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"660a2ae1-02ce-42b8-9607-997b689ca57a","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":182,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"a395f0a1-c958-4c6b-a2e9-e31d2e34ceaf","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":182,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"97ce24ed-9f40-4407-b04b-32e22e8ff712","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":182,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"0fb73e23-e93b-478b-986a-f00e461163c5","block_type":"box","text":"from these guidelines based on market practices.","page_number":182,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"f2422d22-1260-4b06-b06c-429ba3718502","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":182,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"c9ca810d-ffed-4e29-935c-802b0c4e5eab","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"fa34229e-8aed-420a-9872-2f33b0fe2011","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":182,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"a80b99b1-bfe8-495a-9674-a4ea73e4cd35","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":182,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"1cef678d-f03d-440e-b0ad-499f5a32ca1b","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"54240e8d-7e45-4e31-9c4c-ca8af475b0b4","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":182,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"edcda208-f3be-4419-bf7d-30e74f7708df","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"5722257e-6729-4a33-9ae1-ddd335654811","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":182,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"e768a59b-1d2f-431a-ae91-73f2dedeb6d4","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":182,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"cf60b6d6-2096-47ba-9f9f-f7ae9687aa06","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":182,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"6f599dd1-9541-4ea2-b438-8a5c0bd8d093","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":182,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"b2adb600-6ac1-4569-b5d3-c4717532fd22","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":182,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"a0f5cb5b-974c-4fb7-bfb0-e450e7f9ad61","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":182,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"f08b53d6-1494-41cc-bdf4-0fb83ac53b2c","block_type":"box","text":"obligations.)","page_number":182,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"e1c069f6-38c2-46fe-aadb-53033057cb3c","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":182,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"38de4c69-5525-4a43-b72e-33c79eb9ae7f","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":182,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"00891dbf-7fed-451b-b1b1-172ecd24bdff","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":182,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"a14b38dd-8259-4770-8c4d-2a1a83227a4b","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":182,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"b1a4904a-92a4-417d-81a3-f19240c44027","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":182,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"db52f661-8a4e-4ebf-9750-43cbac4ccf15","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":182,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"b20dff69-9f50-4790-b1d3-70301ac9e6cb","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":182,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"9d8ec841-1ae7-40ca-8d08-4f4e007fa95a","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":182,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"8863bd0f-91e9-4c41-b333-d30ddacc0ff2","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":182,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"abfbeb35-ff7b-43dd-8962-0c4de1d9b86e","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":182,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"4b44112e-0c61-4e8b-975c-148ba9f3b82e","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"682aae2d-8760-4260-8ed4-e69f6a982647","block_type":"box","text":"BB,","page_number":182,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"98237054-7c09-43c0-9bc7-ded6cc1b3a28","block_type":"box","text":"B,","page_number":182,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"15a49f53-9bd6-4338-b20a-ec677b315460","block_type":"box","text":"CCC,","page_number":182,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"abad394c-2978-4e97-b78e-5e3ae08f1de0","block_type":"box","text":"CC,","page_number":182,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"6b444c8b-7460-42b5-9e90-d575340d5819","block_type":"box","text":"and C","page_number":182,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"41bf6e55-de7c-4526-bbb3-9fb8139be537","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":182,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"ca56d882-178e-4ec4-a886-35dc37eb2abf","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":182,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"3964386c-ae86-4f04-bed1-1395db8c6621","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":182,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"590f390a-e1cc-4e48-a00c-5e5c1fe8b87c","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":182,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"19801801-83c8-49d0-865e-e3d91a29190a","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":182,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"5e881788-3310-4180-b5ed-c295ed283476","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":182,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"bac7aa16-5925-48ff-8484-46de5db9656f","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":182,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"89ca8cd6-0a38-4f84-9ede-61a388b240c8","block_type":"box","text":"on the obligation.","page_number":182,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"27ff45b1-6f18-47b2-95db-9bbb65a94c43","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":182,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"8e4def6c-9e07-436a-a869-92fe07e0b274","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":182,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"3273d5bf-dcf4-4c1e-92a6-a8ac67d144c5","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":182,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"43461a2a-fee2-47cb-9731-5849e4487a2e","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"d02aa380-9312-4fce-9391-6e4ca4380ca5","block_type":"box","text":"A-4","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"67c77a15-a859-4002-b719-13a01a50d8ca","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0bd70bcb-b5be-4932-9231-2625b31eb4b3","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":183,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"b033cabc-40e3-47d0-8aaa-8e7da0b05b04","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":183,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"78a6f333-ebf6-4f7b-980d-1e2b9a7309c5","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":183,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"505d1d2c-8d34-44c6-8c16-37adad8ec41d","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"c464150e-419b-471c-aca9-6b51ec58621c","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":183,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"a1698bf2-1d7e-491b-9538-b6f2d16ac33e","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":183,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"93cce1af-cf11-4d22-b41b-8820bc160a41","block_type":"box","text":"anticipated time to default.","page_number":183,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"5557f81e-96a0-4158-91d5-4f560715ef5e","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":183,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"511fae09-83c0-44af-84e9-49ad16fb02a9","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":183,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"e1dc642e-5908-4f83-8a97-f06fb7283d53","block_type":"box","text":"higher.","page_number":183,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"3596fb17-fa3f-4957-829a-3bf423278a2b","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":183,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"97666792-2325-4213-9dfd-23923a5c8136","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":183,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"bf73da85-75b9-4795-9ebb-0a66b214bf59","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":183,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"97bc7ed1-50c1-4142-a491-fd424186b1e1","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":183,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"7ebf2a9f-3ce4-410a-858a-426a740f7a9f","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":183,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"2c7e07cf-b8ed-4884-8595-db75d1a57d07","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":183,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"d3ada85f-cffc-437c-bcb8-4c67d22bdc38","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":183,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"5cbfea1b-99e9-4ff6-8ec3-3e1b84348a78","block_type":"box","text":"restructuring.","page_number":183,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"abff67cf-b49b-46b3-8fa1-3e8ce6fded36","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":183,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"b2eab971-2228-4cd0-81df-73410aaa3608","block_type":"box","text":"standing within the rating categories.","page_number":183,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"e7a50b9e-cddb-405f-827a-a00358452107","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":183,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"d6b8dd7c-ccf7-4164-9bb9-d84bf91857e2","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":183,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"2d53a359-35d0-44c9-8b17-5c7511452a72","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":183,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"58ab2723-d0d5-40f9-beb4-c2dc28df7bb0","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":183,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"32e5402d-0964-4ed2-aa5f-743cc706b0c5","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":183,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"278e5b66-9d50-4129-ae44-001c55ba5014","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":183,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"489a92bb-0296-4f3c-9504-be2eaffeccbd","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":183,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"dd3e2ff7-0c72-4779-8207-a6dbe39d2bb8","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":183,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"94443be2-f473-4f7c-9716-f8960c06a308","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":183,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"21a4fc7a-98c6-472c-b55c-b201d61bfb1b","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":183,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"93a9b6d7-41ae-41be-a258-79920c2f3ce8","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"53bec95f-d5f9-47b0-bbc8-7de6435b8944","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":183,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"a71590ad-e585-4dfa-bac4-045fb690056b","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":183,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"59a86e78-4e52-4859-adfa-8efe2fc7bad7","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":183,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"84e98b6d-12f1-44e5-9274-bd3ec4808a7c","block_type":"box","text":"financial commitments.","page_number":183,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"4977fcb6-f1bc-4586-84b6-a5c7f4a5e7b4","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":183,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"e390f236-c76b-462a-8592-ea8b337235b0","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":183,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"49daa1a5-6f66-45c4-9c47-53bda7d2c9d7","block_type":"box","text":"commitments on the obligation.","page_number":183,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"fc548fd6-52fe-4011-a64f-f3aa1b44f040","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":183,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"f2a8ad62-6060-49fa-a007-762344932c1c","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":183,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"3cd486b2-761b-4250-b1c9-a54df32e1184","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":183,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"ea567966-d781-45f3-b909-edca1a3093b0","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":183,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"e46e6589-2886-4870-b259-dab14c75725b","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":183,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"5dc11acf-b333-4084-8835-c74567360c7c","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":183,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"51f22c3e-e32c-4b6f-99fa-1451bdceb42b","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":183,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"9f5cfe0e-7ca0-4381-9e17-7b8bb3b9d929","block_type":"box","text":"debt restructuring.","page_number":183,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"b49fa9e4-2b02-41dc-abcf-f5273fec04a8","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":183,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"ecf38dd6-f2ca-415a-8181-f0318f64af2f","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":183,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"ce2aa8dc-9e64-4712-9414-2b40da6569eb","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":183,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"bd905b25-003e-4bc4-b876-d714eb7d4436","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":183,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"e8f6404d-954e-4a00-96d5-3e93f5c53d2e","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":183,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"60fe9589-554c-4a68-b27a-f652b146fecf","block_type":"box","text":"A-5","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"401eac83-a140-4c25-939a-d7ab3ca12c46","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f91be8df-b52e-4124-8de5-2cd0c33bdea6","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"0c6ab101-c2bf-4f11-9275-26577bd86df8","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":184,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"f4fef98a-473d-45ac-a0f3-f4a63fea996b","block_type":"box","text":"as a note; and","page_number":184,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"5ccce582-2c08-476c-99e8-6323df363d16","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"5acf0230-0a49-4f6c-8917-3347bc07ed36","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":184,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"327cb595-cab0-4d6e-b9dc-c1d794de66cc","block_type":"box","text":"treated as a note.","page_number":184,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"f1732b28-ccd6-4171-a32b-d232dd209b6a","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":184,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"42781760-e710-469c-9ba1-976c82339b4c","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":184,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"4a7a5c7a-d51b-408f-b7c9-d6ce1e7fb1bb","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":184,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"64aeab05-225a-4cd8-b769-bf86954d8b96","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":184,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"d42c9e40-3d51-4401-9aee-61c8ed5da4a1","block_type":"box","text":"economic changes over the term of the notes.","page_number":184,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"1f56e861-8a92-48f6-842f-7a4be172621c","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":184,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"bc024211-fcce-4d0d-bd3f-0ce387e3e703","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":184,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"f3acbe76-5258-464b-aa54-a49de2a050c5","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":184,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"16a98918-eab4-4b65-a6da-8e4efef2da3a","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":184,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"4c426a1d-89e0-46c9-b512-40c4ecdc061a","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":184,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"1aaf56aa-4dbe-4937-bb75-ca7c286d7aaa","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":184,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"f82f4f8d-18b6-476e-8fd7-b1511873f5fe","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":184,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"0a166cab-1b7f-4bc0-ba36-376d72085b5f","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":184,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"9d665462-0ea4-4312-9a72-5fa5eaa87e58","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":184,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"5963349e-27c3-4f7e-a135-dc917ed8c2d2","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":184,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"c7be40d1-08c6-4847-9dc5-89ac8934c841","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":184,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"ff75bb8d-d95b-4084-8a1b-ce34693832ea","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":184,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"6fec550c-1fc8-4a9a-84e2-f823d44a857b","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":184,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"dbbde21c-454e-4506-9b94-bbd844b0a79f","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":184,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"c00411a5-7ecf-4fb4-bdb2-bf8ff6c7da93","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":184,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"3ef35a7c-b23a-4c90-8044-55ff70a4268b","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":184,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"c9df3ad8-f6e5-4c47-abec-9ae8f6d3d216","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":184,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"cb9f09c4-55d3-4e52-ba48-4928c0cc3c9b","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":184,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"68cf84d5-860a-4536-bbf8-dbad8ccd382c","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":184,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"899272ea-9686-4a65-aadf-126d8c4772e7","block_type":"box","text":"receivables or other financial assets.","page_number":184,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"035105b2-866e-41d0-89a8-0ba3760da29e","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":184,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"6343c79d-d625-4817-a789-32b0cf6f3e1a","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":184,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"c5af984f-dbdd-45e0-9b3b-fd39a1e4537b","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":184,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"1ffab67e-f0c5-4f92-adbe-c46ccbbf6d93","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":184,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"942fe841-9d88-4956-8cb3-4b615a6eb80f","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":184,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"1af9881e-4d6c-4a08-8729-c80dde1de044","block_type":"box","text":"occurred.","page_number":184,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"b41c7237-a15b-4470-9295-0be9298d9598","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":184,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"21a228a9-be93-4e9b-9390-bf4f1acede58","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":184,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"bba1cf70-d429-469e-a429-77e147b219b5","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":184,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"772539db-7b5b-4b2b-86aa-2810010f06b5","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":184,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"fb5fa33c-141c-45de-99ca-05098ed8d25b","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":184,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"b87b5376-0344-4582-aac3-44100934cf79","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":184,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"dac91352-e08c-435d-98e2-69066468fc3f","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":184,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"82b10257-ccf2-4376-9261-5104a9355280","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":184,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"26a9bca3-04fd-4b66-9f31-78fb7f8d3926","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":184,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"356445eb-feee-491c-ada4-f79fd1003dc6","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":184,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"d13a7be5-632a-414c-bbbf-62c5f1879c9c","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":184,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"5e4705ca-8cae-4140-bacd-b83b5ddcb344","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":184,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"a80fc546-27ab-4620-a58e-4f15a3f960db","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":184,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"39d9508a-c367-458c-bc53-99fa703d277e","block_type":"box","text":"i.e.","page_number":184,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"1d61d339-74c6-4c98-a129-feda7c1a807e","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":184,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"9e1c2c30-b153-4a64-bcee-f8574eb64111","block_type":"box","text":"the obligation’s documentation).","page_number":184,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"8efffcf1-9cda-4187-9e08-dd0bb587321a","block_type":"box","text":"A-6","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"20c954b3-5a4d-4ca1-9715-0a30bb423d4a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73114bc9-bd08-4958-a2f6-a599a59a6c66","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":185,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"4815260d-5820-4e52-a8a8-40c739ebc391","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":185,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"a8b271bb-1771-4816-97b1-ff7ab400e9ff","block_type":"box","text":"agents in the form of a rating letter.","page_number":185,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"5b7d7ce7-61fb-42c5-a340-1918af40ce87","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":185,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"75b50dfd-c8a7-47c0-b6f6-24d5be79cbb1","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":185,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"55ada33d-ec67-4f9a-86c8-a8a640392d26","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":185,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"72b14a08-484f-4fff-8e91-7fd557feae58","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":185,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"ccf6d0f3-58e4-40c0-8603-ee396e30012b","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":185,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"31ed1564-fe45-44b4-9426-bb66455ea58c","block_type":"box","text":"e.g.","page_number":185,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"4a8a97cf-831d-4a76-8a84-facf8524062d","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":185,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"83e2fb3f-a7e4-4593-ac8a-33743a446611","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":185,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"123c7196-e7e0-47cd-ae97-830eb8cda392","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":185,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"a22dec05-54d3-4ff4-a336-63acb46422ac","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":185,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"3f67daa9-1edc-443d-8989-0a768f8c9fb7","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":185,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"0dfb8ab5-1524-4f7d-b6ac-4c739bb97c6b","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":185,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"dc6ac349-6362-445a-a38c-f6538e92ec5d","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":185,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"762aaf7f-56bb-4911-bb1b-b055714ca230","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":185,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"010fb10c-aa3d-4dfc-9995-6bc1e892a286","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":185,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"5295d2d8-e8ec-4d31-994e-57017a54925f","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":185,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"82b2985e-9e19-454d-88f4-fc700f7f7546","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":185,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"d8e27e24-0fde-4774-8765-de154ce8fe1c","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":185,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"fd14acf0-0d0e-4a70-870b-36faeb5acced","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":185,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"72b114ee-5edd-4557-988a-e38e391d9d82","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":185,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"6ddda618-2e4e-46d7-b286-c34e19f937b2","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":185,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"20f84bea-d79e-4a86-85d7-7c02b273174b","block_type":"box","text":"Ratings.","page_number":185,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"e4e94a92-d80a-4192-a2f7-1fbaf83d2f16","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":185,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"a28c24ab-573b-4591-ae71-25409cfca883","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":185,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"ab37eecb-80d8-4b16-92ad-210b1b70a390","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":185,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"d55499ad-b25c-4580-b1d7-ca1a59111452","block_type":"box","text":"obligation ratings.","page_number":185,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"eef0903a-a4ea-4776-90e6-be6b7d36fd46","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":185,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"1c34254e-9835-44df-83c4-72cdbed4fedd","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":185,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"e1167edd-c49f-4262-ab61-ccbcd1b829d2","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":185,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"1f40a36d-a8c0-4b37-ae3f-a7a41fdccbb2","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":185,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"dce513da-3e73-4f42-9451-cfdc3415d886","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":185,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"41cfd27b-578c-4706-8fe3-4a0dae781db1","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":185,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"4f9a33c4-c890-4ceb-9b6b-b0c7668327d0","block_type":"box","text":"to foreseeable events.","page_number":185,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"1af40533-a243-45e3-97f6-e7da939adc6b","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":185,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"9b6b2484-6e80-45d5-8236-c606887e9b95","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":185,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"5254f10d-74c6-488c-b2c4-d4b3c94f15fa","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":185,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"918eb760-3aea-4608-bb44-077cc0550f7b","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":185,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"c2b6f989-2e78-4ff4-882c-43862dc23f13","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":185,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"74b1230c-02ab-4c8e-b268-c7190217cbe7","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":185,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"8ab6c3af-0f75-41a5-8cbc-3871cb300263","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":185,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"7a5dfad3-0800-4a79-b958-1362c0304768","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":185,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"7b821bab-81c3-4551-b2df-27b2201d584d","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":185,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"0145c1a6-7658-4838-bc1d-60d0110014b9","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":185,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"f711f205-b947-4df6-93e3-d0a21ed6c21b","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":185,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"7a947793-0522-487f-8eea-afa7ba521fd0","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":185,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"24e0ad46-ee49-4ef3-b3ed-23ee7de5bff0","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":185,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"ba5b1a99-47d0-4d8c-9788-df0926dd2b68","block_type":"box","text":"possibility.","page_number":185,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"7a5055b9-32e0-416c-95f7-1eff942329b7","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":185,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"08c9045e-fa4b-4134-bbbc-eb34a401d1aa","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":185,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"a1364392-c19a-42cc-bb67-a10684981c03","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":185,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"bacf0943-ec94-4284-8fd9-3c9bc7b1917c","block_type":"box","text":"A-7","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"4dc4215b-ddf3-4cdd-a607-a586c9c81f4b","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6560ec33-67d8-4117-a1db-164d73096e1e","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":186,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"6f169840-28cf-4120-8758-0702559e70da","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":186,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"e3644dc2-9b83-4474-83d3-e8b973e4df1f","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":186,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"69ee06b9-5226-40a1-9a19-5be318ed19ce","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":186,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"842092ad-3fd5-48ca-81ea-600bc43a43ba","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":186,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"9ac3d8ae-8c89-447f-a55b-1ec27bf1bbbe","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":186,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"cd0d5e6e-91c0-4ad4-8a46-5475ded9c03b","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":186,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"e08bc9d9-188b-4826-8629-b503792d7f84","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":186,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"70789e1f-3058-4fc0-ab92-6257b593dbe7","block_type":"box","text":"relative status within major rating categories.","page_number":186,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"83caedcf-838c-481d-8a12-efd5e9cc7cbf","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":186,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"1881c2fe-b150-4b52-98d3-e9d69c897cc2","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":186,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"33f0faa1-b0d3-4ac3-a5e1-f2d8db97fe7d","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":186,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"597a9bb3-c4e4-4d57-b94f-f38ca631ab49","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":186,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"c04a4a60-3864-42c0-bdfa-f74ff2f09ab6","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":186,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"dcb323c9-8f0b-4d08-972a-e3be1774e624","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":186,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"dbe98400-706b-41ba-858d-cf4cc51975a6","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":186,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"d90b098e-3d74-4b53-9ef2-a41732f0ca4c","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":186,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"69d7d8f3-a18a-46d8-93d5-2cbe904cb4fb","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":186,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"5e4fc6a6-0927-4be2-9bcf-1e449d12a73e","block_type":"box","text":"finance markets.","page_number":186,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"426d667d-8a18-4d3a-af78-81f1f789b3c2","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":186,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"669a5a3f-46df-4708-94cf-a6633ec6ffaf","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":186,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"31064bcd-cfd7-4ce7-915f-47bcaa442c3f","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":186,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"78dc7b3e-370e-4d9c-88ce-eb653cf63baa","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"043a01c2-a51c-483a-b22e-c7aff4a38b08","block_type":"box","text":"commitments.","page_number":186,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"f14ba895-6320-4be9-b317-e145a2fbf6a4","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":186,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"664c92d5-b227-42e5-b079-95121292633b","block_type":"box","text":"adequate.","page_number":186,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"0694a38d-e7d1-478c-a6bb-f66c5ff9620f","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"dbdd18f4-81f0-4e85-abb6-1105c861300e","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":186,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"f4dda1b0-040b-4e86-b103-24c95a570f16","block_type":"box","text":"economic conditions.","page_number":186,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"2d82d7f0-64c0-4912-aa98-44811e105331","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":186,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"0dd7f762-ad9f-41bc-b89d-07eb2bb225a8","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":186,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"2dd8fa55-2d57-43b7-ab9e-188d5c950b6f","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":186,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"43784f20-6671-416f-a35b-6908cc415934","block_type":"box","text":"ratings only.","page_number":186,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"a1e2becf-2ea0-48da-a4ca-2e2807c6e525","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":186,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"80bacb11-abe3-4ed9-9d99-a785a5e29a19","block_type":"box","text":"obligation.","page_number":186,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"4731f828-6b96-476a-ae6a-f40f3f41ca51","block_type":"box","text":"A-8","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"6c47ee54-6b91-4e88-99e8-9c0df4105a7c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8cc9daee-4ccb-4998-bbe9-7469025f258b","block_type":"box","text":"APPENDIX B","page_number":187,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"e20caaf0-7565-47fa-b051-cc32514e0909","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":191,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"f0ae6d91-4a6d-47b2-b7d4-15e40a63d822","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":191,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"9c3987b6-b8fd-4ba6-8109-a46487ad9c65","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":191,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"39c6a54c-68ca-483d-9699-22b6744515c3","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":191,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"514d2282-ce09-4194-a2d0-6e7867254d33","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":191,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"b22c457d-8cb4-4536-bd23-d5d8f8e19607","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":191,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"c046564c-fb3e-4664-8306-ac40b9413190","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":191,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"96908584-614f-46f0-ada5-a3d95203edff","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":191,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"37086092-c8f7-433f-a0c7-cb1e943454a6","block_type":"box","text":"1","page_number":191,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"5786ac17-b98f-4801-b6b5-63e55fe100c2","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":191,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"2aa3ddc7-7a02-4ba4-bdc9-710015459a40","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":191,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"72f04f27-eab7-4614-af52-80e5217fa94b","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":191,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"6785c2c6-2125-4151-b8d4-3704e2bb71fa","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":191,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"45b677e3-13c1-4c7c-9bb7-f5ef1ef17fea","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":191,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"98e593c8-1ea3-4749-9358-9abaa9b39cb1","block_type":"box","text":"2","page_number":191,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"8570e415-7c7f-43d8-a112-437ee3ac3849","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":191,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"990c6651-c4b6-43cc-a96c-e0787cdec890","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":191,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"997d1882-49b8-4583-8424-4eb0fd7b4a6a","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":191,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"556b2599-f8a3-4529-a6a3-cd7b4ba58d76","block_type":"box","text":"policies.","page_number":191,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"b5cf6489-9473-40d1-9848-f3528bc6ebaf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"10e1688d-4d35-4ab6-9b55-85cb2de1be8e","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"465c0c55-0c26-4019-829f-2015d44f36eb","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fdc1afcf-1b13-4f00-b275-7863ba353a30","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":192,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"7d174409-eb18-4b02-b66f-9020d25c2e2b","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":192,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"9b11bbd2-d763-4292-a992-75e67aa59f1e","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":192,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"1209bece-136c-4e98-986d-aa254a497e3e","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":192,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"a475720a-0245-4c2b-9842-8ae1d0bd9e7b","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":192,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"9089fa23-67ac-4f05-9912-3c9876a58fc2","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":192,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"94eeac7d-c6e5-495f-9562-0a62c8861753","block_type":"box","text":"this work with research, data and analytics.","page_number":192,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"48e9e643-6fcf-461c-a6d4-bec929c53482","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":192,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"29c4e29e-a96f-4e1e-8fb0-038638082c60","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":192,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"09c3c425-f5ff-4882-a515-97cf9d90f605","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":192,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"7396cc14-4f32-44fb-b4d3-3c326255883b","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":192,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"bae7f49d-8cec-4d1d-af88-96f66f68f24e","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":192,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"088c2c61-c15a-4b2b-bf8d-eb3a8cf85f6b","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":192,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"3f3085bd-d87b-43d2-b669-90a2d40b2bcc","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":192,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"e48d500b-d232-4c83-bd86-752fb50e9937","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":192,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"581721d7-b3e1-4735-a0f5-0e92b1732bfc","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":192,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"bab8bd60-fc5f-4121-9988-38397b877113","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":192,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"2cd08ec7-1ee3-4390-9f18-a405602336a2","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":192,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"1c908093-311a-491f-9a5d-6606b4af3f38","block_type":"box","text":"shareholder meetings.","page_number":192,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"d9aba03a-9d17-426d-84ce-f9b450eee2c9","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":192,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"2ec6a916-ede8-4fcd-b216-e489ae217795","block_type":"box","text":"investing.","page_number":192,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"2b4556c1-4add-4145-b067-c8f4f93f718b","block_type":"box","text":"3","page_number":192,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"cf533140-27d6-48ad-9fe3-dd2738309e60","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":192,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"90216bd8-5f35-479c-91ec-ec85c8aaeb9a","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":192,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"a64f0e2d-1f83-4f29-8f38-8cb6caf416cb","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":192,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"884d9733-8772-4c73-97d5-7a5c9cc6c603","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":192,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"9a16143d-6781-421e-9fce-c2f32444e5f2","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":192,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"31af0c74-dad2-472b-81ca-af9a9d8dbf31","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":192,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"9d4c34f5-ee02-43f5-b6a7-a13fc45238c8","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":192,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"84e90d89-7494-450d-819c-d08dff4eefe9","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":192,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"8ee23fee-c095-4ff8-a1e1-9f6cd2aeebd0","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":192,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"12efd140-4286-456e-bdc1-528be7ef5f15","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":192,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"0183c465-e96e-4a1a-aa88-01fc5b9a5f9c","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":192,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"04219396-b81e-4dc1-8b00-74f1cee2d2cc","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":192,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"ad8d1e72-1f1d-41a4-a45b-cf72de27ac2f","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":192,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"21eb8cd1-462a-42e7-b0c7-9d63df5817fd","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":192,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"7dad798e-7399-4e6f-b634-3561f6016ca9","block_type":"box","text":"management teams and board directors","page_number":192,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"60653fcf-74a6-4885-8d7f-67f0dfde2d6b","block_type":"box","text":"4","page_number":192,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"c1c954b7-6008-4922-b245-ac17c502c7a6","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":192,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"c440e677-b488-4023-841a-7ecf04efd461","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":192,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"bc50d6fb-1e0b-450b-98f3-b79f8ace080c","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":192,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"a6eb6615-6301-4380-b155-e7037ff8101d","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":192,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"d595df40-b1fa-47db-b446-86337c1f2f57","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":192,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"7dce3f48-00e9-4f19-901d-1fae779d32d8","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":192,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"9d186626-9017-4372-90bb-47adc2b43909","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":192,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"2bc0b752-7660-4f94-aa0b-7c209c6c33f0","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":192,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"af4facf6-7654-49f3-bae2-ed8388caf075","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":192,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"67b9f968-203d-4a21-a4d4-2361a783a67b","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":192,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"272a9b00-5add-45ec-b098-0648bf1b4d87","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":192,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"3da38658-d585-4c79-ad77-37ce06ed1fb9","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":192,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"bcbfb060-7a6e-490b-94f9-160ebda58242","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":192,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"6f7e509b-961e-4adf-a01e-2305f5fbf458","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":192,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"3c9df013-eab5-44cb-a60f-256b5acd0557","block_type":"box","text":"3","page_number":192,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"8e6080ed-45ba-415a-8e42-4e1d1c365d79","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":192,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"8d44b9fa-8a11-4880-8995-2f0b86768b01","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":192,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"b793ede8-aed3-45db-bfaf-47be54a2fdf1","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":192,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"ba5ca954-ce14-4827-8e6f-7900c17b34e8","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":192,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"ce2b5c42-5902-49d2-8847-623c7829ef14","block_type":"box","text":"4","page_number":192,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"f5566704-23a0-47bf-9904-d871c1d9bcb1","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":192,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"68d8724a-2a89-4f7f-b037-df13a09f0ff8","block_type":"box","text":"boards and their members, where relevant.","page_number":192,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"420ff08f-7b32-4100-9cd4-3e9f4a1328a6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2c2ed95d-7377-4714-9a45-9384e6b0aff2","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"99310653-a9ba-44b5-b62b-332ba0b199b2","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"603afd90-b31c-4b12-a944-4fb70f3936ab","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":193,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"372db1a7-bdf1-4928-9353-3a4f4f57cdc5","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":193,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"f98f5574-fd62-470b-a330-6ad1ed70af21","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":193,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"4b4b3e0d-4773-400a-adf3-a5869bf54a4f","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":193,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"01d9aded-cdf4-46af-beb5-2bf0280abcb3","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":193,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"38266768-b7e4-43f9-b26e-d85006b6d14f","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":193,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"a14cafab-c805-495e-98e7-778d3b5fb3ae","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":193,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"8179f45f-43b0-432e-8fc5-1fa340293fd2","block_type":"box","text":"5","page_number":193,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"e71ec1bb-8f1f-488f-b1c3-ac778830f53d","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":193,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"8fd2d2ec-fc6b-4c33-890a-a2927427c980","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":193,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"55801a61-31be-4e8f-8304-3c0b4fb70ad5","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":193,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"9335f915-e0fe-4d5d-bd99-bab58eeb79d0","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":193,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"114d8fed-e785-428b-b586-dd881d4a406b","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":193,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"e3421b0b-01a0-4d00-91b5-b51f743ec420","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":193,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"d2e2d11c-38a7-40eb-8c65-24245c8f8836","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":193,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"394239b3-af18-4181-9494-8f7172777e6f","block_type":"box","text":"5","page_number":193,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"cf2c75ea-3ea9-4721-8c5e-7624f573cb10","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":193,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"c3920bff-4f9b-46c2-91ff-ab6de5ff5e70","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":193,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"9d43cbe8-69c9-484c-a1fc-7b70acc5f4ef","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":193,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"285a2b1f-f239-407f-b9e3-c5bb95ea722f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b970bac3-1e43-4f8f-8700-54617521d434","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2cd2d101-db69-4bae-9229-a9aaa0d1ea0c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49d2c6b1-c72e-422e-b844-7ad0f0e027de","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":194,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"7a124556-9bc1-4de3-9522-ef1bf4245948","block_type":"box","text":"Roles and responsibilities","page_number":194,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"a5cda610-8975-4672-ae0a-ef78adc8bca7","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":194,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"02740caf-db46-48a5-8327-dbca688447a1","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":194,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"f669dafb-be14-4450-9682-0ab7d3bbe423","block_type":"box","text":"6","page_number":194,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"52eb2120-d424-4373-8cb0-44765f0df737","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":194,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"4f907937-5171-47d2-9ef9-5702966f57f4","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":194,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"bbd83d9e-9ec4-4a04-9114-2508bdd5b6e5","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":194,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"88af9c5b-7fd8-4980-9726-70d74dbe0697","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":194,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"be25a339-2126-48c5-9449-69147876a072","block_type":"box","text":"performance over time.","page_number":194,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"28154034-5ad0-48d2-a46b-2f67a257d22e","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":194,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"0c746677-2464-486d-b25d-bc6122e5d0c5","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":194,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"41743c8b-f798-4109-aa7a-44c127301e20","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":194,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"5e8279e1-0b2d-492d-a6af-9be4a9bdee68","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":194,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"b1269f26-bda2-4309-9bf7-cd5bf019070d","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":194,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"56ce97b7-2ed6-461f-ad2b-a7efff552658","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":194,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"a4301217-3c4b-4f6f-9e63-331c123ad65f","block_type":"box","text":"Composition and effectiveness","page_number":194,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"4579158c-94f0-48a6-919a-d31ddeeb9314","block_type":"box","text":"Appointment process","page_number":194,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"afd0c851-ea75-498a-8ba3-6e6b90858ac0","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":194,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"1269c82f-592b-41a8-aac9-831e9b986917","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":194,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"78403fa4-068c-4cc2-bdf0-e16300e1f9fb","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":194,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"e4c1b223-5201-4074-a3ad-fa9d2fdb1c99","block_type":"box","text":"e.g.","page_number":194,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"848b1f77-2c72-4ba1-b325-a7207d3a9a0b","block_type":"box","text":", sector, maturity, geographic","page_number":194,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"3f9e022f-7352-4cac-9ec9-d859c05e7c74","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":194,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"9d491d92-d430-492e-8a02-f571ff8490d9","block_type":"box","text":"e.g.","page_number":194,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"f291ccbb-cb12-4d7c-9b01-b776203fb71c","block_type":"box","text":", financial expertise, industry track record). To","page_number":194,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"6c92fa13-9892-489c-b007-7cdc86b7eb50","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":194,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"a03fc88d-95e3-4ad1-bcd4-a94793043051","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":194,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"97ec6e2d-51d3-41dd-9820-fb67332bb6d9","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":194,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"eec424de-24b7-4274-b07f-cc0aac98d4b4","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":194,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"1a496475-4336-49f0-9c87-a650e6076b6d","block_type":"box","text":"and local market requirements.","page_number":194,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"5a99e81a-6af9-4233-bfc5-b957ce7378c3","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":194,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"c2651530-5cc0-4267-abef-1fa128883445","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":194,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"e9db78fd-53e5-4a9a-befa-f0455732a6a2","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":194,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"e995f103-5ac9-4200-8ed0-cc33866ddbfb","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":194,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"cb61c5ec-7841-4fa5-9311-a3907c79c291","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":194,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"94d5ff83-f339-41c1-8351-e4927b473cf7","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":194,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"be1874f5-13ee-46a6-9cfb-0cd32e33203e","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":194,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"5660cda2-3887-4ffd-8abc-0913b610e45c","block_type":"box","text":"Independence","page_number":194,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"5ec66dc0-d4aa-4292-8111-58f82e61ee58","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":194,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"d74a4f9d-0ff8-42d2-8558-883530fd7ed8","block_type":"box","text":"e.g.","page_number":194,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"5d80b8eb-833d-4a95-a89f-c27e00f429b3","block_type":"box","text":", government or","page_number":194,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"7aed5033-a547-493a-9b81-eefd22ac0f35","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":194,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"1d500870-b924-45b0-816e-ba68a78df82d","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":194,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"53c41dfc-5c15-4715-914a-bd03b4d77909","block_type":"box","text":"conflicts of interest or undue influence.","page_number":194,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"6a56fe49-8e9d-4cbc-88a2-0b2d168e33f7","block_type":"box","text":"7","page_number":194,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"b6b2756b-d6dd-4c33-8653-a0aa7f15a510","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":194,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"e39220ea-d04e-4597-af61-f685f9a0752f","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":194,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"adfdbbab-f66c-44a6-981a-faa5b2c6f542","block_type":"box","text":"independence should meet those local requirements.","page_number":194,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"f401400d-4d9d-49fa-a7c1-072209af8ec1","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":194,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"fd2e3c32-3ac3-429b-add1-34e0666b0943","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":194,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"c9919c18-3fef-4188-bce1-28eb342c68f2","block_type":"box","text":"composition if this is a perennial issue.","page_number":194,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"f05d1b5b-7ef4-43c7-81ca-2bd6e2c5d851","block_type":"box","text":"6","page_number":194,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"706a1057-c5b9-46d1-9216-6c731dadcd31","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":194,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"c394b1b8-33bd-4448-9f1b-d857e7ca69a1","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":194,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"373b9b88-9a99-4c0f-88c1-0405d91dfb04","block_type":"box","text":"7","page_number":194,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"2688b288-94be-4b98-81ce-af4639cb408d","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":194,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"fac6337b-71fd-4c5e-ab68-d3e19873fb6b","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":194,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"96d7e53b-d959-44b0-8eed-218c5ec66e90","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":194,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"1254617d-ae84-4ba3-8684-61fc6f9ba74e","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":194,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"be814346-e5e4-4fc1-b28e-7c2922e71d4c","block_type":"box","text":"of the company and shareholders.","page_number":194,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"90022826-c66d-42a2-9408-3f3aa548e50e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4f9efd03-cd03-49c9-acb6-e34f670196c4","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"78418b24-72d4-48d2-9dc8-7856ba471a21","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b3e53ac8-4040-4cf6-adf7-dbdba8ddf210","block_type":"box","text":"Independent board leadership","page_number":195,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"1a5449a8-be22-474a-a3e0-082aab13b758","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":195,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"eaf6e45b-dbcb-4d6a-8e75-382ffcd6b522","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":195,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"9239d043-81e6-4171-b792-4d43f901d2fb","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":195,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"db417ce7-07e1-456c-95f0-4abbcf6e5d12","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":195,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"a42aaef6-1056-4015-81da-8ae689973053","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":195,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"40a717d2-62ce-431b-9721-95edf22bc180","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":195,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"5328dbea-90cf-4708-835b-d8db781e81ce","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":195,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"78d5d335-9208-4f00-918f-4c57effcf63b","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":195,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"a2a02605-12db-46cd-893e-cc76371634fe","block_type":"box","text":"how it serves the interests of shareholders.","page_number":195,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"0d61c58b-5b76-4514-a00d-b39eb6bc12a7","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":195,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"06c56fce-cfcf-4bbb-a6a1-543a8c186e91","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":195,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"cd72cd64-f16e-456a-beb3-fc987b7982fc","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":195,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"e0ea77bf-9014-4278-bac4-c8d333fc5c6a","block_type":"box","text":"Tenure and succession","page_number":195,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"bd1b166d-245e-43b6-ad65-a6afdf3bdb4e","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":195,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"61c12d7e-91c1-4563-87de-a283239e92f0","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":195,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"a50d5317-7e03-41dd-9908-fe9ee480d1f1","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":195,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"53ad8398-3707-4d0e-94e5-9fcc1baca481","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":195,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"6d3cecdf-1702-451d-9f6e-fa5764903137","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":195,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"b0eb7a33-d0be-4b44-952d-b0b4b9f52bcc","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":195,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"fadfe6d8-9c89-4c25-9421-1333606d8833","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":195,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"a51aec70-dd1a-49eb-af2c-effa2dfe2993","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":195,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"201325dc-14aa-484b-a1ea-129290a178d0","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":195,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"5071de74-0df4-4215-b3d1-6804292e4c24","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":195,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"bde7c16f-34b9-4026-8b9a-6df6c899016f","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":195,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"62cb45c5-1907-4f2e-aeb6-a22f01a1666d","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":195,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"3d425398-5761-412a-8228-edc10e963256","block_type":"box","text":"for their continued service is not evident.","page_number":195,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"06346f1c-041a-4150-91ad-e95966968fe9","block_type":"box","text":"Capacity","page_number":195,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"0133275d-50a2-4f03-88b8-38c77bd5565d","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":195,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"e93e271f-67b7-4417-bb12-c96772505875","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":195,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"b5aa0aa3-b0db-49dd-8d73-2554da11e273","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":195,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"f18f4553-5c2d-4638-b9b6-c346034941c3","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":195,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"22106a47-4921-4884-9666-9f5e4a28396f","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":195,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"208ebc64-20c3-4e2f-bd00-b20eedfba310","block_type":"box","text":"determinations across markets.","page_number":195,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"e3dfa12a-b41b-4b84-b8c2-efc9359a9541","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":195,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"96d2925a-ce3c-4891-bcc2-9e2ebd2f3232","block_type":"box","text":"their duties to the board and company.","page_number":195,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"d538b231-e38a-4874-a26c-4866a3847197","block_type":"box","text":"Director elections","page_number":195,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"0cae7739-528f-4b12-b976-45660c43a302","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":195,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"8a53ac2f-4e71-4cc3-b04b-06a0eab8bcb4","block_type":"box","text":"structure","page_number":195,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"ea0db9a0-bbba-4ae0-b4a8-62941992cb50","block_type":"box","text":"8","page_number":195,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"ae19a5d3-eb05-4059-aa35-7c681503a0d8","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":195,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"4de4e11f-776b-43ee-804e-3866159462db","block_type":"box","text":"basis of its business model (","page_number":195,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"f54f7ca5-61b7-4b78-a4d7-11fd73f2ec16","block_type":"box","text":"e.g.","page_number":195,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"cad69a58-b902-4932-878f-9708d4c3e41b","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":195,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"059c9f5d-5433-4c95-a2a4-7c9cdfa5dbbf","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":195,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"0b572fa8-1f36-4a49-bec6-3e6d0735da74","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":195,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"2ff57d8a-56e7-46ec-8450-69ab4d3d937f","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":195,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"39a64137-930f-4af4-9c80-0c6a5b6f3107","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":195,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"c6d74c55-79e5-4c1f-b96c-177f2092d1d8","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":195,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"ff279e66-180d-457c-af26-b837d24c8613","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":195,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"44eac1e6-cc5d-4f07-982e-753280231de3","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":195,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"e9aff7a8-687f-43a1-83fc-77a7b3a997fa","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":195,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"7a4c388d-22c2-4b4a-8170-71ed2087d1d5","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":195,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"33727ac4-ac83-4fc5-b867-0e59abfb06ce","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":195,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"8b3f660b-bf65-459a-b809-bfa5430b41b7","block_type":"box","text":"8","page_number":195,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"df064bff-4ec7-4e92-9de1-205d8a79098d","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":195,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"c4f282f2-be01-4747-8f98-587a52b5d76d","block_type":"box","text":"directors stands for election in any one year.","page_number":195,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"e878b4cc-9b89-48d2-8296-010cf9d96e88","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"174f786f-1e1f-4839-8ead-0c45c7bba52d","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9d707aa3-eab4-4e46-a86f-40d082a02154","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af6218ce-68cc-497c-8d48-585ae4bb29fe","block_type":"box","text":"Committees","page_number":196,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"546d1a0a-c716-41c9-806c-8b9f55350da1","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":196,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"4039b3d5-e286-4d73-b219-40ba0df3ccb6","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":196,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"1b35547a-2952-4201-93de-917e5cec6b8c","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":196,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"79a719df-06bd-4284-b6ed-908eb11a8045","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":196,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"e59e9a8c-98df-40df-afd2-62a74950a635","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":196,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"4f402b41-eb8a-40dd-a6f6-3db4de25f90e","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":196,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"15b3f167-7f1b-4f42-8a62-bc14f5bbd59b","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":196,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"de25c345-6e87-4b15-abb8-5ffd7c152034","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":196,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"6314ec4c-a5c9-4034-9240-129637a4de22","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"3e79827d-1c13-437e-a531-34acf0b35f38","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":196,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"66785020-afae-4beb-bfe1-ce2ac1897045","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":196,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"ee9d810f-6cec-47b8-af18-c16191fcea5b","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":196,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"77734b46-7b1e-42f8-b936-9e9e807d0664","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"72bade68-05ca-4d5a-a9b1-fe001cdb5d9c","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":196,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"ff87e806-819f-414e-b7fc-42a390b4d7c1","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":196,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"5a2c7b5c-7ce5-415c-97f1-182643e6440a","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":196,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"bba05846-cdba-4ecf-bfaf-e84abfcc1028","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":196,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"e4db9dbf-4c73-44fc-b4da-901a8f0c1f39","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"540e2437-7d76-4899-b2ab-fe7994683c0a","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":196,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"5aaebdc9-8263-435f-84f6-a283fb4ee714","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":196,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"67cb1138-6d7c-450d-8fdc-73d8ec51f5ae","block_type":"box","text":"firm-wide compensation policies.","page_number":196,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"c9691feb-41fc-455e-be0f-4faf5fe1949e","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":196,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"8a2f326e-fbb0-4023-b9fd-30e7281858a3","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":196,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"ef85f119-c11a-4401-8c18-1eba9336e5bc","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":196,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"0d00683b-9a3b-43f8-a80d-adfa517f054c","block_type":"box","text":"Board and director evaluation","page_number":196,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"894a75f1-c722-481a-84ce-1a26b04a3453","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":196,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"45facb02-588c-4f08-accb-287e5b24675f","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":196,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"8251d059-3979-460d-9338-c8b5fb474c6d","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":196,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"337978c1-a943-47d2-9a5d-dfa49d802c7d","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":196,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"2b637703-9168-480f-a8e3-29b43311554f","block_type":"box","text":"a result.","page_number":196,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"a84c399f-f014-486d-9da5-ea5154c21376","block_type":"box","text":"Access to independent advice","page_number":196,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"048e8f28-46f1-409e-b052-0b7c04d293f1","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":196,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"fd8080ea-4492-4c82-8ef0-4cba3bec31b0","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":196,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"208225f4-4959-4162-b864-17553b02c133","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":196,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"488e804b-850b-4ff1-a26e-8a4ef00dde7b","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":196,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"ab596a73-f9a6-4866-b1b7-e43688caee28","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":196,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"c01003ce-ecb5-4cc8-a6b2-124e5c2b4f7a","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":196,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"39160214-36c6-48ef-a601-1d1fd198633a","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":196,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"556331cb-04b7-4881-8f06-d6d3b42d3318","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":196,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"e7e5dc79-df88-4c49-8749-080068f44e98","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":196,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"dd639100-a133-488d-a78f-0d10a99ac756","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":196,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"336bc641-0f0d-422c-bf1c-9b4c43706047","block_type":"box","text":"performance.","page_number":196,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"175a5a15-b9d8-447f-8c1b-1879d7c7d54a","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":196,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"a316ac6e-e41c-4b3b-88e1-c1d302ce7000","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":196,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"4411d4f0-822d-4f0f-ac35-ed42fca5fa76","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":196,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"cd6a387a-d9df-4087-97a6-285810f9035f","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":196,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"7ffaea6b-6a5e-45c4-9b40-db1a09a23c5f","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":196,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"cb7437aa-f883-4e3a-afeb-40c7b4cc1b9c","block_type":"box","text":"recruit and motivate.","page_number":196,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"a14e2f04-a79c-4cd1-bba5-4b8a1a78f3b4","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":196,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"b42e14ee-1cc2-49a2-9be5-74fb0095b6c1","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":196,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"e8f5b444-a102-4730-b5a8-34378cdff1dd","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":196,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"543756c4-7e85-4617-b641-5d958de41af2","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":196,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"ecc3753a-3287-4bcb-8bcf-2ecfae65d963","block_type":"box","text":"arrangements include:","page_number":196,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"226d69dc-2733-42d4-9192-9f3f3ba99e45","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"67e49fe8-4bbc-42d6-a8c1-3d3ebb22189d","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":196,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"91dd9a35-9c37-41fc-beca-698bb73c157a","block_type":"box","text":"the company’s size, sector and market.","page_number":196,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"cf5ccb9d-59af-4e59-bdb1-eed555d5fe3f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"75d92041-034f-4001-8229-c8ee15410c26","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"eaf23336-8f76-456f-b3bd-3a2418c08c4f","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b42ac7d9-7b87-4992-9ef3-da4c2bfe4ae7","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"98351379-ba61-4099-9206-006416050b73","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":197,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"dbf53800-dffd-45f2-a33c-1d954f6b7186","block_type":"box","text":"strategic objectives.","page_number":197,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"99921248-cb57-4e14-88c6-86ce5ab53139","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"04a2f034-93a4-403d-a46a-0784ff93bd91","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":197,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"7cd6cd05-cd1b-4c49-bb7a-83ec4131cc86","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"59b3fa0e-423a-4bdd-a24b-2aba0044fe07","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":197,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"46b93c9b-f595-46cd-941f-8541cef39634","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":197,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"28be000c-f7c3-4cc5-b019-7a3d7e1b1fd4","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"e7a2c978-d454-47c4-9e3f-992143d43954","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":197,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"83808bb2-103f-4187-9713-11a762ee033d","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"d87009d7-6eba-4810-b621-117279db8d7c","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":197,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"054a8397-8dff-43ae-b18b-5ea205c04c63","block_type":"box","text":"transparently.","page_number":197,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"653e0b71-e76a-456d-898f-fef24189ba50","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"5a23c731-1234-4981-9b5a-3096558d8a4b","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":197,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"328c002e-3cee-4553-af22-d8042a52badb","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":197,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"59d18b30-845f-40e1-9a90-3c201524ce57","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"f45306fc-1d4b-4af1-afde-15542cff44db","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":197,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"37cc9868-d76a-4a84-ba4d-2125fd82926e","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"c58cfb0c-6e84-4d0e-bd05-c3ef5b195780","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":197,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"d419a062-4f3a-46b7-ab34-39c588626bf5","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":197,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"0948f103-44a7-45b5-ad79-0e184a9cf16e","block_type":"box","text":"misconduct.","page_number":197,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"2bc4de76-4d92-48aa-8f7b-2ff42f1a470e","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"51ff8847-3ce0-4562-8c4b-c54efc2547b3","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":197,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"57796921-c148-40d0-9994-b54895c51068","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":197,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"47b58caf-ca4e-4f9d-907f-9d481334a6a7","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":197,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"1809cc29-ae9e-4250-b05f-f803dbc2e036","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":197,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"e4016b88-5046-4af0-b72a-1e65d4cc2d55","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":197,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"854324ba-7117-4332-82e7-0d5766c1d9f2","block_type":"box","text":"committee, or the most senior independent director.","page_number":197,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"e9f82dba-4750-463b-8cb1-99000b62bdd8","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":197,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"c6a8d46f-eb8b-4338-87fd-a0f0c62a54d8","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":197,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"9baa3c29-c27f-4156-9a8e-1082e205aa62","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":197,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"410b512d-974c-4cae-9a6d-77a237b3f161","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":197,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"973e5b11-44a3-465e-bc51-880530916db4","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":197,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"0b10121b-6843-475e-8509-cd44e427277f","block_type":"box","text":"CAPITAL STRUCTURE","page_number":197,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"6cc49591-66ea-4357-b629-879db37572e4","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":197,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"103c7dbc-805f-4377-8e66-93f663c5e95b","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":197,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"1c8b7a73-0428-4246-a91e-65846d7822c9","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":197,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"acaeaa2c-23a9-42ee-8a50-f71412fd7384","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":197,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"4a63e7c5-14e5-4e46-9b62-fb381a144f85","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":197,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"ee403084-3e8d-4c92-af14-2b18e793bf8b","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":197,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"9ecef556-ca9e-4103-8934-efe3f5d7d2e3","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":197,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"9dab0fb6-5d5d-4608-8675-37f975e00233","block_type":"box","text":"Share issuance","page_number":197,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"e8670004-7d37-4c2b-be0e-647db8965c60","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":197,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"011512aa-cb76-486a-8d7f-3353ccd26865","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":197,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"38c31113-74ef-4c8c-87c8-e623c1b6e834","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":197,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"2e4b4f56-8a48-4e0e-a1ed-e77a228e17a8","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":197,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"e794e6ba-8597-40dc-a5d2-e0fc417491c1","block_type":"box","text":"market environment.","page_number":197,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"7067b92b-4e6a-4e61-be79-52887ce4fa7b","block_type":"box","text":"Share buybacks","page_number":197,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"c3deda48-33a9-4a60-a8a6-78ad3a2cef60","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":197,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"a27a9bce-bc3c-4adf-94b8-05e347547642","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":197,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"b4209534-6c0a-423e-a514-8618078c39ab","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":197,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"780ab3ee-e989-4bb8-9f42-f0b34ff60260","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":197,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"a862cced-2f6c-418a-a757-043436413c75","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":197,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"a4d6ec70-74d7-4361-9c13-3b1a8ea3611b","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":197,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"d34d7eb3-b74a-4dec-adbd-598eda2f6e76","block_type":"box","text":"of the company and the market environment.","page_number":197,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"83956921-7705-4798-90d8-0e513dd966f1","block_type":"box","text":"Dividends","page_number":197,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"7c783b2f-72ee-4130-bcbd-5da52e1a1925","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":197,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"3debaa62-4d77-4245-a3f5-bd5b22fdd1f9","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":197,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"a591a104-35fc-4e71-8645-c79c5e0cae5c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5091761d-69fe-4187-8bd1-daf9e864d6f0","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"56a56631-afd7-46f4-959e-3e2b874202e8","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6aa79f5d-7442-46af-80cf-7d23b1fcb838","block_type":"box","text":"Differentiated voting rights","page_number":198,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"598a7b59-042d-4621-9a28-d872b9c8003e","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":198,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"8b330d2f-b43f-45ff-b2cf-5b4595bbedbe","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":198,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"dfbc232a-e1cd-45cd-b663-4987c402d82b","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":198,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"bf00416c-d48a-4da9-9e0b-066145631cba","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":198,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"b9821783-61c1-48c5-a6fc-ebadb58512b7","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":198,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"b22e81eb-e9af-4d2a-a9c2-6f10bdab50d1","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":198,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"51685a2d-5247-4429-9ac4-b23ec07cb5cf","block_type":"box","text":"analyses of proposals.","page_number":198,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"5485176d-be7f-4e38-89f8-e3a1e990ef85","block_type":"box","text":"Mergers and acquisitions","page_number":198,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"e666d79d-f403-48a2-8b04-c564f31b7a15","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":198,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"b0322551-f594-45ab-89a5-27fb1d385ff9","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":198,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"af8e7ef3-ded1-4a64-aca0-d9c9d194b450","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":198,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"bd3400b2-c1c0-4381-8e10-1879670eac55","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":198,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"e501233a-9d3f-4ad2-942b-29a85ada682e","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":198,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"d6c19217-9484-41d7-bcfb-6d50e79ede12","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":198,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"2f74ab1d-aeff-4b33-9801-b3f22ee7f247","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":198,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"eb4b52ec-bd75-4344-bb73-3d09e19d287e","block_type":"box","text":"Anti-takeover defenses","page_number":198,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"549864ae-2c10-47d3-8232-e1d3d1629c0b","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":198,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"6d2a797d-d52d-4734-a845-6ea6b0d521f7","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":198,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"8125fa9a-4213-40c4-bbe7-ece41f6cc2fe","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":198,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"71766630-1584-44e3-b733-77c1db39bc09","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":198,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"93e11db8-5e1b-4658-817a-38aa4584d3a8","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":198,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"e1decb59-0b27-4e90-aeb6-1ca724c23a37","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":198,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"ed64595a-8a80-4cec-a7c8-e93cd551bbed","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":198,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"d210d3b8-6976-4352-83d3-98e4729b0b72","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":198,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"9dc5f36b-f4c4-48a7-8b49-fe3633e5a6ea","block_type":"box","text":"Shareholder activism","page_number":198,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"70700a30-18c0-400e-9bd4-cf72412fbb96","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":198,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"16d70c39-d1a4-4eb6-ade4-221394674198","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":198,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"5a984e7e-3bf1-4254-b25a-757aecf7dd63","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":198,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"00e20a26-40af-4464-9216-f336f65e74fb","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":198,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"8158f327-65ab-49c8-9432-4000631c2172","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":198,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"ec588ce0-4a87-4754-8f8d-37c0a60c6323","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":198,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"a2c26a60-06d7-4f2b-871e-98c7f09c29a3","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":198,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"b84eb366-dfaa-49da-b7ce-8d09e166ac07","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":198,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"0bf396c6-0f92-4c2f-9094-a585d8f0ac40","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":198,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"c522cfed-c02f-4701-98ee-977dbf25cd26","block_type":"box","text":"protecting shareholders’ interests.","page_number":198,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"3b0bfd2d-ebbc-40f0-b477-92d7edcb3f30","block_type":"box","text":"Significant shareholders and related party transactions","page_number":198,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"e13a962f-75ad-4c27-8bfa-906c2e4c6fd3","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":198,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"ebbec166-d05b-46af-9a3e-77ac17b31d85","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":198,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"719d49f5-db5f-47e6-9b67-29788c09017c","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":198,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"587d1674-68d3-44d6-9f88-620497949647","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":198,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"8e48946b-8b5f-4b91-9cea-97758cc07083","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":198,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"2dca503b-f509-4630-b895-ab07bdbd8fb3","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":198,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"9f0fbacf-cf67-4d50-aeff-b08c159e1235","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":198,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"379c5dc6-6c93-4751-ac9b-e0e39dc4bc97","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":198,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"c0cc4c7d-f6d7-4980-a659-b5f283818b3e","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":198,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"e6972d5e-bdea-4c7b-ae4b-4871daeb01ae","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":198,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"a520fe52-b777-4a2d-8716-cc09ca0b0337","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":198,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"6655ffac-8f77-478e-8db8-6a321a11721a","block_type":"box","text":"audit.","page_number":198,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"62ca7822-30eb-4321-abfe-b221707831f8","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":198,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"4fe7dfc5-3ce2-4c25-a7fa-cd4a93cd9a41","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":198,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"2e8da8c5-22e2-4bf6-801b-b02e7eb743b7","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":198,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"e90b4d6c-d6b2-489c-b176-d986075d3212","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c0c71fb5-e672-4060-80a3-dd32b3e28a50","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"6b597e15-53fd-4aed-812e-79e0d9310908","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3b417dc-0a7a-4629-8a82-3779a452dfe2","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":199,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"64127609-8033-4611-b7cf-f66a946fbf85","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":199,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"0a640f9a-fdb0-4154-8fa7-1d1d943c2da4","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":199,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"032d9077-f091-498a-ad57-59108fdaf132","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":199,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"df27b516-d20e-4bf6-998e-9f7c77853bbb","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":199,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"11090b30-497d-4d7f-b30f-edbaf0926ca8","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":199,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"ca1c260b-d5fb-4ee7-9a00-adb96fd36fd2","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":199,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"ca2f82b7-6be0-491a-9f08-b4f4ba2ceaca","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":199,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"d6d906f8-f7eb-45e1-9a39-0950680011c4","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":199,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"3c517052-f67f-4b20-8ea4-c27c89a2efc8","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":199,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"5f2be757-b94d-48f0-a873-32f98e0c53a7","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":199,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"fed37da6-dbc9-4466-9034-8e588d45a57f","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":199,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"fc1550e0-6411-4f9d-bbb3-208d1d5dbdac","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":199,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"160d7a3f-6e79-4625-a18f-ed887ae22f4c","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":199,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"e3f74432-35c1-4fe0-bfb5-8679d3c4d730","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":199,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"e8ac4d97-d820-4f9a-aee7-f6bfe88a6577","block_type":"box","text":"9","page_number":199,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"31db2a24-a321-4dec-86e6-5f534ba96667","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":199,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"3a78f363-1da0-4bd4-8b86-4d30279ce0e2","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":199,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"7e1b1e0d-3e8c-492b-812f-a59b906c402f","block_type":"box","text":"standards specified by policy makers.","page_number":199,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"024212c9-3649-49ce-8f64-b54772be52f8","block_type":"box","text":"10","page_number":199,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"6ab04696-4177-455d-b8f1-f8bb4c3d4a1b","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":199,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"34bca71a-7d59-4584-be9a-ac2794037bad","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":199,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"0079b201-7e7e-4453-b35d-0a6c613b7868","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":199,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"5e972add-4b90-4099-97fd-80af71260138","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":199,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"528b00cb-6e18-4e3d-bdb8-ea5316fd5762","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":199,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"267b6a71-f731-43e6-bdb4-6621959c9600","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":199,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"4a9d1261-740a-4fd3-b72b-cebf97b617d6","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":199,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"11ed73e0-ea1f-479e-ad4e-04a20bf31457","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":199,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"72a7bb27-02ad-41d4-9c89-70e3b5ab3204","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":199,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"99aeaea3-a814-41a5-a236-b5ac1e731be3","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":199,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"1f160881-6bba-484f-9542-0bdaac90fd9f","block_type":"box","text":"remained independent.","page_number":199,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"3fc179f6-f461-4079-bac1-b708f87adbde","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":199,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"703d7891-6001-4b07-a73c-40ef4debac04","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":199,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"404b2774-9a8f-4a20-9f10-a6464f785dda","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":199,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"bfbd5804-8c76-4cd7-9f8e-e9280ee17ea1","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":199,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"1856f4a0-033e-46f5-af50-9b506cbd35c7","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":199,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"ccba288b-ee1f-4079-8635-42e214829c5f","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":199,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"24090a16-aad1-4a3a-8e09-67d26ffaa3bf","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":199,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"3c4c9b07-f94a-4a2d-aa65-4040a24c2703","block_type":"box","text":"General shareholder meetings","page_number":199,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"9a47afc9-0871-4326-9e52-1966bb998d6a","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":199,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"ef5481aa-8ebf-4acd-a071-e4069d2d03d4","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":199,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"538ea609-8852-4947-a6a5-33cf8d493376","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":199,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"3e1a1793-e8a5-4366-81d2-022d38537283","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":199,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"7feb8178-065f-4755-bc18-d7c6e970ab3e","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":199,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"44c8b602-f3a3-4c6c-bfa9-55ad554b4e42","block_type":"box","text":"an in-person meeting.","page_number":199,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"5b1d4e8f-3559-4748-a21c-73b2b24c2806","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":199,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"470ca806-8882-4afb-8ba2-691663b9d5dd","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":199,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"fc886339-b181-42c4-88c0-7015f5c3763e","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":199,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"d385f6fb-4383-48b9-8102-7159d7c0a130","block_type":"box","text":"participation.","page_number":199,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"4de91c86-9f6d-4d87-9f85-348ea1a9305c","block_type":"box","text":"9","page_number":199,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"8f9d1bd7-ec95-4e75-ab80-0eb77ffa940a","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":199,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"7d5449cc-836d-4730-abf0-dee8f38b7ebf","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":199,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"8ff45e61-6700-49a3-b2f4-c2a6f0039591","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":199,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"90185f10-f0ca-497c-9d0b-49bc63615a15","block_type":"box","text":"Disclosures.”","page_number":199,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"1ef3104a-460c-4998-90b2-90614a73ae27","block_type":"box","text":"10","page_number":199,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"01b8e9fe-fb6b-4b91-813e-2dfdc692400e","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":199,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"b154e487-9e8e-4956-bb8d-87bcc60c1846","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":199,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"99b634ac-f8e2-4d95-a2f7-66ecab50a508","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":199,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"c8d4d1f6-88aa-404d-b3e9-048d60d04060","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b873496c-5f84-4a64-b75a-b29b1a4d9fcc","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"43791313-66b8-4d23-87c9-16fb05dac8c2","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0fa03e39-0cbb-42ec-a744-7de583248d24","block_type":"box","text":"Bylaw amendments","page_number":200,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"af678826-8c21-4e05-9cd7-788f4999be1c","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":200,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"4f4adb6d-5b2d-4c1e-8e19-aba0e17f4aa3","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":200,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"eabe2848-9cf6-4e9a-91f6-23bb98a74d2e","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":200,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"7c584d73-89ea-4bb4-8ef1-acc979371684","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":200,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"95e4734b-4932-412d-a3ca-c3a719d6c6f5","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":200,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"cc062ed0-55fd-439c-aab8-1104e4225285","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"865aed34-5eb6-4b5d-8137-d2dba3907ec9","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":200,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"9ac182b4-e7d4-442c-9eaf-497bb47db024","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":200,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"6b6ade02-8503-46ae-9a5d-860ffef00bac","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"36270e7f-e425-4103-bf66-c037fd5821e6","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":200,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"4165eb83-0a02-473f-a863-3619cdfc4412","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":200,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"ce10aa97-3515-42d1-a171-60704e187847","block_type":"box","text":"nomination process.","page_number":200,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"43a14da5-2e86-41e9-a327-823297f60db2","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":200,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"208b274b-e96f-4648-a34d-861e2e38b18a","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":200,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"a951b5ba-cab3-4cd1-a766-a50b0c222f38","block_type":"box","text":"Change of domicile","page_number":200,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"5a97cc4a-9eda-451f-ba7b-836cccb62f49","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":200,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"e69c620d-1fb8-4e6a-b398-3c317eec00e5","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":200,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"950b22f5-6630-4694-a21b-f5983e3ea983","block_type":"box","text":"immaterial.","page_number":200,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"8677a64a-909c-4c40-9bb6-dc2cdd515d9b","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":200,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"a036ac55-00fb-4d42-a352-a0dc9b7092f4","block_type":"box","text":"with our clients’ financial interests.","page_number":200,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"49de938d-ef33-4d5f-b47b-d6ec173b428b","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":200,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"5afb722d-6c11-4b88-b034-07845efd8c6e","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":200,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"436cadad-5eb0-4542-84f2-2801b3d47be0","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":200,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"7306b92c-660a-4ae3-b8c4-c63835daff20","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":200,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"738d523b-4d45-4122-a1c3-78a17cf13c06","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":200,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"fa555e11-9316-4a55-b7f3-98263c23c489","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":200,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"5dfb1a41-372f-4ec2-a0dc-afc2120dcc2b","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":200,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"a23491c7-48d0-49bd-80d0-871358b6052c","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":200,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"a8c47f1e-7476-4415-98cf-d197aa08efdb","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":200,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"5a626f2d-357f-4493-80dc-2c1311456b71","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":200,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"051fd5d8-f1e6-45fc-b9a6-1a7e49f2bb4b","block_type":"box","text":"relevant to a company’s business.","page_number":200,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"2b4c37a4-dad2-4217-b0c7-200cd57e1ca6","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":200,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"c40860e2-8a21-4af3-b3c9-52168343c72f","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":200,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"faa3a86e-061c-4fe8-801b-2563d3d1642a","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":200,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"9a27f1a6-ee6e-4e04-b6ab-c568035378c3","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":200,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"6b7e6bcc-2585-43a4-98d1-e7b055392990","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":200,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"d0c56656-77a9-4c76-803e-1a8c84a1c7fd","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":200,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"89ac8ba7-8fde-4331-9ce0-a8856772b56e","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":200,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"db4fb0ea-93df-438b-9e25-1737f7725529","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":200,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"de0f86aa-4302-4e3e-8128-3fad1f0faacc","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":200,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"d64858ff-7251-41df-8676-80d1f882849d","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":200,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"36f9afbc-dd7a-465a-9ced-3ce10f6fc404","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":200,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"8a794abd-ad5f-4d8a-8a9d-643402e35e73","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":200,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"86c10faf-1144-46cd-90e7-34ef097b2468","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":200,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"c29fbf23-6f86-4748-8afb-eef28e2b35de","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":200,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"7f722abb-6f51-4309-a46d-1f294fff6d41","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":200,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"fa304e94-d402-433d-b96d-f6c64bace3a0","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":200,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"3f16a1a7-4a9e-4efe-8e87-59951802ca0d","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":200,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"4758a3a1-f1f2-460e-b4dc-ad2897bf267b","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":200,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"f5850aa0-a714-4e07-9c7e-e88a3676b146","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":200,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"f5aeea53-633b-40ae-a2f8-e1a4b2a503dc","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":200,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"799a6cdc-dc90-43f0-a0e5-14e305b678cb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7d023874-e8a0-4860-b0ce-d7abf933fdd0","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"6a61185f-e781-4ea1-b1cd-d6629e504d82","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81213260-9725-4667-9e72-4a913607f9b4","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":201,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"a75f576f-8ccc-4d65-86ae-cce92bf0d231","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":201,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"4b0a8ea3-0486-436a-a962-5824b70ba624","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":201,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"cc759b4e-7199-4ce1-8928-5841ba31c194","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":201,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"0c53e836-4f0e-4ad3-a708-f7b0ca192db9","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":201,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"a72643e6-687e-4e31-8963-8e50a8f6016d","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":201,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"501d205c-7dea-432f-97f8-13b4186a69b9","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":201,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"16263fb4-2192-4d08-8f27-b0894fec5e7d","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":201,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"4a793628-205a-49be-b600-b1e22a8c72c0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8cd4aa01-6f48-456a-ab4b-4c5f8c734c12","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"ccb8689b-7060-4998-84dc-8e471e8b0da8","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64fd1a74-e639-461d-bb19-8643c88a69cb","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":202,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"d56c2d48-3d9d-4f3f-8fc2-695f259129c9","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":202,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"ac93aa9d-74aa-44fe-b7cd-25ad4e82a17d","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":202,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"e23a64a7-98fa-44a3-8b30-696e84980208","block_type":"box","text":"11","page_number":202,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"c2fcb3fd-26f1-4fe8-87a6-76904c6b0bb0","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":202,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"b30a9c7b-e903-4705-b4e3-f2e2c6a83e41","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":202,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"472baa71-99b3-4eb2-ab42-d2e889712165","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":202,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"ab2c99de-9306-400f-8535-5c52e33febb0","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":202,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"5f29135e-5f3a-4783-a280-3dd0ee0bf51b","block_type":"box","text":"regulatory requirements.","page_number":202,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"7a91201e-6169-4490-83d1-53d55b9cc577","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":202,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"f1efe720-853b-42fb-9cc1-d371693b6328","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":202,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"a77edbed-e2ed-4916-8ae5-45465646d432","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":202,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"978a7620-18ab-4a30-81cf-4b870cfc9239","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":202,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"c06009a5-aa32-43f7-867d-4a1461c53780","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":202,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"f9df976e-72a1-46a3-8135-f58c46f1115d","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":202,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"8ac4b8ae-1e9f-44a2-854d-6fe65b6c89c2","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":202,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"453802e7-c2b3-4093-804e-b20ddb6a502a","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":202,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"5026ae7c-0d1b-4dc5-b009-15db2f34577d","block_type":"box","text":"returns.","page_number":202,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"eb13ff85-952f-4adc-8952-0bf0d5dc955d","block_type":"box","text":"KEY STAKEHOLDERS","page_number":202,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"af2d28ac-f2af-473f-a264-50e9f9043041","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":202,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"2ecca658-e939-4e74-b14a-9d2ac9aafe5c","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":202,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"b6de7a49-76b0-4d45-99cf-eb80543a7670","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":202,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"c3f5018a-9f2f-4a3a-8ce3-9ee210521124","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":202,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"de1b3f2b-e56e-4bd9-a481-fb8c729bed4b","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":202,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"ee560d84-5e80-4eec-8c70-33a6b9b9eb61","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":202,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"5c5f6386-db3e-47c0-9369-8acbe141507e","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":202,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"7f910fa1-f015-4c70-aa67-0fc4c21968f6","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":202,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"a983f42f-e96e-4335-ade2-30b54f249a50","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":202,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"9205f2c9-0f3d-4e7a-877f-8d9c5c8604d9","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":202,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"789bedde-8ab4-4252-b2da-913b05107077","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":202,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"f308f7f8-59e0-43c4-9845-6d5d9c3f0d66","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":202,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"8ded7700-2d64-4d1d-80c0-3e9115966c97","block_type":"box","text":"i.e.","page_number":202,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"e229f2dc-41db-41a1-ab48-dbcce1c833ba","block_type":"box","text":", one in which global","page_number":202,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"e9232280-c74e-4678-b7e8-c5e8f0bc5039","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":202,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"9b3290b1-b434-4bf3-9dd0-348d90148ca5","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":202,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"8361c7fe-5555-436b-b963-113faa05ce14","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":202,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"23de3150-3486-452e-8ed5-3677af0e241a","block_type":"box","text":"client.","page_number":202,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"a956507c-488a-4649-9235-85cb3c28a5fc","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":202,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"87513b2f-f662-4e46-bc35-ed2764022436","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":202,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"c84595e3-0a39-403b-a913-67597d38d90e","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":202,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"9d549082-1b89-4289-a2f7-eac88a9fc5b8","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":202,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"23a79b94-51a8-49cd-98b8-1e87409eecc0","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":202,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"f92c087b-5aaa-4162-8e62-45698fafdcda","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":202,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"622a5412-7c3e-43df-9971-d68cb180d9e0","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":202,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"74902f91-9710-47bf-9162-bc2fcf6d18df","block_type":"box","text":"1 and 2 emissions.","page_number":202,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"919464cc-6597-418d-aa9e-25ff0376ad6b","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":202,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"b3de2cfd-d7f7-4990-ac1e-618adec0b629","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":202,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"29c3cd98-9511-4e26-a5af-2b0d4d96ec14","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":202,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"4ab2291a-c98a-43c1-b570-438a083bb5cc","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":202,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"db2652c4-3d86-4931-a497-2df0a8d60320","block_type":"box","text":"11","page_number":202,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"3ec43456-d8be-4e47-9b4f-d6b63b306fe4","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":202,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"2d58f9b3-d0cd-4ff7-ba06-8b1c09c60713","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":202,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"759f7fe0-15cf-44eb-af85-c8ed47f6699a","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":202,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"3c3c8407-7c82-4328-a3c7-c939b36f0ce6","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":202,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"d8d03445-59d6-4da9-80a3-7c3fd1fa0040","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":202,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"15a86650-1bbc-4aef-992e-1606619113ab","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":202,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"5bdf92ee-11c1-4972-86a5-71860ee7ce4f","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":202,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"26ae99a4-5626-4825-9ae8-334f5e129593","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":202,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"ce0b1f6b-33c4-44d4-8bbb-474808d644d2","block_type":"box","text":"sound governance framework.","page_number":202,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"d2aa786f-4737-418b-862d-c41cc8607436","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"42077887-7bfa-4cb8-b8d6-acbb81523b6f","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a7b52210-fb32-4a31-8c52-5a54f6961c93","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e2c4cbc-d739-439d-aac0-53f541fcc440","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":203,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"bf15abdd-6fc4-4f09-9a6d-bea7d4b4fd99","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":203,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"27e2f07e-e191-4323-bb2b-f7babf6c7fca","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":203,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"a7e21e55-8871-4f56-a54a-50556d671a96","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":203,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"2b768c04-f347-49f1-bddf-90d564d69f36","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":203,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"1d1b3cca-403f-4c42-9de8-b41010f0c607","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":203,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"b9e5f496-aa19-4d3b-8e84-81da5752cb26","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"047edaba-03b4-4270-8db5-f25e094f9986","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"62abc217-5fec-4fb3-86d5-1e22938ed50a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c405a759-952e-4be1-b22e-0b43af681f5c","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":204,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"6f9cfccb-f357-4055-8f10-6e344e5285e1","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":204,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"53582b78-6e5c-42eb-aa19-c521523c9a66","block_type":"box","text":"Oversight","page_number":204,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"c0ab33d5-a15f-458f-95a0-ae8db647501b","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":204,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"c7a6e079-d233-47af-b477-337325a53799","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":204,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"9198407c-c101-4bf1-9002-c8eae3abbaa0","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":204,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"f6638db2-38c1-4314-95c0-8d9c95d7116b","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"9758c191-c8c2-4a26-a054-32ff0527a796","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":204,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"0e5f2029-0895-4906-9de2-351cd879e37a","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":204,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"188ee74a-24fc-431c-9105-8d20cc51a9a0","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":204,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"36750fee-4258-4ad6-85d6-39576b491e4c","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":204,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"e87b28a8-36af-4981-92e0-ef923db59b03","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":204,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"b7d0fe78-f5a8-4af1-8a6a-ce8c4939af2f","block_type":"box","text":"relevant active equity investors.","page_number":204,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"0bd32c29-9299-4517-9206-c72ffe31e9ad","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":204,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"3b6a71d7-6fec-4645-aafc-fb68bcdc7af1","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":204,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"73d3d274-788e-4a98-bc91-193aa44bf870","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":204,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"5d0bbb68-1dd3-4ec6-bb61-3785189b3f23","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":204,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"090fa08c-4cf7-4582-be24-4292855200d7","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":204,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"888b995c-7692-416b-9ab6-e069dee59f44","block_type":"box","text":"third-party vote services providers” below).","page_number":204,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"fb540851-b640-4bb4-835d-8a4cf89b1e4b","block_type":"box","text":"Voting guidelines and vote execution","page_number":204,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"5eb8ca1e-e538-4673-8cfd-74abe4095a61","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":204,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"48210a4b-d4eb-43e9-b3d6-84a4023d2693","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":204,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"34f7f7a0-21dd-4273-b1ce-55769bf026f3","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":204,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"bad49ada-96f8-495e-9882-09c37b7bb54b","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":204,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"e2aff9db-0571-460a-95a8-db5dc55e32b2","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":204,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"4d9ccb81-4d50-45b7-bb21-860469a4fd34","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":204,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"e17d6448-b5ef-417b-ba0a-ec14c661e816","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":204,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"dc663262-6673-4086-9650-21278d8e88f6","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":204,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"d872fb06-72d6-480b-b7a5-46efe320cb22","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":204,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"ee0bb18f-dc4c-4db3-86dd-94b402c66010","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":204,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"8287581b-34fe-4d3c-af93-23deb03feebd","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":204,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"cdce34f7-1f80-4eb4-8bde-a4df7cd5a54b","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":204,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"b96dec04-8a0a-4e1c-a356-4b08b6bbca2e","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":204,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"0924c131-c7be-4528-b20f-a66e54b4975a","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":204,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"e5507fd2-b39f-4b70-a502-2d20d7ba2124","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":204,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"c3116c26-70cd-4ea4-b793-81181f8007e6","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":204,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"6ed2b124-2a89-449d-b6b9-5ac1073c39ef","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":204,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"451a8eb8-229e-40ab-b06b-8cb04bf3dd97","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":204,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"d68e164f-3a65-411a-9c10-2bd339b09b40","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":204,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"bbe494be-3d04-41a0-9d7c-6e75cf76d12a","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":204,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"4b0db35c-73be-41c0-8f6c-443f8ab1eba5","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":204,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"e8d53f8a-1706-4091-b4e9-017f7739d975","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":204,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"6def1d8b-df32-41da-bf2a-9d601450df1f","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":204,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"a3848a11-5ee7-4665-8550-f26d49fdea99","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":204,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"e3ebf7dd-2a3c-4004-94c8-0c43ffd49f22","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":204,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"2bcd7d5e-c095-4a41-8b29-3479b19455d8","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":204,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"701c6cf4-1653-4d43-aab3-4c585076265f","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":204,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"6ddf2157-e982-4a61-a5a4-5b4d3376f3b1","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":204,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"31dfdfaa-968c-4d5c-bd60-68a6a886294f","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":204,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"44830010-5784-4bd6-a647-ddb3552d188b","block_type":"box","text":"Voting Choice","page_number":204,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"ec93eb14-ac21-4688-b06a-88d590d62dc1","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":204,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"e9eb714a-24b2-4b06-a989-9b44673acabd","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":204,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"fd45d73e-3ecc-4606-ba70-f8ba66f0b4f2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"efd882d4-a781-4831-a2cf-10a8527de33e","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"63366b00-07d7-4103-9cf5-ededebd903ef","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca4746de-6a8a-4538-9e22-bf694b90fc34","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":205,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"1b77f8c5-e02f-429d-989a-5fcd14ccda37","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":205,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"62bbbbef-67ee-40db-bb44-3f78cb8d8f04","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":205,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"8f39b038-394e-45e4-8448-ac9e3ae31199","block_type":"box","text":"strategies.","page_number":205,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"c4583101-2ea0-4ef2-886b-dc2177835151","block_type":"box","text":"12","page_number":205,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"51b37871-8580-4ae2-84e8-204c59baffb1","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":205,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"e6a6c401-19f2-4a1c-969d-aba94680b9de","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":205,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"90b21623-b912-4dda-89ee-b92ac5180122","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":207,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"749fd6c9-c672-4acb-8303-ed0b479f8159","block_type":"box","text":"at the sole discretion of the reader.","page_number":207,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"43eaea1d-cbcb-4f0d-a970-b1d336c9aca1","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":207,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"0e1232c0-b10c-45f0-a8fe-4c9b3554fab2","block_type":"box","text":"©","page_number":207,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"425bad58-05a3-4793-ba53-b46415b450d7","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":207,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"afbfc186-e564-4295-af24-664bd6063aea","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":207,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"07a8c836-01ae-440b-a192-4abce40d9d36","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"76c5605a-f470-45ac-b75a-1c0af6060adb","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"e26962e4-3545-45b7-83b5-e2a34afe8253","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbdba349-f8fd-4703-b12e-c6259a79c520","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":208,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"c5cf76c7-650f-4071-8ca3-5d4c9e91232b","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":208,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"aaed6068-a508-4f34-9dd1-bbb234496e7d","block_type":"box","text":"□","page_number":208,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"d907eba3-1235-4a1f-abd0-64ee29384f25","block_type":"box","text":"Money Market Funds","page_number":208,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"628fa2a3-c312-4a53-a57c-3c2e5a1e08bf","block_type":"box","text":"□","page_number":208,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"0fd65d71-08d6-4315-8e25-483a331e1c00","block_type":"box","text":"Closed-End Funds","page_number":208,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"e2306f88-3512-458f-990f-e6873a1177e3","block_type":"box","text":"□","page_number":208,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"54c87fae-11e6-4bc5-90b1-b161e4f0f839","block_type":"box","text":"Other","page_number":208,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"163c07a7-a6e7-4424-acd2-30cf6e1be108","block_type":"box","text":"Objective and Scope","page_number":208,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"1648715b-f9af-4e5f-b783-a56b9a28a3a3","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":208,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"7fa01da2-8c4e-4127-9e3b-88acee4390f6","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":208,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"6377f756-c379-40ad-bab6-05d848356d03","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":208,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"9177a3d0-dca9-497b-b190-c799e90975e2","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":208,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"e75fba44-322c-4b3e-8f9f-9d2da9af7142","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":208,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"438cf512-789a-42a2-ac4b-682bcdff4541","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":208,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"5ce31f56-4349-48a5-a522-ba5f15bf555b","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":208,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"dc5688df-5a5b-4494-9cd5-730d04ee7f84","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":208,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"7bcea508-32d4-4047-91e6-85dd838c161f","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":208,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"f517ddd4-bf3b-46c2-b0ed-17d60bb0540d","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":208,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"fb6b8301-80c5-4ad9-a009-5968f88fdc08","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":208,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"068d9313-1a61-462d-a3a7-3a20e656d28b","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":208,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"4471ee06-4f94-4205-9e73-e5c7ca9d37c1","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":208,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"6a9d6c68-c68d-49e4-ae0f-1adae1ea0bf0","block_type":"box","text":"Appendix A.","page_number":208,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"07086a31-62c4-4d21-a8d4-1bae8d57afa6","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":208,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"a0285b2b-293d-41b6-8831-ff5e93f265ea","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":208,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"b0c94f26-5790-4cb9-bb41-906f95f5b6ea","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":208,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"7690cf6d-5308-440f-b587-54a8b00eff99","block_type":"box","text":"Conflicts Management","page_number":208,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"345cee3c-9b2f-4939-9044-d5425899072d","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":208,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"722da6a5-882b-453b-b2a0-19dd92ce3ff1","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":208,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"bef97a05-8b7a-4153-b5bd-8d393f26395c","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":208,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"d10349f8-0f9d-41bf-9868-538cfcdaeba8","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":208,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"8a24833c-bc69-4d43-bc48-d3aab4c3fab9","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":208,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"2b2b6058-9e84-486d-bd0f-3e6b8e679629","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":208,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"00db8c34-1b0c-44c9-b850-82a7503adf68","block_type":"box","text":"connection with proxy voting.","page_number":208,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"aaa246ae-14a6-458b-844a-608d6d5cf879","block_type":"box","text":"Reports to the Board","page_number":208,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"45b76736-bab1-411b-a23e-08870dd96656","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":208,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"fdc1ac87-bc8c-4987-88fe-9924fe1b89d2","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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Our regional voting guidelines explain how the BIS Global","page_number":213,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"1ba7a552-0ec4-4eae-8288-fbd3abcdc364","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":213,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"0c01f698-3a92-4a40-b0fd-cf8457142167","block_type":"box","text":"4","page_number":213,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"fac446d5-e93b-4362-af21-63912489d1db","block_type":"box","text":"3","page_number":213,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"d4194105-47ab-42b7-8838-caa2caf4bc37","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":213,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"d87c681f-78b5-4e9e-a61b-a334a4ea3c62","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":213,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"61bb55e4-1620-49f2-b971-f9d6aaf35feb","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":213,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"50e1e630-9770-488c-b184-c556005f4c61","block_type":"box","text":"4","page_number":213,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"c5908f80-ca80-44e1-8167-2d49b212cdee","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":213,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"2dd4bccb-7200-4b9a-9edf-6b416674129b","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":213,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"020a8c0b-aaa3-4e7c-8f8c-ea795208ce44","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":213,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"9d92f30b-a8f4-4589-8c91-287f4486a7ff","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":213,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"e00a789a-e87d-4b4a-9b6f-dee6073d54d1","block_type":"box","text":"guidelines.","page_number":213,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"1d10c37f-e7eb-4bef-920d-ba6ec227f8cb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"507dcaa3-c10d-4d8a-a48a-c40cd3bfbdd2","block_type":"box","text":"Global Principles | 4","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"73b007c4-0b0e-43cc-8b16-896e4218c45a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d44e7fb5-25ab-45d5-a5fd-09539672a792","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":214,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"8342eac6-b0a8-46ed-804d-19c2cfd6f5d7","block_type":"box","text":"Oversight role of the board","page_number":214,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"c414f417-392d-4647-8b64-719690641b30","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":214,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"3ea9ddd3-3bf6-4d99-b910-12b0b7a0caf8","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":214,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"3a6eddce-3237-47f0-bd4a-2a36af2ff65b","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":214,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"3ecd7fea-af55-4a0d-873b-a6c77404324e","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":214,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"78574440-03f7-4bc3-a56e-9f0e4292ac7d","block_type":"box","text":"long-term financial performance.","page_number":214,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"9fc6a638-db98-4810-aa2f-fc6222d4a12a","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":214,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"e0fd9011-6e8e-408f-95ff-6c02b8ab0b10","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":214,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"2771c308-d9ea-44d1-876f-dc8d25cb1869","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":214,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"9bc15838-23ac-4cce-a3d0-4eddd23b0b63","block_type":"box","text":"the business environment in which a company is operating.","page_number":214,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"890fbfbb-47db-4598-bfb5-799045423a01","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":214,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"c8abda8c-6bf6-48ae-bec6-2f0d169272f8","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":214,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"8fd08ecd-9eea-4d58-8259-ef051866c8e8","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":214,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"b504e18e-2ea6-4900-a741-9bd08419d448","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":214,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"b9f07a69-5503-4b45-9829-9bec12bf0a67","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":214,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"9d1fcfdf-8395-47b3-a0b6-f551055252d6","block_type":"box","text":"mitigating such risks.","page_number":214,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"4f2f9fed-d1b8-44c5-8bac-4a56a5baab7a","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":214,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"83f18f5e-2053-420d-965f-80d61996ad0f","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":214,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"8268be36-9afd-4e42-a869-f65fd2fc6c38","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":214,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"ff9b9455-896c-49c0-9d84-c612772552be","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":214,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"7ace8e98-4d1d-435b-9bfb-0e6efe7f2bf0","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":214,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"58e20a52-107f-42c0-9cdc-5d17f553427d","block_type":"box","text":"strategy.","page_number":214,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"5f3d1be5-547e-444a-b71e-5dd841702d84","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":214,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"976e34dd-f38f-4fe7-9fdb-504ef033a5b3","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":214,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"63692bad-c1aa-4f2b-94c0-f71e41ae67e0","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":214,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"7729073b-507b-45e6-baba-2e0deb8bbc65","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":214,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"94fcc8fa-6c52-4571-a864-71f332c37e91","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":214,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"ce16b11f-f60a-43be-9988-7baf1c3d08f3","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":214,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"359ce610-d5be-4411-9b88-19f43e288945","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":214,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"db5f2bb6-0c55-476b-9401-ddba8d8c5e69","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":214,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"fde0243f-370f-4c5c-aad4-cd3051e768c8","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":214,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"0ddd73e3-1370-471b-ae74-1d8bc2a2e0fe","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":214,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"2e8c4248-3fe2-453f-8c50-37b6f1ec46b2","block_type":"box","text":"Regular accountability through director elections","page_number":214,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"b1ab7fd8-bfa9-4e7b-90a6-0627ae2377ec","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":214,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"69f8c98a-f59d-4e3f-b215-f1688e163ea9","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":214,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"dee193eb-ea7a-45b7-b784-409c86d6f50b","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":214,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"4a90e067-3de8-4897-81e8-ab95d9fc3a12","block_type":"box","text":"5","page_number":214,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"b79e2d1e-bce9-4dd0-8e5f-0dcb92e7d5df","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":214,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"f1abde13-c21c-4115-8e63-d225a71b7527","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":214,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"1dacec8c-4be4-4875-9bf8-ac97a822a81c","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":214,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"3cd082a9-6d51-4e3e-b37d-209d474037ca","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":214,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"679d4227-d812-4116-a0e1-7a207ed08fea","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":214,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"2c8ab950-d60c-40ba-b671-2e5a648d0ba5","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":214,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"1e6506c4-b8ac-44f9-a0de-5742cc8571de","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":214,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"3ac41a5c-e86f-42b2-a631-ae3e01e1872c","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":214,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"20483289-2b85-44a7-accd-939c4832c01d","block_type":"box","text":"5","page_number":214,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"3cfd1afd-8ae1-4eac-939d-757ba5daa022","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":214,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"f21a38c4-e721-4210-8115-0547e7cc98bd","block_type":"box","text":"market regulation or voluntary best practice.","page_number":214,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"88d8db00-8f84-4dfe-8d4a-4b43f61bcf3f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"124f609a-386f-4915-b024-63aca019f212","block_type":"box","text":"Global Principles | 5","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"5881faee-0dc5-46f3-99e4-55c7a33c911a","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c60e7ef3-ad71-40ae-83ad-ff5114d13dab","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":215,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"951a4d34-cb82-41d1-b54b-728d7108f33b","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":215,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"88b4ce42-fbe5-493a-8638-beec7a752173","block_type":"box","text":"recently.","page_number":215,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"c167d4cc-f6de-493f-80d5-ff5607167ea0","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":215,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"edfcdffe-3212-4dc1-8a76-8b43f98665f7","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":215,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"23293f69-4ca6-495f-b627-362307cfaf17","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":215,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"494301d6-97b7-45f0-b47c-444e2664bb6d","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":215,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"00f5ec62-47cb-44d1-9d98-f29c14570524","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":215,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"c1049607-4a52-4c1b-93a4-e4711a9a6afa","block_type":"box","text":"Director independence","page_number":215,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"44233d2d-b164-4115-a735-2624dc547dd2","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":215,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"7675c5ba-975d-48cc-9107-b872c232a68a","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":215,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"7b747a08-5795-41e8-8406-a2eb51428fd2","block_type":"box","text":"6","page_number":215,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"d0036e23-1386-41ba-bebe-3ee65d8182ba","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":215,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"b70eaf0e-44cb-43f6-8cba-8e5e21fac0d0","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":215,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"37c11759-de0d-440a-9eb5-965f45bea17a","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":215,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"c1983b33-a7f9-4589-8be0-58b4b67f9bab","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":215,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"5e313d94-b490-43d3-b99e-1ee1778f260a","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":215,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"65c0684d-3a2b-4133-826a-878cb742395d","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"f2bd47f8-eef9-441f-ab27-4f5ff206cb16","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":215,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"0c39097f-445a-4955-8794-ca0ba98d9b1a","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"29f63970-85ea-40ff-8f46-87ce5d633b7e","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":215,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"172c7142-638b-4b6a-904e-e2af92e51d59","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"9a5bef0c-0b1e-4eda-a755-a6cbac4a3c89","block_type":"box","text":"Interlocking directorates","page_number":215,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"e65dab99-f9a9-4399-821f-77e0fd4b9420","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"ac8fded6-b964-467a-9c48-a95c291e9730","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":215,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"3b2c8ed8-44a9-4783-bd00-9bd3be8820a2","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":215,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"2486b4f6-de20-47c3-a5a3-450b8dc3a182","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":215,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"e9c97012-9cbb-4579-95a4-a8e832ca9fa8","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":215,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"d192e343-b91d-4d5b-9f16-a91957ab1441","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":215,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"ca4a2593-672e-4553-8139-665c6350378c","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":215,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"4553933f-3099-4b3b-a85e-a45f2d7eaafc","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":215,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"547da7e4-9655-46d4-9d93-1bf8239d62bc","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":215,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"b4199f6c-7307-4af1-9c2c-1a69a521f3c8","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":215,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"1913495c-c1ba-4f09-a9ce-f449e9517634","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":215,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"0a644b81-830d-4fab-81d7-926a8f9ff07c","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":215,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"9e7c3423-b4a5-41dc-b7c2-997b8fab867f","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":215,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"962b5107-d127-48db-8b95-52b7cd6731e8","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":215,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"d201a798-55da-4f84-9427-057b66fec17f","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":215,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"2959e7e2-6297-41b4-9e38-1df5ebabe288","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":215,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"8601b48a-71d5-4033-8f3b-7702a5e8120b","block_type":"box","text":"Sufficient capacity","page_number":215,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"cb6b04a2-ee30-4eac-9d2b-952acc90cd91","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":215,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"6b41f8cb-c2e2-4568-be91-a84adb36bc16","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":215,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"55ea1eb2-c9e6-49e0-924e-24d5def36bb1","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":215,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"be9c718a-687e-4e05-ba21-94a84bf33da1","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":215,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"3e2fcf67-a42e-4451-8b03-39e390c5baf8","block_type":"box","text":"Board composition","page_number":215,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"6ba33faa-d736-488b-887c-4495d911a726","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":215,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"fc83e3f6-7dc3-45e1-8cd7-85ab619ab1e7","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":215,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"5de87e80-5040-4934-b05a-5d6366fc9db5","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":215,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"5ce5ef89-ef45-4888-8a0b-7e33bba5bff7","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":215,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"ef93ad5f-6c79-4a89-8a51-b1da0b10f857","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":215,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"7e2d09cf-f0ca-4057-93aa-19ffade49587","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":215,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"15086a18-ad85-4414-bc78-2cd08a97f2e1","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":215,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"0efbfbe3-e43e-44b4-ac61-73141ed9c454","block_type":"box","text":"6","page_number":215,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"1f8b9b14-5b1e-4bc9-9b55-1c07d81b8dcf","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":215,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"9b9bc63f-39c7-4241-a221-a67e83c62301","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":215,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"67db6999-74e2-4a71-acbf-60384a8136f1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e26e987b-97f4-42f9-907f-60e0a313b52d","block_type":"box","text":"Global Principles | 6","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"8da3f019-20ff-49e0-ad0a-952f6ffe71f1","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8deb727e-7ed5-41ef-a4a8-5d4fb9cd4a51","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":216,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"e25a4d28-d794-4563-9529-ffab8a8bcb77","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":216,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"ec9e1766-3385-4f04-acfc-7e90b27ea39e","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":216,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"32ca0a86-c6cd-4d65-9ae4-e16b4e4505d7","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":216,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"1526305c-5a7e-4372-83af-163b0bcc2aa4","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":216,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"c56122fc-dcd3-4269-982c-77a660fe2807","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":216,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"dd0aae17-35de-40f9-9373-f6e74f22c1ff","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":216,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"958c011b-f625-4077-acb7-fc690099c0ba","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":216,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"721ed869-94ce-4db1-bd9b-69a012b3d647","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":216,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"e23870aa-35df-46d7-8db8-4ef38290cc73","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":216,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"d3dcdef3-26e2-452b-a476-73a641df8fc2","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":216,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"37081743-68fd-459d-915c-c78543cbe40d","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":216,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"c96b9c12-8f55-44a2-ac03-388ec9258524","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":216,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"1063d647-c691-46cc-b424-e057c12c2355","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":216,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"2dd023d3-345c-4d17-b907-92231e8b5d00","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":216,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"8193b46f-f7da-4a6f-a136-78c44e6dc69a","block_type":"box","text":"systems.","page_number":216,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"793f4e24-efab-4ca2-a533-beaa771d1fe0","block_type":"box","text":"7","page_number":216,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"cb5c7bfe-57ff-49c0-9189-e1221551f4ee","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":216,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"5bea4274-d0a1-42c7-b99b-8d87ab0e0df1","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":216,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"dba2b273-bd95-4d49-b906-c9d36a494ffe","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":216,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"75fefdbe-ef7d-40de-b6d7-21ab00b2904d","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":216,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"64e8eb43-3b49-41dc-89a8-31079a9ba332","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":216,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"ee425468-7cd6-4162-a09e-138f66c67267","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":216,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"c66847fd-ae41-4692-a7cf-8bb07dbfe02b","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":216,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"c3937efd-389f-4029-9a6a-101951135929","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":216,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"2470ad00-f884-45ca-9f54-c009b490a733","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":216,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"4d13f8c7-70e6-45a4-8804-cabafa5a4ec1","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":216,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"2a20247b-9ac9-4a88-92c7-389a0110866f","block_type":"box","text":"or internal audit function.","page_number":216,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"124d1a4f-f1bf-4f40-95f0-f60d800ec52c","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":216,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"b20f29be-ec56-41c4-93fe-b44242e7434d","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":216,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"5506cfd4-e1ab-4838-8d23-0bf15e091fd1","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":216,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"b5e6192e-f8f0-461b-9f52-0cb1e418522d","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":216,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"624867cc-5d7c-40e0-b193-6b9fece324a2","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":216,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"2f4f4c36-306a-4d07-ab80-80a439520df5","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":216,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"9b1c0dd5-069f-41c9-9071-003be8012561","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":216,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"72f67442-9cf6-4e11-bc61-d564aadaefe7","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":216,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"ad2c52d5-ac72-48bd-8755-e550301067f5","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":216,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"e899d301-19a0-4f54-b5b6-f59c0977052d","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":216,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"48914605-0b6e-47ad-a86d-a61b0eda0792","block_type":"box","text":"risk.","page_number":216,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"8339bc48-9aa4-4db5-baab-8fa55e24a3d8","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":216,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"360dacc6-8b0f-4f9e-bc58-dbe573d3f1a1","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":216,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"9e575b6c-1184-4ee3-8239-91ce3e476a26","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":216,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"ce58a0fb-bf56-451b-8c63-a70f58785fc7","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":216,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"05223504-12b8-4a76-b2f2-0001de409b69","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":216,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"fe3b04be-2097-40c3-89f5-bea442a0d984","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":216,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"b952a1c9-4e3d-4bcc-9145-d5921f8a7e46","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":216,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"ce654aaa-6502-4208-8e9d-971a4ea88b70","block_type":"box","text":"7","page_number":216,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"79438888-a7bd-45b2-805b-8892294a80db","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":216,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"dbf0e211-10d6-45b2-a9e1-276f312accc4","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":216,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"55ee6f67-6e66-403a-9030-50f94f3f6703","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":216,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"18969689-fec6-458a-bcdd-5ed12cb18eb5","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":216,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"7949e475-fe4b-4b31-8179-a785c6cb6b99","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":216,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"4f1aa9a8-505c-490e-adab-5658de1ff7e9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"75833fcc-9499-4e56-a488-481cec4d469d","block_type":"box","text":"Global Principles | 7","page_number":216,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"0aeec51b-9a66-40f6-83f0-2358b80806b7","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2fa36b09-7d96-4fde-a585-12a426dbf9d9","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":217,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"1f3dc6bb-0b08-4bed-87e7-80e3714c72e3","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":217,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"f4b0dc01-3840-4b8f-b4a9-62b6713f7138","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":217,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"15d331d8-77ad-4dd4-a456-058015d20ddb","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":217,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"12f618cf-ec5c-419c-8471-fea529053fc1","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":217,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"20912bae-219f-4ffd-98fb-c33e84b007e2","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":217,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"4d9b0452-d97b-4149-9d95-82d7853913c8","block_type":"box","text":"minimizing costs to shareholders.","page_number":217,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"025e69e5-a2f1-4859-8a4d-d8729c02695d","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":217,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"2dfac154-1bcb-4d60-b0ea-2babe39cb388","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":217,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"5751254c-ddfe-4720-89ac-be8d379dbdd3","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":217,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"3a81234c-3504-4113-bbc7-1a03f3577cc1","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":217,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"f7f7a4db-d19d-4bf9-b5e2-977d4564f815","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":217,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"e806820b-d9b2-48d0-b842-01d7a84b9092","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":217,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"80fa329c-8af1-4f1c-ac8d-1abd49ec5b04","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":217,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"e479e3d0-e703-42fe-ba97-4456039be87f","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":217,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"02b1ce20-2a60-41e4-911b-519e15a2a971","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":217,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"1a2a06e7-677e-4b2c-b1c7-eb9a8699f8bb","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":217,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"1d87b96d-23dc-446d-a934-f1a01f47bc76","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":217,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"1e909c6e-68df-4907-82d1-f333b12d795f","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":217,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"4ebbc4fc-3c82-431d-a7d2-d680ddb7ad28","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":217,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"0908c1dc-d844-4c5c-8e89-547ff3a3174b","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":217,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"57c5e73a-ed97-4387-ac78-25136896ffb7","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":217,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"910e21ba-0ddd-4b1a-ad7e-5ed78907ab4a","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":217,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"ae5d57a6-7379-45d8-93e3-4a45a6ae8f44","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":217,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"86ab36ce-70b6-4d5a-a555-c6721acd6386","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":217,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"71a7eeb0-157a-4f8d-aa61-0f0b65fe1591","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":217,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"9a47836b-e979-4999-b3dc-d8660fe24703","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":217,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"786abda8-83fb-4f43-b098-e638ede68b47","block_type":"box","text":"ownership.","page_number":217,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"fca53026-9d4c-4559-86db-0f5b9c547704","block_type":"box","text":"8","page_number":217,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"f564b2ae-fc41-49f8-910d-908ba24a8deb","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":217,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"34e9f8f0-ade9-485f-a943-04cad773e1e2","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":217,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"828bee2a-d9ee-4c22-b587-17f9d57598f5","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":217,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"f59b748c-93a5-4429-a451-ec4ee0c7fdca","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":217,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"76cb755a-5c00-4b8c-8ba5-f445e4f5e9fe","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":217,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"ffe034ff-c3d7-4477-8197-cba0460ef051","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":217,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"bad42595-b47d-43b2-a37e-3428a7b1f831","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":217,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"91b679da-5f50-4ae2-9ef0-6a03b20723ed","block_type":"box","text":"results over a period of years.","page_number":217,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"f8dad9c9-1810-41c7-9456-d41e01c8353a","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":217,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"0ecafaa2-c16d-4fa1-be5f-aa38a6d3b2ae","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":217,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"e77d7dfb-d6b4-49b4-9641-6c4d280de93b","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":217,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"53cf071d-11a0-4229-911d-69c6e88522c4","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":217,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"7c689bfe-bef2-4b30-9c70-da4fe4209047","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":217,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"6e39d567-4dc9-43a8-849c-96893b224d61","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":217,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"1916720d-938d-4b72-8e58-7e748920de1a","block_type":"box","text":"executive compensation strategies.","page_number":217,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"a3586fce-57af-44b9-a45b-361b61946a2d","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":217,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"85602533-3118-422b-a187-bf9a537fba26","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":217,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"a5a66e15-97ff-47ed-9b79-50f822732b5b","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":217,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"06b48054-0684-4ef0-9249-8aa366cf410c","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":217,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"d25f4444-1152-4b6f-8637-ad90c7eb0509","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":217,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"73220d5f-4857-4151-8554-23ef73eff8df","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":217,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"90190256-4926-43a5-aba1-9b506fdcbb75","block_type":"box","text":"8","page_number":217,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"75af9823-eb30-43fc-93c7-5b2fbfd1dfa4","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":217,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"c05fa52a-c2b6-4ac4-ba21-bb769e098ea8","block_type":"box","text":"different markets.","page_number":217,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"38390a65-1cc7-4f7e-94e2-90c1a93a8455","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e458e632-c53a-469f-92fa-91eabf78f71c","block_type":"box","text":"Global Principles | 8","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"89cc218b-6603-42cb-a89f-9d2d48a5ade0","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e55dea6-354f-4bf8-90a0-bda414f9b157","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":218,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"dd8f4edd-3c95-4e5a-a05e-3e93582039eb","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":218,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"de365d21-efc7-4e7b-a313-2453c7d50df3","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":218,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"8d133ab0-b84b-4d89-bd1f-1a985793201a","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":218,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"4a84180c-b930-4d50-83cf-cea807ed9503","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":218,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"a031d494-13fa-4be2-bed3-a2b6a807a201","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":218,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"d41b4df5-1bad-4781-8255-3e1bb3450218","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":218,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"24567480-39f2-4d8a-962b-0ac6d69ce3fd","block_type":"box","text":"whom they are charged with overseeing.","page_number":218,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"e3df835a-010e-4227-a3b8-8dd69de1dd95","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":218,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"9d0d8448-5e6f-4f06-93ef-b60fa75cd56f","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":218,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"ab0d8bc6-536a-482a-a5b6-d2796304177b","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":218,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"ce7917ba-6051-43fb-80a2-c8d2dbddfcd8","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":218,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"be2bb5c4-0c94-4fab-9aec-57b24c309979","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":218,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"3b4a3f01-bb57-46cf-b0f5-de50195ff486","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":218,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"85132dbd-4469-4c15-9934-624822f7e729","block_type":"box","text":"structures.","page_number":218,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"8d773354-5944-44de-8438-0e4a43e701d7","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":218,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"57649188-7ccf-4818-97a2-d53e6bb0b251","block_type":"box","text":"Corporate form","page_number":218,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"aa1e4df7-65ea-44b2-a24e-96efff5e8800","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":218,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"1c0e0037-9824-4cc9-9a69-21dce448e74b","block_type":"box","text":"the company’s purpose and business model.","page_number":218,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"d2ae8fcb-69a8-49d5-a1e9-639937e4eca6","block_type":"box","text":"9","page_number":218,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"209ff6e0-94a9-425d-862d-886a30e332cb","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":218,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"779b3794-0662-4dc9-96b0-5ab42ab7f440","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":218,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"786a66a3-ca39-4cc3-8b46-5d40678da8d6","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":218,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"a5976e08-cf50-4fa9-8e10-7b758d093d4f","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":218,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"c76cd3c0-f3dd-42c0-8abc-404a3a612624","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":218,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"2faaea06-4de7-4f0a-ab45-7b3509b0ce43","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":218,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"e63dd2af-f1e7-459a-bd0b-8eb0af9eaa88","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":218,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"14734c98-bae1-4c3e-bf1c-11fdd010d3ae","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":218,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"7eaa996c-9cbd-43fb-966f-301d9c938dd8","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":218,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"44b0c68b-9dfb-4a07-a93d-88ba65959a97","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":218,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"7a943081-c23d-4015-9eee-8b50969bea67","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":218,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"393c475a-b22b-422f-9d90-6ff9f9094b3f","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":218,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"60ee24e1-61c8-48b6-874a-e97612d177f4","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":218,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"ba776e92-f182-4d27-84d9-d7175c0a4895","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":218,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"cbc7137c-4132-49a4-9037-7a561280e817","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":218,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"d095dcee-13dc-4b4d-a019-8229a3a91a36","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":218,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"998e7f6a-7573-4476-a081-be7cfddc2a40","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":218,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"4dbc01df-de55-4222-8a34-55c4cca3d69c","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":218,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"f86ddbaa-a32d-452e-985e-659a2cdeaba7","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":218,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"794d324d-fa46-4c4d-b351-9795128aafe5","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":218,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"b76b99bd-cdb9-4b73-9448-362d68ccf596","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":218,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"68c791e6-7b4f-4d1d-8ad1-0110de1c3c09","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":218,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"2b8f37b7-8e19-4022-8d95-91b0038ad5f3","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":218,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"703e25d1-3124-48a6-9d53-378051188175","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":218,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"f9787a99-f895-40f4-a591-8cfe07b3b9ec","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":218,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"f823cf77-98d1-4807-bb07-9ebaa823c29f","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":218,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"b2534870-caca-4ff2-a42a-a483a305e8a8","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":218,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"0fc6245a-dcea-436a-bae0-54bed19c4ae9","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":218,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"f40f1285-b1f7-462a-be8f-4b3bc6d2cfb5","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":218,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"ec1de186-1ced-4955-8682-afc50724af5c","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":218,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"53c41cf7-c917-4533-81ed-16ae50dad18e","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":218,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"f76679c7-ba41-43ee-9ff8-d96e1f0abee5","block_type":"box","text":"9","page_number":218,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"93a64dbe-5612-4b3a-b06c-dadefbe766cd","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":218,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"7eb7be24-49dd-4fe4-b3cc-7f67f842c4f9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f2fe1d65-062b-4ae2-a00f-3c9765758bbf","block_type":"box","text":"Global Principles | 9","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"56e67634-cb3c-4eb8-b6f8-e471ca80970e","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e6b1d34-137a-4a57-ada6-8f199797ab1b","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":219,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"1c9b67ca-80c2-412a-aa47-71efbc58688f","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":219,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"adad21b2-2543-46f4-ad92-3f01e96ca8e0","block_type":"box","text":"long-term financial interests.","page_number":219,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"9d3a13c0-4203-43b4-8419-be91a4dbd907","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":219,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"9d7dfe69-197c-440b-bb6f-8e8b5369b9ce","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":219,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"1841c8aa-5b67-4a33-9a3a-f93f905e8b49","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":219,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"c9880408-2eee-4b69-aab7-c905999a120a","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":219,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"a9b69c7a-e7be-4844-add7-345cbb27cb63","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":219,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"71e1be5f-6208-4946-9395-80989ac045c7","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":219,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"d3ff7a45-9d79-4d7d-a36d-a5ffacedc151","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":219,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"287bcc50-423f-4a7a-83a8-127d52d55527","block_type":"box","text":"term financial value creation.","page_number":219,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"a2270dc0-b539-4389-b0a2-003673edc002","block_type":"box","text":"10","page_number":219,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"a102cb44-c10b-4371-8b39-797fe970bc62","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":219,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"f2f77b72-91d5-4070-bb0e-cd1b5fca9ad7","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":219,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"0be2e308-b15d-4ef2-9e2b-44bbd2056b59","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":219,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"419b717c-4b05-4b46-9342-a9f03820393d","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":219,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"44395850-bb95-4541-8e3e-925567abbbc3","block_type":"box","text":"industry-specific metrics.","page_number":219,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"0299669d-0133-4008-bd67-547116dfc26a","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":219,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"275d6e85-e2fc-4db5-9c25-d24e24ff8523","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":219,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"0e42387c-1402-49f5-a01b-efee4d7d3b78","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":219,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"dacd35e1-7a60-4929-8f8b-30bd19c19b6c","block_type":"box","text":"11","page_number":219,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"16ad9e00-e2c4-4eed-a99b-277d36e1754f","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":219,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"69a1ec80-6312-4fe5-85a3-6edb1576736b","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":219,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"8585f162-9a08-48e9-ba93-658eaac87978","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":219,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"47203b79-3980-4f33-8a53-5680f2696a35","block_type":"box","text":"specific.","page_number":219,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"db477a66-ac41-49e8-9035-48f2fc67a737","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":219,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"0c7772c2-8b51-4174-8e64-94ababb652f2","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":219,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"ce24f705-a755-48ba-93d1-23598c1958ac","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":219,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"3792d279-51f0-4c9b-aa93-46b8994d42d7","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":219,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"d32516cf-964c-4884-8f92-238930535566","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":219,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"43488e92-a092-4044-8995-8611cc33c577","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":219,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"06fab00f-155e-42cf-96dd-9facf650d0c9","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":219,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"47ab4a89-5906-44b4-9864-8bc26bd181a7","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":219,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"0b9ed462-c362-4cae-bc97-3f3cf4952780","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":219,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"20680ac6-756e-4edb-94e4-c5dc53d25743","block_type":"box","text":"10","page_number":219,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"60236cd7-910c-4074-b77d-c08d533e4ed8","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":219,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"d07be1c7-acf7-464f-a6d7-20786a451a7e","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. 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The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":219,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"fc12982d-aba0-4cfb-a7fb-0404d1e2b8d6","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":219,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"5cc153c7-d347-4e5d-943a-b2734f92923a","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":219,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"8d6ff6e1-07a3-4170-942b-3cc836db7aa2","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":219,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"437a0d6b-da8f-4751-b7c6-2a4b32924b32","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":219,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"6edcef02-0f67-4ee4-9d57-0409793e5f7a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"675a67d1-2aee-4eb3-a3f4-ade63d6d71f4","block_type":"box","text":"Global Principles | 10","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"2a348b04-87e6-469f-8d08-87ccf4e21c55","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6ca13f9-5391-46a8-80f8-405fae57671e","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":220,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"238ed366-7896-4c4f-84d6-208fa8cf709d","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":220,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"34c71245-17ce-4637-b330-e5ae898af7b6","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":220,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"5804d106-a4ab-4336-ad93-100d5004699f","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":220,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"167a8b39-7ca7-4476-9c4c-cb81ba561614","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":220,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"dec6c476-e2c1-4a22-afff-86e4ab89a38b","block_type":"box","text":"12, 13","page_number":220,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"057297a2-7fae-47b6-b1a7-aa9865f2dd85","block_type":"box","text":"From company disclosures and","page_number":220,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"07569f17-3342-4551-bda7-333baab32808","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":220,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"75cd022f-f88d-428c-b04d-0ccc1e1faf71","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":220,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"9e6788ce-8993-4e28-94d1-2057cdcaf398","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":220,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"1fa4d91e-950a-4cdc-bc08-afdc85f41274","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":220,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"a0046068-5fbb-446c-98e6-6f04b42954ff","block_type":"box","text":"viewed as best practice in the market.","page_number":220,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"d3c227c6-0813-490d-bab5-4a4aea71dacb","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":220,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"fdb4c4e9-7327-4d23-a130-44b61cd7e777","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":220,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"aedddcdb-6959-48f0-b8a8-108d9eec2eac","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":220,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"d84b8914-fa6b-474b-aaab-4d6df63708a7","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":220,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"b8d4aedf-a39f-4830-9488-04027135c4e2","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":220,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"c071cd45-560c-4b4b-94c1-278717b32576","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":220,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"7012a8da-2268-47ed-86a5-f55244680428","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":220,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"b23d65f4-c9f9-46b8-93df-9aea8ab4b8cb","block_type":"box","text":"interests of their investors.","page_number":220,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"620026df-f75b-41f1-b434-62c933b1be31","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":220,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"d88ee50b-1cdf-40b9-b6e8-709b1853d39b","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":220,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"cc86b8a9-28c8-4f56-97a7-bd34d9476608","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":220,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"aabdba8b-c2f4-480b-82f2-5d5ff375d4db","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":220,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"86c2a1e9-9397-4c9b-addd-59d444b97dea","block_type":"box","text":"good-faith basis as methodology develops.","page_number":220,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"8298164f-b8a3-41f7-9008-bafc4af68f93","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":220,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"1a16c978-7599-4278-bee1-032041685416","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":220,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"fd7c296e-a0f1-445e-8e1b-41100be32a28","block_type":"box","text":"generate long-term financial returns.","page_number":220,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"169845c2-d953-4c96-a94d-96a0191c6de8","block_type":"box","text":"14","page_number":220,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"a79dd23d-4000-4869-9661-780725e4b989","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":220,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"b43439fc-8c2f-400f-8b06-29904b27b3d3","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":220,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"cc5d165a-51e8-413f-8662-3c7e30cdcf47","block_type":"box","text":"15","page_number":220,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"6e2e8afc-f7e5-4467-b2dd-bdaff305b8ac","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":220,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"3bf3bf10-af63-4a07-a0c1-3efc07a93006","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":220,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"90b48f95-9d54-416a-b05d-ab0bf8c96fe0","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":220,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"327c91c0-203f-4589-acfe-d6bd603726f0","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":220,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"bb763437-5476-4b27-a916-2a49fc136510","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":220,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"d5b59691-2cbd-4a1e-b94d-a53772e9ba56","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":220,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"217a132d-5367-43e5-b4e7-7899af54e3ca","block_type":"box","text":"12","page_number":220,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"76c1c64b-86de-462a-9c00-35d995ad45a5","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":220,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"381106c9-5843-4b67-8867-0fcdd341975e","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":220,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"fc083738-6fc8-4b13-8c62-5356783a4c77","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":220,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"2dc104d2-276f-4f41-82d8-759887c84d39","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":220,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"ca88d50e-94f2-485c-8b8b-2a98e3a4bc07","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":220,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"fdecc45a-37f0-4a61-bdf4-7c7ddce5a2c9","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":220,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"8f3503d2-3922-4b4b-a44a-06412a9c174a","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":220,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"35433404-c8eb-4699-a855-0ea35cf297d5","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":220,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"0a69cc33-2794-4715-8a8d-3214b9fc2fb2","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"712038c7-fde6-4c1b-b460-d20d42adf101","block_type":"box","text":"13","page_number":220,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"8bb6c5ff-24f2-443e-8343-d8b6e3d395d9","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":220,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"c17fd18f-d8e7-4dca-ad23-76bd917bf8bc","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"b8fe779b-4be7-418a-af75-13eca12b9449","block_type":"box","text":"14","page_number":220,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"dd14a111-5064-4877-8096-e2783f0a990c","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":220,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"def876ce-7f22-4d74-80ec-118e5af05cea","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"38fa92d7-e19a-48cc-b614-0cf904132978","block_type":"box","text":"15","page_number":220,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"41ecf222-fbc2-4371-a74a-4787c3228078","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":220,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"115b231f-9f81-4ca1-8ea6-0b980ab31f08","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":220,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"4e1a1c8c-1f27-41e9-a841-be046becf70c","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":220,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"e3431bb5-30a2-44b0-b6c6-cdfb9abe9d9a","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":220,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"23144694-0383-4de3-b5b3-9d48688e4aa9","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"0b5cc3f0-cbf1-454d-8250-0d5eb339aa78","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"190f36ae-ab73-4c2d-ac2d-d586c7dab4da","block_type":"box","text":"Global Principles | 11","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"6d170016-ab11-4cfd-bb81-df125a98bf0b","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb3df35a-d2f7-4b83-80ec-6dadc59fbe28","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":221,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"b20b11cf-b781-4cd9-a36e-770284511f02","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":221,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"954543a0-e42d-4624-889e-f9816bd4e748","block_type":"box","text":"16","page_number":221,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"b899b93e-0312-4bcd-9e16-ab499485de98","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":221,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"e0988101-f11e-4279-a254-1050a9e49ed3","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":221,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"7479e7e1-50aa-49f0-8982-0c54cb98b6e3","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":221,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"bf23b57c-34e7-4b41-8b7f-be37f6db9691","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":221,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"a03fb56a-e95b-4c54-9cef-ae82804491ba","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":221,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"a5006cfb-6859-4f78-a25c-1f4fc5943865","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":221,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"7b2cf102-edaf-4648-8630-7b3a321596b1","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":221,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"d29c64e8-af1e-4248-a61b-4c41fc49a71d","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":221,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"a2308d15-5529-4df7-ba0f-90865651411c","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":221,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"b3c6a1d2-b871-4691-ba67-ed4faf5a4fa8","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":221,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"59c59891-811f-4921-bb06-c71bee1c0db5","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":221,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"c2a84507-e127-40be-be37-904c9175bc1b","block_type":"box","text":"impacts.","page_number":221,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"5973b38c-17a8-474b-a5ce-f1977b9795de","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":221,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"9e7ed7cd-4254-4c32-9b1c-8d195aec1c1d","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":221,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"0f6e6b73-9751-491c-9488-dfeaafa3e596","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":221,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"57232a24-fb3e-4b11-b827-6c6e3567e156","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":221,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"7d45b8d7-36b9-4d7c-8822-8931f99bfaa0","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":221,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"bf180ac3-173f-46c4-8599-f5aaaf3a8a62","block_type":"box","text":"clients at the global and regional level.","page_number":221,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"3ba21f0b-965c-4a8f-98e7-60a7fed7908a","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":221,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"4e35a47c-8c57-4d54-b3d4-53e94bd1befb","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":221,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"90a66c13-cb05-4ca5-b61a-3273bc2fcde1","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":221,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"8b7f0e66-8008-49c3-a146-42eb323ed4c4","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":221,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"1c579f7f-4baa-4653-995f-459eaba8c6f4","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":221,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"5b4d148d-f11d-4d8d-93f2-cc8d60019c15","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":221,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"ba0801a3-1791-4967-8eb1-9cda4e226fc6","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":221,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"f9df7761-d019-43cd-80e7-7559c0689b0f","block_type":"box","text":"are independent from the investment stewardship function.","page_number":221,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"bdf34e68-fffa-4fc5-81ee-93de69a7c2ae","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":221,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"484d95af-d293-4fff-bcba-0c4087b197c5","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":221,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"5732db8b-1735-43c9-bd25-d9bfcc49b72a","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":221,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"b6690efc-f81a-49ca-a6a2-0cd618ceecda","block_type":"box","text":"VOTE EXECUTION","page_number":221,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"8d86c9af-7d03-45e6-918f-f13bb9a5a76f","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":221,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"772fbd3e-b0ac-4edc-a846-fe53826521b2","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":221,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"c0f0f407-bfdd-4c1a-8f29-1155ce1ae12a","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":221,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"4190b1cd-0617-4dbc-898b-b4750a368e09","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":221,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"ab3dce09-d02c-4dab-8e35-6a9f543ec471","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":221,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"cbc2fb17-05db-49b6-ab24-f66235db29e4","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":221,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"522077b3-d607-4129-87a4-b4c354070aa9","block_type":"box","text":"management policies and procedures,” below).","page_number":221,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"006dee4a-54cb-4ebf-9303-9f1fc77ad274","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":221,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"3e580cf1-4c70-46f2-8bda-8904f803ff89","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":221,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"bf59bccd-3867-493f-86e7-cd2725c40501","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":221,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"86a07a5a-f9f3-4bdd-9136-64047bcdd6bf","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":221,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"508666ad-badd-453b-9461-6fc3e1d3ea05","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":221,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"b8a0727d-0aef-48ae-8a5a-4e9c9ef4de9a","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":221,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"03941fdc-80ed-4722-91a3-40a79b71ddc1","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":221,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"b4e1ba7b-c23f-4b39-89f6-6ba82f394ba9","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":221,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"80332718-3f81-46a3-8b94-70b1e380cc97","block_type":"box","text":"16","page_number":221,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"c5a5cd5f-4aeb-40e8-80ae-b52f13359685","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":221,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"4a381187-74ea-4b78-bf4a-62ba0ed9d7f5","block_type":"box","text":"December 2025.","page_number":221,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"0aca4692-f5ab-4292-853f-aef9ff5fac83","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"dc858491-f38e-4954-92fd-1855c5ce3b61","block_type":"box","text":"Global Principles | 12","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"b0c1b656-a0c2-4c34-9c59-3fab1a3dae32","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"efa89de1-ed29-460f-9eaf-48a52913ace7","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":222,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"bf64c1db-4d10-4500-9499-617b78fbd681","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":222,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"5887a048-4cbc-470e-9e27-e7a888252e61","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":222,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"3a603940-b383-4d45-8317-6175915b5de3","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":222,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"7e5b0711-6767-4307-810e-0a4f73f9cc3f","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":222,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"4b473891-7d5e-4b69-a3a1-f0ffed430bd2","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":222,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"c2412e01-1118-4e62-a40b-14ec4f5b8cc6","block_type":"box","text":"enterprise-level vendor management activities.","page_number":222,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"16b4e3b1-2504-4d71-8f6a-cedf1618f611","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":222,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"846dfafe-dea7-43f2-9648-67b1db4059d6","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":222,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"33534939-2977-4d04-9e0d-8cb3edadbeed","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":222,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"f104346c-aa01-46ac-9e22-92b3f133bc2d","block_type":"box","text":"BlackRock employees.","page_number":222,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"4c4c9122-2b3b-4c69-b8c2-779b1b72c531","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":222,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"0469ffd8-c978-441f-9c32-d937afe08d36","block_type":"box","text":"SECURITIES LENDING","page_number":222,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"b0f3a1b3-bbf7-4589-8029-896d6071e423","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":222,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"44317ec9-6248-4ada-864b-71a020040d46","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":222,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"c64d6e51-c5e0-4898-be12-13671747102f","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":222,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"a9bb379d-e083-4e59-a0fa-31ce66582bc5","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":222,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"bc0caa3a-4fc7-463d-849b-aaf84c18841d","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":222,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"90234fd3-781f-4d22-9e7b-9dd3a1421249","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":222,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"13afb5b9-6140-4f43-806d-c2c7bedc3fe0","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":222,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"f9e00f2a-b6ec-4c4f-9090-20d279a56b4d","block_type":"box","text":"in helping them achieve their investment goals. 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Investing involves risk, including the loss of","page_number":224,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"63e41872-5bf0-418f-8c86-227cc057e8ab","block_type":"box","text":"principal.","page_number":224,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"22a60860-6b60-4eef-adec-f85dceade05a","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":224,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"467aa1da-15f2-421b-8579-a1d5a67a7a02","block_type":"box","text":"©2025 BlackRock, Inc. 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All other trademarks are those of their respective owners.","page_number":224,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"c94e5d71-5b97-4799-9f19-d84047bae970","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"95f7d7ea-9af1-4124-98d6-d5950473e985","block_type":"box","text":"Global Principles | 15","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"62ccba07-bd96-4fae-9fe6-097852157608","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d2586911-391c-4f81-9c97-97bb095387f2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"1c6f1d5c-1362-4d70-a92b-523bd293d928","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":225,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"15b13f9c-731d-4ddc-9c62-bba183ba2f52","block_type":"box","text":"Effective as of January 2026","page_number":225,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"e62caa25-0aac-4958-808c-ceceeadcc329","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43db7a38-f887-4d6e-9415-6dbe48946c73","block_type":"box","text":"Contents","page_number":226,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"3fa198d0-4a70-478e-addb-6bd8f885b1a6","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":226,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"ab24fdcc-b4f3-401a-acc7-2983712e848e","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":226,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"3edd6539-5f96-49c6-8e5e-2d2b07649569","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":226,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"d9bcbe55-31ea-46f4-8479-f5f219dbf006","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":226,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"d72e52f4-1608-4c56-b002-437a578f7780","block_type":"box","text":"The Guidelines’ design principles","page_number":226,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"96f14084-762e-4ec4-a540-55b32f738c1e","block_type":"box","text":"4","page_number":226,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"f4944ccf-c617-4d05-a63c-b03f9a233e2c","block_type":"box","text":"Voting approach under the Guidelines","page_number":226,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"8d6bdd13-5f75-482e-817a-64a6dbc35978","block_type":"box","text":"5","page_number":226,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"7e3bb6d6-4016-43cc-a75b-0038b120737b","block_type":"box","text":"Related matters","page_number":226,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"ecc984d6-8956-4adf-9cf2-0eaaa56da9f5","block_type":"box","text":"8","page_number":226,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"916b1e87-c533-44d1-9b61-9dbdd4ffa0c5","block_type":"box","text":"Appendix 1","page_number":226,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"f500a766-6fe3-4519-b130-33b7f3637805","block_type":"box","text":"10","page_number":226,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"b445466f-4f7d-4aaf-936f-edee59301d19","block_type":"box","text":"Appendix 2","page_number":226,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"c8e711cd-337b-4aea-9ac7-3a9556859ec7","block_type":"box","text":"11","page_number":226,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"3fffec01-2e81-418c-91fe-54f166f50e2c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a132aaa0-766b-40c0-a4c3-b9b552cd393f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"f5d3d129-8e7c-4129-851a-09e1a2101630","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"621353a9-b293-437e-a654-e26b95cf1e5c","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":227,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"afbd50fe-c1e8-466a-9486-f815eb42cbbd","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":227,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"f5ed5cd7-ee34-4a49-8d0f-09c4f2f69a1e","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. 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BIS does this through:","page_number":227,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"4b2ddf89-e438-4f0c-b5d0-009043ac1179","block_type":"box","text":"1.","page_number":227,"box":{"x":70,"y":171,"width":11,"height":9}},{"id":"b6e58964-62c1-4f4d-ba49-f3d978fdbfb1","block_type":"box","text":"Engaging with the boards and management of companies","page_number":227,"box":{"x":102,"y":171,"width":418,"height":11}},{"id":"5a1963c7-585a-4533-8b67-5f6e6e27ef81","block_type":"box","text":"in which clients are invested to deepen our","page_number":227,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"cbf64893-e63b-4eda-b7ee-c23f1f8c4d8e","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":227,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"0c7aa105-fb46-4b2a-bbc4-b10d5bfc8068","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of 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Under the Guidelines, the dedicated team","page_number":229,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"49402c0c-8120-4794-a93b-890cb58cbf50","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":229,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"07be8484-cc90-4984-9417-8b7b0dd07ca8","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":229,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"c22ffd1f-b84f-4a06-adaf-1339ce175c94","block_type":"box","text":"Voting approach under the Guidelines","page_number":229,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"73900992-c14e-413e-abde-1e5e7ac3921e","block_type":"box","text":"12","page_number":229,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"52248297-e245-40c5-a220-506a6a3d6c7d","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":229,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"7ece27c8-aba1-47ab-99a0-ddeee31fc513","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":229,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"68d63d5c-0fd1-4aea-a739-41186927a915","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":229,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"22b18402-742a-4d00-9df7-1672f7fbd7cd","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":229,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"f26c1954-70ae-4dee-9939-8e544f16e291","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":229,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"f9daa80e-31d6-4af3-8b73-a8882ffcf9de","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":229,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"bc92a198-f652-4287-a177-2719a7886014","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":229,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"68950b6e-135f-47ee-92b9-075362edb894","block_type":"box","text":"Corporate Disclosures","page_number":229,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"a2db6907-c71b-455d-9dd3-fdbbca8a0a40","block_type":"box","text":"13","page_number":229,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"6f14d4b3-5893-4995-a419-413cf6d077f9","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":229,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"45105ae1-4bdc-4229-9b27-de753ef04481","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":229,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"60725302-e2d6-47fd-b0be-815897cbe7dd","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":229,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"1af60ce4-95c4-4853-a213-21e5d5385a00","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":229,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"3bda3fb6-d4af-4e43-86c7-3d2e83f03362","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":229,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"acff2ec4-71d5-46f4-9c51-905019fcae76","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":229,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"a6311523-6bdc-4913-8ee9-de063f7c78e1","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":229,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"e1c0cf69-7703-49a6-820a-dcfba52162ee","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":229,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"0936e42e-bea6-4a4f-b1d3-7e604c702690","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":229,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"8e233823-082f-44f6-9cb9-50cda3c70890","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":229,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"487dad2e-c46b-4fbd-a66f-45586e3c7bc3","block_type":"box","text":"14, 15","page_number":229,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"4c427686-1723-4798-b0e0-ac7790c79675","block_type":"box","text":"IFRS","page_number":229,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"c52251d2-a1ac-48c7-bab2-ff522024fb09","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":229,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"859a3250-325e-4b98-a26d-62519fc7bf96","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":229,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"651b0d1c-87f8-47c6-a561-5e2f4008e94c","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":229,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"becc5d27-209b-4d39-9970-88d5ffa55f7a","block_type":"box","text":"and assurance standards are developed.","page_number":229,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"0cf84d0a-6fb8-4b9d-979f-f1feeaa7d3de","block_type":"box","text":"12","page_number":229,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"ae24f43e-f670-43a2-b03b-cd255eaf5b2d","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":229,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"382f59fa-2629-4556-8ddb-55886adc1198","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":229,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"256f464b-89af-4d9f-9b31-7342c83bbf79","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":229,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"ef7d195b-bcb3-4cef-9636-8071de72c2ab","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":229,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"69f2a823-73e2-4365-8922-ac67116661bd","block_type":"box","text":"13","page_number":229,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"8d217a9a-48f6-4776-a408-f70aa81e6dc7","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":229,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"4041d0e8-b90a-4397-a7cb-ebfb1d925aed","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":229,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"49eba8da-e882-4ab2-b623-f86e9f1b58ba","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":229,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"39392674-4a31-4b60-b11c-de1cfa698fd0","block_type":"box","text":"14","page_number":229,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"fdac9671-b98d-4534-b5d9-09b12b35bf51","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":229,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"ee0584da-3c01-4a89-8570-b995db7353bd","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":229,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"a218c446-b6f0-4214-b384-adf08b46d4bb","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":229,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"55271d94-9649-4c1c-9273-0fd360e94f5b","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":229,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"131b9198-429e-4fda-b028-1509c1280592","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":229,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"2c6b3f1c-de9e-4303-9e98-01fec35aaae3","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":229,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"7b268f33-82e1-4dcc-86a8-413743250d3d","block_type":"box","text":"15","page_number":229,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"648e096d-fefc-441a-aeb3-5bbe0f641364","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":229,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"afef0e64-0c9f-4cab-a1ee-0870f5a6749b","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":229,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"acc262a4-120f-464e-a906-1eae09655cbf","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":229,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"9ce1e346-9342-4a94-85d5-e9ab3837d86d","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":229,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"12024fda-21ac-41f0-b9b5-025201616f44","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":229,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"9c72942b-a9e4-4e64-8e24-ad8421a55061","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8a288027-fe0b-4833-b472-ff110546ac67","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"f4ce4d42-d44c-4132-9538-8939c49740ec","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80442e8a-0cb9-4448-bbb0-c0a471e76a56","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":230,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"159f6d32-5a09-4129-a001-2f6c69ec5770","block_type":"box","text":"16, 17","page_number":230,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"03d00502-5f57-4df6-bd6b-c6fde9d4e7d0","block_type":"box","text":"In addition, the dedicated team looks to","page_number":230,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"90516c8b-f36d-49f5-beea-51a9fb7d7d97","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":230,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"d8f3c44b-be29-4051-8f45-519c06a99214","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":230,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"a2d9654a-8e8d-40a1-86d1-dfc9a14438cc","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":230,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"8154f9e0-973e-4d64-8ace-bbcc3e6c8bf8","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":230,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"3ee5ca92-4504-41ea-b68f-756b1659d896","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":230,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"c0c0d864-cbe1-4ee0-8c20-0696962c9349","block_type":"box","text":"18","page_number":230,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"5fc13992-384f-483e-a238-067e405e8024","block_type":"box","text":"However,","page_number":230,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"5ac446f4-52d3-4121-8e22-867bee99d6df","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":230,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"bb4a2411-4ef4-40c2-9490-ebf87279634e","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":230,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"540eda39-0768-4cec-8028-cf148a6bad1b","block_type":"box","text":"their decarbonization targets. 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This may include","page_number":230,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"13aa1b6e-8ff4-41ce-8f59-315c587cdea9","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":230,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"8455ce50-574d-4802-924b-6abb18b73745","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":230,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"5b714449-6088-4c7b-bb10-b180429a441d","block_type":"box","text":"transition risks.","page_number":230,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"701cc673-25a2-4c8a-9abc-f9a31c85f2e8","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":230,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"a7e6ea6d-77fc-42d0-9beb-5acf3df08dd9","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":230,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"d3259f36-2c8e-4c60-b244-80c2c39fd2b6","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":230,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"77fb33ce-4b5f-415a-8e31-634167eecabd","block_type":"box","text":"Transition plans","page_number":230,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"ed4f3de0-c8a3-4e4d-b742-4ae23108ec96","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":230,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"a1715abd-a975-4b12-af97-4a2a0c0d3686","block_type":"box","text":"transition strategies. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":230,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"99890fc5-6500-41cf-9208-e4bfbeaa330d","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":230,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"efbb7a86-9bde-4667-9809-3ca703be3619","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":230,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"8ab9a032-aa94-4f7b-a926-9952fe414774","block_type":"box","text":"18","page_number":230,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"1e3bbc4b-9963-44b6-9514-284222b94cc6","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":230,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"a1941eac-e415-477d-b06c-d1f50225b70e","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":230,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"f41b2007-6629-47c6-b27b-9aaaafbb23a6","block_type":"box","text":"complexity for scope 3 emissions and the lack of direct control by companies over the requisite data, we find it most","page_number":230,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"5543fb02-5446-4471-9ccb-8588a9605af1","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":230,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"8c6b9f02-405e-4b5b-8388-8737afaf7868","block_type":"box","text":"material to their business models.","page_number":230,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"37ff534f-26d3-4dfa-9a55-f9270bea82c7","block_type":"box","text":"19","page_number":230,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"bd2c0a01-6799-4f48-8753-3a3eb79ef359","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":230,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"17917eb8-2b02-4286-b839-b592790e73fe","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"5824cd35-f8ec-4ad3-9666-830e15a3e71c","block_type":"box","text":"20","page_number":230,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"d3391cc9-3d10-4504-975f-aa2e37860c4e","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":230,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"49a552a5-86ec-4e2e-adbf-0ad5c5311f99","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":230,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"6dc49ff2-f759-4c1d-b2e1-13e935e0cb48","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":230,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"7ae20a41-c92f-4965-9e42-0aae91b964d6","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":230,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"f44002dc-d6b8-4eb8-9654-e6a6fabd5b6e","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":230,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"9d40722c-9831-40c0-ac8a-3cbc2e374f44","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":231,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"c146b6aa-e010-404c-8712-39aff24e87ad","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":231,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"12153413-88d3-4a3c-bf6d-41ef17baf3dc","block_type":"box","text":"with the different constituents in their value chain.","page_number":231,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"bbed0738-d41f-4b0c-9245-29ef43c314a4","block_type":"box","text":"21","page_number":231,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"56d3bd0e-b953-4332-b413-e19d322d362b","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"895ddb32-ab04-4c5c-81ed-160a4df4abaa","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":231,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"f295e448-6cc2-4c99-8841-da97330fce76","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":231,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"be6e1b94-7558-4171-9a3d-cb66f550383b","block_type":"box","text":"22","page_number":231,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"ca572855-cd53-4f02-9650-08d3e0061434","block_type":"box","text":"The dedicated team looks for","page_number":231,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"39a2891b-4a88-4ff1-ac48-9baef13bd83e","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":231,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"27d40728-b305-41a1-9d61-93f00bbc14ea","block_type":"box","text":"related to the low-carbon transition.","page_number":231,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"55a0b7a8-821d-4757-b349-77cbce9aff0e","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":231,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"62f20783-88df-4062-830f-4917eab32676","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":231,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"86683e4f-c2d7-485a-922f-572ce90b12e4","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":231,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"2c465b73-0a13-4d12-972d-b82d87e30c8f","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":231,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"284961ed-c008-456a-bb94-fcf07884af1d","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":231,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"0dc76be5-898b-4b7c-897b-3243b8ce571c","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":231,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"bcb873e6-1eb1-4b7e-a223-8411b47f1e69","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":231,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"aed94f1a-8207-45f4-beae-b2eaeff96dd1","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":231,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"f024bd0c-f3cb-49cb-af94-80f5c29dab87","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":231,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"c8808cd7-230a-4ada-9957-9c35034391d6","block_type":"box","text":"offer the most significant GHG reduction opportunities and are most relevant to the company’s business goals.”","page_number":231,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"0e442d54-e3da-4853-8582-cace732f3a72","block_type":"box","text":"Website accessed in December 2025.","page_number":231,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"e441a778-d574-4818-9896-67aabd132832","block_type":"box","text":"22","page_number":231,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"0b28d416-4327-4d75-acc6-cdd631d3c4f9","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":231,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"286b0f65-e1d0-4879-a56a-1e68cc10ac76","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":231,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"968c4283-2f80-47db-834d-ab3169efc630","block_type":"box","text":"23","page_number":231,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"a0c964b7-9fe2-41c4-8609-fc7bccb59522","block_type":"box","text":"Board report votes are generally advisory and relate to reports issued by the board of directors that may contain","page_number":231,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"bd95166f-512a-4e6a-95cd-5f4881b17749","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":231,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"3a36b885-20a7-447a-a56e-2db28bb9c7e2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":231,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5dc055e3-8ced-4a53-a296-d1e2c2397f85","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":231,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"2456bfa9-18b6-4794-a38c-93c20b0acaf9","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":231,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86ce3cb4-95ca-4294-a982-935c8c39709d","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year, and the","page_number":232,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"0ca98b9b-4a69-4975-aac4-e454b14941a2","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":232,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"00e2dcdf-d111-4bfb-9756-460f57be8c66","block_type":"box","text":"may escalate by not supporting the re-election of additional responsible directors.","page_number":232,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"27d27309-b8ef-4b2e-8840-b5d77c8ecece","block_type":"box","text":"24","page_number":232,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"e57395b5-54f5-4e1d-8d35-4a7b386b527e","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":232,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"d06a3950-49cb-44ac-a9f0-3c7ff8a0f035","block_type":"box","text":"In certain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":232,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"c85fbfd8-c04f-497b-9ff9-7291bc5a53b0","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress reports. The Guidelines consider these","page_number":232,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"17c5c1b4-de1c-4406-9adb-fa9e0dd1bf49","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":232,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"1aca50a9-8823-4c3b-8504-83ee85099e37","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":232,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"589bc9af-ea72-47f2-887c-7b463c1c932b","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":232,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"1597b776-cff1-4c95-9a7f-37ccb35ad1a4","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":232,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"96b872fd-f5f1-4813-8bef-e9fcd940c26e","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":232,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"1b6565b2-43a8-4011-8015-6e5e17827a74","block_type":"box","text":"transition plan and targets.","page_number":232,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"f24179ed-5556-4bcd-ade6-a969fc9282ca","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":232,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"e06daf8d-ea36-4395-8190-36398080c214","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":232,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"e7bbe657-43c7-417e-a12b-ee1c222b66df","block_type":"box","text":"long as certain requirements are met. 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When the dedicated team votes in support of a proposal, it is not necessarily","page_number":232,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"377a6981-99fc-4676-b675-aa36caaf468e","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or supporting statement of the proponent.","page_number":232,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"e4de0008-2142-4133-8738-25de312f6136","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":232,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"c3351e7f-af46-451a-89e1-94e645663967","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":232,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"934524e1-8a42-40d7-aab8-02e3dce0aa23","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":232,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"24cf153e-1806-4e76-9aab-888e306f7584","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":232,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"c1011a97-58c0-40e6-86c4-dcd835b4bf76","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"14f61690-799a-4fb6-8620-118a53094eda","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":232,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"67115d98-9061-4196-8692-f70c06d2a38c","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":232,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"f7e8d488-1005-4314-9674-6b72d1c83bf4","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"12e5314d-9a7c-499e-88da-06142ca67d8f","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":232,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"0942cba3-014e-4e11-b55d-c3d22ec76c6c","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":232,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"beb79fa6-9305-4a96-9145-9f9b0a0d6cb3","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"037a69a9-7e9d-46ef-aa90-83f0efec5053","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":232,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"d9bd8186-eba9-4463-8d84-6f6efcdf08b1","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"cb25725d-87cc-42f6-99ab-076bed3f3da6","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":232,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"236f0a84-2fcf-4c83-b8fc-397e787d8eb8","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":232,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"97c1025a-a35c-4c2c-b9f6-f70f07c5b74a","block_type":"box","text":"25","page_number":232,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"d9db6694-ecf6-4126-ac56-fec964ee7564","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":232,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"ee2d0563-b070-43d0-b6df-bb1b556a9b77","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":232,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"52db8209-9645-438a-aaaf-ddab207f3676","block_type":"box","text":"RELATED MATTERS","page_number":232,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"5495e8da-2edb-47da-b85b-400b3667a451","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":232,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"fbb0b536-3c6a-450e-85a1-f08ec96a4c39","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":232,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"9d272268-4898-418f-893c-c4b48dc2a7e0","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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The dedicated team will continue to take a","page_number":232,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"1420165b-3a9d-419d-8e55-2fa4b35c9db7","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":232,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"d878d87f-c730-4ccb-8d42-133102f2adfd","block_type":"box","text":"25","page_number":232,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"dab9102f-9b97-43b2-b7ea-e9a62102aaab","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":232,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"8d5765bd-3746-4f34-8816-992d7a1178c3","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":232,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"b642f492-4a58-4303-9b7e-560c491ff45f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"22c5f07c-a3af-414b-9a03-1237dff9d1c8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"ff2f39a2-f87b-4eb9-a273-04505c01aa0c","block_type":"box","text":"BNM1026U-6032633-19203482","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a9a5f4fa-a0e8-4483-baf5-4f2f664d15cd","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":233,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"11436314-f65d-459c-af67-17fd20922f2b","block_type":"box","text":"strategy and risk management.","page_number":233,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"739d3467-2b3a-47da-a95b-0293ca7fb4e0","block_type":"box","text":"Auditors and audit-related issues","page_number":233,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"f1164fc7-1787-41d1-a30d-2fc1cab8583c","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":233,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"5b28f10b-e19a-48cd-92c8-d1fa31f050df","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":233,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"11cd86ba-f5cb-46b9-9a1c-f23463218ddc","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":233,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"c092c76f-ac58-4e86-9521-ec30cf20aa71","block_type":"box","text":"context of its audit report. 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These include a company’s impacts or dependencies on natural capital and key","page_number":233,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"a17b82e3-cf80-4616-b6f5-0269d8a74ebd","block_type":"box","text":"stakeholders.","page_number":233,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"02b9f8aa-7d24-4967-be7b-9eb23447791a","block_type":"box","text":"26","page_number":233,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"968e5812-8a2c-4d9d-9963-f3d95816147a","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":233,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"8bd44dd5-2354-4731-a43c-ed867288760b","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":233,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"445e8bd4-484d-4297-92ce-af81f5839185","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":234,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"84633754-9bf4-4dca-b771-d3524b4e2b92","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":234,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"4be1b103-53bf-4206-a944-6d0ef7f439e0","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":234,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"a049a151-6175-4a65-b4f2-d8dcd2ad4f40","block_type":"box","text":"Decarbonization:","page_number":234,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"ad8f0c1e-66e5-4b19-b143-a78bc1e91603","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":234,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"5f4bb8a8-2f06-414f-a351-87f1f65f6268","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":234,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"8a150be5-166d-46d9-a26d-3895cb2eb830","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":234,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"de707e90-d48d-496f-ab76-ee05c8de366c","block_type":"box","text":"e.g., methane.","page_number":234,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"1d1a1a6e-dbc9-4f66-ba07-0a6873abfcbd","block_type":"box","text":"Climate-related risks and opportunities:","page_number":234,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"9c19f0fd-0ca7-4cfa-a51c-a0d4f54f29ab","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":234,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"18d8abf5-7c94-466b-a223-fc4730dd26bd","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":234,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"8f7e2427-df7b-4238-8413-477bba0ec8a9","block_type":"box","text":"to physical climate change.","page_number":234,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"c6f0cdc0-fef4-46ae-8256-070c5ba79bef","block_type":"box","text":"Climate-related transition plan:","page_number":234,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"fd5d0191-757a-48b8-a02c-a5c758a2d6cd","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":234,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"646f9278-e0ea-4132-83ce-000f83c7cf00","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":234,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"c86cb2d4-d936-4a28-926c-8b2f766ef41a","block_type":"box","text":"greenhouse gas emissions.”","page_number":234,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"dfe869b2-93f0-4ff6-8ede-9f225649ded4","block_type":"box","text":"27","page_number":234,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"58189d52-70e6-4016-8ff6-e34141ecefbc","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":234,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"d46a7c51-5b99-4145-b3b1-96f0ea7bebde","block_type":"box","text":"Targets that “","page_number":234,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"000124f8-8cad-4851-967f-c5fc3191731d","block_type":"box","text":"are in line with what the latest climate science","page_number":234,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"ca38ab97-6023-4d98-9369-557acbf99b5f","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":234,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"be2df22d-aaf6-48fa-bb9e-c7e58e41e104","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":234,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"d6413604-c502-44e2-933d-750e3ddc0214","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":234,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"7274ae79-7917-4aab-97c5-73cfd6d17626","block_type":"box","text":"with the Paris Agreement goals.”","page_number":234,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"0930493c-a77b-44ae-84e3-c0acbd949959","block_type":"box","text":"28","page_number":234,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"53d872c9-99a1-43b0-b0d4-2af956aa79e1","block_type":"box","text":"Scope 1:","page_number":234,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"70c1fda6-e2f9-4305-902e-056eb3bd37ef","block_type":"box","text":"Direct GHG emissions. 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[It] is defined as electricity [steam,","page_number":234,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"cb853f1a-50c1-4ba8-a063-e0208e044131","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":234,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"65c7d70c-0363-41c3-ac2a-231f93035427","block_type":"box","text":"30","page_number":234,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"7ce7dcf5-f78c-4d61-8cd6-44b1138f067d","block_type":"box","text":"Scope 3:","page_number":234,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"45f122ba-7c99-47dd-8e9f-170996512dd9","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":234,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"60daa6c3-4c6e-4299-9e21-280038ce1575","block_type":"box","text":"of all other indirect emissions. 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