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It includes information about the","page_number":17,"box":{"x":557,"y":82,"width":330,"height":11}},{"id":"0b60d4e7-5860-4d9c-9915-13659a9fca72","block_type":"box","text":"Trust’s Board of Trustees (the “Board”), the advisory and management services provided to and the management","page_number":17,"box":{"x":68,"y":98,"width":813,"height":11}},{"id":"3385d6b0-8ac2-41df-9e6a-5f3b5fa3d6b0","block_type":"box","text":"fees paid by the Fund and information about other fees applicable to and services provided to the Fund. 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Invest more than 25% of its total assets, taken at market value, in the securities of issuers in any","page_number":22,"box":{"x":134,"y":249,"width":719,"height":11}},{"id":"b9f889e4-49c1-486c-8dbd-bb8d9fe2898b","block_type":"box","text":"par ticular industry (excluding the U.S. Government and its agencies and instrumentalities).","page_number":22,"box":{"x":102,"y":264,"width":646,"height":11}},{"id":"a6814d4e-84c3-4e6a-91e6-f30b49639970","block_type":"box","text":"3. Borrow money, except that (a) the Fund, to the extent permitted by applicable law, may borrow from banks","page_number":22,"box":{"x":134,"y":286,"width":775,"height":12}},{"id":"c1682466-d92c-43ae-a838-31e053646796","block_type":"box","text":"(as defined in the Investment Company Act), other affiliated investment companies and other persons or through","page_number":22,"box":{"x":102,"y":302,"width":803,"height":11}},{"id":"799be685-fbe2-4884-90be-b58ec6a208eb","block_type":"box","text":"reverse repurchase agreements in amounts up to 33","page_number":22,"box":{"x":102,"y":317,"width":376,"height":11}},{"id":"e5661551-23b1-4b71-ac6c-36a7f8e27b38","block_type":"box","text":"1/3","page_number":22,"box":{"x":479,"y":317,"width":14,"height":6}},{"id":"5a1db7c8-a87c-4315-a893-be5d33d9f843","block_type":"box","text":"% of its total assets (including the amount borrowed),","page_number":22,"box":{"x":493,"y":317,"width":381,"height":11}},{"id":"ee33e4dc-d1be-4032-ad24-fa9f707b5d86","block_type":"box","text":"(b) the Fund may, to the extent permitted by applicable law, borrow up to an additional 5% of its total assets for","page_number":22,"box":{"x":102,"y":332,"width":794,"height":11}},{"id":"186df7ee-e858-4ad7-ae4e-9a7fcb921c4e","block_type":"box","text":"temporary purposes, (c) the Fund may obtain such shor t-term credits as may be necessary for the clearance of","page_number":22,"box":{"x":101,"y":347,"width":794,"height":11}},{"id":"0395128f-9898-4a78-9966-0e422e344d50","block_type":"box","text":"purchases and sales of por tfolio securities, (d) the Fund may purchase securities on margin to the extent","page_number":22,"box":{"x":102,"y":362,"width":751,"height":11}},{"id":"0d0a0320-0b0b-4d0f-a738-fbbc91cbd446","block_type":"box","text":"permitted by applicable law and (e) the Fund may engage in transactions in mor tgage dollar rolls which are","page_number":22,"box":{"x":102,"y":377,"width":759,"height":12}},{"id":"1825f327-acbc-43c5-b560-89b78df6d4c5","block_type":"box","text":"accounted for as financings.","page_number":22,"box":{"x":102,"y":392,"width":199,"height":12}},{"id":"03fda295-b8ae-4f51-bec1-f390706b5e4e","block_type":"box","text":"4. Issue senior securities to the extent such issuance would violate applicable law.","page_number":22,"box":{"x":134,"y":415,"width":590,"height":11}},{"id":"bdbb329b-c1bb-4a4b-bffd-bb2940ea259e","block_type":"box","text":"5. Purchase, hold or deal in real estate, although the Fund may purchase and sell securities that are","page_number":22,"box":{"x":134,"y":438,"width":718,"height":11}},{"id":"6513e7e8-3d34-4169-ad96-da646a0cad53","block_type":"box","text":"secured by real estate or interests therein, securities of real estate investment trusts and mor tgage-related","page_number":22,"box":{"x":102,"y":453,"width":767,"height":11}},{"id":"35d5cc1b-b8f9-48d5-a2bf-d78f17727902","block_type":"box","text":"securities and may hold and sell real estate acquired by the Fund as a result of the ownership of securities.","page_number":22,"box":{"x":102,"y":468,"width":767,"height":11}},{"id":"8351b3f5-0700-4384-8da9-c4ac890acf2c","block_type":"box","text":"6. Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the","page_number":22,"box":{"x":134,"y":491,"width":746,"height":11}},{"id":"dc3c885b-0974-4992-a13a-170c7dee19d2","block_type":"box","text":"Fund may be deemed to be an underwriting.","page_number":22,"box":{"x":102,"y":506,"width":312,"height":11}},{"id":"5337098f-0851-4899-87a0-d17b5663ce51","block_type":"box","text":"7. Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so","page_number":22,"box":{"x":135,"y":529,"width":768,"height":11}},{"id":"60f21f06-f64c-4bc6-80d0-c127a38a26c9","block_type":"box","text":"in accordance with applicable law and the Fund’s Prospectus and SAI, as they may be amended from time to","page_number":22,"box":{"x":102,"y":543,"width":774,"height":12}},{"id":"40a7ca63-8795-4aff-a135-b896247f0df4","block_type":"box","text":"time, and without registering as a commodity pool operator under the CEA.","page_number":22,"box":{"x":101,"y":559,"width":531,"height":11}},{"id":"2390d8af-42ae-4d02-a8e6-4b7bfd007e6d","block_type":"box","text":"8. Make loans, except through (a) the purchase of debt obligations in accordance with the Fund’s","page_number":22,"box":{"x":134,"y":581,"width":694,"height":12}},{"id":"411b3f79-113f-4d23-a6c8-4e1bc77098a9","block_type":"box","text":"investment objective and policies, (b) repurchase agreements with banks, brokers, dealers and other financial","page_number":22,"box":{"x":102,"y":596,"width":783,"height":12}},{"id":"334ca8d2-5611-4776-a3e5-05504d47b3b7","block_type":"box","text":"institutions, (c) loans of securities as permitted by applicable law, and (d) loans to affiliates of the Fund to the","page_number":22,"box":{"x":102,"y":612,"width":785,"height":11}},{"id":"c4de5999-dafe-4383-9645-4c1d820df1bc","block_type":"box","text":"extent permitted by law.","page_number":22,"box":{"x":101,"y":627,"width":169,"height":11}},{"id":"cc9eee50-1378-401f-b0e3-1da976593768","block_type":"box","text":"Notations Regarding the Funds’ Fundamental Investment Restrictions","page_number":22,"box":{"x":69,"y":657,"width":511,"height":11}},{"id":"ae978fdb-c907-41ae-bff9-acebcc41c182","block_type":"box","text":"The following notations are not considered to be par t of each Fund’s fundamental investment restrictions and","page_number":22,"box":{"x":101,"y":680,"width":782,"height":11}},{"id":"a3b9bc42-bfe1-4818-b6d3-03b3a15e071d","block_type":"box","text":"are subject to change without shareholder approval.","page_number":22,"box":{"x":69,"y":695,"width":369,"height":11}},{"id":"afbe9b05-0f1c-4b67-a44c-d7f55396d300","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, with respect to the Fund’s","page_number":22,"box":{"x":101,"y":717,"width":805,"height":12}},{"id":"c1929c29-1f4c-4283-bb4e-99f5b5cae0e4","block_type":"box","text":"industry classifications, the Fund currently utilizes any one or more of the industry sub-classifications used by one or","page_number":22,"box":{"x":70,"y":732,"width":832,"height":12}},{"id":"d4bd4452-c2a5-4233-a972-c6946f4b25c6","block_type":"box","text":"more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. The policy","page_number":22,"box":{"x":69,"y":748,"width":824,"height":11}},{"id":"3a7d39f0-299b-4918-9e40-ef88a4f177ec","block_type":"box","text":"also will be interpreted to give broad authority to each Fund as to how to classify issuers within or among industries.","page_number":22,"box":{"x":69,"y":763,"width":828,"height":11}},{"id":"33b4886d-1bb3-4d57-a56e-b3b35c0476b7","block_type":"box","text":"With respect to fundamental investment restriction 2. above, the Fund will look to the reference asset underlying","page_number":22,"box":{"x":101,"y":785,"width":804,"height":12}},{"id":"707aa673-f4c6-4058-8e8d-42f78a8021d7","block_type":"box","text":"any derivative, including a par ticipation note, when determining its percentage of assets invested in any par ticular","page_number":22,"box":{"x":69,"y":801,"width":813,"height":11}},{"id":"9860cd1e-936c-46af-92fc-e17a66921ac0","block_type":"box","text":"industry.","page_number":22,"box":{"x":70,"y":816,"width":58,"height":11}},{"id":"52318743-8d20-4cc1-bd53-a822e1c3f45a","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":22,"box":{"x":102,"y":838,"width":768,"height":12}},{"id":"b4963cba-dd67-44d3-a077-e3d870a6bad9","block_type":"box","text":"approval, the Fund may not:","page_number":22,"box":{"x":69,"y":854,"width":197,"height":11}},{"id":"d34558e5-2378-441b-a731-29e191f574d1","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":22,"box":{"x":134,"y":876,"width":742,"height":11}},{"id":"ec3ebafb-7927-4d14-b09f-8a3db853fbb7","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":22,"box":{"x":102,"y":891,"width":759,"height":12}},{"id":"fe77a354-fbf4-49e5-bcc7-93c3bffc044f","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":22,"box":{"x":102,"y":906,"width":779,"height":12}},{"id":"6e323375-ed9a-4262-b7cc-86f5ad90021e","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"98bdbf0e-a265-41bf-9fbc-64e6f87935d8","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27b48841-08e8-4d3d-a4a5-b7f79ea80eac","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":23,"box":{"x":101,"y":45,"width":761,"height":11}},{"id":"5b748edf-7115-46ff-967d-846dbb53dfc0","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":23,"box":{"x":102,"y":60,"width":795,"height":11}},{"id":"73334b96-e601-4453-8dc0-835da0dfe386","block_type":"box","text":"12(d)(1).","page_number":23,"box":{"x":102,"y":75,"width":60,"height":11}},{"id":"5146b06d-d64d-4353-91a6-13c3d49a15e7","block_type":"box","text":"b. Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":23,"box":{"x":134,"y":98,"width":765,"height":11}},{"id":"1f6467ae-b0d8-4ebe-9617-2cc23f7f03ca","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":23,"box":{"x":102,"y":113,"width":509,"height":11}},{"id":"498892b7-591a-4fae-a346-292acc6eb4af","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":23,"box":{"x":102,"y":135,"width":771,"height":11}},{"id":"6a5c9db4-7e3a-4671-b8af-344a55964901","block_type":"box","text":"Company Act, all limitations apply only at the time that a transaction is under taken. Any change in the percentage of","page_number":23,"box":{"x":69,"y":150,"width":830,"height":12}},{"id":"5e6c3163-16a8-48e0-b0d9-0c50acdb52f5","block_type":"box","text":"the Fund’s assets invested in cer tain securities or other instruments resulting from market fluctuations or other","page_number":23,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"d81fdb63-b8d1-4144-b433-8c0ff3e9e768","block_type":"box","text":"changes in the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines","page_number":23,"box":{"x":69,"y":181,"width":827,"height":11}},{"id":"fcb19257-b8a4-4c24-8856-963d0ca0f823","block_type":"box","text":"that it is practicable to sell or close out the investment without undue market or tax consequences.","page_number":23,"box":{"x":68,"y":196,"width":708,"height":11}},{"id":"ae359f1a-e632-4421-b324-73f654244f19","block_type":"box","text":"III. Information on Trustees and Officers","page_number":23,"box":{"x":69,"y":226,"width":290,"height":9}},{"id":"2e4ac2f2-a8f0-4459-ae2b-3f6810542426","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":23,"box":{"x":101,"y":249,"width":788,"height":11}},{"id":"4827fc98-5a0d-4053-9424-45b418c571c1","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":23,"box":{"x":68,"y":264,"width":779,"height":11}},{"id":"1a12c74f-986d-4e7e-b136-1d7dddee7f35","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":23,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"61513b3d-fab1-4968-946d-6e9d05db4832","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":23,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"e587fb1b-b215-4507-a20e-56e96baca407","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"c6a72312-9b8a-4ed7-ac6c-b51fdcd8b625","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":23,"box":{"x":68,"y":324,"width":837,"height":12}},{"id":"dce22b4c-e32f-4833-b0ec-ecb5e153f557","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":70,"y":340,"width":335,"height":10}},{"id":"cf2f64cb-7b34-4a87-b55f-05fb3aff2f35","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":23,"box":{"x":101,"y":362,"width":769,"height":11}},{"id":"a5e99655-1f38-42e7-881d-5116958f80f1","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":23,"box":{"x":70,"y":377,"width":827,"height":11}},{"id":"2449a440-2663-48dc-a3af-7e0197cc55f5","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":23,"box":{"x":70,"y":392,"width":821,"height":12}},{"id":"ba35d326-dc5a-46bf-9c5c-02192fe7c937","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":23,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"65a86b2b-a35b-485d-8e54-1e9121fc5236","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":23,"box":{"x":70,"y":423,"width":830,"height":11}},{"id":"d062acdb-137f-472d-9683-6f26e5a81f2f","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":23,"box":{"x":68,"y":438,"width":789,"height":11}},{"id":"987527f1-e8fc-4f86-9050-2db23107c64a","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":23,"box":{"x":69,"y":453,"width":810,"height":11}},{"id":"9886d909-5b94-460f-914e-8efa644b8c09","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":23,"box":{"x":69,"y":468,"width":809,"height":11}},{"id":"89fe05b9-7f10-4d3a-978f-f2bc180aa272","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":23,"box":{"x":70,"y":483,"width":794,"height":11}},{"id":"197a53b1-fa9b-40b8-86cd-1396ad751029","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":23,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"a60bd977-d2e3-47cd-9750-46679454b913","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":23,"box":{"x":69,"y":513,"width":831,"height":12}},{"id":"6ea4e963-6f25-41ee-8b6c-affa49d01a9b","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":23,"box":{"x":70,"y":528,"width":811,"height":12}},{"id":"fdf6bef6-d947-418d-82d0-6f43d0d5fb81","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":23,"box":{"x":68,"y":543,"width":809,"height":11}},{"id":"3ef10805-9e64-4d8b-ace8-f00fa11184b4","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":23,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"27ca12ab-f27c-4054-8bdd-fcd846af008b","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":23,"box":{"x":69,"y":574,"width":441,"height":11}},{"id":"4f41277d-ef8e-433a-862d-cf5acae7265f","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":23,"box":{"x":101,"y":596,"width":777,"height":12}},{"id":"ad886263-67aa-4f6b-a336-3793f496a4a5","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":23,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"46f387c8-fcd8-4c80-8f29-f66ccd3d7707","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":23,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"c8692b01-fddf-492e-8f23-9408c2ef8232","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":23,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"c4167b76-dded-46ff-854e-1429771101d1","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":23,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"34c34c58-e38a-4f4f-8fef-dc07c5a3b0c9","block_type":"box","text":"the operations of the Fund.","page_number":23,"box":{"x":68,"y":672,"width":192,"height":11}},{"id":"57300f91-905c-47c0-8375-fc6e50f0333d","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":23,"box":{"x":102,"y":695,"width":785,"height":11}},{"id":"586e4959-ac65-4871-a58b-2aed110c6d52","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":23,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"0d5e48ec-8f83-4db4-a535-2987b0fe71c9","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":23,"box":{"x":69,"y":725,"width":832,"height":11}},{"id":"6ebd33b2-8698-477e-97db-0096a2b66888","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":23,"box":{"x":68,"y":740,"width":820,"height":11}},{"id":"62a0cf6f-e8fe-44bb-be2a-40169138e174","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":23,"box":{"x":70,"y":755,"width":811,"height":11}},{"id":"3c451f0d-a2d2-4414-af25-495249b84494","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":23,"box":{"x":70,"y":770,"width":767,"height":12}},{"id":"77c6e594-e203-4751-bb69-41a37cb4647d","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":23,"box":{"x":69,"y":785,"width":815,"height":12}},{"id":"f276487e-14a2-462c-aa00-6a633b70e3d4","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":23,"box":{"x":70,"y":801,"width":803,"height":11}},{"id":"7f131f94-8111-4934-83b5-2192ac803fcd","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":23,"box":{"x":69,"y":816,"width":840,"height":11}},{"id":"26806e4e-1772-46b4-b5e0-24f4458a732a","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":23,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"d8fa5b48-21b2-4a83-b2fc-7813ecd198e4","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":23,"box":{"x":69,"y":846,"width":817,"height":11}},{"id":"ee417646-e062-4d5c-b9a4-ed9e4fa12aab","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":23,"box":{"x":69,"y":861,"width":812,"height":11}},{"id":"fc30c916-ca3e-4de6-bb24-bfe1bd7ccb46","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":23,"box":{"x":68,"y":876,"width":818,"height":11}},{"id":"1ceb0b5a-0818-42db-a289-365e12266848","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":23,"box":{"x":70,"y":891,"width":759,"height":12}},{"id":"737e350c-9cca-49ec-b7d9-0629b199c268","block_type":"box","text":"per forming their oversight responsibilities.","page_number":23,"box":{"x":70,"y":906,"width":299,"height":12}},{"id":"7b681115-fea3-4755-b1b0-d5d369cb58d8","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"1bfdc019-c2f9-4e33-b466-2e0eb3c2e523","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77a5ae25-3662-4366-b97b-cf5aa3c39ac7","block_type":"box","text":"Audit Committee.","page_number":24,"box":{"x":101,"y":45,"width":122,"height":9}},{"id":"3963f80b-4789-484b-b618-8da72404546e","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":24,"box":{"x":229,"y":45,"width":673,"height":11}},{"id":"da3e0c80-a269-4044-b2db-15aad6faccfa","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":24,"box":{"x":68,"y":60,"width":831,"height":11}},{"id":"7c82f076-764c-4886-8b6d-ef7126d4ad8a","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":24,"box":{"x":68,"y":75,"width":820,"height":11}},{"id":"fa00c02f-5342-435b-aa4b-d892d036baca","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":24,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"4855f13f-a8cf-4daf-a08e-37f3bb510b7f","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":24,"box":{"x":69,"y":105,"width":830,"height":11}},{"id":"53c6bc23-261b-4209-aeab-490e0568dbaf","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":24,"box":{"x":70,"y":120,"width":825,"height":11}},{"id":"2f9cc76c-8516-49ad-8f11-090990cf8ab7","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":24,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"ea429988-a078-4c0d-a946-b2991b325938","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":24,"box":{"x":68,"y":150,"width":781,"height":11}},{"id":"0e8693ce-e3f7-4cf9-b9aa-5f4531822959","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":24,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"1d06af5b-12f3-4420-985e-77ea8dad2672","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":24,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"309d1c9a-eac9-4a2a-9cdd-b0644fbe89a4","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":24,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"8f65402c-e919-4fc2-a1a2-6434b3a471ec","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":24,"box":{"x":70,"y":211,"width":809,"height":11}},{"id":"99915db2-25ec-44c5-9e21-cd551433cf03","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":24,"box":{"x":70,"y":226,"width":815,"height":11}},{"id":"c99c7cec-c844-4719-b2c1-7ba3366ea9d9","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":24,"box":{"x":69,"y":241,"width":774,"height":11}},{"id":"10e612cb-46f6-4d23-b78a-6957a5fbb40a","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":24,"box":{"x":69,"y":256,"width":815,"height":12}},{"id":"31212ebb-e679-46fd-be39-3e5b2b3b79ef","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":24,"box":{"x":69,"y":271,"width":819,"height":12}},{"id":"cd6bafb3-18f9-4702-846d-3d2e09fd9485","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":24,"box":{"x":69,"y":286,"width":812,"height":12}},{"id":"dca79a52-9667-4cd1-baf0-a469aae808bd","block_type":"box","text":"During the fiscal year ended April 30, 2026, the Audit Committee met four times.","page_number":24,"box":{"x":70,"y":302,"width":576,"height":11}},{"id":"918b39b6-aa3a-4abc-9419-9f35c8c43017","block_type":"box","text":"Governance and Nominating Committee.","page_number":24,"box":{"x":102,"y":324,"width":286,"height":12}},{"id":"8898e5ae-cf73-4b7f-aa39-fd78886f44af","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":24,"box":{"x":394,"y":324,"width":464,"height":12}},{"id":"50aeff5d-d97a-4d24-a786-78f98504d406","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":24,"box":{"x":70,"y":340,"width":838,"height":11}},{"id":"aacda657-8c52-4195-9d19-c377e551cf4f","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":24,"box":{"x":70,"y":355,"width":784,"height":11}},{"id":"5891b47f-3b52-405b-ab0e-e3f947e7b688","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":24,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"59ffdb96-ce9a-4fab-9118-56a2ba25041a","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":24,"box":{"x":69,"y":385,"width":829,"height":11}},{"id":"b4799028-1e6c-4dcd-8492-d3287fdd2c21","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":24,"box":{"x":70,"y":400,"width":828,"height":11}},{"id":"fc341b3c-2d1e-4d44-8357-cebce1b7315a","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":24,"box":{"x":70,"y":415,"width":809,"height":11}},{"id":"d69754c6-934d-4a67-83c9-0e78f724d79c","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":24,"box":{"x":69,"y":430,"width":838,"height":11}},{"id":"b4ab8170-2277-4b8f-ae3c-1c7bf066ca23","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":24,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"a93a477d-6940-4f68-aba8-a319430a40cf","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":24,"box":{"x":70,"y":460,"width":813,"height":11}},{"id":"f64bf0e6-d102-4543-8bb2-bde95c3fc39a","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":24,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"d0ed18a8-7804-4e0b-8807-3db84f25771f","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":24,"box":{"x":68,"y":491,"width":804,"height":11}},{"id":"85afd924-c87f-47b5-883b-f3daabcdd175","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":24,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"1eea5c04-138b-4927-a544-9a6de53fa35a","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":24,"box":{"x":70,"y":521,"width":801,"height":11}},{"id":"447be462-5537-4338-8a19-324dd68c3209","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":24,"box":{"x":69,"y":536,"width":799,"height":11}},{"id":"7524368e-e982-45c2-a88b-0ef304ca97cf","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":24,"box":{"x":70,"y":551,"width":776,"height":11}},{"id":"534c330d-85b4-4acc-86e3-24f736a8cfe7","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":24,"box":{"x":69,"y":566,"width":821,"height":11}},{"id":"3a231666-506c-4b7a-95d3-de42b769fb30","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":24,"box":{"x":68,"y":581,"width":812,"height":12}},{"id":"4e634535-ef33-4622-ae0f-38b7a4cae9dd","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":24,"box":{"x":69,"y":596,"width":823,"height":12}},{"id":"acf070cc-8ad7-43cc-837a-b00feedb30bc","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":24,"box":{"x":70,"y":612,"width":832,"height":11}},{"id":"eb446770-8a17-4ea7-b0d7-f44bc5fad168","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":24,"box":{"x":69,"y":627,"width":811,"height":11}},{"id":"22a090d5-2616-4cfc-8ca4-7631ce51f663","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the fiscal year ended April 30, 2026, the","page_number":24,"box":{"x":69,"y":642,"width":785,"height":11}},{"id":"1f0f491d-753b-4bfd-8f8c-2f34dad5b901","block_type":"box","text":"Governance Committee met eleven times.","page_number":24,"box":{"x":69,"y":657,"width":297,"height":9}},{"id":"8250e11b-2fae-4e45-b28d-fcee8c8f93af","block_type":"box","text":"Compliance Committee.","page_number":24,"box":{"x":102,"y":680,"width":168,"height":11}},{"id":"3ede0e61-d4a8-49de-ad5e-d44c2ceb453b","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":24,"box":{"x":276,"y":680,"width":629,"height":11}},{"id":"5f3bcf39-44b9-489b-8cf5-08d31a9b02a9","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":24,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"932d94e4-0c23-47bd-8706-32ec740425d5","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":24,"box":{"x":68,"y":710,"width":771,"height":11}},{"id":"8d5424b8-d2ff-4e59-a725-f53faa1369b6","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":24,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"68f3ad06-bb06-4ed8-a6ba-eac66b04901b","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":24,"box":{"x":70,"y":740,"width":754,"height":11}},{"id":"c1c4ed6f-863f-4245-bec5-93494de3fdf5","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":24,"box":{"x":69,"y":755,"width":834,"height":11}},{"id":"ab3a2ff0-83c7-4fdf-a178-84652f94bc0e","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":24,"box":{"x":69,"y":770,"width":815,"height":12}},{"id":"8529c2bb-4ddc-4956-afe8-089faf3bbe29","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":24,"box":{"x":69,"y":786,"width":785,"height":11}},{"id":"9d5e6317-de97-47bc-94b8-62de526a7f21","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":24,"box":{"x":69,"y":801,"width":811,"height":11}},{"id":"8a372265-c210-45f7-b7cc-df06c49d17a5","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":24,"box":{"x":69,"y":816,"width":812,"height":11}},{"id":"5810a7c9-7e1c-4859-a805-e223ca1e3ad6","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":24,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"85b129fb-f496-441f-945a-3821b0f09fb6","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":24,"box":{"x":69,"y":846,"width":825,"height":11}},{"id":"cf6dcad3-f87b-42ac-8c6b-96dfdb140dbc","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":24,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"d8a0c1be-45b4-4a28-bfae-fb322a519328","block_type":"box","text":"year ended April 30, 2026, the Compliance Committee met four times.","page_number":24,"box":{"x":68,"y":876,"width":504,"height":11}},{"id":"798febd7-8692-4b80-87f0-eb8e233000b9","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e02b1edf-96a5-49b6-a41f-0a585df388c4","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb25d827-4c11-4130-bf31-93c966c2b848","block_type":"box","text":"Per formance Oversight Committee.","page_number":25,"box":{"x":102,"y":45,"width":248,"height":11}},{"id":"018d549a-26c3-454d-88aa-34285b544f89","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":25,"box":{"x":356,"y":45,"width":531,"height":11}},{"id":"cd638c86-82a1-4a5c-b883-37d3ece856e2","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":25,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"7f15e403-8514-4bfb-b474-ac2ce956bcfc","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":25,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"59e51d8c-9047-49ac-a15b-4d2bb71fd57a","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":25,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"331bce1d-474c-41ec-9f4c-bb151a9a972c","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":25,"box":{"x":69,"y":105,"width":816,"height":11}},{"id":"5243649e-e79b-48bf-9796-cd0d521ead44","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":25,"box":{"x":69,"y":120,"width":782,"height":12}},{"id":"35fc0d9a-e3d1-4d63-8dbb-df0f8ca8965e","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":25,"box":{"x":70,"y":135,"width":829,"height":11}},{"id":"4b73af6d-fcca-46d1-b3ec-f21e900b363f","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":25,"box":{"x":69,"y":150,"width":816,"height":11}},{"id":"65044ce6-c62a-44f8-80fc-64162a7b1fb6","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":25,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"3aa4b5e6-730e-416e-8035-8c25ac14b616","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":25,"box":{"x":69,"y":181,"width":827,"height":11}},{"id":"abc5d262-bade-4ca7-ab88-0054afdb1234","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":25,"box":{"x":68,"y":196,"width":811,"height":11}},{"id":"8c5b761f-862c-4312-a3df-bf03c71848d5","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":25,"box":{"x":69,"y":211,"width":757,"height":11}},{"id":"dfaae95f-88d3-47a4-b603-d7e64936b269","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":25,"box":{"x":70,"y":226,"width":835,"height":11}},{"id":"2a5181da-33d6-4678-b24c-8a5b61948747","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":25,"box":{"x":68,"y":241,"width":800,"height":11}},{"id":"eb49b40c-23f9-406a-9cba-c1d2936243f8","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":25,"box":{"x":69,"y":256,"width":780,"height":12}},{"id":"d70edb84-e799-441b-86d2-ef094023cb23","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":25,"box":{"x":69,"y":271,"width":838,"height":12}},{"id":"ea221074-eb64-4658-aaca-3e0ee953f71b","block_type":"box","text":"ended April 30, 2026, the Per formance Oversight Committee met five times.","page_number":25,"box":{"x":69,"y":286,"width":546,"height":12}},{"id":"7a63d66b-f1f0-42fd-8af8-f920a258e36b","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":25,"box":{"x":101,"y":309,"width":186,"height":11}},{"id":"cce11c51-19ce-4a02-a7b0-72698cca322f","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":25,"box":{"x":293,"y":309,"width":598,"height":11}},{"id":"b55ac5ef-7c84-4a3d-8e8e-ddd76bbafa87","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":25,"box":{"x":70,"y":324,"width":817,"height":11}},{"id":"9749e1a0-4ab1-4ac9-acd3-1f874a215449","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":25,"box":{"x":69,"y":339,"width":795,"height":11}},{"id":"a83286c1-5c67-42ca-a731-4db3fe13c163","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":25,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"ecccb6c0-39b0-46f0-8150-5b3f00745ee2","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":25,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"61e4f6e4-a13a-4ad8-8fc0-bc6d0acd656e","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":25,"box":{"x":68,"y":385,"width":816,"height":11}},{"id":"e9ae711e-9e2e-444c-9a10-78fd1f30cdb4","block_type":"box","text":"the fiscal year ended April 30, 2026, the Ad Hoc Topics Committee did not meet.","page_number":25,"box":{"x":68,"y":400,"width":577,"height":11}},{"id":"c19f20ef-b919-4630-b5ee-5a85ca1449d1","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":25,"box":{"x":101,"y":423,"width":771,"height":11}},{"id":"19fe8244-17c2-47e9-a63d-cc6c355f9461","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":25,"box":{"x":69,"y":438,"width":827,"height":11}},{"id":"483f2122-73b4-4c10-9345-e340003df12b","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":25,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"8d627e79-869d-4797-a3ec-47cfe277c7a4","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":25,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"64aa91c8-4e15-4e6c-b63a-b8dd8bce8980","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":25,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"edc8731e-11a7-4d47-9aa1-ed47a21818f3","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":25,"box":{"x":70,"y":498,"width":787,"height":11}},{"id":"75bfa09c-5317-474a-8ac2-b87f19035c73","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":25,"box":{"x":69,"y":513,"width":805,"height":11}},{"id":"4b3c711d-dffa-4795-9475-d4e6688afb4d","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":25,"box":{"x":68,"y":528,"width":794,"height":12}},{"id":"e82194c2-4952-496e-905f-d3e2060f019b","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":25,"box":{"x":68,"y":544,"width":829,"height":11}},{"id":"2e544a40-267f-4d18-81e4-a2f07a25bee1","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":25,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"cbfd179f-990d-4fd3-9f75-8fc5cbf58072","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":25,"box":{"x":69,"y":574,"width":771,"height":11}},{"id":"8330c750-1b71-40f8-9a91-a8a7056b8ee3","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":25,"box":{"x":69,"y":589,"width":473,"height":11}},{"id":"f4654267-7951-429e-aa19-54e8cbb41137","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":25,"box":{"x":102,"y":612,"width":792,"height":11}},{"id":"1001e7bb-b829-409b-936b-01f38dff64a6","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":25,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"ac4628eb-fc9d-4d0b-ab62-eae797b71ba2","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":25,"box":{"x":69,"y":642,"width":837,"height":11}},{"id":"09ba0b8e-ed6c-437e-a92d-e77602ee2ec7","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":25,"box":{"x":70,"y":657,"width":759,"height":11}},{"id":"d9878f17-1de8-46a1-9a59-687ce49e5da7","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":25,"box":{"x":70,"y":672,"width":685,"height":11}},{"id":"d83009a5-535b-4e08-af85-c2bd4ce0d7d0","block_type":"box","text":"ad hoc","page_number":25,"box":{"x":762,"y":672,"width":47,"height":9}},{"id":"9cb48e0c-980c-444d-98d2-39540dbeebd2","block_type":"box","text":"committees","page_number":25,"box":{"x":814,"y":672,"width":82,"height":9}},{"id":"dd89e90a-671b-473d-8b88-42f42a37e623","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":25,"box":{"x":68,"y":687,"width":395,"height":11}},{"id":"112860e5-0cd1-4b94-90ed-133f11302dca","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"b0184fb5-c7ae-4b3e-965c-44cf92bc0014","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a84f3447-9be2-46db-97e7-f6458666f805","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":26,"box":{"x":101,"y":45,"width":751,"height":11}},{"id":"6977bbd3-b369-447d-a819-c7cbe0d94f13","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":26,"box":{"x":69,"y":60,"width":492,"height":11}},{"id":"4d28281f-730c-4962-b021-08952c3c9569","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":26,"box":{"x":68,"y":88,"width":409,"height":9}},{"id":"a09d3ad7-3259-4b63-88fd-cfd3861ac2c8","block_type":"box","text":"Independent Trustees","page_number":26,"box":{"x":70,"y":105,"width":154,"height":10}},{"id":"6cf15901-2c53-441d-b4bb-8b2fe2bb0223","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":26,"box":{"x":69,"y":120,"width":781,"height":11}},{"id":"27841097-41cb-43b4-91d2-f342bc11e46d","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":26,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"2d8f905c-138c-4564-b03d-c7258fb8e23f","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":26,"box":{"x":265,"y":150,"width":623,"height":11}},{"id":"093884b5-a408-43ea-9a50-b1505e9f6d63","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":26,"box":{"x":265,"y":165,"width":637,"height":11}},{"id":"4bcceb10-fe1a-4a9a-9442-2fa373d855b9","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":26,"box":{"x":265,"y":180,"width":631,"height":11}},{"id":"00fef0e1-1b7e-4da2-8f39-9c4eba97f1de","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":26,"box":{"x":264,"y":195,"width":626,"height":11}},{"id":"f0bc1d7d-60f7-4cdf-b12b-4509692e5bf6","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":26,"box":{"x":265,"y":210,"width":639,"height":11}},{"id":"268f5c7a-25d0-4c0c-a906-c3234f43876a","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":26,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"f4695bed-5486-4230-b055-81ca3941bde6","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":26,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"8b58e91d-2c3c-4d50-ba31-2f3c60857dec","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":26,"box":{"x":265,"y":256,"width":640,"height":11}},{"id":"89d73507-fd19-4846-b968-64dfeb41ba17","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":26,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"96f692f5-25f1-414c-ba12-08c2036904b6","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":26,"box":{"x":69,"y":293,"width":806,"height":12}},{"id":"fc805da7-a68d-4cf5-951c-170c44c9492d","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":26,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"9834da27-b76f-4463-a2aa-578302f534c0","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":26,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"d02624c4-3b5f-43c8-a454-bf5382e40900","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":26,"box":{"x":265,"y":339,"width":562,"height":9}},{"id":"067b10e8-b42c-4e75-a9b0-c99a93f4a3b2","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":26,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"66fa5448-b131-427e-b65e-dc513475e290","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":26,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"078d66fd-f3c2-45f8-bf2e-312039fd170d","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":26,"box":{"x":265,"y":384,"width":641,"height":11}},{"id":"bd320e46-597d-4c05-8a96-dc69b40c8d09","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":26,"box":{"x":264,"y":399,"width":638,"height":12}},{"id":"0ca52763-bc04-4083-befe-8cf816d17845","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":26,"box":{"x":265,"y":414,"width":584,"height":12}},{"id":"eac5c8e7-5edc-4157-ac7a-37db2c54c87a","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":26,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"f0812570-7652-4e5c-b255-a3f3f5a1d564","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":26,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"43c8b512-3884-460b-aa53-29051ddefe05","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":26,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"e2beb86b-4e2b-4680-a368-c1c6a2afe73d","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"81674384-603d-416b-a3c7-3f6d39a1af8e","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":26,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"00bb8931-6be0-42e9-abf4-39a4b7baff27","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":26,"box":{"x":265,"y":513,"width":638,"height":11}},{"id":"45d3ef5a-e0e2-46f5-b20d-0a4ff1083c09","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":26,"box":{"x":265,"y":528,"width":642,"height":11}},{"id":"83f67888-0413-4bf0-9705-ad3ba250313e","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":26,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"65a646c8-c9ea-498f-8db8-ce77a28ce8a7","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":26,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"27e0767d-4ece-4ed5-a965-3acf51085017","block_type":"box","text":"perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"682fc3ab-acf5-4292-83eb-c9089379bc50","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":26,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"e7fab72f-7bd6-4c23-a50e-a52fc25027ee","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":26,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"9a64b484-7526-46d7-80f4-8b369a461a1b","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":26,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"d599c14f-5584-40a5-bcc6-7fa05c188d9f","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":26,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"160d0866-8ab1-4880-9c0e-ed7c2c104125","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":26,"box":{"x":265,"y":656,"width":596,"height":12}},{"id":"21f622a9-82aa-423f-a27b-d5ce7a13934b","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":26,"box":{"x":265,"y":671,"width":616,"height":12}},{"id":"226fc1d8-14a7-45d6-8534-c7c23a944474","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":26,"box":{"x":264,"y":686,"width":368,"height":11}},{"id":"a596487f-e4c5-4a82-a902-b8c75366edb1","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":26,"box":{"x":69,"y":709,"width":777,"height":11}},{"id":"558f5874-1d18-4e44-b5ac-02a783578379","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":26,"box":{"x":265,"y":724,"width":613,"height":12}},{"id":"a6e743a0-3982-4ca9-95a8-087fda8e0391","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":26,"box":{"x":265,"y":739,"width":563,"height":12}},{"id":"6a321447-ca2d-4fcf-bd65-80e3c3c81f26","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":26,"box":{"x":265,"y":755,"width":607,"height":11}},{"id":"d2ae3ebc-6094-496b-8399-8bbe73432435","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":26,"box":{"x":265,"y":770,"width":638,"height":11}},{"id":"fdb75e2a-a061-4db4-ba71-523dc13f8fe5","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":26,"box":{"x":265,"y":785,"width":626,"height":11}},{"id":"dc492bdb-fb93-4794-8b9e-e7ae35003dbe","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":26,"box":{"x":265,"y":800,"width":563,"height":11}},{"id":"eb58f84e-b167-4672-9fab-914e355a037f","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":26,"box":{"x":265,"y":815,"width":625,"height":11}},{"id":"990c4c07-928e-41c1-b995-1a9512af1342","block_type":"box","text":"Independent Trustee.","page_number":26,"box":{"x":265,"y":830,"width":149,"height":11}},{"id":"c7a068bb-b029-478a-a1e5-f41d5ae1ed0a","block_type":"box","text":"I-10","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1b827e85-bebf-4463-b7dd-c8e1279a5cf2","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"524334f2-69d7-49ea-addf-98b19c6ac0db","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":27,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"026d97ad-7366-4c6f-9278-f4ef313d1082","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":27,"box":{"x":70,"y":65,"width":806,"height":12}},{"id":"c8528ed2-daeb-4e67-9504-7dc17c069bd7","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":27,"box":{"x":264,"y":81,"width":584,"height":11}},{"id":"a2facad5-909a-4a5f-b698-85e2d8e828e7","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":27,"box":{"x":265,"y":96,"width":622,"height":11}},{"id":"69c9b444-ee21-48a6-bb1d-5a385265405c","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":27,"box":{"x":265,"y":111,"width":638,"height":11}},{"id":"94fa9b8c-4c8e-4c4a-9391-ec89fca719b3","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":27,"box":{"x":265,"y":126,"width":570,"height":11}},{"id":"2dd2ca7c-aef0-4626-b2e4-a9dc376351a1","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":27,"box":{"x":265,"y":141,"width":642,"height":11}},{"id":"42adc946-85e0-40e3-bc4a-b3e66dbcd539","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":27,"box":{"x":265,"y":156,"width":626,"height":11}},{"id":"a34dc4e9-adf5-48b2-9cc2-35fe73ff58a4","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":27,"box":{"x":265,"y":171,"width":630,"height":12}},{"id":"b58cf7e4-e5df-43e4-933b-aaacdf69fd67","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":27,"box":{"x":265,"y":186,"width":602,"height":12}},{"id":"8034c11e-6384-4884-9a1b-4fe0e6b4ee5d","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":27,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"cabe4795-a014-457b-8761-690bed66bed2","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":27,"box":{"x":264,"y":217,"width":639,"height":11}},{"id":"f4a72aea-ab7a-4724-89dd-ef2c602bb3f7","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":27,"box":{"x":264,"y":232,"width":641,"height":11}},{"id":"5c39bb2f-239f-4272-b4c0-039cdbd65b26","block_type":"box","text":"applicable Commission rules.","page_number":27,"box":{"x":265,"y":247,"width":208,"height":11}},{"id":"abf35bb6-caca-443d-aa8b-3b6f2244efb1","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":27,"box":{"x":69,"y":269,"width":769,"height":12}},{"id":"cdfda21b-143e-4464-9195-a66e0499f015","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":27,"box":{"x":265,"y":285,"width":621,"height":11}},{"id":"254c056d-e057-40b0-9101-bc4345bded16","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":27,"box":{"x":265,"y":300,"width":599,"height":11}},{"id":"0b37acf5-698e-4977-94f8-12e3cc5e8238","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":27,"box":{"x":265,"y":315,"width":641,"height":11}},{"id":"37801be0-b0c7-465a-acc8-da5df8d542fc","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":27,"box":{"x":264,"y":330,"width":602,"height":11}},{"id":"1f3da702-c915-409c-8b1f-30dfb07157df","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":27,"box":{"x":264,"y":345,"width":617,"height":11}},{"id":"f6611e01-00b2-407e-8a50-14e9b2fff942","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":27,"box":{"x":265,"y":360,"width":629,"height":12}},{"id":"d8308c18-8cbd-4c93-b310-d8ee92b7e451","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":27,"box":{"x":264,"y":375,"width":628,"height":11}},{"id":"b496cef3-d6e9-4622-80ca-1f60880d7fa7","block_type":"box","text":"ar ticles and books on these topics.","page_number":27,"box":{"x":265,"y":391,"width":251,"height":10}},{"id":"df95016a-cfb7-4eed-9add-56c2fd9693fc","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":27,"box":{"x":70,"y":413,"width":764,"height":11}},{"id":"ff65bc2f-4099-4967-911d-a24ba0723a13","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":27,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"e2e7b29a-54f1-472e-85dd-2e35bfbd1a2b","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":27,"box":{"x":264,"y":443,"width":593,"height":12}},{"id":"b1ff1253-296f-4361-aa1c-a116d8e85194","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":27,"box":{"x":265,"y":458,"width":603,"height":12}},{"id":"9bc55aaf-38bc-4089-9baa-49fa5a7605c2","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":27,"box":{"x":265,"y":474,"width":629,"height":11}},{"id":"a87ec266-6bc9-43ef-bfca-872f90c28d54","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":27,"box":{"x":70,"y":496,"width":804,"height":11}},{"id":"6f1837e9-11cd-456b-858c-4e96d603431f","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":27,"box":{"x":265,"y":511,"width":552,"height":12}},{"id":"1576faa5-ae25-4984-ac12-cc5681c71bc0","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":27,"box":{"x":265,"y":526,"width":636,"height":12}},{"id":"f58e6912-81c3-4569-b94a-b3433f60905c","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":27,"box":{"x":265,"y":542,"width":639,"height":11}},{"id":"6bfd2c76-69bb-4b7c-8c36-68338ed3cc2b","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":27,"box":{"x":265,"y":557,"width":576,"height":11}},{"id":"f5dfc6ed-8ef7-4c92-b3a3-005f60798df0","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":27,"box":{"x":265,"y":572,"width":626,"height":11}},{"id":"297cc563-1af8-4d5d-bf30-58b018a580d2","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":27,"box":{"x":265,"y":587,"width":592,"height":11}},{"id":"7e0990a3-41ee-4acf-ab0f-359485195236","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":27,"box":{"x":265,"y":602,"width":629,"height":11}},{"id":"36b16d2e-9919-41f7-8b74-5602824e6e6d","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":27,"box":{"x":265,"y":617,"width":626,"height":11}},{"id":"d80cb62e-bb3a-4491-b142-6f9b1b35fdd6","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":27,"box":{"x":264,"y":632,"width":608,"height":12}},{"id":"0fc19896-e3a5-476f-9fd2-f1c2c0aad2eb","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":27,"box":{"x":265,"y":648,"width":575,"height":11}},{"id":"08c33aef-026e-4835-be99-e9c090ea9d45","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":27,"box":{"x":264,"y":663,"width":591,"height":11}},{"id":"0993f169-5bd0-4da1-8210-f1d5b504d057","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":27,"box":{"x":265,"y":678,"width":627,"height":11}},{"id":"7c93572c-a16f-46ec-a8df-d641a0c4a641","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":27,"box":{"x":265,"y":693,"width":578,"height":11}},{"id":"aacbcfa5-4013-4af4-b33a-1d90506d7030","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":27,"box":{"x":265,"y":708,"width":607,"height":11}},{"id":"42396f64-907b-472c-ad98-5f8a0a3141c3","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":27,"box":{"x":265,"y":723,"width":615,"height":11}},{"id":"9553cba4-7aa3-4a8d-98b3-dce1c4654e91","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":27,"box":{"x":265,"y":738,"width":638,"height":11}},{"id":"dab46976-e8e9-480c-81c8-1f30cdf8d1c7","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":27,"box":{"x":265,"y":753,"width":635,"height":12}},{"id":"de3ff771-3312-40c3-b6a5-b5ace3fd5358","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":27,"box":{"x":265,"y":768,"width":642,"height":12}},{"id":"d06d2176-30ae-4385-acc3-6a97b148351b","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":27,"box":{"x":265,"y":784,"width":627,"height":11}},{"id":"e03841fc-ae5d-440a-aac9-d20c2fade1c6","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":27,"box":{"x":265,"y":799,"width":628,"height":11}},{"id":"0184db6d-8f9b-4176-9530-0ae94bdebe18","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":27,"box":{"x":265,"y":814,"width":460,"height":11}},{"id":"04731504-fe25-4658-92fe-a226550b979b","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"751b5c32-16cb-4a27-be34-688f203ac45e","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bf8858e-5511-4ce7-a23d-333b01de941c","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":28,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"d9f841a1-f12e-4dff-ab29-20386959839b","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":28,"box":{"x":70,"y":65,"width":818,"height":12}},{"id":"d5f5faf0-32ef-405d-8169-e579c99ebae5","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":28,"box":{"x":264,"y":81,"width":603,"height":11}},{"id":"72eaf2ec-6d93-4f20-8e4c-4461a46a90aa","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":28,"box":{"x":265,"y":96,"width":606,"height":11}},{"id":"f605eff3-363e-4a4b-9009-69f340b67d3f","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":28,"box":{"x":265,"y":111,"width":608,"height":9}},{"id":"daed3f45-a155-4355-b3cf-43ffe134fa93","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":28,"box":{"x":265,"y":126,"width":626,"height":11}},{"id":"59a8c6d1-26e1-426c-bc6d-29b5a6210a7b","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":28,"box":{"x":265,"y":141,"width":591,"height":11}},{"id":"125c6a7b-1be5-42dc-ad30-39a191f4add1","block_type":"box","text":"various private and non-profit boards.","page_number":28,"box":{"x":264,"y":156,"width":265,"height":11}},{"id":"61494ae9-f1cb-48fb-8709-81da705df476","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":28,"box":{"x":70,"y":179,"width":833,"height":11}},{"id":"e5f696ac-477a-4120-b126-d607fafaa821","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":28,"box":{"x":265,"y":194,"width":638,"height":11}},{"id":"d4cb44d2-b12a-49fa-8890-a92c92794f00","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":28,"box":{"x":265,"y":209,"width":608,"height":11}},{"id":"a841b960-9ffe-4bbb-a17a-0ac5bb990640","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":28,"box":{"x":264,"y":224,"width":645,"height":11}},{"id":"34d3128c-6ae8-4f16-8f2c-1906c52f9cf3","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":28,"box":{"x":264,"y":239,"width":639,"height":9}},{"id":"adcd038b-8df0-4e41-ae76-69e21022adb5","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":28,"box":{"x":264,"y":254,"width":573,"height":12}},{"id":"33af2ede-ec68-4d43-8289-bc1ab884503f","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":28,"box":{"x":265,"y":269,"width":625,"height":12}},{"id":"03fbae62-f969-49d5-9f64-aa49a0256062","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":28,"box":{"x":265,"y":285,"width":610,"height":11}},{"id":"f2a98e30-8b24-42c6-8b09-8fbaa91d7d5d","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":28,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"aa01edea-0136-46f1-96d1-40e0077492a6","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":28,"box":{"x":265,"y":315,"width":583,"height":11}},{"id":"bd65c553-5411-4c7f-9ac6-02a5b7b9d0e7","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":28,"box":{"x":264,"y":330,"width":369,"height":11}},{"id":"2cb75c83-b52a-41d0-a85e-259580c04cf7","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":28,"box":{"x":70,"y":353,"width":807,"height":11}},{"id":"a7b6ef72-5f3c-4a00-8b92-4e8c5a1cf348","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":28,"box":{"x":264,"y":368,"width":641,"height":11}},{"id":"bc31ded7-5a54-4b9f-96ca-8c23f3b3747a","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":28,"box":{"x":265,"y":383,"width":618,"height":11}},{"id":"dc8c78d5-4b5e-41e5-a422-861f682ba860","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":28,"box":{"x":265,"y":398,"width":594,"height":11}},{"id":"e023ef7b-39dc-4a8b-ad97-895f380df47a","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":28,"box":{"x":265,"y":413,"width":639,"height":11}},{"id":"73a18e22-f052-4d3d-a2dd-089fb6bcd236","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":28,"box":{"x":265,"y":428,"width":575,"height":11}},{"id":"bb5942f0-9eb6-4d92-8405-c71f85c31bf9","block_type":"box","text":"Commission rules.","page_number":28,"box":{"x":265,"y":443,"width":131,"height":9}},{"id":"5b0f1dc8-f37a-4e56-b6ea-da34da198b05","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":28,"box":{"x":69,"y":466,"width":808,"height":11}},{"id":"7204f61f-db9c-46a6-8ecf-9abc74b3b9b0","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":28,"box":{"x":265,"y":481,"width":630,"height":11}},{"id":"58eb5723-0c5b-43b5-994a-ddfdacad2193","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":28,"box":{"x":265,"y":496,"width":627,"height":12}},{"id":"c41edda8-760c-4682-b180-4e5f7d56e03d","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":28,"box":{"x":265,"y":512,"width":632,"height":11}},{"id":"78423e29-91e4-45db-9fa1-69032e9b3be3","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":28,"box":{"x":265,"y":526,"width":615,"height":12}},{"id":"159461d5-d628-4a89-a899-1df117af4ffb","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":28,"box":{"x":265,"y":542,"width":608,"height":11}},{"id":"6964add6-aeee-418e-83b3-7d23bd273cf0","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":28,"box":{"x":264,"y":557,"width":620,"height":11}},{"id":"a955c651-a625-4068-b629-d3d2da74457d","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":28,"box":{"x":265,"y":572,"width":584,"height":11}},{"id":"2d8f0b02-1fbd-4bc5-a079-f617fee914d2","block_type":"box","text":"committee financial exper t, as such term is defined in the applicable Commission rules.","page_number":28,"box":{"x":264,"y":587,"width":629,"height":11}},{"id":"c2484655-48c8-4615-b716-4a91b8477bd4","block_type":"box","text":"Interested Trustees","page_number":28,"box":{"x":70,"y":610,"width":138,"height":9}},{"id":"46bcf27e-da93-4bc5-9530-bf4ada9eb0ac","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":28,"box":{"x":70,"y":625,"width":823,"height":11}},{"id":"6a4732d8-ad0f-4de6-a048-8bad2c5f3cb1","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":28,"box":{"x":264,"y":640,"width":593,"height":11}},{"id":"124c433f-e6bb-445f-856b-426d9942e9d2","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":28,"box":{"x":265,"y":655,"width":629,"height":11}},{"id":"d3443900-7e81-43ad-91e3-8beebcd8113f","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":28,"box":{"x":265,"y":670,"width":639,"height":11}},{"id":"ebdc757c-d171-4e0d-83ad-005dc91a5609","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":28,"box":{"x":265,"y":685,"width":617,"height":12}},{"id":"3600ac34-4be1-468f-9d0b-509dce6a11fb","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":28,"box":{"x":264,"y":700,"width":634,"height":12}},{"id":"1a559cfa-8b61-4a3d-8911-0302d3ce5471","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":28,"box":{"x":265,"y":715,"width":624,"height":11}},{"id":"0c8e1889-fb5f-4b19-a237-4f526345886f","block_type":"box","text":"and iShares","page_number":28,"box":{"x":265,"y":731,"width":84,"height":9}},{"id":"bd5bc733-6f8f-411d-b1d6-03d43423f570","block_type":"box","text":"®","page_number":28,"box":{"x":350,"y":731,"width":6,"height":4}},{"id":"57be72d7-cc8c-48e8-bcdb-1c2205358802","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":28,"box":{"x":362,"y":731,"width":478,"height":11}},{"id":"83946460-e58f-46e3-bd92-2b0302730f0e","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":28,"box":{"x":265,"y":746,"width":585,"height":11}},{"id":"317d0756-251c-4f09-ac11-204aa030b641","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":28,"box":{"x":265,"y":761,"width":620,"height":11}},{"id":"4711ec52-7d25-4143-8e14-f06c854ae328","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":28,"box":{"x":265,"y":776,"width":578,"height":11}},{"id":"1526f343-943e-42d8-98a9-00aa0c7e7f17","block_type":"box","text":"I-12","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bf7e1f1e-7e45-421d-851e-10b741320fc3","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"932fc864-ebe1-4dd3-9cbe-52e8478ee3d6","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":29,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"db9661de-8e3b-47e8-b9c9-251ffda7c2aa","block_type":"box","text":"John M. Perlowski John M. 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Management, Advisory and Other Service Arrangements","page_number":34,"box":{"x":69,"y":823,"width":432,"height":11}},{"id":"8eb7626c-7ebd-4489-898e-c3a2e1bc422a","block_type":"box","text":"Management Agreement","page_number":34,"box":{"x":69,"y":853,"width":180,"height":11}},{"id":"6c8bf4f6-6a6e-4c04-bbc6-c48657e4a21c","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock pursuant to","page_number":34,"box":{"x":101,"y":875,"width":805,"height":12}},{"id":"99ead3d5-4f75-40b1-b5b5-c2d537ac656e","block_type":"box","text":"which BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":34,"box":{"x":68,"y":891,"width":736,"height":11}},{"id":"a5b6cf3b-8c1b-4e16-b6fc-0310f1ec9b35","block_type":"box","text":"I-18","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"404ca170-dd5b-4f9d-afaa-12467428bff6","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d029bdc-6742-49f4-ac88-cb0a380705a3","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":35,"box":{"x":102,"y":45,"width":762,"height":11}},{"id":"aff9e065-3d44-48dd-b9ad-79459826aa03","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":35,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"3157fad3-20d4-4132-a345-36de4cb14914","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":35,"box":{"x":68,"y":75,"width":726,"height":11}},{"id":"215dc877-5f55-467f-8c03-1dd44ff792c0","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":35,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"f7340879-7473-4a40-9fd5-9de17ab4bdd4","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":35,"box":{"x":69,"y":105,"width":789,"height":11}},{"id":"3137a25d-6ecd-4d3f-b6f4-9efb5729af7d","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":35,"box":{"x":70,"y":120,"width":810,"height":12}},{"id":"4f17a95a-b183-4d60-aa85-05ed7d49539f","block_type":"box","text":"notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the","page_number":35,"box":{"x":69,"y":135,"width":827,"height":12}},{"id":"bb2a3c4e-72f9-43b9-bbb3-0f04bf887bc8","block_type":"box","text":"Fund.","page_number":35,"box":{"x":70,"y":151,"width":36,"height":8}},{"id":"7bf44372-ccfd-4ea3-b65c-9000dba5fabd","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees and/or expenses in order to limit Other","page_number":35,"box":{"x":102,"y":173,"width":766,"height":11}},{"id":"bc9d2a36-a117-489e-b740-1ad37ec6e9e3","block_type":"box","text":"Expenses (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund","page_number":35,"box":{"x":70,"y":188,"width":823,"height":12}},{"id":"6a98ae23-9eff-4b35-bf63-431d4bebd529","block_type":"box","text":"expenses (as defined in the Fund’s Prospectuses) as a percentage of average daily net assets to 0.10% for","page_number":35,"box":{"x":69,"y":203,"width":768,"height":12}},{"id":"cb8db823-4b5e-4b07-b917-06575ea07a5d","block_type":"box","text":"Investor A Shares, 0.10% for Investor C Shares, 0.05% for Institutional Shares and 0.01% for Class K Shares through","page_number":35,"box":{"x":70,"y":218,"width":838,"height":12}},{"id":"4154bf15-331e-4a64-a5df-dd961467bf4c","block_type":"box","text":"June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non","page_number":35,"box":{"x":69,"y":234,"width":777,"height":11}},{"id":"a5203362-deb0-4f14-b5bb-fbbd44f452b5","block_type":"box","text":"interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":35,"box":{"x":70,"y":249,"width":748,"height":11}},{"id":"e4b8efca-59b6-473f-9730-19bf6ffc407e","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust, on behalf of the Fund,","page_number":35,"box":{"x":101,"y":271,"width":806,"height":12}},{"id":"36ae38d8-3038-47de-bfa4-67e892ccd644","block_type":"box","text":"to BlackRock, and the amounts waived and/or reimbursed, for the periods shown.","page_number":35,"box":{"x":68,"y":286,"width":584,"height":12}},{"id":"6cb5744c-2144-4e18-929e-e9ea8969c5ac","block_type":"box","text":"Fees Paid","page_number":35,"box":{"x":602,"y":315,"width":56,"height":7}},{"id":"45f30640-ef97-4c0c-b327-94d0905a8a02","block_type":"box","text":"to BlackRock","page_number":35,"box":{"x":591,"y":325,"width":79,"height":7}},{"id":"9e85a8fe-6b54-4ff6-a16f-cf93c6368e42","block_type":"box","text":"Fees Waived","page_number":35,"box":{"x":704,"y":315,"width":72,"height":7}},{"id":"0a23733c-fdbf-4960-aa00-bf2725eb226d","block_type":"box","text":"by BlackRock","page_number":35,"box":{"x":700,"y":325,"width":80,"height":9}},{"id":"40818b63-4164-4680-a157-7cefa11edfc6","block_type":"box","text":"Fees Reimbursed","page_number":35,"box":{"x":810,"y":315,"width":99,"height":7}},{"id":"528ea056-0362-4757-bfcf-0b2c160de96b","block_type":"box","text":"by BlackRock","page_number":35,"box":{"x":820,"y":325,"width":80,"height":9}},{"id":"a5487060-40bf-4cb5-90e4-883f62790542","block_type":"box","text":"Fiscal Year Ended April 30, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":343,"width":449,"height":11}},{"id":"61f4c0c0-f581-481d-9b5d-43e76578c2a1","block_type":"box","text":".....","page_number":35,"box":{"x":525,"y":350,"width":35,"height":1}},{"id":"7fff05ac-e42e-418f-a015-f3d9f2f479f2","block_type":"box","text":"$444,122 $2,650 $565,774","page_number":35,"box":{"x":595,"y":342,"width":300,"height":11}},{"id":"3857e40d-96a8-436c-bea5-c09720771540","block_type":"box","text":"Fiscal Year Ended April 30, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":358,"width":449,"height":11}},{"id":"b8e6acf2-d3e7-46ee-8920-74e96f79120c","block_type":"box","text":".....","page_number":35,"box":{"x":525,"y":365,"width":35,"height":2}},{"id":"7d188678-eaae-491d-ad5e-07cff2e5c5e4","block_type":"box","text":"$891,252 $5,160 $401,074","page_number":35,"box":{"x":595,"y":357,"width":300,"height":11}},{"id":"8afd4353-20ad-4dba-9843-b1a58490a692","block_type":"box","text":"Fiscal Year Ended April 30, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":373,"width":449,"height":11}},{"id":"5bcc0f1a-47fc-4497-ada5-0e954fe70394","block_type":"box","text":".....","page_number":35,"box":{"x":525,"y":380,"width":35,"height":2}},{"id":"bcbf30c8-af22-4e3e-847c-b593795fb78f","block_type":"box","text":"$690,240 $3,069 $408,227","page_number":35,"box":{"x":595,"y":372,"width":300,"height":11}},{"id":"eb0a2782-c82e-4a7f-ac2d-a0f35ce7fff8","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":35,"box":{"x":102,"y":397,"width":784,"height":11}},{"id":"f342de21-87de-42ab-aa6d-ba86fe073bf6","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":35,"box":{"x":70,"y":412,"width":838,"height":11}},{"id":"f7459a56-aea9-4fa3-bfcd-2258a8c49981","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, BlackRock may delegate cer tain of its","page_number":35,"box":{"x":70,"y":427,"width":810,"height":11}},{"id":"f1fe5a1e-141a-47e3-aa17-4f227a000c18","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":35,"box":{"x":70,"y":442,"width":779,"height":11}},{"id":"ca9b15e3-f1d9-4845-9430-0c7ca95b461a","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":35,"box":{"x":70,"y":457,"width":827,"height":12}},{"id":"4078e4a1-b1e1-4079-a1b5-5ebde91bdf9a","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":35,"box":{"x":69,"y":473,"width":486,"height":11}},{"id":"7bb61f95-4d35-4480-8a51-41186835b03d","block_type":"box","text":"Administration Agreement","page_number":35,"box":{"x":68,"y":503,"width":191,"height":11}},{"id":"358d24dc-1309-4123-bfbe-7634888724cb","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":35,"box":{"x":102,"y":526,"width":711,"height":10}},{"id":"5ddaa48f-30e6-43af-a0eb-f7357764ca78","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":35,"box":{"x":69,"y":540,"width":838,"height":12}},{"id":"89e52bf6-4222-48bb-8d5b-176b70db85e9","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":35,"box":{"x":68,"y":555,"width":830,"height":12}},{"id":"367c5590-dfdf-43b4-9660-6268f1cc2475","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":35,"box":{"x":70,"y":571,"width":813,"height":11}},{"id":"70b5da62-fe9f-4507-9c4f-930a088921d9","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":35,"box":{"x":69,"y":586,"width":837,"height":11}},{"id":"4f50ae35-7829-4fa6-80ba-455cc12c9a93","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":35,"box":{"x":68,"y":601,"width":836,"height":11}},{"id":"facef2b8-d324-44f6-b1dd-9e4771f745fd","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":35,"box":{"x":68,"y":616,"width":785,"height":11}},{"id":"b5bed286-f22c-47b3-b532-0f26bf697036","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":35,"box":{"x":69,"y":631,"width":765,"height":11}},{"id":"7d1164d2-1949-4f56-a416-1209706ae1cc","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":35,"box":{"x":70,"y":646,"width":819,"height":11}},{"id":"0dcab3e3-2c1e-4c8c-ac9f-01fd8d74928b","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":35,"box":{"x":69,"y":661,"width":818,"height":12}},{"id":"e04c5ec6-23e3-422e-ba59-d21e8fa1dcdf","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":35,"box":{"x":68,"y":676,"width":840,"height":12}},{"id":"d71cae47-8d27-40e1-b270-64803de297c9","block_type":"box","text":"reimburse the Fund for expenses.","page_number":35,"box":{"x":69,"y":692,"width":238,"height":11}},{"id":"352165e7-f6cd-48ca-b9ad-d491f7047ed5","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":35,"box":{"x":102,"y":714,"width":802,"height":12}},{"id":"56f94eee-593e-4407-97a5-93de0bf98344","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":35,"box":{"x":69,"y":729,"width":830,"height":12}},{"id":"f4c08948-fa58-44a1-8d1d-cf11f7c440a0","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":35,"box":{"x":69,"y":744,"width":788,"height":12}},{"id":"b20b296e-67d6-4a4d-8af4-b1d195a9d409","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":35,"box":{"x":69,"y":759,"width":785,"height":12}},{"id":"ab3e5472-852e-49b4-86c0-00d8d1e5190b","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":35,"box":{"x":69,"y":774,"width":816,"height":12}},{"id":"f2da3bc5-003e-4eea-8cd5-80c3aaebbe6d","block_type":"box","text":"assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":35,"box":{"x":69,"y":789,"width":805,"height":12}},{"id":"76c730fa-8bc7-41c7-966b-00b571398963","block_type":"box","text":"shares of the Fund.","page_number":35,"box":{"x":69,"y":805,"width":137,"height":9}},{"id":"d069eac8-de35-4f22-b4ff-84b80086edd9","block_type":"box","text":"The table below sets for th information about the administration fees paid by the Trust, on behalf of the Fund, to","page_number":35,"box":{"x":101,"y":828,"width":798,"height":11}},{"id":"88faebc5-3b8d-4ea0-ada6-cb135511d2af","block_type":"box","text":"the Administrator, and the amounts waived and/or reimbursed, for the periods shown.","page_number":35,"box":{"x":68,"y":843,"width":614,"height":11}},{"id":"280495ac-4340-42cd-bac4-ab47230b6cd3","block_type":"box","text":"Fees Paid to","page_number":35,"box":{"x":544,"y":871,"width":72,"height":7}},{"id":"592f78c7-48c5-4156-8aa5-6f444593b82e","block_type":"box","text":"the 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3","page_number":36,"box":{"x":73,"y":676,"width":789,"height":8}},{"id":"6734070b-67be-4a7f-b3e9-cf112772cbfe","block_type":"box","text":"$35.84 Billion $21.92 Billion $7.89 Billion $0 $12.69 Billion $4.39 Billion","page_number":36,"box":{"x":328,"y":688,"width":567,"height":9}},{"id":"c8769fcb-4d85-4326-adb3-7fad3e92d70a","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":36,"box":{"x":69,"y":723,"width":304,"height":11}},{"id":"fb30b033-c51d-49ec-b11e-796e81f0e775","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of April 30, 2026.","page_number":36,"box":{"x":101,"y":746,"width":658,"height":11}},{"id":"20aecdf5-0927-45f4-bfd5-0e23364d5d78","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":36,"box":{"x":102,"y":768,"width":774,"height":12}},{"id":"30347b7b-b1c0-4368-b1e1-c5b53aed2e07","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":36,"box":{"x":70,"y":783,"width":837,"height":12}},{"id":"40e26c21-ed56-4010-9304-712c4e6b62ab","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":36,"box":{"x":69,"y":799,"width":823,"height":11}},{"id":"bfa8d010-6a12-4864-ba5a-9803515954ab","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":36,"box":{"x":69,"y":814,"width":799,"height":11}},{"id":"8f4e42ea-c2dc-4085-99e9-25b3487d41d4","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":36,"box":{"x":70,"y":829,"width":670,"height":11}},{"id":"c3e5eabe-144e-40b4-b5cd-eec1b2deeca9","block_type":"box","text":"Base Compensation.","page_number":36,"box":{"x":102,"y":852,"width":148,"height":11}},{"id":"f70567f1-5604-4b60-8bca-46e79431a869","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":36,"box":{"x":257,"y":852,"width":640,"height":11}},{"id":"f87fdadb-3e7a-43a3-94ca-fa9b4fb91ea6","block_type":"box","text":"firm.","page_number":36,"box":{"x":68,"y":867,"width":32,"height":9}},{"id":"35c6cdf4-50b5-4d8a-8af6-616026386d86","block_type":"box","text":"I-20","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"931eac41-c190-4b8e-9b2f-df969c327645","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12773a6c-8deb-49bd-af93-b53f8a37bd98","block_type":"box","text":"Discretionary Incentive Compensation","page_number":37,"box":{"x":69,"y":45,"width":277,"height":11}},{"id":"83e0b7b4-4649-4120-90c8-edb8ba00a82b","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":37,"box":{"x":102,"y":67,"width":792,"height":11}},{"id":"a550d563-2a09-4f46-97df-ca7a3cbb0711","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":37,"box":{"x":68,"y":82,"width":800,"height":12}},{"id":"4f9abc78-12c9-4613-9ecb-7ff6136ecb2b","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":37,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"ee3253ae-dd12-4236-b8e6-479333fc8f84","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":37,"box":{"x":70,"y":113,"width":817,"height":11}},{"id":"0bf7f4a5-9593-4ce9-aeb4-7b1392a271f9","block_type":"box","text":"por tfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":37,"box":{"x":70,"y":128,"width":741,"height":11}},{"id":"18f7fe63-f7aa-4ea9-8ae7-aea3bcca0c63","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Funds and","page_number":37,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"0fdfb4df-00bd-4632-9770-ebc0364a6158","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance is generally","page_number":37,"box":{"x":69,"y":158,"width":806,"height":11}},{"id":"2de10f91-bab6-466f-874d-650141b872bd","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The per formance of Dr. Shen and","page_number":37,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"35443402-5c4c-4188-87b5-7361242c56ac","block_type":"box","text":"Messrs. Mathieson, Piazza and Rodriguez is not measured against a specific benchmark.","page_number":37,"box":{"x":70,"y":188,"width":634,"height":12}},{"id":"2c27b839-5332-492f-8b31-399bb5af1370","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":37,"box":{"x":102,"y":211,"width":389,"height":11}},{"id":"8adb1552-e685-4981-ac0b-407fd07d84ef","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":37,"box":{"x":499,"y":211,"width":383,"height":11}},{"id":"9e2ed07e-ab72-4b76-9f7c-f376c6db7420","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":37,"box":{"x":70,"y":226,"width":815,"height":11}},{"id":"734d929e-fe86-4a6d-917b-01b06fda432a","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":37,"box":{"x":68,"y":241,"width":522,"height":11}},{"id":"89aa24db-617c-4cb2-b338-905d7504858e","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":37,"box":{"x":102,"y":264,"width":760,"height":11}},{"id":"c7bf33d1-1f0e-4253-83fa-279b152bc26b","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":37,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"53997a6f-a836-4c16-9db0-421f9f335df6","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":37,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"a4e13052-a5cb-4554-ad2f-74d07fb79883","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":37,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"2e84eb8d-b658-473e-816c-db71a594b635","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":37,"box":{"x":68,"y":324,"width":839,"height":12}},{"id":"4d8d5b55-7233-4482-a37c-fa54fd41a7bb","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":37,"box":{"x":69,"y":339,"width":802,"height":12}},{"id":"732b687f-e946-492b-a52d-a1f3fe3c055f","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":37,"box":{"x":70,"y":355,"width":820,"height":11}},{"id":"856165c1-8572-4f04-8c47-790283cabf17","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":37,"box":{"x":70,"y":370,"width":801,"height":11}},{"id":"9e78ac47-e744-4ffb-a809-c3fb30d27f64","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":37,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"e492301f-12d8-4444-b772-7881604ea251","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":37,"box":{"x":69,"y":400,"width":479,"height":11}},{"id":"beeec56b-02e7-4801-9729-a9b4f6bdb7c1","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":37,"box":{"x":102,"y":423,"width":785,"height":11}},{"id":"b8645089-59a7-46c5-a6cb-8b8994879c9f","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":37,"box":{"x":68,"y":438,"width":836,"height":11}},{"id":"ac426574-6c5d-4b43-9cdc-25838406a251","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":37,"box":{"x":68,"y":453,"width":821,"height":11}},{"id":"789edd88-081b-4cc2-9db7-51789f1e89e6","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":37,"box":{"x":69,"y":468,"width":829,"height":11}},{"id":"616fc0d9-efaa-4184-aba3-fd10d4bf542a","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":37,"box":{"x":70,"y":483,"width":835,"height":11}},{"id":"e8dd78cb-20be-47dc-9cce-637e5047dd8d","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":37,"box":{"x":69,"y":498,"width":414,"height":11}},{"id":"cb6ddd13-c5cb-4e9d-b4c8-94d5d246151c","block_type":"box","text":"Other Compensation Benefits.","page_number":37,"box":{"x":101,"y":521,"width":218,"height":11}},{"id":"811a3105-e316-40a9-aa51-6f02ce197107","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":37,"box":{"x":327,"y":521,"width":552,"height":11}},{"id":"5b6c556a-f8de-41c0-bfdd-40707af8e9e4","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":37,"box":{"x":69,"y":536,"width":582,"height":11}},{"id":"6bd4cfc6-b100-472c-b91a-e1413c2298ee","block_type":"box","text":"Incentive Savings Plans","page_number":37,"box":{"x":102,"y":559,"width":167,"height":11}},{"id":"6164565d-cd99-482d-9e49-ddc49902c4b7","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":37,"box":{"x":274,"y":559,"width":614,"height":11}},{"id":"ae917815-8e44-4584-b7e0-cbdcff89a258","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":37,"box":{"x":69,"y":574,"width":831,"height":11}},{"id":"3ab14302-4885-4ff4-8bad-9b903cfa5745","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":37,"box":{"x":70,"y":589,"width":785,"height":11}},{"id":"03363713-84ee-46d6-ad85-4775ecfc20cd","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":37,"box":{"x":69,"y":603,"width":830,"height":12}},{"id":"2193f325-9211-480f-a1a5-f37aa5e4752e","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":37,"box":{"x":69,"y":619,"width":799,"height":11}},{"id":"ed3dd41d-a04f-4c89-ab64-8bd6fbeeb0dc","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":37,"box":{"x":69,"y":634,"width":831,"height":12}},{"id":"5ff1f801-ff48-4f0e-8234-f4a4fa7dccd4","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":37,"box":{"x":69,"y":649,"width":798,"height":12}},{"id":"c1e5f600-2a14-466d-b04c-fcb77f4f32a9","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":37,"box":{"x":70,"y":664,"width":809,"height":12}},{"id":"de89be63-35f6-42dc-bf04-3e440fdd7a66","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":37,"box":{"x":68,"y":680,"width":793,"height":11}},{"id":"d64fbc18-40c9-4cd3-81df-e305f2fab67a","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":37,"box":{"x":70,"y":695,"width":832,"height":11}},{"id":"749cefb1-b8d9-466a-a9aa-0f983404700c","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":37,"box":{"x":68,"y":710,"width":805,"height":11}},{"id":"442ac6ad-d0f4-44f7-8199-c724a1bb8331","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":37,"box":{"x":69,"y":724,"width":808,"height":12}},{"id":"3a14244d-2d26-442d-a22e-4a43c01acaef","block_type":"box","text":"par ticipate in these plans.","page_number":37,"box":{"x":70,"y":740,"width":185,"height":11}},{"id":"b1797d2c-83d6-4c95-8ce3-1bbee0e27422","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":37,"box":{"x":69,"y":770,"width":268,"height":12}},{"id":"ccd7cd72-082b-44c4-9e80-4881c0ceef10","block_type":"box","text":"As of April 30, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":37,"box":{"x":101,"y":793,"width":733,"height":11}},{"id":"105a52bf-10cf-46ec-b625-2fb6dcb07780","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":37,"box":{"x":69,"y":808,"width":519,"height":11}},{"id":"758abbc1-8d1d-445f-9350-c17542aee087","block_type":"box","text":"Portfolio Manager","page_number":37,"box":{"x":69,"y":846,"width":105,"height":9}},{"id":"6416fe9c-2655-4b3d-b756-a3742fee9796","block_type":"box","text":"Dollar Range of Equity","page_number":37,"box":{"x":759,"y":836,"width":129,"height":9}},{"id":"935f3670-da22-4de0-b55c-8607e3b196f8","block_type":"box","text":"Securities Beneficially Owned","page_number":37,"box":{"x":736,"y":846,"width":173,"height":9}},{"id":"bb44f5f8-f2e1-4f99-aa66-58b1e23b2feb","block_type":"box","text":"Jeff Shen, PhD . .","page_number":37,"box":{"x":69,"y":864,"width":123,"height":11}},{"id":"d6f9cebd-bf83-4522-aa30-30094d991963","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":37,"box":{"x":198,"y":864,"width":622,"height":11}},{"id":"ee81f59d-bd10-4089-bf36-ddd65fe17ce9","block_type":"box","text":"000,000","page_number":37,"box":{"x":822,"y":864,"width":63,"height":11}},{"id":"49dfa6b2-3a97-4097-9779-5d4b7602c781","block_type":"box","text":"David Piazza . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":37,"box":{"x":70,"y":880,"width":635,"height":8}},{"id":"a64023e8-0d22-48ad-8e21-fc54c9418daa","block_type":"box","text":"$100,001 - $500,000","page_number":37,"box":{"x":744,"y":879,"width":158,"height":11}},{"id":"f0c1c49d-784a-4389-81fa-fe702e77c17e","block_type":"box","text":"Gerardo Rodriguez","page_number":37,"box":{"x":69,"y":895,"width":130,"height":11}},{"id":"2f522ab2-0f19-4636-a851-80b2d9e5911e","block_type":"box","text":"..............................................................","page_number":37,"box":{"x":206,"y":902,"width":499,"height":1}},{"id":"75fdf00f-92d6-4a1a-bcd3-c0488ebad4ff","block_type":"box","text":"$100,001 - $500,000","page_number":37,"box":{"x":744,"y":894,"width":158,"height":11}},{"id":"34f39420-ed84-4ab5-b7c9-ad7e8f2e7fd4","block_type":"box","text":"I-21","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bef86576-277b-4814-b35e-9ab4c436d354","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5affbb0e-27fc-4ff4-818a-d44fb209ec9f","block_type":"box","text":"Portfolio Manager","page_number":38,"box":{"x":69,"y":59,"width":105,"height":9}},{"id":"9fe820b6-c3af-461a-99cb-d6792ce02434","block_type":"box","text":"Dollar Range of Equity","page_number":38,"box":{"x":759,"y":49,"width":129,"height":9}},{"id":"a6d19fe8-bc4b-459f-aaf8-74eb148e86bf","block_type":"box","text":"Securities Beneficially Owned","page_number":38,"box":{"x":736,"y":59,"width":173,"height":9}},{"id":"1020cbf9-b4d5-4dd9-a23c-cb54c710f5e7","block_type":"box","text":"Richard Mathieson .","page_number":38,"box":{"x":70,"y":77,"width":138,"height":9}},{"id":"3c4331a5-6e9a-40a7-bc6c-fe2f1448abd5","block_type":"box","text":".............................................................","page_number":38,"box":{"x":214,"y":84,"width":491,"height":2}},{"id":"f4e2470e-448a-4648-9df5-7fda60e3788a","block_type":"box","text":"$100,001 - $500,000","page_number":38,"box":{"x":744,"y":76,"width":158,"height":11}},{"id":"dd3398fb-d771-4872-bca7-21aee79f9f2a","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":38,"box":{"x":69,"y":108,"width":403,"height":12}},{"id":"6c147ddc-ce5e-449e-97fd-d10010e2bfb4","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":38,"box":{"x":102,"y":131,"width":727,"height":11}},{"id":"3eeb1059-118f-4e36-ab73-755ed75a0c73","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":38,"box":{"x":70,"y":146,"width":814,"height":11}},{"id":"1fdc9691-0ab8-42bc-b5cd-95991bc99b32","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":38,"box":{"x":70,"y":161,"width":837,"height":11}},{"id":"74926fb8-61cd-4e2d-a28c-480e87cf946c","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":38,"box":{"x":70,"y":176,"width":810,"height":12}},{"id":"d13aca07-4ea8-4536-b912-e0eb71ac3d7d","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":38,"box":{"x":69,"y":191,"width":782,"height":12}},{"id":"0746e447-2628-4312-9f0c-aaa5e8ff42b8","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":38,"box":{"x":69,"y":207,"width":830,"height":11}},{"id":"7fe6635e-2d7a-46cc-9f51-f6beef5b32aa","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":38,"box":{"x":69,"y":222,"width":828,"height":11}},{"id":"7465a2fe-06bd-4568-bcb2-2be402a30b19","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":38,"box":{"x":68,"y":237,"width":834,"height":11}},{"id":"b21a9d2d-c39a-43e0-853a-bf7600cbdb64","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":38,"box":{"x":70,"y":252,"width":777,"height":11}},{"id":"4ba3b7b4-76a6-40eb-ab0f-d105d3a820ce","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":38,"box":{"x":70,"y":267,"width":821,"height":11}},{"id":"ef28613b-4144-407d-9599-2637ec04b354","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":38,"box":{"x":69,"y":282,"width":819,"height":11}},{"id":"0e9751e2-e6bd-4e0f-a3ff-6fa2c93527cb","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":38,"box":{"x":69,"y":297,"width":832,"height":12}},{"id":"4b146215-d896-4d97-8f69-0244f8b26dcf","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":38,"box":{"x":68,"y":312,"width":804,"height":12}},{"id":"3434623e-89ca-49e7-bdf9-f0ef5d406a70","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":38,"box":{"x":69,"y":327,"width":760,"height":12}},{"id":"24f29c19-d14b-47d8-a951-559830d10c6a","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":38,"box":{"x":69,"y":343,"width":834,"height":11}},{"id":"4e24b36b-4e83-4a85-9f47-92a0f91ca6ce","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":38,"box":{"x":69,"y":358,"width":836,"height":11}},{"id":"87a93e9c-4007-4a9b-9e9e-61241a7a2c4f","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":38,"box":{"x":69,"y":373,"width":822,"height":11}},{"id":"0c12a93e-46bc-47a1-9a9c-5b23811c6186","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":38,"box":{"x":70,"y":388,"width":835,"height":11}},{"id":"7a494f87-1a78-460c-a1bc-e6838160bb10","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Dr. Shen and Messrs. Mathieson and","page_number":38,"box":{"x":69,"y":403,"width":815,"height":11}},{"id":"b36c2839-1d77-4fe7-9876-279f6ee22690","block_type":"box","text":"Piazza may be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/","page_number":38,"box":{"x":69,"y":418,"width":835,"height":11}},{"id":"ccab2b05-3482-42e9-b03a-94a024bf1c48","block_type":"box","text":"or long only accounts, subject to incentive fees. Dr. Shen and Messrs. Mathieson and Piazza may therefore be","page_number":38,"box":{"x":69,"y":433,"width":786,"height":12}},{"id":"7ac6dbd6-d862-4925-b3a1-1a5e2d441e09","block_type":"box","text":"entitled to receive a por tion of any incentive fees earned on such accounts.","page_number":38,"box":{"x":69,"y":448,"width":538,"height":12}},{"id":"e235ddf1-5ba6-4b47-8aa8-246e106ee506","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":38,"box":{"x":101,"y":471,"width":788,"height":11}},{"id":"6581252e-8e40-4e16-be5a-7acd955950bf","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":38,"box":{"x":70,"y":486,"width":839,"height":11}},{"id":"d9ab2954-6308-4bfb-b58b-8775ef33a6f0","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":38,"box":{"x":68,"y":501,"width":823,"height":12}},{"id":"f0511166-7739-4115-9fb2-3ab345544357","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":38,"box":{"x":68,"y":516,"width":812,"height":12}},{"id":"05070c7f-ac2e-489e-9568-a3505d146d7d","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":38,"box":{"x":69,"y":532,"width":777,"height":11}},{"id":"bb824417-e165-4ddb-83c1-fb38c2e45906","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":38,"box":{"x":70,"y":547,"width":826,"height":11}},{"id":"f72362e6-2562-44be-89dd-949c7120ff7e","block_type":"box","text":"Accounting Services","page_number":38,"box":{"x":68,"y":577,"width":150,"height":11}},{"id":"20460ab7-2136-42e6-b717-c4a4772896dd","block_type":"box","text":"State Street serves as the accounting services provider for the Fund. State Street maintains the books of","page_number":38,"box":{"x":102,"y":600,"width":754,"height":11}},{"id":"01038f88-23d5-42e4-9a30-240618ec2200","block_type":"box","text":"account and other financial records (other than those maintained by the Fund’s custodian); records general ledger","page_number":38,"box":{"x":69,"y":615,"width":813,"height":11}},{"id":"0b22599d-fd0b-4235-91ab-4dcd8e8a8cc0","block_type":"box","text":"entries; calculates daily net income; reconciles activity to the trial balance; calculates and publishes daily net asset","page_number":38,"box":{"x":69,"y":630,"width":824,"height":11}},{"id":"87f97c5b-43c3-4f87-b662-9898f509f94d","block_type":"box","text":"value; prepares account balances; and provides such other accounting services as may be required. 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The","page_number":38,"box":{"x":70,"y":853,"width":827,"height":11}},{"id":"2299ec41-ceeb-4c08-9839-36e13904e290","block_type":"box","text":"Custodian, among other responsibilities, maintains a custody account or accounts in the name of the Fund, receives","page_number":38,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"d09a1432-cb52-4fd8-bc56-1191bf8ba980","block_type":"box","text":"and delivers all assets for the Fund upon purchase and upon sale or maturity, and collects and receives all income","page_number":38,"box":{"x":69,"y":884,"width":817,"height":11}},{"id":"77905c34-db21-4591-9416-d7303430e477","block_type":"box","text":"and other payments and distributions on account of the assets of the Fund.","page_number":38,"box":{"x":69,"y":899,"width":538,"height":11}},{"id":"dcc0b869-05c5-4ff5-8b61-fdc15fccddbb","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"922538f8-40ed-4004-adac-b574646dbe17","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ed22c2f-4b1b-4222-b57b-b715cb2dc3f7","block_type":"box","text":"Transfer Agent","page_number":39,"box":{"x":68,"y":45,"width":107,"height":11}},{"id":"3d8dafdd-3b8b-4f71-9961-11d0ee4730bc","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":39,"box":{"x":102,"y":67,"width":764,"height":12}},{"id":"00f40f37-170a-411c-ab19-a4c3ffd960fe","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the Fund.","page_number":39,"box":{"x":68,"y":82,"width":771,"height":12}},{"id":"10ef8c05-dcfb-4499-8092-10850dac0b72","block_type":"box","text":"Credit Agreement","page_number":39,"box":{"x":69,"y":113,"width":129,"height":11}},{"id":"9896de69-36a3-4b4d-9f58-f32181ca16df","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":39,"box":{"x":101,"y":135,"width":757,"height":12}},{"id":"cfc42b4b-cb25-4d4d-a030-de8ed2ceb3a6","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":39,"box":{"x":69,"y":150,"width":817,"height":12}},{"id":"62f2618e-74e3-414f-810a-c797c2e8826a","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":39,"box":{"x":68,"y":166,"width":743,"height":11}},{"id":"f8186bda-1592-42d0-aa88-29f6b038f9b0","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":39,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"18b70a7c-59f5-4bdd-9911-f125c094baba","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":39,"box":{"x":68,"y":195,"width":818,"height":12}},{"id":"ee785e30-b140-4301-b8ff-25e09abdce80","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":39,"box":{"x":70,"y":211,"width":761,"height":11}},{"id":"362eb44d-41b8-48ca-973a-e30cdfc61a5f","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":39,"box":{"x":69,"y":226,"width":768,"height":11}},{"id":"bd32b35d-b76d-4b40-a3de-fc06fbc7f31f","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under the Fund’s current","page_number":39,"box":{"x":68,"y":241,"width":781,"height":11}},{"id":"6cd19b68-c5ac-445b-9d4d-68360783dc47","block_type":"box","text":"Prospectuses and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest","page_number":39,"box":{"x":69,"y":256,"width":812,"height":12}},{"id":"10d7b2b5-a6bf-412d-9ff7-7632fcaa2c6f","block_type":"box","text":"expense and other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of","page_number":39,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"bf794dc4-8875-49c9-a611-5ea97c69ab5e","block_type":"box","text":"borrowing may reduce the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees","page_number":39,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"d1e73146-1893-4ced-a857-94a8c7bed961","block_type":"box","text":"on the aggregate commitment amount based on its net assets. If the Fund borrows pursuant to the Credit","page_number":39,"box":{"x":69,"y":302,"width":756,"height":11}},{"id":"49836a26-27d0-4a53-a22e-9af2aea8d64e","block_type":"box","text":"Agreement, the Fund is charged interest at a variable rate.","page_number":39,"box":{"x":68,"y":317,"width":417,"height":11}},{"id":"1e634cd1-6a05-47c6-88a4-20cdd8aa1299","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":39,"box":{"x":68,"y":347,"width":491,"height":11}},{"id":"26affa0d-932e-4875-8f0e-35c07ffc5bb2","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":39,"box":{"x":102,"y":370,"width":773,"height":11}},{"id":"8239aa8e-726c-4743-a9eb-2e58904c7a6d","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":39,"box":{"x":69,"y":385,"width":804,"height":11}},{"id":"2b25d9ea-b602-485e-84c2-debcb494db64","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":39,"box":{"x":70,"y":400,"width":656,"height":11}},{"id":"11f8904f-6e05-402d-90b0-327de3d7cb14","block_type":"box","text":"Investor A Shares","page_number":39,"box":{"x":664,"y":428,"width":102,"height":7}},{"id":"ee50d18d-073a-47a1-8bf6-110662f316a7","block_type":"box","text":"Gross","page_number":39,"box":{"x":535,"y":454,"width":33,"height":7}},{"id":"07e3c161-2048-4462-ad45-6f6ef66c6a1e","block_type":"box","text":"Sales","page_number":39,"box":{"x":536,"y":464,"width":31,"height":7}},{"id":"ed227087-6b99-4045-bdd1-2db85f96ff08","block_type":"box","text":"Charges","page_number":39,"box":{"x":528,"y":474,"width":47,"height":9}},{"id":"a358afa4-0bfb-4830-9dd7-16bfc452dc7c","block_type":"box","text":"Collected","page_number":39,"box":{"x":524,"y":484,"width":55,"height":7}},{"id":"a62f3cde-e513-47bb-9e80-3f062940e482","block_type":"box","text":"Sales","page_number":39,"box":{"x":632,"y":454,"width":31,"height":7}},{"id":"531431a9-4663-4216-a62f-67ccf9179dfe","block_type":"box","text":"Charges","page_number":39,"box":{"x":624,"y":464,"width":47,"height":9}},{"id":"28ca122f-b576-46d5-afed-f55954f4911f","block_type":"box","text":"Retained by","page_number":39,"box":{"x":614,"y":474,"width":68,"height":9}},{"id":"3856fb4e-7a8f-43e1-b6a3-26c99de2bafb","block_type":"box","text":"BRIL","page_number":39,"box":{"x":634,"y":484,"width":27,"height":7}},{"id":"6bb1861f-970d-42e9-8205-c7d9ed32f810","block_type":"box","text":"Sales Charges","page_number":39,"box":{"x":711,"y":464,"width":84,"height":9}},{"id":"0b417a46-2bb8-4584-93d4-48ca41f1f5b2","block_type":"box","text":"Paid To","page_number":39,"box":{"x":733,"y":474,"width":41,"height":7}},{"id":"72e291d6-d047-454f-80da-1d02d86e18f7","block_type":"box","text":"Affiliates","page_number":39,"box":{"x":727,"y":484,"width":52,"height":7}},{"id":"b0394190-4f84-4db6-bcdb-da2af7127076","block_type":"box","text":"CDSCs","page_number":39,"box":{"x":847,"y":444,"width":40,"height":7}},{"id":"12312010-eae8-4863-86af-4d55b94c88af","block_type":"box","text":"Received on","page_number":39,"box":{"x":832,"y":454,"width":70,"height":7}},{"id":"5b7987b6-3140-4ff3-a3af-b55390066fd2","block_type":"box","text":"Redemption of","page_number":39,"box":{"x":826,"y":464,"width":84,"height":9}},{"id":"9ade7be6-be6d-4fc8-8906-4c9ae9ee45cd","block_type":"box","text":"Load-Waived","page_number":39,"box":{"x":832,"y":474,"width":71,"height":7}},{"id":"336fc047-1c4c-454e-8967-08672e7e288e","block_type":"box","text":"Shares","page_number":39,"box":{"x":847,"y":484,"width":40,"height":7}},{"id":"61ed016a-7f67-419a-a4fa-25976a1e16c6","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . . . . . . . . . . $10,468 $795 $795 $0","page_number":39,"box":{"x":70,"y":501,"width":806,"height":12}},{"id":"6b979097-78b4-49e8-8e7a-1ebc27f1e5d1","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . $ 5,067 $393 $393 $0","page_number":39,"box":{"x":70,"y":516,"width":806,"height":12}},{"id":"84ee0534-7b3a-4551-9620-51c0081b358f","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . $ 2,104 $211 $211 $0","page_number":39,"box":{"x":70,"y":532,"width":806,"height":11}},{"id":"2f08b126-186e-49da-8a79-2a5ce44ec344","block_type":"box","text":"Investor C Shares","page_number":39,"box":{"x":760,"y":562,"width":103,"height":7}},{"id":"305b624a-3b81-4662-a58f-6699f9160b05","block_type":"box","text":"CDSCs Received","page_number":39,"box":{"x":713,"y":578,"width":97,"height":7}},{"id":"58792566-5478-4271-8519-1f4def606d13","block_type":"box","text":"by BRIL","page_number":39,"box":{"x":740,"y":588,"width":44,"height":8}},{"id":"5f88c726-8e6a-4c87-9804-eeedb7bdbcc7","block_type":"box","text":"CDSCs Paid","page_number":39,"box":{"x":840,"y":578,"width":69,"height":7}},{"id":"9ac2d595-c790-4096-bda3-edee327daa71","block_type":"box","text":"to Affiliates","page_number":39,"box":{"x":841,"y":588,"width":68,"height":7}},{"id":"2df6b8bd-d43d-43fd-a550-1aa151d4a682","block_type":"box","text":"Fiscal Year Ended April 30, 2026. . . . . . . . . . .","page_number":39,"box":{"x":70,"y":605,"width":319,"height":11}},{"id":"9aec80f0-9633-45a9-af92-04d56fd5f0e5","block_type":"box","text":"....................................","page_number":39,"box":{"x":395,"y":613,"width":287,"height":1}},{"id":"a2b2f838-50b3-4bec-be83-32920871ae8e","block_type":"box","text":"$200 $200","page_number":39,"box":{"x":743,"y":605,"width":151,"height":10}},{"id":"ea29890c-1eb1-4ffe-b23c-1106e088a312","block_type":"box","text":"Fiscal Year Ended April 30, 2025. . . . . . . . . . .","page_number":39,"box":{"x":70,"y":620,"width":319,"height":11}},{"id":"d4498f13-f4e5-4308-bb29-bba802900222","block_type":"box","text":"....................................","page_number":39,"box":{"x":395,"y":628,"width":287,"height":1}},{"id":"4eb82e01-3364-4b8f-a8d6-d82ee430f1e4","block_type":"box","text":"$200 $200","page_number":39,"box":{"x":743,"y":620,"width":151,"height":10}},{"id":"cfe4e5da-aaab-418b-a663-d6a9e2462c84","block_type":"box","text":"Fiscal Year Ended April 30, 2024. . . . . . . . . . .","page_number":39,"box":{"x":70,"y":636,"width":319,"height":10}},{"id":"ec1b49e3-dd9e-4087-8606-da73fd5c4664","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24 $ 24","page_number":39,"box":{"x":395,"y":635,"width":499,"height":10}},{"id":"1b2571d6-6aa9-4262-9a48-da3edea21c7d","block_type":"box","text":"The table below provides information for the periods shown about the 12b-1 fees the Fund paid to BRIL under","page_number":39,"box":{"x":101,"y":659,"width":782,"height":11}},{"id":"801a6415-932b-4648-b1c1-f3e366e2c5c1","block_type":"box","text":"the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL was paid to affiliates for providing shareholder","page_number":39,"box":{"x":68,"y":675,"width":778,"height":11}},{"id":"3a5bb35f-5b4e-4617-912f-c893cec567c2","block_type":"box","text":"servicing activities for Investor A Shares and for providing shareholder servicing and distribution related activities and","page_number":39,"box":{"x":69,"y":690,"width":837,"height":11}},{"id":"0ff9576b-db47-4ca4-ac7b-06286dc927bf","block_type":"box","text":"services for Investor C Shares.","page_number":39,"box":{"x":69,"y":705,"width":219,"height":9}},{"id":"5f7994cf-699f-443c-9495-317092deee77","block_type":"box","text":"Class Name","page_number":39,"box":{"x":69,"y":743,"width":68,"height":7}},{"id":"bc658611-37dc-4616-b267-95710e1418e8","block_type":"box","text":"Fees Paid to BRIL","page_number":39,"box":{"x":806,"y":733,"width":103,"height":7}},{"id":"caedb687-15d9-47c6-b977-83f99dc2086f","block_type":"box","text":"Investor A Shares .","page_number":39,"box":{"x":70,"y":761,"width":134,"height":9}},{"id":"38eaf41f-f415-4fe8-bc56-9ba2f6de1522","block_type":"box","text":"......................................................................","page_number":39,"box":{"x":210,"y":768,"width":564,"height":2}},{"id":"3f003595-5f78-4c5a-924c-6862f3dd52f9","block_type":"box","text":"$10,008","page_number":39,"box":{"x":826,"y":760,"width":62,"height":11}},{"id":"b93ed06a-c183-4f73-82bd-7ba526b4c814","block_type":"box","text":"Investor C Shares . . .","page_number":39,"box":{"x":70,"y":776,"width":150,"height":9}},{"id":"4ed9193e-5c20-4094-bdb8-51c85ac4867b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,684","page_number":39,"box":{"x":226,"y":775,"width":663,"height":11}},{"id":"674fa052-f82c-4d85-9081-851fa9072b3f","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"aa56e2f7-e916-42f2-873e-45ec614b390d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d2ec19dd-4b8f-4671-9a09-8bbb8e79add3","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":40,"box":{"x":68,"y":45,"width":318,"height":11}},{"id":"46b80333-7803-4949-aeaa-7d68b612e652","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":40,"box":{"x":101,"y":67,"width":805,"height":12}},{"id":"6a3e8809-4ddb-4b79-a419-756036d0bce3","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on April 30, 2026, is set","page_number":40,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"8691aefc-e935-4c35-8919-781e808b6fed","block_type":"box","text":"for th below.","page_number":40,"box":{"x":68,"y":98,"width":83,"height":9}},{"id":"e7f20460-d2ae-48ea-a2ea-3cefc78cd000","block_type":"box","text":"Investor A Shares","page_number":40,"box":{"x":807,"y":126,"width":102,"height":7}},{"id":"7cffcc0c-a24b-43cf-b6b0-e055d727cdbd","block_type":"box","text":"Net Assets","page_number":40,"box":{"x":70,"y":144,"width":76,"height":9}},{"id":"b93c9b00-4f2d-4231-9ba0-83bd8f1d1868","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,","page_number":40,"box":{"x":154,"y":143,"width":683,"height":11}},{"id":"d9890546-12c4-4a22-b067-6d8886da655b","block_type":"box","text":"969,900","page_number":40,"box":{"x":839,"y":144,"width":62,"height":10}},{"id":"6a3caab7-0762-40b7-9e36-a9131ceed2bb","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":159,"width":444,"height":11}},{"id":"81da05b8-81d9-4616-9207-d9112a26844c","block_type":"box","text":"................................","page_number":40,"box":{"x":521,"y":166,"width":254,"height":2}},{"id":"2bab37a6-e57f-4447-8e81-3d61d3283f4a","block_type":"box","text":"350,741","page_number":40,"box":{"x":839,"y":159,"width":62,"height":10}},{"id":"12fff8e2-d3db-4598-bde0-f737cca8fdaa","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding) .","page_number":40,"box":{"x":70,"y":174,"width":583,"height":11}},{"id":"9559942e-fb6c-45da-a751-279105725583","block_type":"box","text":"...............","page_number":40,"box":{"x":659,"y":181,"width":116,"height":2}},{"id":"561557b3-b363-4475-94c3-6cfcc2009926","block_type":"box","text":"$14.17","page_number":40,"box":{"x":849,"y":173,"width":52,"height":11}},{"id":"f38eb639-9325-4094-a259-367a332bf9f1","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":40,"box":{"x":69,"y":189,"width":534,"height":11}},{"id":"079389e7-ca8c-4c5f-aa17-aa5a1d2d1c50","block_type":"box","text":"1","page_number":40,"box":{"x":604,"y":189,"width":4,"height":5}},{"id":"bd854542-8d4f-4124-98ba-b60768d6d7eb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . 0.79","page_number":40,"box":{"x":611,"y":189,"width":290,"height":9}},{"id":"acd1d116-9342-4a4b-8569-bd1226184ea7","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":69,"y":208,"width":706,"height":12}},{"id":"3f6eafa8-cbe6-4a4e-9c9d-3e5c2a5dec89","block_type":"box","text":"$14.96","page_number":40,"box":{"x":849,"y":208,"width":52,"height":10}},{"id":"eeba79a7-ad0f-4878-a8a3-d9375395ede9","block_type":"box","text":"1","page_number":40,"box":{"x":69,"y":241,"width":3,"height":3}},{"id":"30a6a945-9f46-4c4c-ab9d-a598d6727baa","block_type":"box","text":"Rounded to the nearest one hundredth percent; assumes maximum sales charge is applicable.","page_number":40,"box":{"x":94,"y":241,"width":542,"height":8}},{"id":"fd31830e-6c66-4341-899e-24c8414e8502","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":40,"box":{"x":101,"y":261,"width":796,"height":12}},{"id":"52f5b49f-33f5-4969-9122-6acb50f6f418","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":40,"box":{"x":69,"y":276,"width":833,"height":12}},{"id":"30cf29c1-6c2c-400b-819b-122412273385","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":40,"box":{"x":69,"y":292,"width":813,"height":11}},{"id":"f307e7f3-f3a8-4b55-8149-4aeecb31adfd","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":40,"box":{"x":69,"y":307,"width":377,"height":11}},{"id":"36a3600c-b7aa-4d45-a7ce-9c514f495cf2","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":40,"box":{"x":68,"y":337,"width":302,"height":11}},{"id":"1906acf8-de33-4a8a-9f5b-957bb095c7d8","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":40,"box":{"x":102,"y":360,"width":609,"height":11}},{"id":"98cbc218-3ed1-4e37-90d7-3863cb01a61e","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":40,"box":{"x":102,"y":382,"width":798,"height":12}},{"id":"d6899768-a1a2-469a-9f94-05f2fa08f048","block_type":"box","text":"the periods shown, is set for th in the following table:","page_number":40,"box":{"x":68,"y":397,"width":376,"height":12}},{"id":"a796630f-5c6c-45a9-9100-bccc44fbfef3","block_type":"box","text":"Aggregate","page_number":40,"box":{"x":698,"y":426,"width":61,"height":9}},{"id":"5e6d2f9e-93df-4ee7-8f8a-dcdda92f4351","block_type":"box","text":"Brokerage","page_number":40,"box":{"x":700,"y":436,"width":59,"height":9}},{"id":"6355e977-36dc-42f2-846c-b0eeb580da3b","block_type":"box","text":"Commissions Paid","page_number":40,"box":{"x":676,"y":446,"width":106,"height":7}},{"id":"eac09197-ab7e-4e5d-8f58-4c7627beef6f","block_type":"box","text":"Brokerage","page_number":40,"box":{"x":831,"y":426,"width":59,"height":9}},{"id":"ac0a7753-6f01-4e66-a4a0-34eeb850b550","block_type":"box","text":"Commissions","page_number":40,"box":{"x":822,"y":436,"width":77,"height":7}},{"id":"4ad7fea2-70ef-4c1b-96f3-16f02a073688","block_type":"box","text":"Paid to Affiliates","page_number":40,"box":{"x":813,"y":446,"width":96,"height":7}},{"id":"0b535d65-a8ed-4edf-8655-a3f0708963d8","block_type":"box","text":"Fiscal Year Ended April 30, 2026","page_number":40,"box":{"x":70,"y":464,"width":232,"height":10}},{"id":"b404a6c2-0ccd-44eb-b3ef-fa621d0d1ed9","block_type":"box","text":"1","page_number":40,"box":{"x":303,"y":464,"width":4,"height":4}},{"id":"4aa64e4c-d994-4dd4-99af-a86ba765865b","block_type":"box","text":".........................................","page_number":40,"box":{"x":317,"y":471,"width":328,"height":1}},{"id":"035255d3-3615-4ed2-b90d-fa869642cf1b","block_type":"box","text":"$117,468 $0","page_number":40,"box":{"x":693,"y":463,"width":177,"height":11}},{"id":"ef55de63-34f4-4286-985d-05519a20fada","block_type":"box","text":"Fiscal Year Ended April 30, 2025","page_number":40,"box":{"x":70,"y":479,"width":232,"height":11}},{"id":"95f45cd9-2a8f-454a-9624-80c12b5950ce","block_type":"box","text":"2","page_number":40,"box":{"x":303,"y":479,"width":4,"height":4}},{"id":"230d11cb-f2ee-4230-9924-f41a57ea9ff6","block_type":"box","text":".........................................","page_number":40,"box":{"x":317,"y":486,"width":328,"height":2}},{"id":"87bf60be-2ad2-4967-9b5d-886ceb6b2156","block_type":"box","text":"$296,075 $0","page_number":40,"box":{"x":693,"y":478,"width":177,"height":11}},{"id":"32712a2e-c62d-445b-aea0-66d048c078db","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . .","page_number":40,"box":{"x":70,"y":494,"width":289,"height":11}},{"id":"319d7003-1e30-4df3-a34f-6743f5f48043","block_type":"box","text":"...................................","page_number":40,"box":{"x":366,"y":501,"width":279,"height":2}},{"id":"2e708de9-d53e-4ae3-9f43-1a8fe72d6a8f","block_type":"box","text":"$130,222 $0","page_number":40,"box":{"x":693,"y":493,"width":177,"height":11}},{"id":"6fd0bfba-fd3e-486a-b66b-4e53ce1e5a26","block_type":"box","text":"1","page_number":40,"box":{"x":69,"y":518,"width":3,"height":4}},{"id":"55c75441-01ee-470c-aef1-46c5a573e06a","block_type":"box","text":"The decrease in the brokerage commissions paid by the Fund for the fiscal year ended April 30, 2026 as compared to the prior fiscal year was","page_number":40,"box":{"x":76,"y":518,"width":814,"height":9}},{"id":"3b81ea00-dd5f-4513-86f6-db39cec73b48","block_type":"box","text":"due to a change in the Fund’s assets under management.","page_number":40,"box":{"x":69,"y":528,"width":329,"height":9}},{"id":"8b4e995c-986f-40e3-ab4e-dfab4dd57b4f","block_type":"box","text":"2","page_number":40,"box":{"x":69,"y":541,"width":3,"height":4}},{"id":"849007d1-a1f4-4b2a-9877-1e1144b3c17d","block_type":"box","text":"The increase in the brokerage commissions paid by the Fund for the fiscal year ended April 30, 2025 as compared to the prior fiscal year was","page_number":40,"box":{"x":76,"y":541,"width":810,"height":9}},{"id":"d3169e31-b956-438f-81f7-12515281f1d7","block_type":"box","text":"driven by increased trading activity and redemptions, and heightened volatility during the period.","page_number":40,"box":{"x":69,"y":551,"width":545,"height":9}},{"id":"eaa8988f-e2f2-4b13-9e54-3113321c864c","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":40,"box":{"x":101,"y":572,"width":770,"height":11}},{"id":"faba9d05-e9ba-4a56-a578-6a02abf82530","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":40,"box":{"x":69,"y":587,"width":814,"height":11}},{"id":"734fa78e-162e-45c4-bddc-6c91d27b14fe","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended April 30, 2026. The provision of","page_number":40,"box":{"x":68,"y":602,"width":831,"height":11}},{"id":"4eaf056b-017e-4da6-a957-e5162f55fa71","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":40,"box":{"x":69,"y":617,"width":822,"height":12}},{"id":"58865f3b-5f8b-4ad6-86b0-d47ba649612f","block_type":"box","text":"with such brokers.","page_number":40,"box":{"x":68,"y":633,"width":130,"height":8}},{"id":"1e3fdec6-cb6b-462e-a79e-be0bc74ad319","block_type":"box","text":"Amount of Commissions","page_number":40,"box":{"x":355,"y":661,"width":141,"height":7}},{"id":"c763370e-c373-444f-a3f6-c0158f4e4d69","block_type":"box","text":"Paid to Brokers for Providing","page_number":40,"box":{"x":342,"y":671,"width":168,"height":9}},{"id":"b51c52e8-f3f4-4180-8024-7732778793e9","block_type":"box","text":"28(e) Eligible Research Services","page_number":40,"box":{"x":330,"y":681,"width":191,"height":9}},{"id":"e1dabddc-4912-49f1-a696-46921660db4c","block_type":"box","text":"Amount of Brokerage","page_number":40,"box":{"x":588,"y":671,"width":124,"height":9}},{"id":"1401853f-960e-4a4e-b5c0-bd4e16244a8e","block_type":"box","text":"Transactions Involved","page_number":40,"box":{"x":587,"y":681,"width":126,"height":7}},{"id":"48175f76-18dc-406a-874b-0366d8ba7541","block_type":"box","text":"$63,408 $140,778,199","page_number":40,"box":{"x":395,"y":698,"width":309,"height":11}},{"id":"b4c2330d-f7fa-4dd2-be04-0207f8da8c5a","block_type":"box","text":"As of April 30, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1","page_number":40,"box":{"x":101,"y":738,"width":764,"height":11}},{"id":"ce160ba0-de8e-4c25-b142-92abf1252eb0","block_type":"box","text":"under the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":40,"box":{"x":69,"y":753,"width":792,"height":11}},{"id":"1d99a97e-8226-467b-b58e-45b4f5726ef6","block_type":"box","text":"April 30, 2026.","page_number":40,"box":{"x":68,"y":768,"width":108,"height":11}},{"id":"f7f08967-7703-46ef-a997-e583c20383a0","block_type":"box","text":"Securities Lending","page_number":40,"box":{"x":101,"y":791,"width":135,"height":11}},{"id":"25efff9d-aa8c-49d5-ba4b-5e3bfd999386","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":40,"box":{"x":101,"y":813,"width":807,"height":11}},{"id":"1065f820-f71b-4eb6-a43f-2b0fb19488a1","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":40,"box":{"x":69,"y":828,"width":817,"height":12}},{"id":"5bed3b4a-1138-4546-8feb-227d4b1764ab","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":40,"box":{"x":69,"y":843,"width":813,"height":12}},{"id":"66140d2e-ddd3-401e-95b2-d39814701b02","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":40,"box":{"x":70,"y":858,"width":838,"height":12}},{"id":"d6207a06-f87a-418e-bf12-a763b6a711c9","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":40,"box":{"x":69,"y":874,"width":813,"height":11}},{"id":"fc27426a-66fa-4e87-8a4b-be6dd73d1b28","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board of Trustees.","page_number":40,"box":{"x":70,"y":889,"width":731,"height":11}},{"id":"dcdd5097-cd7b-4662-8b73-3de5d5d2c4b5","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b6d18562-edb9-41eb-a01b-67ce0030f09a","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ecb6398a-082c-4010-8805-ab734bedf2d6","block_type":"box","text":"To the extent the Fund engages in securities lending, the Fund retains a por tion of the securities lending income","page_number":41,"box":{"x":101,"y":45,"width":800,"height":11}},{"id":"acf4f90e-a0e2-43d5-aa0f-76d82a49bd52","block_type":"box","text":"and remits the remaining por tion to BIM as compensation for its services as securities lending agent. Securities","page_number":41,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"b5350629-de61-4feb-902d-a34123e9741c","block_type":"box","text":"lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and","page_number":41,"box":{"x":70,"y":75,"width":774,"height":11}},{"id":"996b257a-200f-4b6f-8d07-49e5640cf5ee","block_type":"box","text":"excludes collateral investment fees as defined below), and any fees or other payments to and from borrowers of","page_number":41,"box":{"x":69,"y":90,"width":801,"height":11}},{"id":"d653514f-64d0-4d54-b4e5-ce912e90fadd","block_type":"box","text":"securities. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund","page_number":41,"box":{"x":69,"y":105,"width":837,"height":11}},{"id":"000b69b5-787e-4fb3-b923-8d35c660ad47","block_type":"box","text":"is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money","page_number":41,"box":{"x":70,"y":120,"width":834,"height":11}},{"id":"63f9ac98-64ee-4678-b912-c571ba523459","block_type":"box","text":"market fund managed by BlackRock (the “collateral investment fees”); however, the securities lending agent has","page_number":41,"box":{"x":69,"y":135,"width":802,"height":12}},{"id":"eaad4dea-e559-4001-8106-b47088cddda8","block_type":"box","text":"agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral","page_number":41,"box":{"x":69,"y":150,"width":778,"height":12}},{"id":"0ff20629-501e-4fe0-89f6-ba64c48d570e","block_type":"box","text":"investment fees the Fund bears to an annual rate of 0.04%. Such money market fund shares will not be subject to a","page_number":41,"box":{"x":70,"y":166,"width":828,"height":11}},{"id":"58ed838f-5de1-4996-b093-3f4f61b420d1","block_type":"box","text":"sales load, distribution fee or service fee.","page_number":41,"box":{"x":69,"y":181,"width":296,"height":10}},{"id":"bd821017-c10e-4b9c-8c86-8089fc496c59","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":41,"box":{"x":101,"y":203,"width":776,"height":12}},{"id":"eda6c173-52df-444c-822e-3bacdda75a6e","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":41,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"46e4aec4-997c-4ccd-8d39-70d1e6e36ac5","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":41,"box":{"x":68,"y":234,"width":812,"height":11}},{"id":"5bd59bd6-2c24-4055-849c-a4d89f5799a5","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":41,"box":{"x":69,"y":249,"width":799,"height":11}},{"id":"c46ca258-f409-410d-8ef1-0fbc7de5d0bf","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":41,"box":{"x":68,"y":264,"width":835,"height":11}},{"id":"6732d230-597d-41cd-93a4-cc4efdfd3655","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":41,"box":{"x":69,"y":279,"width":818,"height":11}},{"id":"8c859722-66da-470f-a009-8efc8f31f0f2","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":41,"box":{"x":68,"y":294,"width":789,"height":11}},{"id":"bfc97c96-c2de-4c75-b9ed-803aba5bff76","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":41,"box":{"x":69,"y":309,"width":829,"height":11}},{"id":"daec0317-19dd-45fa-b75a-24a1e5d8fd3f","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":41,"box":{"x":69,"y":324,"width":839,"height":11}},{"id":"08049ac9-7cba-4762-908c-5a3ff72edb1d","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":41,"box":{"x":69,"y":339,"width":802,"height":12}},{"id":"26d1f8ef-3207-47fe-b439-0b485586dec2","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":41,"box":{"x":70,"y":355,"width":830,"height":11}},{"id":"7ed8de99-061b-46b2-a2e4-a931fc80fe36","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":41,"box":{"x":69,"y":370,"width":838,"height":11}},{"id":"40091ad7-ec7b-4b47-b1c3-de168ee80169","block_type":"box","text":"Fund’s returns on securities lending.","page_number":41,"box":{"x":70,"y":385,"width":258,"height":11}},{"id":"b070cf92-62b5-44e4-8bd2-bd7a006edf44","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":41,"box":{"x":102,"y":407,"width":774,"height":12}},{"id":"5bcd9ac1-f2f3-4093-8633-d7402f854a08","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":41,"box":{"x":69,"y":423,"width":790,"height":11}},{"id":"15ce7223-1828-43af-ae7e-81870080f3a7","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":41,"box":{"x":68,"y":438,"width":809,"height":11}},{"id":"414ad81f-de9b-43a3-b0ec-c3bdc8f4c6d4","block_type":"box","text":"Fund and BIM.","page_number":41,"box":{"x":70,"y":453,"width":100,"height":9}},{"id":"2f7417f0-5156-43db-94f5-eb8f76324809","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) if the Fund were to engage in","page_number":41,"box":{"x":102,"y":475,"width":745,"height":12}},{"id":"6ae6e7fc-eb02-48fc-a2e7-348bbb22df6f","block_type":"box","text":"securities lending, the Fund retains 82% of securities lending income (which excludes collateral investment fees); and","page_number":41,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"baeac341-fce9-4b6f-9efe-9abda28f43b1","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":41,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"f4180646-cbc9-40ca-8cdb-7e97aeb54b64","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":41,"box":{"x":102,"y":528,"width":753,"height":12}},{"id":"14e33a30-6190-44e2-9dda-d27b7bcddbca","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":41,"box":{"x":69,"y":543,"width":778,"height":12}},{"id":"31c38f17-5f95-4982-a4b3-0ca1959856b0","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":41,"box":{"x":70,"y":559,"width":817,"height":11}},{"id":"a9c2248c-9516-4c4b-9240-4bf33528833f","block_type":"box","text":"lending income as follows: (i) if the Fund were to engage in securities lending, 85% of securities lending income","page_number":41,"box":{"x":70,"y":574,"width":794,"height":11}},{"id":"d57d666d-8614-409e-9812-857a2f918f85","block_type":"box","text":"(which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities","page_number":41,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"0f359062-1ff9-42f3-9856-d8eaa3585fa7","block_type":"box","text":"lending income plus collateral investment fees.","page_number":41,"box":{"x":70,"y":604,"width":334,"height":11}},{"id":"003da538-14cb-42d4-b806-6d7c979c7642","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":41,"box":{"x":102,"y":627,"width":683,"height":11}},{"id":"684eca8f-0068-4bf5-bee7-fc2156746bb2","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended April 30, 2026, primarily included","page_number":41,"box":{"x":101,"y":649,"width":804,"height":12}},{"id":"68b69dc6-d1a3-4ebc-a37f-756a8d60fe84","block_type":"box","text":"the following:","page_number":41,"box":{"x":68,"y":664,"width":93,"height":12}},{"id":"34e4f369-c5d3-4d2f-9ce5-7940f7948c4b","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":41,"box":{"x":69,"y":685,"width":818,"height":11}},{"id":"19364c3e-56ad-4654-aa7b-409535c172f8","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":41,"box":{"x":102,"y":700,"width":333,"height":10}},{"id":"e68bb448-bcbd-4207-9fca-bb90a178b16a","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":41,"box":{"x":69,"y":720,"width":538,"height":11}},{"id":"b06eb7e2-65e3-43bc-b7c2-29f051c8a069","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":41,"box":{"x":69,"y":740,"width":330,"height":11}},{"id":"eb9d7538-37f7-4a47-8a2f-b529b46bf3c6","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":41,"box":{"x":69,"y":760,"width":834,"height":12}},{"id":"a2335c06-8f29-4c16-9c3e-c887db75d4a6","block_type":"box","text":"of excess collateral, as necessary;","page_number":41,"box":{"x":102,"y":775,"width":246,"height":11}},{"id":"be565727-da6d-4bf6-89e5-ed637d6159d2","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":41,"box":{"x":69,"y":796,"width":562,"height":11}},{"id":"7ba5271f-a05b-4f6b-9b7f-f0ee36e60595","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":41,"box":{"x":69,"y":816,"width":665,"height":11}},{"id":"6e943f59-d7ae-4a2b-9e69-c327095b3f8c","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":41,"box":{"x":69,"y":836,"width":822,"height":11}},{"id":"baaae175-5095-40a3-8946-06820a2ba2ce","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":41,"box":{"x":101,"y":851,"width":803,"height":11}},{"id":"f3c0b281-87d8-450c-91ad-76a8340e0b03","block_type":"box","text":"of the loaned securities; and","page_number":41,"box":{"x":102,"y":866,"width":203,"height":11}},{"id":"56516577-3913-45ce-ae5d-0af7cf3024cf","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":41,"box":{"x":69,"y":886,"width":808,"height":12}},{"id":"ffcbfbd7-851a-4b88-b55d-1f08bf064262","block_type":"box","text":"I-25","page_number":41,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"49e4224e-1f1f-41dd-b6ee-c5bbb784e85e","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f48a58cc-1289-49ce-977b-e98a8a8db6fc","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":42,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"41c31c1b-adbb-44e8-9ca4-88e31c5f8d6f","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended April 30, 2026.","page_number":42,"box":{"x":69,"y":60,"width":548,"height":11}},{"id":"510b9b35-5ed5-4205-9a03-82431b22672f","block_type":"box","text":"Gross income from securities lending activities","page_number":42,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"ab8873ec-3832-486d-9743-f963bb01eed9","block_type":"box","text":"....................................................","page_number":42,"box":{"x":417,"y":95,"width":418,"height":1}},{"id":"08f824b1-bed0-4228-8ce9-63161652b6c6","block_type":"box","text":"$5,800","page_number":42,"box":{"x":856,"y":87,"width":53,"height":11}},{"id":"dbf7b466-8a48-4dd1-9798-c5d47c4761a8","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":42,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"deea4a16-16e7-4ab7-bcb0-a308e32de1a9","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent","page_number":42,"box":{"x":79,"y":122,"width":555,"height":11}},{"id":"9c8f8923-d955-4dce-be0c-8def93a5444c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . $ 765","page_number":42,"box":{"x":646,"y":121,"width":263,"height":11}},{"id":"7ed954f7-a0b3-45a7-82ee-3943616b1627","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . . .","page_number":42,"box":{"x":79,"y":137,"width":683,"height":12}},{"id":"fed101a8-3cb6-4b9c-9696-35fc931949b6","block_type":"box","text":". . . . . . . . . $ 24","page_number":42,"box":{"x":768,"y":137,"width":141,"height":10}},{"id":"be48fd6f-30f1-4844-a141-9fc5180558c9","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM","page_number":42,"box":{"x":78,"y":152,"width":519,"height":12}},{"id":"dc1d7d2a-3783-4e2e-a74a-2004c02f0f0f","block_type":"box","text":"............................. $ 0","page_number":42,"box":{"x":605,"y":152,"width":304,"height":10}},{"id":"2f5962af-80ff-41d0-979b-41b1f996d729","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM","page_number":42,"box":{"x":79,"y":167,"width":526,"height":12}},{"id":"47227387-2048-4ddb-a77f-e49bd639011d","block_type":"box","text":"............................ $ 0","page_number":42,"box":{"x":613,"y":167,"width":296,"height":10}},{"id":"49c863cf-ea87-4a2b-958b-d7b93953798b","block_type":"box","text":"Rebates (paid to borrowers).","page_number":42,"box":{"x":79,"y":183,"width":201,"height":11}},{"id":"68bd170c-20a9-4914-8994-96c1ffcc0359","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 987","page_number":42,"box":{"x":287,"y":182,"width":621,"height":10}},{"id":"ceadff79-fc7c-4a0c-bd78-9deb8024f205","block_type":"box","text":"Other fees not included in securities lending income paid to BIM . . . . . . . .","page_number":42,"box":{"x":79,"y":198,"width":519,"height":11}},{"id":"0f47928a-bef7-403b-9417-5b17104cde1a","block_type":"box","text":"............................. $ 0","page_number":42,"box":{"x":605,"y":197,"width":304,"height":11}},{"id":"cf3a6837-cb7c-4d50-bab6-591ef460e354","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":42,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"75ef417c-3cc5-4661-88a6-b44c377d2046","block_type":"box","text":"......................................","page_number":42,"box":{"x":531,"y":220,"width":304,"height":2}},{"id":"250aa9bb-7ace-4705-8194-83607ed406ca","block_type":"box","text":"$1,776","page_number":42,"box":{"x":856,"y":212,"width":53,"height":12}},{"id":"79db5f6d-acf3-4ef2-88f0-073c8853990f","block_type":"box","text":"Net income from securities lending activities","page_number":42,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"efd9ef76-51da-4035-bbe2-75a9158dac24","block_type":"box","text":"......................................................","page_number":42,"box":{"x":401,"y":240,"width":434,"height":1}},{"id":"b1912a23-658f-4441-a501-8497b441bb55","block_type":"box","text":"$ 4024","page_number":42,"box":{"x":856,"y":232,"width":53,"height":10}},{"id":"e7af306c-e1cb-4607-bcbf-717458d77b26","block_type":"box","text":"VIII. Additional Information","page_number":42,"box":{"x":68,"y":268,"width":195,"height":9}},{"id":"53caa72f-19c7-46e3-99dc-8b76a16b23ec","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":42,"box":{"x":102,"y":291,"width":352,"height":11}},{"id":"6cd3fe8c-dc17-41dd-8746-d0d85e8ecefd","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":42,"box":{"x":461,"y":291,"width":412,"height":10}},{"id":"c877e864-0ab4-4f87-a1ab-c81630af14e1","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":42,"box":{"x":69,"y":306,"width":772,"height":11}},{"id":"545ebecc-e80e-4f67-a2b8-14c0b4ff5558","block_type":"box","text":"Counsel.","page_number":42,"box":{"x":101,"y":329,"width":62,"height":9}},{"id":"75d19f96-917b-4a49-8ceb-2c3e1e28d2f8","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":42,"box":{"x":170,"y":329,"width":736,"height":11}},{"id":"b08bd7f1-b568-44f0-9698-55c141fdf35d","block_type":"box","text":"the Fund’s counsel.","page_number":42,"box":{"x":68,"y":344,"width":139,"height":9}},{"id":"804acf1b-fdf8-407d-9f7a-fb4b7afec931","block_type":"box","text":"The Trust","page_number":42,"box":{"x":68,"y":374,"width":69,"height":9}},{"id":"b8c2a85f-2a42-4b01-bb0d-42becac1e39f","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":42,"box":{"x":101,"y":397,"width":807,"height":11}},{"id":"2e8fe1a2-a296-4824-94c7-1d5415bafa09","block_type":"box","text":"Investment Company Act as an open-end management investment company. Effective January 31, 1998, the Trust","page_number":42,"box":{"x":70,"y":412,"width":816,"height":11}},{"id":"31463159-757a-4b98-bcfd-3b1cd63f5912","block_type":"box","text":"changed its name from Compass Capital Funds","page_number":42,"box":{"x":69,"y":427,"width":337,"height":11}},{"id":"668bd214-a3ae-45b3-a2a2-11e043654907","block_type":"box","text":"SM","page_number":42,"box":{"x":407,"y":427,"width":11,"height":5}},{"id":"86a9c995-321a-403d-b1f0-eb5bb546e316","block_type":"box","text":"to BlackRock Funds","page_number":42,"box":{"x":423,"y":427,"width":140,"height":9}},{"id":"12a2b661-445f-4cc1-bc1c-36d24cc19658","block_type":"box","text":"SM","page_number":42,"box":{"x":564,"y":427,"width":11,"height":5}},{"id":"bb09bc3f-38b2-4cb5-895f-77ff1eca9c23","block_type":"box","text":". The Fund is classified as diversified. The","page_number":42,"box":{"x":577,"y":427,"width":298,"height":9}},{"id":"5db42308-fc00-466a-b736-72d75c56aa40","block_type":"box","text":"Trust is authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per","page_number":42,"box":{"x":68,"y":441,"width":792,"height":12}},{"id":"fb7ac2a1-681f-4149-a5c6-d4b6cddefdda","block_type":"box","text":"share, which may be divided into different series and classes.","page_number":42,"box":{"x":69,"y":457,"width":441,"height":11}},{"id":"2deaf16d-80ae-4389-b338-1f72407d37d3","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":42,"box":{"x":102,"y":480,"width":734,"height":11}},{"id":"3dfb15b1-1e1c-47de-a6e9-479fa5ba0719","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":42,"box":{"x":70,"y":495,"width":822,"height":11}},{"id":"21bc4e5d-28c7-4afa-9e5c-823e921d6bdd","block_type":"box","text":"shareholders shall not be subject to any personal liability in connection with the assets of the Trust for the acts or","page_number":42,"box":{"x":69,"y":510,"width":814,"height":11}},{"id":"58cd351e-7061-482d-ad9f-2db3a8189691","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":42,"box":{"x":69,"y":525,"width":794,"height":12}},{"id":"c0b003fb-a28b-42a0-9a0c-3a8e78aa4e01","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":42,"box":{"x":69,"y":540,"width":824,"height":12}},{"id":"07bb2677-26b3-4604-a8c8-405f240bdc29","block_type":"box","text":"provides for indemnification out of proper ty of any shareholder held personally liable solely by reason of his being or","page_number":42,"box":{"x":70,"y":555,"width":827,"height":12}},{"id":"2ba84f11-6562-454e-9409-5221622332d7","block_type":"box","text":"having been a shareholder and not because of such shareholder’s acts or omissions or some other reason. 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Financial Statements","page_number":43,"box":{"x":69,"y":742,"width":179,"height":9}},{"id":"87ec669f-a0e9-4d02-b7b8-9f879f24a30d","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":43,"box":{"x":101,"y":765,"width":726,"height":11}},{"id":"3ed0d3ca-1719-4f71-8616-ce6f1ca6e891","block_type":"box","text":"Statements and Additional Information for the fiscal year ended April 30, 2026, as filed with the SEC on Form N-CSR","page_number":43,"box":{"x":69,"y":780,"width":831,"height":11}},{"id":"37778a70-c8ba-4f82-af6f-73d692820447","block_type":"box","text":"(the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the 2026","page_number":43,"box":{"x":69,"y":795,"width":800,"height":11}},{"id":"2341e9a1-b6fc-4746-af1f-9f66710a4202","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. 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Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":43,"box":{"x":69,"y":855,"width":815,"height":12}},{"id":"aed5e599-812b-40a1-98f7-cc5456a93973","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":43,"box":{"x":69,"y":870,"width":785,"height":12}},{"id":"6e13a613-72d4-43f6-8b37-d73fe8a565fa","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":43,"box":{"x":69,"y":886,"width":836,"height":11}},{"id":"f55ff4ac-186d-46d8-b118-e8270f988824","block_type":"box","text":"I-27","page_number":43,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"abb4fd28-ea84-4411-bc82-2d9767ccf111","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ce3852a-43b9-4e70-9118-e79968db3a9e","block_type":"box","text":"PART II","page_number":44,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"421d8609-759b-4c3e-9097-27cfb433627a","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":44,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"9b6830e6-31b0-4321-bcba-65570b54eed6","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":44,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"d22c1175-6799-4e1c-9ef1-2413fd529348","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":44,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"f5b28725-4aa4-4c5c-be98-9f6ea60ca742","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":44,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"2e172965-c223-4d17-9229-39ee397ec635","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":44,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"d65a27c6-44e5-4450-b1af-385a877e9efb","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":44,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"3d27093c-11db-4e7f-9448-db5c542f6df8","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":44,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"8c7db8e0-893a-433a-b469-193513558f23","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":44,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"0b349b17-9ddd-45fd-b995-9794a061ed16","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":44,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"75826331-8976-49dc-9357-54eee7b4e658","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":44,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"e95b4026-8a26-4784-9ecb-f3b8be181738","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":44,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"445d89d1-d588-4b33-8bb1-957a08ebe4d4","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":44,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"0dbbbf0b-336c-4ab7-a91e-d12b43107074","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":44,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"014efb02-270f-4af1-a525-1b655a438517","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":44,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"1336f748-fd64-4615-863e-27d8d4d60494","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":44,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"8c251e54-6461-424b-8658-7975f227b34a","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":44,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"d6a8530e-e167-4170-b265-e0f691b063e8","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":44,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"1cd3e534-94f2-4dba-b6db-2a3b8ac3ead1","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":44,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"0350c0cb-3e7d-46ae-a001-55a151c100f9","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":44,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"4947ba1c-2900-4af5-b923-be2c9c38258f","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":44,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"07f52d7b-252c-43a3-a0a7-f59bae6d589e","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":44,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"a299ca79-5990-4b33-8bdc-a45c011595ee","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":44,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"43924cf8-a31c-490c-89d4-427a2148dd1d","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":44,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"79b0e358-fe6a-4db2-ac53-88d3735eb981","block_type":"box","text":"par ticular Fund.","page_number":44,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"f2ac95dd-626c-47ef-acd6-be1e20870aab","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":44,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"95fbfb5a-509b-4324-a2a9-370e060d48ef","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":44,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"5e32f27e-2b4e-4c54-acc2-bbb2b38bf37b","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":44,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"8248f7ca-6307-4854-a768-fc6c79feefbf","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":44,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"53333e40-dc6d-4236-90af-4857702482c8","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":44,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"2f3d39bb-066a-45df-9d8e-677c1fce92dd","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":44,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"957875f4-28be-4565-ac8a-c294e8c3b4c3","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":44,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"a369b8cb-e3be-40f8-86ec-7b282286b2f6","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":44,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"b7a954a9-69ef-441a-9447-aaf2bfd0c158","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":44,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"452a4a54-d542-48d5-9860-8a1454f82c17","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":44,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"43032c77-7e87-4314-8a19-d4dca947eb7f","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":44,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"63493ea2-724d-47e7-8038-2b5bff0c4378","block_type":"box","text":"Asset-Backed Securities.","page_number":44,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"a4ec5733-884f-44c0-a4cb-6071acf0d2d6","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":44,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"f7ad8e3f-a9b4-4d32-9e55-c3d3f7954f1a","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":44,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"eabacc7f-0d7a-4e7e-8f5c-4659d59082c3","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":44,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"d2a3339d-dbb6-4483-8092-70251932fe08","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":44,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"5262d186-b71f-4fc7-a4f3-23c62e718e48","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":44,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"7fccbc7e-5478-4de2-82fa-048424917a72","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":44,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"72ac6158-6c58-4605-ab01-3946ea6ec459","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":44,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"45cabcde-0e00-4651-8814-6671e565e06c","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":44,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"d2757a53-cb94-4063-a3bf-bad2dd454b84","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":44,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"910f2f08-5904-47b1-9d39-8044bd84bc8c","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":44,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"5dcb8b7b-648e-4ef7-8047-9af4e90e6c7c","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":44,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"3b8b4210-8e26-4fdd-8b2a-0a4c78bcf53b","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":44,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"05c60fb7-8583-43ec-9390-77bf814fa2f5","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":44,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"8fc71261-25cb-4f19-b155-1ee3b1d9d001","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":44,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"13d0302b-cf30-4119-ab94-736cdefe5b9d","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":44,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"7848c740-b5e0-4349-9343-b950fb15e616","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":44,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"16fc9f2c-034a-4c49-b627-61da296840de","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":44,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"2d4c2df0-5996-42cd-a730-5a0ea0d28978","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":44,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"ffe48f5c-10a4-428b-b5dd-5260c954505a","block_type":"box","text":"II-1","page_number":44,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"8a0ae117-332f-4982-b85e-30b5ac99a130","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d466eaec-b7a5-4c26-9696-7bfc8d241381","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":45,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"f7968ca6-7a62-418d-bffd-afecf633ca3c","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":45,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"21f972e4-9929-4f1c-9509-223fd613f8a6","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":45,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"9541a2d5-f4bc-4f2a-a55a-2cbe3020a24e","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":45,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"cbdc679e-e8c9-4701-a31a-747fff175a20","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":45,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"9f740bd8-5955-4976-a74a-b49e3c581e4c","block_type":"box","text":"Asset-Based Securities.","page_number":45,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"b0368851-32ac-4bdc-8530-ca0fd687c498","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":45,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"aeed4161-4732-4fb8-80aa-3f20100b3ce6","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":45,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"09208437-8db9-4a78-9cf7-09e32cc9e751","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":45,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"2756dbbe-f67c-4af3-b682-61a645d52351","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":45,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"f65d49ea-af63-4e89-b355-a90a62d9c5f5","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":45,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"0cb1d470-eb08-4f72-b81f-cdcf466155d8","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":45,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"a08c0a4d-91e8-48ee-93d7-2cc1fd4de620","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":45,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"ac28f0fa-e89f-4836-90a3-450e657d8b79","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":45,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"1b37d7e1-c6b4-4c31-8528-5169d3466000","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":45,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"44be97ba-03f1-4f12-a09e-a220146346e3","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":45,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"1c8adf63-4d95-4854-8995-a9b42a260c93","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":45,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"88dc1517-4308-48d8-9088-ececbeeb8928","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":45,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"f097cd9c-bff3-4b0d-a4f7-b784dd0c5927","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":45,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"3bc2ad63-5a2c-4c24-91b7-296ebbcea1b9","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":45,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"ca6738f5-81d7-4a15-864a-2d0b3456abee","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":45,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"b5da81ff-dd26-4af4-bff5-a4a286dcbb2d","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":45,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"bd431d6e-8b56-4edd-8ef8-fae8b9f271d7","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":45,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"dbd2c431-931c-45e0-9dcf-5629d547da07","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":45,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"9c805d5c-828b-4784-a803-7402b00c3f8d","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":45,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"b62440fe-864c-4165-a373-46e217853a31","block_type":"box","text":"appreciation in the underlying asset.","page_number":45,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"e05c7faf-e212-49f6-8eda-88e6609edbec","block_type":"box","text":"Precious Metal-Related Securities.","page_number":45,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"298f009b-e62a-4cdb-b943-3c5fa0a55da9","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":45,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"d757aab1-2ed6-40f7-bc3b-046e155308a4","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":45,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"6086fba5-44eb-4df3-8789-22581797c8c3","block_type":"box","text":"e.g.","page_number":45,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"714eb1ec-403b-4148-83cd-41c5b09e1fc5","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":45,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"72c85764-fb69-48f3-8c36-47d6a6e60385","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":45,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"97a6cf81-dc23-4771-8e1d-4314d2a320d7","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":45,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"2fe1fea5-6a29-48de-bbfe-3e04443593dd","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":45,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"180d5140-e086-43c7-96f6-8ae6b020fb3e","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":45,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"0c1094a0-d67d-4e09-8a29-b14bc8fd517d","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":45,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"f212490f-6b6a-481d-8d00-98acfac1e69e","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":45,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"e60340ea-2ab8-46c0-8134-4e609f4056df","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":45,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"338afd00-7227-4ccc-8ad0-eb5f5e136ced","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":45,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"c56ffd4a-6a32-442d-a6b7-f39e2290b118","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":45,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"8ab5c884-caac-4685-a00a-775c4cacb2ee","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":45,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"1f361ce1-8a48-4602-93fb-91b2be42332e","block_type":"box","text":"South African gold production.","page_number":45,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"483eb1b0-b871-4069-9735-62da6ae123f9","block_type":"box","text":"Borrowing and Leverage.","page_number":45,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"5370f126-57c6-4052-a6bd-05f652c3386d","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":45,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"dd6d73e4-8ba8-4229-975d-f782fe68a483","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":45,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"40838ca3-b640-47ac-9c88-a6a513d5e472","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":45,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"f8f50c7a-770d-4d15-a858-3015ecd4c917","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":45,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"c16ca7ee-0c63-4c26-971f-907745f8073d","block_type":"box","text":"other securities transactions.","page_number":45,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"4a13feb2-4a91-4baa-a3e4-b0f357a06e6b","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":45,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"531d586c-5442-49df-a55e-d598951161b9","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":45,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"89bd2a8e-4e27-45d9-8d14-b32817461d6f","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":45,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"e0df0b67-128a-4fb6-be40-59029a44a91c","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":45,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"8eec8a44-0744-4ed9-9e75-ebda65dd631e","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":45,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"c15e83bc-f441-4c43-bb48-5d4e5f013cdd","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":45,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"57839bd1-246e-4499-8e97-2823240f5cc2","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":45,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"a28e637e-980b-49dd-a33f-50dc7f4835dc","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":45,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"529ebfb0-10f9-474a-84ea-4d03bc0fe0d7","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":45,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"04f20174-bb15-4be1-af36-36f2d4528e88","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":45,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"e88bb200-f63a-47ce-aeb2-6b7f0adbf6ac","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":45,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"592ee9a2-df2c-452c-85d1-52e501ec28ea","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":45,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"84710bb4-6a75-4659-b646-f8cce67bb78d","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":45,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"7a3ebc64-d223-46ac-9adf-1b0420fadbed","block_type":"box","text":"II-2","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"37397f1c-114a-4faf-b375-32aea541d23c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6cf9ed61-19b5-4690-ab4f-5c332278715d","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":46,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"556ce5ee-5cd3-4e77-8596-0d3bcd237b90","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":46,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"e7ead218-4e1a-40e8-ba6c-8c1991044423","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":46,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"84b06183-5b6b-4c47-a527-c8f4227e4b5a","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":46,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"409bcd8b-07f2-453f-b3e8-973c892c357a","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":46,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"73da1e0d-5031-496d-9946-e5ece1a80326","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":46,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"97f8d6ab-c7dd-4ccc-8585-da7742918516","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":46,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"f67ccb25-76bc-4db2-8272-041aacf19777","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":46,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"1300e55a-8997-457b-ab09-fdd0dc5f47f8","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":46,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"52770b75-a739-4b65-8b98-ea8947fe2650","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":46,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"ec7d45ca-e399-46fd-adaf-7d1cb54e3065","block_type":"box","text":"Cash Management.","page_number":46,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"a5d692b3-194a-4096-a409-e4e2dd5dab90","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":46,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"9d0b9624-2b09-4c32-b30c-454d9a122c67","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":46,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"696ab035-1e53-43cf-b0b3-b824d1a6d2c7","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":46,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"6c65efc7-a441-471b-9de8-ce15a2f18f35","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":46,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"d4c40209-310a-481d-8eb9-cf35fafad063","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":46,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"ad764c53-9ce1-4d4d-9607-a90d81d59890","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":46,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"65dada2f-6940-42a0-b488-bf0b1d3325fa","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":46,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"b1c5af12-556b-4dac-83b5-1df968ca05f8","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":46,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"730d6f08-6ba7-4fff-be91-f939cfb6b682","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":46,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"bf8e58a3-211e-4108-bf37-46939022fa80","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":46,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"c3826486-d4c4-4f6f-aa89-14c684e2e43f","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":46,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"b08ceea8-c0ff-4898-a0df-21e8dd135586","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":46,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"08873d6c-98c3-4985-b099-92a476c60706","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":46,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"1966f456-5264-4fb8-b6d5-b284cb25b5d2","block_type":"box","text":"Collateralized Debt Obligations.","page_number":46,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"f2951dff-6349-4104-a3b0-b1ef8ae3b138","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":46,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"1c3a193e-c51d-4848-b6e8-15aaaeef4921","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":46,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"eb78aa7f-c968-428b-bc5d-0a766267bc2e","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":46,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"65e479b2-4487-4ee4-a80e-1b0716afc95f","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":46,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"a9a5d32f-a262-4e60-96f8-5c4e61fdd1a3","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":46,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"289008ee-693c-4c41-be64-a175966b1e43","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":46,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"c1406fe5-4dde-4cf2-b2bc-3675a6c583f3","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":46,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"36b3228a-00be-4103-81c3-8300253a908b","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":46,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"ef6ac374-c83c-4f99-81b4-703445734e17","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":46,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"40d83436-44d3-46ce-902c-9ce9a61d35ba","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":46,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"a8b10969-1ae4-4e14-a42b-39195475bf64","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":46,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"9e0dee80-35ae-4044-9993-28f915d4342e","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":46,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"4a293204-dec1-4f33-a6ef-ea8fdda420e9","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":46,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"c30ce7a4-5e30-46d8-b3ae-66496a1fac14","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":46,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"f858a044-863a-42dd-b9fe-9d605de5868b","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":46,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"32d787c2-d945-4faf-a1c4-1f38be9d2952","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":46,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"a2885851-796f-450d-9de1-3e0eba375d09","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":46,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"d7dc8c03-b473-48a2-8e63-5604927d58b1","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":46,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"ad084a5a-bcc9-47fa-8979-432864a73571","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":46,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"07b2c651-6a41-49cd-a6ab-ca567188fff3","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":46,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"d8bfa6bd-9114-49ed-bf38-188cfbcc0a24","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":46,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"75da2cb4-053f-4144-9e1b-da843d0389b8","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":46,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"4e526464-a70d-44d6-b6f1-d0476326c124","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":46,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"3324c934-11f1-43e2-8244-b134db7e1f17","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":46,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"8159c1c5-a090-41b5-ab83-44e1a454f00c","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":46,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"91cbe292-b2b3-415f-b55c-b56b505c264c","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":46,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"4a400677-86a3-4e7c-a5c7-22e568c1d010","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":46,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"78f2bb64-0eb3-4805-b22d-a5163b9612c7","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":46,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"2ecef56e-cf66-409b-8261-8c83eddde8e3","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":46,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"02cb0a2c-416e-4e29-879b-0a4bdacfe507","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":46,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"9f96be16-b527-403c-b2b9-76ca96318e75","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":46,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"196a4509-18de-4468-bdc3-653b705d07ef","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":46,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"64c7ce9d-02b7-4095-aab8-ac1b0d89d596","block_type":"box","text":"II-3","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"dd7e61ec-3714-4814-aa06-474ade824326","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39969d19-11cf-46d3-979e-c89fc9ff249b","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":47,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"2ca22c21-e31b-4e47-a6ad-da78c9d40eda","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":47,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"385aaf02-a69a-4125-aa39-0db0126a1329","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":47,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"00d4e7b9-809f-410d-8903-093c2ccbe61b","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":47,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"c9788763-da18-4e60-9a19-aaf789c9a8ad","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":47,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"2df5cadc-d1e2-4ea8-8191-274af180ff39","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":47,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"97f27c77-33a1-4bce-8b4e-5956ab25fa85","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":47,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"8122ba2c-d843-4dc4-b9c8-7fbec82e426a","block_type":"box","text":"Commercial Paper.","page_number":47,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"c556ecc7-e18c-4bc5-bb84-9a3149568826","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":47,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"6817579c-4bfb-42b6-a294-59f55eb69db1","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":47,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"d096e7a2-9670-4875-8828-ac8c1c3b6e66","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":47,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"57a6ec3a-9679-4c79-9be2-3dfc8940cf7f","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":47,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"775ccbb4-b1b9-412b-b5c3-7c449733d02a","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":47,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"2a7c0d40-23ba-436a-a98f-0b213169be15","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":47,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"f63c8d40-5e38-4e26-a05a-a5fe53c70639","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":47,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"9fba04b5-144f-4be7-98da-97cb11e0ad73","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":47,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"d93fc0b0-4fb4-4bdc-814f-7a46a6a38944","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":47,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"a4a5f084-ca8a-43ba-9675-9af9f90d1dc1","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":47,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"3d255877-cd42-4d6e-a4fd-334b3cbf2aca","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":47,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"f27128d2-5b6d-4f0f-af53-a8b3c2f4da0f","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":47,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"f223e27a-41a6-4fe5-892a-8175bbe39c78","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":47,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"cf9f68c2-6f2c-4b5b-a18b-9f33520bf42f","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":47,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"6f536a5e-5870-4f32-850c-3610b7da4071","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":47,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"2ac7e55d-aeba-414e-8c08-58df6d152b2c","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":47,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"115b688a-c6ad-481d-b69c-04d1171960ba","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":47,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"b7d7d004-9d88-49fa-99a9-a91e434c379e","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":47,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"439fdc6c-1287-444c-b9e7-24e458e73308","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":47,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"2d31c65d-b8f3-459a-9a42-b240f60296af","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":47,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"3dd07abe-8779-4ee6-bcf7-430965ecb32e","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":47,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"32c402cd-1f59-4029-bf3b-864a93320a96","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":47,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"a2b42a9d-2deb-4a08-8765-c4aa25909403","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":47,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"8ea0bcba-c882-4a11-8a28-8efdb859b145","block_type":"box","text":"variable.","page_number":47,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"7757488f-7186-4d31-902e-f61830df4df9","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":47,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"99a83f29-b942-42dd-851a-9938c9a17a8b","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":47,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"f599c536-dde3-4273-b919-c924b6cabac0","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":47,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"28a13177-df90-4ec2-af26-f151fd11a7e1","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":47,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"6ee47946-fcae-4ba6-9f53-4008fbf3a1b6","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":47,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"f04dce69-ee30-4204-83a6-dcaa2a7800d8","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":47,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"c5af00da-655f-45f9-9c15-29dcfb803b2c","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":47,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"11232a29-961d-4189-ace5-4dfbe903e901","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":47,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"bc0a9c6e-2760-45c3-a521-2ca4ba7ab581","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":47,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"7bbc9d0e-2201-4d88-a256-be9f20f28891","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":47,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"689e5043-f1fe-47fa-a8d7-6129b0ebf97a","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":47,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"554130dc-3b28-49b7-897f-dafeb204f584","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":47,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"32fe7803-f551-4003-91c5-ebbf0d28723a","block_type":"box","text":"correlation with stocks and bonds.","page_number":47,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"1f6d55c5-8578-4bea-8e9e-0d4229faf9c6","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":47,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"6c30092d-ad65-4ed0-8108-2d85aadc25d6","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":47,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"958a37fc-18fd-4b20-ab4a-779f83a7ace6","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":47,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"0d956890-da55-45e5-92dd-c8a53ff5dd66","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":47,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"95e815df-f289-433e-a4bf-4305706612ea","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":47,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"bc2c78c1-e867-42be-ad31-849b2b0d7ca4","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":47,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"407462aa-2219-4653-80e0-32d50c5e6da0","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":47,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"f6541c8e-e083-41a9-9fe3-f944932a3b63","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":47,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"14bc5f8c-8827-4eab-8056-3b87e7e420da","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":47,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"20de32d3-55b1-492b-a460-686b69d911ac","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":47,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"5ade6b33-b239-43c1-9ff2-3cd124102775","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":47,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"f8d22749-b1f2-4b28-90e1-0260e806c094","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":47,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"ec9a4edf-d828-4bea-b23e-0ab430ebd620","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":47,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"994d222e-1c80-4f9f-8700-14591cbeb1ed","block_type":"box","text":"II-4","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9ab94167-893c-4111-b275-16b7c809cf4b","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5dfc1eee-6d37-4fa2-8b98-30363a33898f","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":48,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"06f214a5-a793-47d9-9986-3c60ab72c33b","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":48,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"fceb8c36-712a-411d-bda3-94aae8e43a28","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":48,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"7e6a2703-6fe6-45d2-8ff1-bda979816982","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":48,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"3625bfd1-0948-4405-935c-3ccd0f369959","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":48,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"2dca0f39-1220-4b6b-83da-670841ab0433","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":48,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"cc11ee8c-e7fe-41af-bdfd-e8e66a56437d","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":48,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"e82c627d-d6e4-4a21-87e6-8e379c5e65ae","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":48,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"880ac3c2-ac34-4bbe-b9d9-6332665a3487","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":48,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"69bc0a42-434e-4d70-bac7-ac98f525ee5e","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":48,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"11819d99-4b2b-4995-bdc8-5604fa7dedf8","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":48,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"fe2396a9-370d-48cd-b4a4-a38fbcd280e2","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":48,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"cee6afa3-fcd5-4ea2-8ae2-00420f9c6aee","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":48,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"9d364586-46f5-4123-aec3-dd891f6c4220","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":48,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"280c7427-8d45-4296-8e45-89ea6c4779d4","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":48,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"3d92520d-c962-4aa7-a9de-052171d2df85","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":48,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"036259a9-485f-45e9-9e61-5bdaf59bf183","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":48,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"ad892a25-7582-478b-9f86-42a0cd148c7d","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":48,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"9d49df94-ebbf-4c47-90a8-57c6e007a3f7","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":48,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"1a4d1324-ca7a-4149-b5d4-b223a5956430","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":48,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"e4a2b8f8-cf43-4662-ab0a-30b4e8fac944","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":48,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"9e245ea8-441a-4319-9ce8-c1cbc9683371","block_type":"box","text":"the Manager believes are relevant.","page_number":48,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"6728f474-7aaa-48d2-b5e7-1d6fe8fe6352","block_type":"box","text":"Limitations on Leverage.","page_number":48,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"9e22761a-78cf-4c02-8749-b94d81eceade","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":48,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"70a44f69-fe96-4539-b2b2-db09c294e011","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":48,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"a82b674d-b61c-463a-a87c-c896670abef6","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":48,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"3baf4cbb-5af8-43f7-ba99-aada69f5b98f","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":48,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"c6a1e4e1-9473-4917-8553-e0bd60033854","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":48,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"f302f447-8b55-470b-bc78-5e5f6430cce1","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":48,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"96d05ac9-ce2a-4acd-bb08-d51e9f801d3b","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":48,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"ac4f2861-1abb-4e75-b66c-8c4123958856","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":48,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"58ad42b6-57a0-4a5c-80b6-141707292de9","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":48,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"69dbcd85-3ca8-4093-ae3c-48c1b90a914c","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":48,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"36086900-0d21-4301-a937-f8a3eacec8a3","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":48,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"218ad406-9a5c-41ef-8ed5-f11b010cd63b","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":48,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"7ffef827-2e1b-4957-bb6c-61d2b1fb01a6","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":48,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"7de35886-7650-442b-ad3f-70f0ce040026","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":48,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"573757db-1d5d-4f19-98a0-6834d90b31f6","block_type":"box","text":"Counterpar ty Risk.","page_number":48,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"ef3310fd-ace6-48fd-856a-8e870ab3be37","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":48,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"9f2d8431-a130-485e-bcb1-57097dc067ce","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":48,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"949f7472-fd3c-4d03-b970-6a0e12ae3e3d","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":48,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"b3ec6ba8-4ce7-4ac4-8ec7-5f2e27812bb4","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":48,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"7d4cd807-efee-43e5-87c4-11d6dee78154","block_type":"box","text":"e.g.","page_number":48,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"5f37f527-6c23-4759-a957-d4c8e0d510f2","block_type":"box","text":",","page_number":48,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"46f0c76a-9829-4d11-a890-49ba36236764","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":48,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"d1ae3716-e28d-418a-b8cf-2d239dab6d27","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":48,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"9ff3e684-7048-4c3a-93e1-085601b6ef60","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":48,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"5cad7e01-c8a5-42c5-a1ac-ebbe67277bca","block_type":"box","text":"obligations under the structured note.","page_number":48,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"d4b57238-9ab2-4c61-a0af-68de3a268978","block_type":"box","text":"Convertible Securities.","page_number":48,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"dfcc2403-d035-4718-a4dd-b40ab5dcd80f","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":48,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"99f33857-7efd-4d76-a8e9-26fd56f8cdf7","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":48,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"b1913d65-618b-4b5a-a78b-3859fb6f597f","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":48,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"e667059a-754e-4b74-b58c-aed1eddcb17f","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":48,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"dcba69ee-881e-4916-ad8c-30d052a67d4f","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":48,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"912f3e67-4519-474e-8ded-4cace98dad13","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":48,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"75999051-1b7f-4bce-a313-bd940f562fd1","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":48,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"76152db9-2bcf-4c33-a152-fdfb86142c7c","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":48,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"a9440b9c-10bc-4ebb-afd8-976f354a45bd","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":48,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"ff907292-649a-4de1-80a0-de249e4ff1f9","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":48,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"2b6180b1-4b89-41af-9a1d-f2a4cfa59537","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":48,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"3ce0b1e3-04c6-4536-8bf5-c515cff5b471","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":48,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"677deba2-92f0-40bd-a50f-93a0b0ba45bc","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":48,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"2db0434f-9e7f-45c0-afc1-454be430c8df","block_type":"box","text":"II-5","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e81b4d3f-d4f4-4776-9b7d-531f5bc42139","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f399ddd3-b6d4-45f0-becb-e001a97459ee","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":49,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"1a1a2a78-4776-465a-80b5-07edccadb06e","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":49,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"584de13a-0ad5-44e6-a42e-7e3c2223c7c3","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":49,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"1d41c5d9-ba19-4c15-980d-23181604ad95","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":49,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"bd6c7df1-2c62-4d88-8e9b-5bbb33d2a198","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":49,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"ee7a69db-200a-49f9-85f7-0a037e3ef55f","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":49,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"ef65dc0b-bbec-420e-bdb4-ca4dc3cede89","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":49,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"817410ec-a97a-4c01-ba87-c0b0a8f96349","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":49,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"928ab1b2-f2f2-4045-84dd-e7d044469a69","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":49,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"b21030db-66f5-46a0-ba17-1edc16763385","block_type":"box","text":"things.","page_number":49,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"988be10e-bb84-448b-ad4f-3d172d401b79","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":49,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"e4219ed7-db8f-46a6-9535-163855da2dad","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":49,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"e100e0b4-b3c1-4db0-b7ca-bdff5d9f57f2","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":49,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"b7cb0630-0b23-4e38-ae82-e7e3a4af44d2","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":49,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"a3b82613-1f49-4811-a6f0-92127a8430e1","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":49,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"b7c6182c-368e-47ea-a5a5-d4eb9ef9f36e","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":49,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"cbc5660f-e01c-4234-b353-fc7930cb34df","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":49,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"05db6ecf-8726-4838-9ef1-d1005fc22f27","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":49,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"266e53da-e2d1-4bc6-8f9e-e280d4c4369d","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":49,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"5f93e946-60d7-4247-a737-7bd973aadf67","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":49,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"25ab592a-fa2d-4c2b-8994-b7cb940bf3a1","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":49,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"b91e778e-0a6f-4717-8f90-c74b321d95e0","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":49,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"3e0a54cf-cbde-4873-beb7-56dd9878d87b","block_type":"box","text":"i.e.","page_number":49,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"083b016a-d317-43a6-84c3-e6f0d2495ad2","block_type":"box","text":", strictly on the basis of its yield) is","page_number":49,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"e4f999f9-db83-4373-bfbf-94b2aa052439","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":49,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"52abb5d2-09a0-43ee-a86a-b57c06314451","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":49,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"c150b6b0-d10d-45aa-9d1d-0c2128eafecc","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":49,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"c25b787f-224c-4cf9-ad25-398c23f5f33c","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":49,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"af20d0bd-2482-4c88-a415-321673fa416f","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":49,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"53f2344d-c0d4-4d7e-8f9e-112afb9c611d","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":49,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"4e7db683-1b32-4538-9feb-646745288253","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":49,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"1023628e-f07b-439d-ba51-fafb57bd1e75","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":49,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"5c9e229d-b4c0-4279-b4e9-5d00e5112927","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":49,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"cf02f909-a4e6-4050-9ef0-816bb8e454dd","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":49,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"c4f1c4d6-0502-4c33-b91d-f382ef3f36f6","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":49,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"f6bc68f1-712a-4db0-9fc7-868c32df0a79","block_type":"box","text":"than the securities’ investment value.","page_number":49,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"cb921e51-3e9e-482c-852c-9cb575efbd9b","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":49,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"b5b26e59-c5aa-4f6e-b02d-05719e6cbc44","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":49,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"abd17de5-392a-4ef1-a9dd-bd06d4a435bd","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":49,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"a9677c82-cb28-4cfd-8881-a7a880fe4ca8","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":49,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"aad16c47-3344-4355-be0d-d678216145a8","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":49,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"7b339157-5fe1-4014-a7c2-2df80ca7a1f5","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":49,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"e6bbe60a-2fff-4dc5-b5e1-6e10bbc02b34","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":49,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"23cf69b8-ac50-4ea7-a6bc-e0846174b5b4","block_type":"box","text":"security under cer tain circumstances.","page_number":49,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"3116987e-3e4f-43d6-80aa-cb5b35efa2af","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":49,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"a78a9151-cbcf-4c4f-8563-ac228622f10c","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":49,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"9231f4cb-ca92-4fe5-b3a5-928eefef36f1","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":49,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"81bfb4ad-8602-4884-98f7-ca7f0b46a295","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":49,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"92fee9a3-025d-405b-8fd4-f0b5f15828e0","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":49,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"2e46723a-60b8-4a4e-a290-252aa149fff8","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":49,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"898d1e69-d8b9-4d50-92c0-e4a95c5a77d0","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":49,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"de397930-ee12-4333-aa1a-2a84a7c4fb0e","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":49,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"58608cea-fa42-48d0-8270-da59d0d6feb5","block_type":"box","text":"i.e.","page_number":49,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"70bb9cda-fcdf-43e2-8260-4d777b10b5d5","block_type":"box","text":", fixed-income (“fixed","page_number":49,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"2317f25a-b9b9-4cb4-905d-ed182c249b43","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":49,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"29365e74-1373-4355-ae4e-605555d9f4dd","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":49,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"ee171f1c-2344-4bd4-bb17-fdbee87e7185","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":49,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"ced48ac8-d843-4d47-b98c-2d44b202590c","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":49,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"df1bb352-5340-483c-99db-9fde83f9aef3","block_type":"box","text":"II-6","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3673f65c-742f-4db1-bb1b-b9e2c8017431","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1b0b0892-04ac-48c9-a681-7a5efcbc5a82","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":50,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"89a8b253-388c-4e25-8e3b-a89c57c4c200","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":50,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"3a90bbd3-9969-4fec-808d-8a420f229058","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":50,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"4feca1ea-1cf0-4104-9d05-9d39e52ab613","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":50,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"73c04c4a-0fba-4064-aee2-f7e1a281ffa2","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":50,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"e1efbcfa-b9fc-4f83-b050-b9a0eb31c9c5","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":50,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"47775e0c-3d71-404c-b30d-7a3d762a5e80","block_type":"box","text":"component.","page_number":50,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"93a67c47-17bc-4dad-ba7e-45edb99a2e78","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":50,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"8e731110-b140-45d3-a8a7-ef9137b5a4ee","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":50,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"fe032f4a-c011-4831-935d-a463fd3910df","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":50,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"f793a6ba-7f32-4d04-80ce-1c6a6442947f","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":50,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"8c028bec-16b7-48fd-ba1c-eb03c6b4212e","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":50,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"b3152813-5482-44b8-ab2d-744a1a328168","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":50,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"d6f697cd-75dd-440c-aee2-b8cb9128bbfe","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":50,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"bcde5405-a031-4d67-adef-280c2af3e2f3","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":50,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"b1cca4c3-89ed-47f3-8f12-07cdf4e35134","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":50,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"1b2a701d-9d23-426b-af9d-db9bcdf8a5a4","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":50,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"b0641ed1-cafb-4082-9373-bbd768530731","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":50,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"39be87d2-41f4-4604-9e53-ce36c26dd6e1","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":50,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"6f2a4069-ef19-4aa0-ae94-d7908ee9a39a","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":50,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"73791540-4c8b-4e9c-ba88-70e3c19630cb","block_type":"box","text":"favorable market conditions.","page_number":50,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"ec563a6c-8d28-4aeb-a74f-4cea93c2e592","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":50,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"e2075e3f-da8e-4b8d-a338-b11f43e2a877","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":50,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"e8ef23db-1fd9-4892-ad90-4f00483bb8e7","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":50,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"af2f3b3f-fedc-4d07-a9d8-e1bb991dee5f","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":50,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"358201a3-f2fb-4853-beef-a8601409fb50","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":50,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"ec8fc0c6-7e22-4d09-a2e9-408c6cebf9a2","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":50,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"823fd949-14e1-47f1-85cf-0cf55fd4ad95","block_type":"box","text":"Corporate Loans.","page_number":50,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"3ad13774-6044-4048-8b84-0666c6c45b4c","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":50,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"082a1fc7-1143-4ea1-8ce4-ab86ebb5956a","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":50,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"14161bf9-f22d-496c-9e8b-88e780ee768f","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":50,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"a1ae8bf4-c78f-40eb-9130-f6f1de569148","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":50,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"67f47b06-bfb4-4c62-886b-efea71f92092","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":50,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"6da48d35-ab6f-4cc1-b754-13cc32b3ccaa","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":50,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"4e074142-e152-4515-b554-457237e99506","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":50,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"79240add-b3b5-4281-a939-7a5184fb9faf","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":50,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"a08a2cb5-95ac-4933-93a8-1bd65015fcd7","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":50,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"03bbee0e-5ab7-4f20-a76b-3f33bfcc7273","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":50,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"c1afc9fd-0f05-41c2-827d-67e6b48fa18c","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":50,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"f2baaacb-0409-42b7-a734-b19e2c47bdf4","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":50,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"021fffdc-55ea-4b07-a3fb-ceb594d84c14","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":50,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"21f7c0d8-f70e-4ccc-90d8-a25e96ece5b1","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":50,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"e6a23fed-8ba5-4197-9c12-7795cae8c8ae","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":50,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"65f3c5f8-ad49-4a3a-abee-f8fb25399665","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":50,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"df410ee5-0398-4258-87e5-249a142faa65","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":50,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"20cda1d0-b4fc-4731-8e05-d7ebe1179ca3","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":50,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"0ee33e82-8429-4d03-a952-f08de227101e","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":50,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"708b41ef-e69a-47ee-ae8b-759bf10df398","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":50,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"5535074e-3ee2-437c-81da-b70cdd8c6c2f","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":50,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"76430911-df80-42aa-94c2-bc2566836685","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":50,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"d93d033a-e8ea-4c90-83a0-e39b2378b0b9","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":50,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"7d734722-7ae7-4583-8921-6f639b528822","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":50,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"5ba01025-0c66-41d1-8f64-4dcc15f494d8","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":50,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"14f9ce1f-6432-4f77-a9a5-fe1ccd644548","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":50,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"816f20c9-2af8-4ce8-8b03-fa6933d59cad","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":50,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"63b5679b-4704-43cc-9b30-7529cf3d054e","block_type":"box","text":"of the borrower.","page_number":50,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"33c07297-bc8f-4b4c-b79d-02ad0482ad19","block_type":"box","text":"II-7","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e4372dec-b92a-428b-8a4b-86c8da74cd7a","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64055eb5-04f0-4c18-8b82-35abe74fbcc0","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":51,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"5d41d61b-93e0-4a13-9734-79f1b7164e06","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":51,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"59c6c384-a55e-4667-bcc2-ef481835e3d6","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":51,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"9a0824a4-666b-4891-84b3-7d74a74f0c37","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":51,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"6ecc72de-39b7-4eae-9b7e-bf414736cbe3","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":51,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"a942fadd-5fcb-472c-97fb-8b6b65e8df7a","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":51,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"6ceb2eb1-2019-463f-b4bd-5e9568767302","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":51,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"0de42c5b-8af0-42aa-974b-0f32c3d35f66","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":51,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"d4ce3c2d-a806-48b0-8220-9c10872abc88","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":51,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"00b97b51-7a6f-4074-8d68-00977ad524ea","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":51,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"29a0f3c8-3f64-4740-bbf1-3637f4ee322c","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":51,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"e66c69eb-7765-4c1f-8310-5ee17a42b179","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":51,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"8d7306cc-d465-4c6d-9d48-62f4fd5341ae","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":51,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"12648547-e63c-4208-a600-5f33931cd3aa","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":51,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"dc43e870-8a31-4ffb-a662-ee502519f41d","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":51,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"a31da15c-6343-4623-92a2-71ec49f7dd13","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":51,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"8cbd9986-04e4-4add-b434-ec9dbc44bec6","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":51,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"cce21364-c35f-47b6-bfea-4eb03f9e70b1","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":51,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"71aab184-0715-46f8-b19f-41b77667038a","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":51,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"49969a75-5d8f-44f2-85d7-e8a404055c15","block_type":"box","text":"state law.","page_number":51,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"efa2473c-ca97-41d3-bdae-80249deca939","block_type":"box","text":"Direct Lending.","page_number":51,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"0428e593-f290-48e6-be61-6cb2182f9d14","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":51,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"b311b62c-fbbf-447c-ad0d-156d7372c3a5","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":51,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"2a20d528-7263-4453-b2a2-d432046158cb","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":51,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"9cc4b301-4c18-4165-88e4-62834738c1b1","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":51,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"1161d1cf-e9d0-4405-8962-28e53894ce22","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":51,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"76256109-feb1-4dcf-82e4-a504616eaf7d","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":51,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"37d2f44d-ab93-4160-97c6-b01b35767ce7","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":51,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"fb3897f5-b95f-48ad-96f7-679cf2af5c22","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":51,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"3a5e0bbf-615a-453c-90d4-31a5fe74f067","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":51,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"6faba989-17d4-4582-b8e1-f30a83ae0a78","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":51,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"0e7b7d46-b87b-465e-a54b-f7a87c72e37e","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":51,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"1266a50a-df2b-4125-8a26-e485a27b65dc","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":51,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"1097354d-9a36-480b-80ba-bb35425b7b53","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":51,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"1a8d9e86-8d4e-4b40-adc8-88437ff333d0","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":51,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"70ecd882-02b9-4611-8a0a-9b3168febe7d","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":51,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"6d9689ed-806f-4d6c-aa04-2f25c2b0e985","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":51,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"77418521-fd6c-4c84-b421-b33e7cb6ad2c","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":51,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"967f1b20-dd1d-4813-9cbf-91c5bacc536a","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":51,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"768bb421-3017-483a-9ead-25b9b1c9ce3a","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":51,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"9e6b8caf-e7f6-40c5-96ed-b10abacbed9f","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":51,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"fc77aca1-5cb9-4ed3-b884-9bd401df7a51","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":51,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"ace98f39-ce63-412c-bbeb-670172d89cf1","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":51,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"76947dfd-2752-43a2-a92c-8a5f55288a36","block_type":"box","text":"Credit Linked Securities.","page_number":51,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"16348285-ec75-47cd-91cb-06381cf480bd","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":51,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"d52137ca-68cf-4acf-9ef3-9ed41e31e777","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":51,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"05c39375-df8c-459d-bdc8-16d78620139d","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":51,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"1efcd656-9e14-4ead-9bb7-2fff1730d310","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":51,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"87973ac5-1e3f-4c01-9fa8-7dc8556e2789","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":51,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"0af9498b-9026-4229-8fed-461994383498","block_type":"box","text":"traditional income producing securities are not available.","page_number":51,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"0e0bbcc4-a3bb-463b-ab29-35cd99db54b7","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":51,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"b99766fc-895c-4cc5-9ab3-32ce8f7fa04c","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":51,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"c72ef593-40a9-4c6c-96f6-5b2e72cbb049","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":51,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"ddb5a7d8-8b97-4b7f-be2a-f87b4a15926b","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":51,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"d2e5a966-ed66-4128-95bb-812e9781cff5","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":51,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"e473a990-8465-42ec-a999-8abeb081e9c4","block_type":"box","text":"II-8","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4fc022ba-12bd-45b8-a8e3-c17aada001e5","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6adf0d08-c6d4-434c-92e9-d9981b8654be","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":52,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"9bd21189-ab03-4d53-b22d-202c4e8fe842","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":52,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"63e11d7d-3c09-4a33-a8f5-64789b70b817","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":52,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"d7e53111-236a-4a91-8168-bc306403b22a","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":52,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"1e817966-5490-4e56-b432-16310607ca4b","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":52,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"10746dd5-42f3-4509-aff1-c43748edc8c6","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":52,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"adf27087-3576-4399-b85d-b8523195d572","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":52,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"8619afac-0f88-4045-868b-d5606574ee44","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":52,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"6fb95665-2123-42ce-85d7-7279a5f411a1","block_type":"box","text":"investments.","page_number":52,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"5dcedaeb-38e1-481f-82be-f9d625728fea","block_type":"box","text":"Debt Securities.","page_number":52,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"782f4581-f4f6-4fad-a3ea-7ec9e9ec9bae","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":52,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"ade9b308-7656-40e2-b081-aef9f55b090a","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":52,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"f84e68e0-313a-4ff2-b082-17ee93e4b052","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":52,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"e1f6f0cd-89f1-4e7c-9124-77900199667a","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":52,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"fb9bd209-42f0-4d92-8096-c9db1a1e12c0","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":52,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"de9514dc-7e02-491d-bd10-6658aeaf7dda","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":52,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"272c4f87-c221-40f8-867a-0d7b93d7c80f","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":52,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"7419702a-2e50-49bb-b81a-a7e17e782eb8","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":52,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"4b3bcdbf-3776-4adc-aca9-0a94214ceb36","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":52,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"55fcbcf9-5114-411c-903f-28d8ae94e8d8","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":52,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"30ac3105-4519-4ebe-a409-76bdef95804e","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":52,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"7b2dc9aa-3b35-4e37-a9b5-8cd2271f5eed","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":52,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"16a0d1b8-51ec-4dfe-80fd-3aa2cfe017ca","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":52,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"7b842cad-2ed1-4357-8517-eb692823736b","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":52,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"baba963d-a94e-47b7-9363-f2b818222758","block_type":"box","text":"lose value. This is known as extension risk.","page_number":52,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"37abd9d7-bbf6-43c6-b32d-cbe02ec9d09f","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":52,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"f936524e-fdf2-484e-ba2f-d45ccec62e80","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":52,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"df5ac0ff-031c-4bc1-808c-f887df64487e","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":52,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"93f1b7a1-4752-4962-99db-3ea8813f4765","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":52,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"24f0ecdc-49a3-4fe8-b6a3-0318410d5e33","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":52,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"c551ea98-71d8-4a48-ac93-b95d3799df71","block_type":"box","text":"Floating and Variable Rate Securities","page_number":52,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"98569ebd-7d4d-4f4f-ae8b-e87881a5a29e","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":52,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"2ecfc4dd-8179-4c8d-9cfb-c91a0a48d5de","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":52,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"27c1c543-bb33-4746-a812-a1433cfefe8b","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":52,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"4641d101-9b2d-4a31-94c8-5fe40c6176a8","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":52,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"029bf1b8-55e2-4d46-99cd-7dbc63250e68","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":52,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"634ab723-288b-4e1f-84be-6ec32ee10a4e","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":52,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"85d739d8-0daf-4ffa-b79d-280bcc86c4bd","block_type":"box","text":"market interest rates.","page_number":52,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"a33e0e28-e03c-467b-818c-e7e3a8fad9fe","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":52,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"d94d6584-f6d4-4482-89bd-a4d082b2ba69","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":52,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"700bd3ff-5546-480f-a12e-3c02984e33d4","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":52,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"a8efbe4f-a80f-4eab-a938-b243f38dff27","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":52,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"f911df99-3cd2-461b-bd7e-f02887b676c9","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":52,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"ee77eb49-5c2e-4dc2-a8c7-691fee913e90","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":52,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"fbfe34d8-7270-4692-b18b-61d4b7c74098","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":52,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"6f98ceff-bd6f-4d40-adbd-58d680678c62","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":52,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"888ae6b1-a357-4bf7-a80d-b69ce7a95267","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":52,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"fb03d8cb-d307-40bb-a3e0-bbe53a9e1895","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":52,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"1d2cb208-9731-4042-af7b-7bead81fb8a6","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":52,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"869eae1c-18a1-4748-9851-61a4140fc180","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":52,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"1081c593-25a1-4a65-8f85-097be14df410","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":52,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"451dbb56-73e2-4bb1-b31c-0fd018cbf976","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":52,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"f8057cd5-c916-4e35-bd89-d47d88f91678","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":52,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"8521f5c8-e167-4acc-b0b5-0624da4a8697","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":52,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"8e4d86df-d712-40a2-bb82-9b7c5701ad1e","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":52,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"4ddded6a-d49b-4b10-95e7-442197c9b76d","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":52,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"b2b7b051-453a-43d1-88da-7ac5b823fa4a","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":52,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"9cf1dd9f-79ba-4de9-a3d7-49e4a9abf008","block_type":"box","text":"II-9","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a7be0676-af21-4355-a59e-55d51f5555f2","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64f65a88-b33e-440a-9e4a-bb9979b9dd92","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":53,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"a4f66e61-350c-40b6-9c04-ab9270385ac9","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":53,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"4c82c61b-32a8-4b0c-937b-c8537c631d01","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":53,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"bf7282f8-0eff-4337-a380-d4dcb321423c","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":53,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"f8a4a7c8-3488-45e6-8a9d-d81128bee800","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":53,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"d91f9cdc-7792-4cdb-b078-109c6ffe95b4","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":53,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"cfbf2696-48f9-488c-b036-a9ad162f77a4","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":53,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"5039fca6-67d7-4831-91ca-8484a665e8c1","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":53,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"e87f5c83-2574-4bc8-b115-2a4297d5395f","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":53,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"781538c2-018b-4a79-b85b-da20c97caf7c","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":53,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"5a1c84ee-6b86-4355-8587-0cae5d541567","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":53,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"91fe9df1-c7db-4b08-b6d4-493f80aebbf7","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":53,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"0a29c7cc-dfc8-4dba-a46d-b88afd1320ea","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":53,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"474a64b9-9ce9-4163-9548-4562602aa9a8","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":53,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"3612bfcd-87c1-4a9d-bdc5-73640f2b6a14","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":53,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"1e87164e-9880-4896-9232-24ddd03ea82f","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":53,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"51566d93-bbf0-46a5-85db-9b1c20d3cb0a","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":53,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"932bcd30-e843-41b5-9623-193c24e65bb3","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":53,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"f49952d1-f7d5-4ad5-907f-63a36f444951","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":53,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"5776637e-31c5-43fe-b3ad-b50027c6b5d1","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":53,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"bd7760ab-1f8c-4413-89bc-ad04ff03a9de","block_type":"box","text":"United States.","page_number":53,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"f76cf0da-7886-47b3-a6ca-5a0d64897093","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":53,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"f1c61980-5a2f-4933-92f7-f22746434b95","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":53,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"76553031-ff28-47c2-92cd-3c794442c0f9","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":53,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"6f023bfa-2872-494f-b65e-288c48b61ab8","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":53,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"0a8406f4-c296-4dd0-83ad-77164aead516","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":53,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"bc449a47-079b-478e-8686-72104845e647","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":53,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"35ac1029-cfec-4983-8520-908a743889f8","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":53,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"4034bf9e-f05f-41e5-9675-0e9b872eb923","block_type":"box","text":"i.e.","page_number":53,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"28b05bb4-8441-4f8d-a6f3-cbb21557c8da","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":53,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"0d6e6d6d-df9a-47c8-a0f0-88922581eccf","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":53,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"75d64a5a-3d76-450c-9923-3af29ada22ae","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":53,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"8380ec27-893c-4cfd-a6ba-3d1773c438a0","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":53,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"7a67019c-b22b-4d7c-9022-f27931bce3b7","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":53,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"68a1c2b1-5588-4f04-9c67-768cf0e4b291","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":53,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"61f9b281-67b2-4776-a6c7-e7d1e8f69c59","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":53,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"a1680d2f-543e-42ed-8350-873c0ca008cf","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":53,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"86a86b19-8808-4982-9e12-071b5be68a13","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":53,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"2c6618c6-997d-4901-a3e9-b444aae03855","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":53,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"b545cec1-0d3c-4d8c-9c36-c6f6dd7d9536","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":53,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"94775abd-a5ae-4fd0-af06-583a5f3fa9b6","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":53,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"9e977c56-cc20-43ea-8d6c-5a100267edca","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":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"59e07eb0-55b3-418a-90a3-ecf82a2e3ced","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":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"6bc8d331-3a7b-4e63-9d9a-19e155291005","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":53,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"09e04c14-6580-49f1-b698-c1e1f84308af","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":53,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"563309f9-cad6-436f-b0a4-3120b404dff8","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":53,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"1002bff1-66dc-4108-9f9e-612ffeda739c","block_type":"box","text":"risk than higher rated securities.","page_number":53,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"40a67929-3a46-402b-ad3d-dabc617fcafe","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":53,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"b713cabf-6980-4fd2-9bf1-88dd20d44fcc","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"7502866d-998a-4b54-926c-9c57508eae3f","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":53,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"e5c35496-9679-4e87-9ac2-b77ca3b13460","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":53,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"c5d3b399-9999-4041-ab0a-0ff3e4ee0ba5","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":53,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"2250c9d4-ef67-4e85-9035-1e48dd942d1d","block_type":"box","text":"unavailability of additional financing.","page_number":53,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"a98a841e-f8a7-4caf-996f-f536b2f9e2d7","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"2710dcf8-2242-447a-8196-d497cb57dd43","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":53,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"04cff341-46d8-44ed-abd3-66ab96b9f155","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":53,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"281eba16-a8db-47ad-861f-6ab5303018f6","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":53,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"11252fd9-598b-4bb8-b23a-7e3f38d2fb10","block_type":"box","text":"II-10","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9c0ef247-0593-4435-9cde-e0d3b62538b9","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70503fcc-1961-4da3-8261-e06d88a1cd5e","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":54,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"ed52fd75-e24e-42cc-b238-684621da766f","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":54,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"71f18f41-e757-45c3-8f70-99ba8451a4e6","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"a61e3a74-9306-44a8-a5b0-901ec449f831","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":54,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"4002138f-c2a8-4099-a218-e54c01ec37a5","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":54,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"7e10f44f-e027-442e-b49b-e9880645beca","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":54,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"cae1f91c-5ac6-4552-89be-d28352df3de7","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":54,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"0a29fd86-db42-485e-b60b-14ad569bb8c0","block_type":"box","text":"investors in higher rated securities.","page_number":54,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"1d531ca1-6f3c-4091-b971-d67fc208a91a","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"40f63f06-7244-41c1-af45-d234549fe0fd","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":54,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"a45fe80f-0e65-4de4-a060-a4efa617d54f","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":54,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"cf86fb7c-9c19-4bbd-817f-275208a5a9fd","block_type":"box","text":"lower yields and may lose income.","page_number":54,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"c3a9c93d-ab10-446f-9d5b-b57bd2895fb0","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"508e840e-4700-4d38-9d2a-2904b152208f","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":54,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"5cc39049-6845-4f7d-b40f-d52bbbe101ed","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":54,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"315eaa94-142d-421a-8bd2-50e711560f5d","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"c3ca58b0-8b61-4d7b-bff6-f1a7ac46ed7e","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":54,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"a603215d-53f6-4316-9de2-97ffb354bda4","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":54,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"f5bf26cc-6951-4eb6-ae4b-2232bc45845b","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":54,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"3d4557df-6ba3-4422-9acd-2eb27b242377","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":54,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"63c00e47-f7b9-4f32-895b-ed2927aae9af","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":54,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"d3accb96-8bd7-4571-b1e4-f8c720b08e90","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":54,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"166d4631-3ac0-4bf0-b721-7d16144376d0","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":54,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"7a98cfa1-e442-42a5-851d-5af2f6bf96d2","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"47f6052d-6d09-465c-9939-4c572c649747","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":54,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"0254ef74-3c64-44e0-82d2-01282b20303c","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":54,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"81af1421-a3a5-45bc-9a97-f61bceef3315","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":54,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"a1d53580-9af4-4efa-ade9-524c60e61633","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":54,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"d82f7143-966d-4e26-afb0-8d5919b69539","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":54,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"db735aeb-d427-43c5-8dd7-3ac97487d67e","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":54,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"fedf628a-6300-40fc-804d-997f969ca84f","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":54,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"f8425db8-6f9c-46c9-b68a-07e60554d8c2","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":54,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"cef28d69-d911-4d4a-9ad6-37ded90de423","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":54,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"c4f3deaf-2f09-4eee-84a5-4eda37d31055","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":54,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"19d73225-be3b-4928-a65a-4e4cf7339de2","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":54,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"5bf0205a-ab8f-4eb9-b1b0-6bfcdf47ff50","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":54,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"8f6eb07f-7952-4033-b5f5-22870ee70d91","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":54,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"8cbc726d-d0fa-4c0f-8114-487ac2a806a3","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":54,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"59b508dd-a1b8-421e-99c9-99f0aca76ccc","block_type":"box","text":"role in determining such valuations.","page_number":54,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"758c4e07-b9aa-4fcd-b31c-59ecbe6d32c9","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"a3e7da0b-1680-4a0d-9cd7-4281847bae7f","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":54,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"af6e225d-520e-4477-98a7-797e94ea768c","block_type":"box","text":"a defaulting issuer.","page_number":54,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"fa194f07-4a6f-447d-af2b-4c7d8d8b7fd9","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"c26a02c9-b4a7-48ae-8cce-4e3dcf62a308","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":54,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"5f339a38-472a-4a54-a989-835e76f34a07","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":54,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"1a441a17-d3ca-495f-883c-491b990950fa","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":54,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"5eab68b6-b605-409b-aaa6-a231a3edb2a9","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":54,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"d65dc570-7561-4a52-9e51-3de3dcc21155","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":54,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"5c95f93f-def0-4848-b4f5-3d2bd953eca4","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":54,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"d367af5b-3c1d-4307-b400-2a97803ee155","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":54,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"89955a5a-1aad-40ab-a83a-8c24864f4c3d","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":54,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"75d2d7df-7eb4-4945-a3e5-3c52a05a906a","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"6941dabf-5bc2-4475-a684-077de5f78f3f","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":54,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"191053bd-b298-4605-8f55-75b4a819ae63","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":54,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"9849eb01-a096-45d7-888c-210319b3b51a","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":54,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"e95d0a7a-fdfc-42fa-b209-fcaad917d31d","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":54,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"0a0125e1-321c-4e3d-bd54-93de73e205e3","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":54,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"03985c29-91e6-4398-b7a3-9564b78911ce","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":54,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"a14687e9-6465-47a1-ab28-6e297ea8aa3f","block_type":"box","text":"higher-rated securities.","page_number":54,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"567446ea-118a-45af-9e8a-0f0bc9a609a7","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":54,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"bc201c1e-af0f-4837-9542-c54367660523","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":54,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"f70c9ca2-8c66-4909-8ccd-5af1459c15fc","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":54,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"bb6b681e-2711-4c16-9ba1-0a6815527b34","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":54,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"592f5954-a7b5-4601-b836-807ebe1052cc","block_type":"box","text":"II-11","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a30bfaee-a5b9-45db-a761-127f5d4b4a38","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"037c44c6-f2a3-4360-87e1-bcfab4b744b2","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":55,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"f5124da7-c6a2-44cd-883e-8d5bb0316b3f","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":55,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"26494b06-c487-4e08-968b-584f21846b03","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":55,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"3f1a74fa-d465-4a19-9fcc-dd3e066bcdc2","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":55,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"4fa2eeef-86bc-4604-ab8a-354797f8d09f","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":55,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"25dfa90c-8f24-43b1-a8f3-3036ae5a8b01","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":55,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"1eb165e0-dfd2-4030-afcd-d44088129b23","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":55,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"cd5741d2-65ef-4e90-a463-4a4792140f37","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":55,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"76cd28d6-e0eb-4945-8299-dfb234d9a74b","block_type":"box","text":"Mezzanine Investments.","page_number":55,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"06a02e03-657b-49ed-8095-ffca9b293e65","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":55,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"51835d22-4b34-474a-904f-334feec90c75","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":55,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"d9136ca9-4156-451d-aa5d-873c0c961972","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":55,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"c9f40319-e665-4d2b-ae72-63b4a9b70db5","block_type":"box","text":"e.g.","page_number":55,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"bda041b8-1745-445f-8cd4-ae3d02b41131","block_type":"box","text":", with","page_number":55,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"25ffd1f4-d6b8-4cfd-95bc-a9f6b2ce2da3","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":55,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"3dbc3850-10ee-4bf9-bcbb-8957d63e23e0","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":55,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"84e0ecdc-79de-4c25-8587-00b555bc6cdd","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":55,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"2a347d99-a638-4ace-82d1-55f67d1f7405","block_type":"box","text":"other obligations of the issuer.","page_number":55,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"aaf5fc71-ce96-4969-b163-2b2130a18f45","block_type":"box","text":"Pay-in-kind Bonds.","page_number":55,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"797be7f2-4059-4558-8e48-f77d51214dd7","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":55,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"3c8af5e7-335f-4c68-a415-b31a7ada8f3f","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":55,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"9f2417e5-d29c-46c7-84fd-3648ae5720cc","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":55,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"f31ab28f-69c5-409f-9c61-d355e070b110","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":55,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"f4914197-c0c2-4ac6-82f9-a3360da6e7df","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":55,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"b0c1afce-08e7-4c33-afd3-cfb12937dd97","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":55,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"bf0769fa-7b0b-4af7-8666-5200355d4a41","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":55,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"c975c287-0d0c-4507-ae40-23106d43ba27","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":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"2f4d2237-39ed-48e1-88cb-0f5a65d33e2e","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":55,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"380cf22a-2115-4ca1-9586-55cf32714e12","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":55,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"046683b6-b38e-4291-8a2d-408b70908297","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":55,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"8f7f55aa-edd5-450a-b287-50e351c2d800","block_type":"box","text":"Supranational Entities.","page_number":55,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"82b81c11-cbd9-4329-be59-f1f94590ba94","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":55,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"f6d349a3-2e2c-48cd-9346-1a6d9d428795","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":55,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"e158af1a-fc7d-4502-863d-98715090c197","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":55,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"e14e6bb9-b710-461d-a614-4964c0f7b626","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":55,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"2f66f4e3-eaf2-4edc-a74c-be24159628d5","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":55,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"0fc148e5-6267-4c1e-b6ea-57c0a263ca63","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":55,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"f5a0e7a0-d3f3-40c9-8b24-38b02f7edc14","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":55,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"92317776-1482-4c7b-96d4-a97991254b11","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":55,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"4291d899-f9cd-4a22-9c79-097669e9770f","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":55,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"b861e155-358f-4a4f-bb34-dbfe899442db","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":55,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"0a4149b1-e695-4cdf-9127-a169718635e5","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":55,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"4f7af752-d918-4d5d-b7e0-122cf298e834","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":55,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"80a75bae-756b-45e8-95c5-07b68f645a63","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":55,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"574f2039-6017-4fa7-8286-718f44fd97cd","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":55,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"e1b817b9-1a5a-4c2a-93a7-02e611a31acd","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":55,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"49ecafe9-1ccf-4b26-b308-da8d6b7fc2f9","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":55,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"ccff5864-3cd2-4c60-b9f8-098c0af4d996","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":55,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"7c53b290-88e6-4d69-91ed-c3b4fd2a270c","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":55,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"dc424dec-8d5f-4b26-9088-1bfafb3e711d","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":55,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"d62e3d35-2255-48b8-aa69-2b8de051594d","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":55,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"92e0b5fe-8695-428d-bfb5-596ac2f12541","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":55,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"06824a00-1a76-48bf-a285-33e2b4964435","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":55,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"91257650-81cb-4157-ba33-c4723860e27e","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":55,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"794b25a9-06df-4d4c-9dea-81ee3784c7c1","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":55,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"1e8b04aa-3815-4ac9-9f85-951737dd062c","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":55,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"3f6dc5b8-e75e-49f2-8034-520e5837d4ad","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":55,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"3a1a6157-7bc1-4e79-9986-1279a585b2e9","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":55,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"36ccdbe9-fae5-4f39-b2af-3d603619d420","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":55,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"2040f634-6e50-4c9c-a8a7-1943235e1afe","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":55,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"1bc43371-e884-4a0d-b532-2a563744928f","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":55,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"a92f9a06-3919-422c-a3f4-dfb5b4bceeef","block_type":"box","text":"II-12","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"50edcd58-3084-433d-af79-bbab8b4f4a42","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f07c6034-8bea-40fb-a540-053321562c6f","block_type":"box","text":"Derivatives.","page_number":56,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"189237bc-25ea-4144-83c2-74b66462218b","block_type":"box","text":"General.","page_number":56,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"185cae52-d030-4488-8f44-98fabc8bf15e","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":56,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"b4c8c24b-ef81-497f-9599-989019047a2b","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":56,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"97d1aa65-4465-4784-b2bf-40f7bb3937ca","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":56,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"77125f18-0ce9-4f25-b342-291ec76ddcc4","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":56,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"674b60e7-b798-4c49-a9f1-6784158ae948","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":56,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"35050c31-e51b-49e8-9c58-39a49b479a5b","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":56,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"fa7a34f3-29d1-4c58-8720-fc2cda40406f","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":56,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"f1abdd40-b2cd-4cfd-aee1-3112c614446c","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":56,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"bc887a40-46e1-47b5-b98e-932bb0c63771","block_type":"box","text":"i.e.","page_number":56,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"6744ba2f-ed9a-43d2-a8cc-0bf28b614b58","block_type":"box","text":", the payment","page_number":56,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"f1791e4e-a505-4d4d-9df1-3a4a5f56d8fe","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":56,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"5923a553-5013-450d-ab3f-8117286e8086","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":56,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"3190cb3b-6da7-4ad0-b851-0fab3105b3d1","block_type":"box","text":"Hedging.","page_number":56,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"ba6111eb-ff52-47e6-b668-1f77d414a9df","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":56,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"b6cfe485-742c-4dc7-9260-ce82b604b09e","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":56,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"61bf741c-247e-4b6b-a0a3-0a712917966e","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":56,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"0333ce6f-62a8-4766-af47-338c9f78d4f2","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":56,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"31d516b4-64de-49b1-aaeb-7f4c3ac79f62","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":56,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"fedbf007-a61c-4765-9213-a707975fa072","block_type":"box","text":"correlation risk,","page_number":56,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"24e9ec2e-928f-4ace-a77f-99cfc0277dac","block_type":"box","text":"i.e.","page_number":56,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"27bc6e47-2bf7-46b4-8ad4-62a78af69e4c","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":56,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"40c2674b-ea98-4688-85d4-9fb31dc8f307","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":56,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"90edc1c7-238b-45c2-857e-bb2d40a31737","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":56,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"bb47ccf9-8b7a-4dac-9ce0-834b2c58bcae","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":56,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"3beb4959-bf61-417d-bb7d-86027769a704","block_type":"box","text":"Speculation.","page_number":56,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"18131fe4-965f-40a4-a650-43c605e7c098","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":56,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"b574ea90-2143-44e8-b506-5f3ba9b70ac1","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":56,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"feb27ff7-8ce7-4e72-b6e5-cfb64d2ed498","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":56,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"49342ed7-8593-4ae5-be9b-2300f45997a4","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":56,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"adaa9206-bfea-4ceb-aaff-40cd9bd6786d","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":56,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"0105206c-1c35-488f-9c66-0efeb18f097f","block_type":"box","text":"Regulation of Derivatives.","page_number":56,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"3adce5d1-63e1-4436-bfa9-24766752ceb7","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":56,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"a1a3ba6e-8481-4072-bbc7-92b86bbc7e4f","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":56,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"e456484b-433f-4237-9fe7-31f28252553c","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":56,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"6993d8e9-ead8-4c6b-99e8-316051785e49","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":56,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"f333c52d-4fbe-40b1-984c-77c59b35e013","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":56,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"841d67b0-7acf-4c78-90dc-9eaa87e3e321","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":56,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"f3bebe2b-0e18-47b4-8807-3ae9c3e1554e","block_type":"box","text":"coverage”).","page_number":56,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"4f5f8699-4065-468b-aca5-0595876e9383","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":56,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"df2eb4cd-6ae4-4bf3-a135-fcde193c7479","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":56,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"a7502187-d5b4-4e12-852a-5b1c4a1057de","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":56,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"aa33f4f7-6489-45d0-b551-58d255255d9d","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":56,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"8fd5e5f2-bbf4-4897-99a8-2c7b977b9a46","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":56,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"66aae7ba-b5a2-4673-b2b5-2dcb42bfb790","block_type":"box","text":"financing transactions (","page_number":56,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"88d22afc-ba3a-4cb5-9f3b-b866a42a34c9","block_type":"box","text":"e.g.","page_number":56,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"59065bb1-f09e-4f58-a557-000bd68eca0d","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":56,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"e04bbfb8-a13f-4dce-a368-5797e109e599","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":56,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"2c048914-d060-4afc-93d6-26813affb9f9","block_type":"box","text":"securities (","page_number":56,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"47e95bf7-ed27-4cfc-8407-58764ad1c8e2","block_type":"box","text":"e.g.","page_number":56,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"2d2bf9ea-2698-4b33-b2c5-6f4900db6eb3","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":56,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"afb2c40f-b45f-47db-b18e-f99de5b09fcb","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":56,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"d83c3a82-201a-4ca8-a6dc-9f841cdb22cb","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":56,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"21b359cd-7374-4b69-b9ac-8171a2c4ba41","block_type":"box","text":"Commitments”).","page_number":56,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"19bc2900-b4f4-44ea-b502-c53cca11b7ff","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":56,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"ef9ea21c-35a0-4dce-a935-9a713c73f484","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":56,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"e54ed428-09db-45a5-b34d-76e716ad680f","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":56,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"69774a0f-7b85-4ee9-bcc6-3dbb28b84f50","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":56,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"35e0bed0-3959-45ba-984d-fca6553100f4","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":56,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"6fde5935-dfeb-40b0-bc13-8b7f28d4666b","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":56,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"43765f25-5c1d-4a60-9e07-465ab64a9781","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":56,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"858fa189-74fd-43d1-a29c-4a4dda0e10c0","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":56,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"5696a026-8f03-4a7d-928c-160d37ec3164","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":56,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"515b3ec2-8c0c-4a8f-9436-bbc476a3459c","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":56,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"fdf82a34-f9d8-436e-8e02-84004bd80b15","block_type":"box","text":"II-13","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6005dc2f-6a85-4036-bff3-618281e9cf96","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d8560308-4450-4afd-b631-7cbce3ca8c9e","block_type":"box","text":"Dodd-Frank Regulations.","page_number":57,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"5deaaf1d-e39d-4305-b13b-7bda5c0ec8b0","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":57,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"fdb0d591-bc3c-4acc-9458-963893dca8e2","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":57,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"c6430ae2-28ce-40c1-a00b-b4960ed8853b","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":57,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"c60c6ac8-b510-4212-9c1c-15291fbb061b","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":57,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"4d6b4fba-4dac-44a4-8d93-81fe0995ea39","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":57,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"9575aca8-dfd7-4d53-9fe9-9f1fa2f27ba7","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":57,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"fa3b4607-42a4-473d-8f17-a6f9e20d9da0","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":57,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"84a5184a-71f4-4d9f-9526-6bc29a54df5e","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":57,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"3f6647e8-6945-4e97-a53c-89d4b6de0e7d","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":57,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"19eed6d9-95ac-4441-ba2c-b13eecf4668b","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":57,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"92b6fefb-0197-45ab-8e37-316f74daadef","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":57,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"969af86c-7d40-4aaf-a8c5-c3a8db54dd0a","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":57,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"e513d7ee-ba99-4363-8cbb-a4aa0615fe56","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":57,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"a8402eee-d45c-4ff0-b66d-9fc9b4568c76","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":57,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"0b6e814b-5386-4e53-8de1-8d3ecedd3973","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":57,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"d96c08d7-1fbd-4d29-8598-a782fd683091","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":57,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"2b2392ed-0d9c-4a9e-bc39-29719ab55665","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":57,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"069d16b5-55b9-4876-860e-dab159983fe6","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":57,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"ab2ae149-f3e1-42fe-ad23-2d4eca71a6a0","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":57,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"511701b7-d9f7-4916-86f9-395d0f53274e","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":57,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"4d1c41f2-75af-4b66-921a-d56cf4d451e7","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":57,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"ac7aad80-002c-4685-9c0d-78880420ebe5","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":57,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"aadd2498-e9ec-421c-9fc4-f42c89638a2e","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":57,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"99c1168e-c7cd-493c-94d5-6eeb652573d8","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":57,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"d8ea8ca7-43de-4e92-9679-78445cb0ffc7","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":57,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"c6b7237d-68bb-47ee-8df6-7f75364694a1","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":57,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"ccf99cda-57c2-4e8b-8e3d-87e9b902e751","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":57,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"458e409b-ac85-4d5e-97a8-4257cae4b799","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":57,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"62dd0e42-6b78-4f2a-9843-b644262d8320","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":57,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"f40704b2-185f-4907-bf32-5f76ac61d950","block_type":"box","text":"member.","page_number":57,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"880f58c9-662e-483a-8c9e-52b3ebbbe015","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":57,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"5548e002-77d8-410b-b5de-ab245d45eaec","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":57,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"920a63f8-e37e-44ed-b707-50ecac34b5c2","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":57,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"5568c1ce-765c-40ee-be50-5c05a50087b6","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":57,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"f19afd0f-0d26-48fd-9c3e-2605c6649742","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":57,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"4ab294f3-55e2-4136-8d10-677d65bc3509","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":57,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"6dd03f82-95a9-4f76-b327-35c3f4082e1d","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":57,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"e902b764-83fd-43ab-99f8-314bb94df5e0","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":57,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"9e8167c2-b5ad-4047-9d9a-bb5b04ca5b55","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":57,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"23e8dafc-a4e7-4a35-8b8e-a27862f326d9","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":57,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"c3eeba5b-aebe-43b1-8b67-d6498e7270a7","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":57,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"2c75ad78-82da-4ae0-9ad1-0b2bdd2b8913","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":57,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"e8254753-42da-4574-84a0-481eaa0201c9","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":57,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"b6a6c4ee-94f2-458f-86ae-abc6b37e2cd7","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":57,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"154fbe35-98e6-4041-8bf4-871b7ff68880","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":57,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"bfdf80ab-a0a4-409c-ac1e-567be702b832","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":57,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"6f7d70e5-5d3f-4a6d-b250-bceb2ef960cb","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":57,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"7a4d5992-e95e-4641-adb1-9f87e4b76976","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":57,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"6b6e93ab-c2cd-45a0-8bd0-ac6bb7d939b1","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":57,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"9160587c-f888-48be-88c2-dcad3271edd6","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":57,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"2586ebfd-2a05-4635-985b-2aa05b2a5126","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":57,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"0e432283-42a5-4527-93f4-3cf4407da2db","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":57,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"0282241a-3441-4506-a088-d16871747bea","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":57,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"0b431a68-1859-48de-902d-555271c6f738","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":57,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"fd0ccd1a-ae16-4d0e-9be4-ccedfaed8a31","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":57,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"b3a9b341-2e08-4ef7-8e69-fafb8d8b0c34","block_type":"box","text":"II-14","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"783e6868-1bba-425c-9c5e-900acd11b6e3","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a19b01b9-4c89-4ef9-95c7-2a5bbc02cb63","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":58,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"97760ed4-76e0-4405-a5e1-5af752296dc3","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":58,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"b5af5c6f-3c1d-4bcd-9688-ba0e2c11b995","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":58,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"fcf59a96-dc13-40e9-8df0-ad08f7cb6a14","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":58,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"66478ad5-cde6-42d4-8185-b135baa9b2ba","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":58,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"25ae6596-3e81-466f-bcdd-93851a93cf71","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":58,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"77c92cc9-f97c-4278-a4ac-aa05313c2a1d","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":58,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"8ce2e09e-6e1c-411b-a31d-6fce65ef4df8","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":58,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"65180ae2-401a-4e6d-a162-f4c5e514beb9","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":58,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"d8a564ff-9f9e-4b07-bd5b-149c7ac70a42","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":58,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"12f2024a-2faa-433f-8e79-fdbfbb1f8902","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":58,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"ebfdaced-fd2f-4aeb-a25e-6525a44ab191","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":58,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"9b109764-f35f-468c-8e00-04fc91f973b7","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":58,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"4d64c315-5d3e-4043-8dfd-5e180b070a0c","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":58,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"20f7bea9-327b-4a27-88e4-759be1c9b7ea","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":58,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"36c93ef9-9822-4dbd-be48-650d6c6c3bcd","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":58,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"1e62b4ef-6725-4711-88b8-7e450cb6b9c7","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":58,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"52f15588-7081-4c80-97f1-6e0b6f874091","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":58,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"0aa5f10f-61f6-4361-934d-28d140b8855e","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":58,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"f87dbc8d-6c7a-4773-a8be-7792670bd7a8","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":58,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"34e2975b-c98f-4d7c-a935-5726f85dcda6","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":58,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"1e96dd59-7988-4c03-8fab-a180e3b5761c","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":58,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"c312dd76-aed5-40a3-813d-7a894561fd4f","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":58,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"7fdadad4-f5de-4a8e-a1cd-acdf4f31f6e3","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":58,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"ce362059-07e1-4cbd-b5c9-b2dabaef948e","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":58,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"11499bcf-0d2f-4fac-bf8f-2e405c659065","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":58,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"cff16475-5efb-4190-b565-45c330cc7aed","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":58,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"80de1cc5-23c1-4da0-95bf-a5f417989e2c","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":58,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"a18a8388-fe34-466a-a37e-38ac6e4fb8cf","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":58,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"f8012600-fbe1-419b-bf95-05a537ee1060","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":58,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"c6ab8346-399d-4dd0-9b4a-704a052c25f2","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":58,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"5ed666cb-8dee-4292-97d7-65db9ebd63d0","block_type":"box","text":"collateral received under such contracts.","page_number":58,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"ad7a6e3b-342e-48ba-b008-16bd1d864ad2","block_type":"box","text":"Risk Factors in Derivatives.","page_number":58,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"ca7c2451-04e8-4269-9872-b101e74948dd","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":58,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"4bb83014-bbf1-4e82-889b-503bf4993cd9","block_type":"box","text":"Correlation Risk","page_number":58,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"d9a4c93d-3052-4019-8112-bb6effbd338c","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":58,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"7ebf4792-829d-4030-ba13-8c6b2fcd0981","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":58,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"c0450b7b-9bce-4f64-b1f2-589824a28301","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":58,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"fea01a5e-364d-42fe-8daa-49ff88eda200","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":58,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"b2bc6e86-e53c-49e3-8177-43951e0f8c95","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":58,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"4159440b-ab95-4804-bd9d-ca8ff33baa1e","block_type":"box","text":"Counterpar ty Risk","page_number":58,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"f8218fd6-e34b-47e7-aa17-02884bd24e6f","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":58,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"1bf95a98-09f7-4ad8-b500-eff20365e9f4","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":58,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"42984561-ab69-45fc-b134-4de06a6d18f8","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"1af4e80d-e49b-4a0f-827e-5e8f00cd024b","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":58,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"34d0670c-fe9b-4da6-b178-84c36afd9135","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":58,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"a4bd2943-492e-410b-8609-6e7873abe681","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":58,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"a9b42285-2744-492e-b7a0-678765e9c56d","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":58,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"b5dfa48e-1dce-442a-be56-37cf2520d451","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":58,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"25181dee-56e6-4d0d-8d09-b966797cacda","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":58,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"86a99d2f-ba7c-42d5-bf52-bc07c6f72d3c","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":58,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"6535808c-3046-43ac-9bb4-1f8098bd6f27","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":58,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"7ea7a5a5-0dd3-4635-b46b-49c1e9baeaf9","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":58,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"c374af60-16d6-4a23-9803-d2ebdc186a9d","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":58,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"231e20aa-7987-482b-8ba2-3a518b2836a9","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":58,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"d0006d49-453d-4c62-ab29-4b2f1f5f0967","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":58,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"8f81c69e-3af1-4aaa-8108-992f54834473","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":58,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"de476560-5498-4750-87e0-1ff76b4ca562","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":58,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"3f67e487-bd7d-4299-a340-c20311f82b17","block_type":"box","text":"II-15","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63dabf78-3221-4d29-a4ec-a23fbc71f750","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9798b03-7a6a-4e82-b274-e5287edead2d","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":59,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"909d6e7e-11d4-4978-8bfe-9dccc6f86dfc","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":59,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"808cb95e-4691-4de7-a7bb-4cd3d6408c0c","block_type":"box","text":"by the clearing member.","page_number":59,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"1d8608e0-0620-44ee-9b11-99b277351198","block_type":"box","text":"Credit Risk","page_number":59,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"e2b12e88-3ec5-4948-9e2e-01bd6a8b5b3c","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":59,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"37ac02fa-38a1-464b-bc30-1fd3a6192b43","block_type":"box","text":"honor its financial obligations.","page_number":59,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"8dfa0b14-2514-4d0a-88e1-1e5cc76f50ad","block_type":"box","text":"Currency Risk","page_number":59,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"19e0286b-7160-408c-84a9-c19e4f67dc1e","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":59,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"37c1fc65-3b5b-4b8c-aead-ae2f98cded97","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":59,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"c6ecf9c0-fa5b-4153-b950-9f9ba593b474","block_type":"box","text":"Illiquidity Risk","page_number":59,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"41e41cd1-8506-4b81-b796-8aa1ec8d0a58","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":59,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"1bd6b8b7-69e7-4de6-b684-ca7c16c3bd7e","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":59,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"bda94331-ab3f-4fe8-936d-4230d257516f","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":59,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"949c3a26-6368-49ce-a01e-f01b7d69a4cb","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":59,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"fb0e7c9d-606d-4c3e-a7cf-d3546d91150f","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":59,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"feda7496-ccc9-4bd1-9ba0-d6bc5f1ae11c","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":59,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"50f3b7a9-d005-4daa-96ce-afb22a6826cb","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":59,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"f914ac99-c154-4bc9-a4db-29347ea5eaee","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":59,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"c58c677e-27ae-4347-b9cb-0a7ec73c9f74","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":59,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"9c17c3e1-4fe8-483c-88a7-c5f3005f19bb","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":59,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"50a1f79e-714c-4850-9cfe-c62844030652","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":59,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"3a814098-bb8b-41f5-ae82-b17613812e9e","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":59,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"54f60968-112f-4047-989e-0233fece726a","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":59,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"f4cfa231-c631-416f-a4f4-da1bd96076ed","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":59,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"ccd678a0-c675-40f8-ab40-9bc89b617cba","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":59,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"6f77bab2-6bd6-4114-9d23-8ada895aec10","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":59,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"28b67b73-ca87-48cf-bda3-76fbb7181f43","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":59,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"63632563-5869-447e-8945-910faaa61797","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":59,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"8ced2776-5de4-40ab-97fa-7bccf13043e4","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":59,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"2f971e50-3b70-4fff-946a-6c478dc207e9","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":59,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"66810168-0f1c-48a0-9a5e-b4e6aea17d0a","block_type":"box","text":"may be disadvantageous to do so.","page_number":59,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"6a371d46-c72c-4a00-abf8-b0580e8f9033","block_type":"box","text":"Index Risk","page_number":59,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"79f109cc-63fd-415a-bb65-1e54718c6103","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":59,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"7051db31-dc9f-4b07-95e6-903faa10550b","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":59,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"46d1ba09-b967-4965-b52a-847c810a56d9","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":59,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"57673c8a-e8ca-4538-b6cf-1fcf00ec0c5f","block_type":"box","text":"Legal Risk","page_number":59,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"966ab650-52fc-4a6b-96da-7d8fe766b88f","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":59,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"4d7ada46-532a-4e49-a405-1a53025fe793","block_type":"box","text":"or enforceability of a contract.","page_number":59,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"afcd859c-cf91-4717-ac1c-96cb5c2f50b5","block_type":"box","text":"Leverage Risk","page_number":59,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"f8c48854-24b1-4451-bceb-70cd95838b97","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":59,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"61576840-abd6-418b-96fc-c7ec3ba45d01","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":59,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"b64ff305-445a-40ae-a05f-249dae4c7ead","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":59,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"c6b77d00-9447-465b-9af0-46dcfb2cf00b","block_type":"box","text":"Market Risk","page_number":59,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"d5bde558-d59e-4a61-b259-d307bce0f466","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":59,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"1ed65460-95ed-48c7-bdf5-abf915054210","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":59,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"6fc30dbb-da60-4d3b-b669-11c75d992e64","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":59,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"e333918c-961a-49bd-9df4-75dd27460e8d","block_type":"box","text":"affected.","page_number":59,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"8899349b-b2df-43a8-a0c8-b8513df483f0","block_type":"box","text":"Operational Risk","page_number":59,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"8c569704-ab81-4892-b793-4a8eabfbde8d","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":59,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"bf5b656e-2979-474c-bd78-3a17a0e6717c","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":59,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"e04fd1d3-c2df-4f83-be25-7141a5273b8c","block_type":"box","text":"Valuation Risk","page_number":59,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"0e88e9e7-ee6c-4e03-9045-ea0901da9a14","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":59,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"cbfe9024-4e13-4516-b693-ab20c0746c59","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":59,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"ac813891-3376-485e-a033-3f8aaf418965","block_type":"box","text":"complex instruments or quote prices for them.","page_number":59,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"ba3d9544-7b67-4748-9a52-3b0c4ceb05f4","block_type":"box","text":"Volatility Risk","page_number":59,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"99526a8a-cc91-4b4b-8af0-70695822031a","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":59,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"590342bf-7fe0-479b-88af-7d358c580e9e","block_type":"box","text":"Types of Derivatives Transactions.","page_number":59,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"67493d74-bc6d-4af0-b6cc-6753f1bdc3f9","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":59,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"02e9511a-91d7-4221-a262-2b1704cbccb4","block_type":"box","text":"including the following:","page_number":59,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"1e862133-4551-43e9-aabf-d7dd62bfb681","block_type":"box","text":"Futures.","page_number":59,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"79cc2969-120f-45be-bd7f-66f46c234c36","block_type":"box","text":"II-16","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6d84654c-59ee-4e42-9223-cf57d7362f5d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2137f177-29cd-4dd8-bc56-3a0c07f26ce5","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":60,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"552c8164-e971-4055-a4a9-451127d8e622","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":60,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"938f2470-d859-4471-aae3-c0a18c44ebeb","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":60,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"41d00203-9a6c-420b-afc9-782c8922a6b5","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":60,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"401bf5d2-ed45-4dcf-a1bd-157d9f5b3da2","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":60,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"48ae916f-3730-4e39-b492-ee9b2191ce8b","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":60,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"c78a3887-fcc6-4cd1-940c-c516b571d470","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":60,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"0bcea4fa-85f1-40d0-bf5b-b2c639e7ca25","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":60,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"1d1f97a9-127e-4dce-a931-7bada16b120d","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":60,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"fdd5b7b6-c595-4bfd-a80d-831c27cfef33","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":60,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"bc6c4b37-a237-42ae-9f26-6b455850f8a0","block_type":"box","text":"of the futures contract.","page_number":60,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"e46e5494-13e5-4a57-912b-c14c47f5a5e8","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":60,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"0e2ea227-6e45-4586-a98f-3429222c7d1d","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":60,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"625b1784-6cb2-47b0-875f-a63540274636","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":60,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"ad751af3-fc6b-408e-8410-6dd8de7b5460","block_type":"box","text":"relating to the futures position.","page_number":60,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"6eee64a0-d57e-44c9-a1c0-d0d12a3c3017","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":60,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"8398812b-6137-433c-b5b5-e4d0ebe82d07","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":60,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"d197e682-a02e-43bb-9e0f-d5e754f4bd45","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":60,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"275b969e-31ed-480c-9eb1-3e4b134ffae9","block_type":"box","text":"Regulations” above.","page_number":60,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"989d4659-b468-4bc3-9406-93cab9a2a603","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":60,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"b0a48d43-6868-40e4-a66c-a8ac782c0421","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":60,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"26a8bd2d-792a-41b5-b562-e3e4a3bb73a3","block_type":"box","text":"(","page_number":60,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"afb02ff7-a168-4e77-8b4c-e3d8b9ece0a1","block_type":"box","text":"i.e.","page_number":60,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"04ae7386-e777-4679-9648-680ea44bdabe","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":60,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"7cb8e424-d877-4b94-8019-d9a728371d7c","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":60,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"8b26e6f3-6abd-43b7-9a8f-def2af4860b7","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":60,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"54f629e2-308d-4eee-9296-00772bd0a591","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":60,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"74d04e23-d7d7-485e-9d9e-e0185ed2cc87","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":60,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"9384412c-3ef5-488c-8a8f-eba6fafd87a4","block_type":"box","text":"Fund intends to purchase.","page_number":60,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"34bd00fe-3d91-43d2-b1fc-d89a7628fd39","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":60,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"a56d8424-b9dd-4a21-86ad-7faa2a6ed593","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":60,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"2184a66e-58e9-42b1-992c-13893b0dc556","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":60,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"ec263726-5b04-4553-89be-8099e8afdcaa","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":60,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"234fa0d2-ebf6-43b4-8588-ecfc4663a9af","block_type":"box","text":"illiquidity.","page_number":60,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"7c823421-701c-4800-a26b-ef47c4cf11f9","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":60,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"bdb693e2-019f-440b-a9ff-56957287be77","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":60,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"44b07020-1712-4318-8402-71f98e6e2290","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":60,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"dccc001d-b27b-471b-b7e0-8c02974212a1","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":60,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"6e28b8fd-2c66-47fd-9429-a71258269333","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":60,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"2a1ee6f6-9b2b-4f65-a141-2adafc600bc5","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":60,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"8d741a6f-4113-4b59-8344-cb152e2b409d","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":60,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"551c4b96-926c-400e-abd6-4c8d9395b268","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":60,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"31b5e2ae-c35b-4c7c-bd62-a8b462022ade","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":60,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"ec104b3f-de77-43fb-b832-6d270a8419e4","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":60,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"b12ab10f-60d0-4256-abfb-199a6721cfd8","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":60,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"f9a1b420-1a64-486e-85b0-23d21ee04bca","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":60,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"a68cc247-b5d6-45ed-baec-b62b04049d53","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":60,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"6464b225-7164-4627-b0c8-022d3148716c","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":60,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"51aea876-0523-4192-ae2c-94974a81f25a","block_type":"box","text":"Swap Agreements.","page_number":60,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"8cdd0954-e685-4010-a204-f1b5693a7900","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":60,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"57986b64-49e6-4ef8-952d-0cb835520861","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":60,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"7efff671-3da8-41e6-a9b2-e53be7405177","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":60,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"a06debd1-0c70-4157-81bf-37d0ea4d49b5","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":60,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"9126bd7f-71ba-4c39-a7a7-ab97bfae77a8","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":60,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"e5c3de2b-dbf9-4609-acdc-55fe05476274","block_type":"box","text":"a “notional amount,”","page_number":60,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"e579bd40-191a-4c56-9273-d73e3233ccc4","block_type":"box","text":"e.g.","page_number":60,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"d03420d3-b2a7-4d01-b9c6-7c4e75d08a20","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":60,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"d2ee5574-3a60-4adf-9945-5d3cfc1791d1","block_type":"box","text":"II-17","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5b3f723c-30ec-426c-8bc1-1f93905c1243","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43f45ee2-f0d1-42cc-b9f3-2bb781f6697e","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":61,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"6af4ae4e-f02c-4494-8015-40ccb5f59bb0","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":61,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"d2ee9b97-210d-4d34-9852-87e4f7af4e27","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":61,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"89dd5593-39a3-46d1-9850-e5e17e1ba38c","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":61,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"4fe92640-6b70-4a5d-929c-37984efdee08","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":61,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"972e69f2-d44c-456e-ac30-479c4331fd54","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":61,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"3fb209a4-2494-4658-bf1f-dc02dd566ac5","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":61,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"30bec1a1-58b4-482f-920f-437a0950125a","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":61,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"574498d4-f312-429b-91fe-9f0a1b0b9e62","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":61,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"0ccba594-3063-469f-82de-9665001a83d5","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":61,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"77cb9c00-baa8-4f3e-b098-ec84e03b28dc","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":61,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"074f5f19-294a-4826-b60f-2f8103667978","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":61,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"3eaeef6e-4400-4eda-9744-3162cdcae31b","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":61,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"74b15c76-dbd8-466e-882f-22d064cdcadb","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":61,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"b0636b21-ca9a-4021-8f97-bf63a2185802","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":61,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"8b398734-1b8e-42b7-8f16-eef5a9cab415","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":61,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"afc5e2d9-03f6-4231-9f5c-c024f966afa7","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":61,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"57d2f0d1-03e0-477a-8246-1cc2827183ed","block_type":"box","text":"index CDS.","page_number":61,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"30fa3e31-bdc9-42ef-8c1e-6e6b063ab162","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":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"7f48dda0-7567-4c8b-bc2d-6977d1d92231","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":61,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"a1127f22-874d-4e82-8fe4-02743f9fcc6a","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":61,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"2c142b3f-7740-478e-93a6-39bdf5bba461","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":61,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"0b44782a-a340-432a-b600-9f49c073afff","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":61,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"bd2f3803-c614-4c38-839e-d9de0ee41a4c","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":61,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"987766a8-aa52-4bc0-9ec1-d035d02bb153","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":61,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"c540d94b-d1f8-4459-bb7a-ea7eba0ff09f","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":61,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"cbe63b56-6033-4e8d-880d-b08b8647789a","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":61,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"d16df88b-2b3a-4e97-b467-1e067af5dc2f","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":61,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"214b3ede-7772-40ae-b2d1-47e5b58dfa73","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":61,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"4081e49e-8d2b-41f0-ba4c-71f1fd1ba2d9","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":61,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"a1f71d25-59bf-45d3-a1d4-c71a8542b3bd","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":61,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"91670b9a-37c8-48cd-8a55-b02aea05e6ea","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":61,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"9d890289-2a06-4100-afda-cc87b7194a73","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":61,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"5f9ee496-9917-484b-b0ba-c05e450aaeb4","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":61,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"d6217589-5fe4-4987-ac21-8ff4f893c6e4","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":61,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"6e80723c-90c8-4aa9-850f-9cc691a9e587","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":61,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"7d39d4fb-16f7-47e0-8f63-80403003a054","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":61,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"83182322-56f5-49f2-915e-a5ed5d608050","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":61,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"991bed57-baab-4b6d-b283-af484479b315","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":61,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"93b9e194-53ed-4524-9575-654d249bbccb","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":61,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"1768f8cc-0534-4da1-8318-5642e8195244","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":61,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"a5b41ac0-2f7b-473a-ac15-3f50935dee8e","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":61,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"3e146d6a-a84e-4dbe-899e-e20e9a4df36a","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":61,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"d39269ec-dfe1-4b18-8968-ce789f7bdc98","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":61,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"f222d8e6-3e6a-48de-b798-9c7cd3fb1c1c","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":61,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"d6375880-7403-4823-95f0-24bcca3cf91c","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":61,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"8343da49-7321-415c-ace9-2655e661c1eb","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":61,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"caa3b4c8-b69e-4b5a-b559-94c0e2de48a4","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":61,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"baf88627-d6f2-4fcf-bc13-d9fef29bcef1","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":61,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"f0ed623e-db25-4070-a355-8a5d4813d8a0","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":61,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"43932d74-eb58-441a-9ec7-b341c7432332","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":61,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"b302c884-5d06-4773-826c-b6f8e334eec9","block_type":"box","text":"conditions.","page_number":61,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"89f986c4-67bb-4b0c-a5bb-840c4a7b81b8","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":61,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"8d3a7181-59c8-43e5-b99c-644e7340b41f","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":61,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"d666c959-43ff-4937-b8b2-ee0486748f06","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":61,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"1b5e88fe-1389-4a6f-9a89-515fc46d30b0","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":61,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"64703090-e557-432e-9ba5-4bc5e13a8197","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":61,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"912014b9-034d-40c5-8e18-d052b66d1fd1","block_type":"box","text":"II-18","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca1b5384-8b95-4a6c-bc99-50e14b63e350","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51ff5e05-9f4b-4540-84ca-5d3970e6d9f1","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":62,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"dac2aff6-a6d5-48f4-8237-ff09a7c7d66e","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":62,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"d76bf2f3-f84e-45bd-8786-3ec0d47a49d7","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":62,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"4ad93cb8-f39a-4c23-be34-29bb32a9d05f","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":62,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"54a5aad7-8233-48a8-9346-c6ee94a32746","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":62,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"727f8cdf-7074-454a-8d9a-6e5a8f279b3f","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":62,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"20602013-695e-47d9-96fb-6c80db161ef2","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":62,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"b6993b26-26be-4f3b-b6d4-8756ff90a891","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":62,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"7e770c68-920d-49b3-a44a-d8534330ad1a","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":62,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"849edb9c-b06e-4f4c-a22e-e995508ea295","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":62,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"a663991f-14f6-4e80-bfea-d1bb40e7c8c1","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":62,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"0d961d14-68b3-4764-ba04-303193985916","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":62,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"e1da3ff1-2dc3-4b09-94e1-f0c693a38439","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":62,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"86477ac6-84dc-4c4f-bec4-0761a0da1dd4","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":62,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"b92c2913-7833-4c54-951e-1982b7991cff","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"67ff4756-0287-4174-b7ce-a96d42e46ddb","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":62,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"0558ec76-a3d8-4ba4-b487-a59fb16fd1d9","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":62,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"ad3eac60-dcaa-4bde-b4b0-2a981424e302","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":62,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"2fab89b9-434b-498b-bbb0-375d7ec65652","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":62,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"afa27f41-c214-4f05-8669-a5678b893bdb","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":62,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"4c8398df-9f00-4809-a6a3-f000ecfbd60c","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":62,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"d944769b-e57d-4bcf-b8b5-e76445ab548e","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":62,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"c16d48ba-5ae0-493b-ac32-b372a7c831e3","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":62,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"6d48161a-eb03-44d7-b510-a2a0d4ee4e19","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":62,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"934036c1-aa91-496d-8840-cc94339469d1","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":62,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"e36b9eed-861e-4523-8225-47261305434b","block_type":"box","text":"cleared interest rate swaps.","page_number":62,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"5e867364-818d-4f48-855d-26806d563c31","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":62,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"78499211-6d31-4b13-953c-1beb1cc1811a","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":62,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"dbee840b-52d6-494a-aa4f-b0e74be487d5","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":62,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"20018ac9-9918-4c43-b2f0-b9b0be50117b","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":62,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"9553b8a8-833e-4b9a-8b71-3ca9df4607b7","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":62,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"d3551930-c8aa-4210-b01c-2f7d47354fd4","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":62,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"26be65a2-9c25-48bd-be1a-4166cba09618","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":62,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"43ab0258-535a-4118-8455-c3536808d8f1","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":62,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"11b83f94-f65a-4617-ac85-3d178e3dd15c","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":62,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"56a1ec6a-6e3c-4914-888e-10fed7f01dc4","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":62,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"ed7da02b-08c8-490d-9bf1-fe553a1c9e09","block_type":"box","text":"or variable interest rate, index or asset.","page_number":62,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"e59c5090-5405-495d-aeda-ed598f2a2ee2","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":62,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"224c9ea8-65c3-4845-a0eb-76e52a149e11","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":62,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"00dd0dec-daee-4cc3-a725-9fc7457350c6","block_type":"box","text":"such interest rate floor.","page_number":62,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"cd55d883-c847-4775-bab9-f4facfa10103","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":62,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"18192ce8-ddce-4dcb-9650-c07b84d5dfe1","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":62,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"ba975036-5b9e-485e-9090-bea3e3f21fea","block_type":"box","text":"such interest rate cap.","page_number":62,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"da7e3c3e-4b90-4b5e-9063-6c7db90e20d4","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":62,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"2e4514d5-a760-4f8b-937d-44ced968da85","block_type":"box","text":"commitments to pay or receive interest,","page_number":62,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"7676dcf8-e2db-4044-b0f4-74581e54d28a","block_type":"box","text":"e.g.","page_number":62,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"ac815298-f5d0-40f8-928e-99a980bd0491","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":62,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"1d79b96e-0c14-42b6-b47d-6e7f97700f52","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":62,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"f7528077-11ad-4bf4-8bba-861f370f1da0","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":62,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"ebeb2084-f4de-492d-97a2-4cae4c6a43b4","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":62,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"3339f572-3dc6-4899-856d-0cb733df8cde","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":62,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"8fc737e5-5de2-4b82-b82b-a72c2396af4f","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":62,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"f2099bf6-287c-4ac2-aacb-cf45f99d9834","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":62,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"0e05c3d8-795c-4f21-9c2a-6e8365a2c078","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":62,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"bc7348c1-18a7-4622-bb1e-99b57da1f53a","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":62,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"ec43ec66-13eb-40c4-baca-64936a60207a","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":62,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"f64603f5-c2e0-44a4-a1c1-8f44ecdf2672","block_type":"box","text":"II-19","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"49ef28f4-cae7-4ad7-9c83-d02bdb2974a0","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4a9a1f1a-87d6-4fad-8eb6-67d85c4eda12","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":63,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"d6b81ce2-842c-46f9-b614-c44b807146f5","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":63,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"106e67cd-3797-460b-a676-46bc9ae996fa","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":63,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"a576cc6b-6420-405d-8a26-8f9fa5cb440a","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"997a0af5-b7bf-4669-b305-1538679d1e35","block_type":"box","text":"Total Return Swaps.","page_number":63,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"f0180053-9ece-4da0-9841-05181066ef82","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":63,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"e5782bd1-a9a0-4586-848c-1eaadedb1d07","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":63,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"d6c45dc8-0047-4de0-8b96-0b959d3fcf44","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":63,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"39d743a2-f59b-465d-a551-963332ca41c3","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":63,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"c0f75cec-fc41-490a-94bc-66b9415db893","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":63,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"588df5d8-8e19-423d-b95e-1281f370a6cd","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":63,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"e67e86f5-350a-42e4-8fcc-71d8bdc197e7","block_type":"box","text":"“contracts for difference.”","page_number":63,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"1b1cf8a8-4854-45d3-b08a-781e97265161","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":63,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"3cc35ccc-9986-4cb7-a41f-eae06a46d7ca","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":63,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"6eb7c0f2-14d4-41b7-9e4e-b5840c812b77","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":63,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"c85cd08a-bac8-4f9f-902c-597f0e49f821","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":63,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"be7b5aab-4cc0-4fc8-a032-e9877ec6baf2","block_type":"box","text":"the notional amount of the swap.","page_number":63,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"f8bd1f34-ad27-48ed-8906-fb487ab91b8d","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":63,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"4d41a19c-4b89-4d91-8954-82b88da864cf","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"1dd7b10b-e327-4296-bf48-c995d83571e3","block_type":"box","text":"Options.","page_number":63,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"bab08159-2d1d-4e1d-ab4b-cc757a9f1d51","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":63,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"55edaea9-335e-473c-9afe-01d48a787e8f","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":63,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"4c1ef09e-318b-493b-97d5-789cc4d56d1f","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":63,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"3835a3d4-411d-4643-9458-6592717f64a8","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":63,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"fbb73766-68b4-4b80-8f55-58ba21322f2e","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":63,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"1633ad15-f5ed-435f-b830-23236bfd4966","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":63,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"66809756-03ed-4b94-a8e2-b34b78df2329","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":63,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"da6606f4-1c8d-446b-b1fd-67e08e39a404","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":63,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"2c62f376-b870-47d2-b5b2-0c6edd618f09","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":63,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"9eb3c7cf-8738-449c-a960-dabb49a20342","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":63,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"c5f5e911-35cc-42a4-b094-23a9423fe84d","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":63,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"d7c9574d-a7d8-43ce-b37a-97c4e06f8b2c","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":63,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"849413a3-ad6f-4517-b8dc-e890dede7668","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":63,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"f2bf7e6f-1a8d-4d2d-b7be-5e52447aed24","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":63,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"bbc0043a-6c77-40e4-a7f4-5bec55ae9bbe","block_type":"box","text":"OTC markets.","page_number":63,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"294232dd-a3e0-4a4f-b2c7-b97487f6305b","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":63,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"a03280fa-c277-4610-8785-8de63f3a8afc","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":63,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"1b408ccf-7ebe-44bd-bc35-0214232b7308","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":63,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"dfa24d5f-fb82-4ea9-b4fe-8ed5d86b6b1a","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":63,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"15c4cafd-a2a1-4f7e-a2fd-831da3e92541","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":63,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"4844ca13-bfd8-4ddf-95f7-4bc67276cbf0","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":63,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"00cda811-945f-4d59-bcd5-c29b60979953","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":63,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"2bd6a946-869a-4d31-82b2-3dd80bd8caba","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":63,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"91e0564a-5d0f-4680-ac71-0afc3cdd9fbb","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":63,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"0e3edafb-b754-4f10-81f6-0a4c8c068cf1","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":63,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"2b913c7d-7113-4d5c-b9b9-db9fb593c2af","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":63,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"6b413901-9df6-49ec-86bf-6aacdab610ac","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":63,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"28c241f5-53f1-4086-99b6-c5e5b473f289","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":63,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"e1bb0d74-0935-4144-b708-1508882ff0cf","block_type":"box","text":"terms.","page_number":63,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"3c24f451-91c1-493c-a5c7-fbef8d52d984","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":63,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"aa66fdcb-50ef-40e6-9643-413c63fa0fd5","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":63,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"57234cbf-68e6-4593-b799-5fc527e205cc","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":63,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"a72c2914-1e53-49f4-afc3-c416e8a94ee0","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":63,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"b3780690-397e-49ac-943d-75b1980e19ea","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":63,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"71ce2866-2cfa-4558-9c8b-ea177df9de06","block_type":"box","text":"II-20","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"966e13dc-4518-4f83-8f0b-ace14660824e","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb5cfe7a-74f0-43a1-a8c1-0e7a1f7f0773","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":64,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"53bf116f-e651-407f-8d12-7f5690b6db33","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":64,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"4c1bda88-8eea-433b-908f-55cd71241e70","block_type":"box","text":"Call Options.","page_number":64,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"9ace1130-5963-4c54-bb1e-7f61bc84b4ad","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":64,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"437e97fc-1428-4f62-9442-06cd1d6ac5f6","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":64,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"855806b9-56d9-4092-b16a-61751927cb11","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":64,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"ab14b8d2-62d4-4d25-9c84-7213339ac6fe","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":64,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"2f6c3bf1-a047-4400-a316-0bb26a2eb0ab","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":64,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"740222ad-a087-4f46-8d39-64424847c23f","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":64,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"c2de5ea1-130d-4316-9c3b-3e2c1ff630db","block_type":"box","text":"of the option.","page_number":64,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"3a5453f9-e57c-4c5e-99a8-fa7f3da1e218","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":64,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"6e47d1a6-ba35-4e66-a6f2-f38ecb0c858a","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":64,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"3dce156e-6b21-4e5c-ae97-0689b0f90917","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":64,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"7b7c0782-7003-4c0d-b514-5cbabb928064","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":64,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"cdeccce9-a5d6-4f93-8659-a6241b683950","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":64,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"1c884477-e4c4-473f-a80c-fdf3cc541947","block_type":"box","text":"A Fund may write (","page_number":64,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"ff3655cb-71ec-4318-b191-8be6ef85cd11","block_type":"box","text":"i.e.","page_number":64,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"f8eb6835-f786-4052-968b-20cd7520bc40","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":64,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"314ad243-c70b-4d5a-bff7-08151ce3d55f","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":64,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"37e47010-2a0f-4072-a18a-5babcb3260a8","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":64,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"759300b4-9758-4fe3-af85-78c0afb678ef","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":64,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"b0222f0e-7a05-485a-9ec4-b33b2a41f942","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":64,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"4d298fae-e32d-4b7d-aa4d-66b65e8607cb","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":64,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"4653d51b-8a10-49de-afc8-ea01f89fce3f","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":64,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"43ec8147-4dbb-4c75-9983-4df5c3bb0b77","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":64,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"9d743b76-ec34-4bcc-917f-60bdd96a4994","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":64,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"0e3ef8c0-ccf9-4c98-b0c1-517a1eceb20e","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":64,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"81e27529-a4b3-403b-86d9-a023243a3168","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":64,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"d06cbf88-de55-44b1-a469-9328f5d73624","block_type":"box","text":"A Fund may write","page_number":64,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"0f51d8c6-bef1-47f2-923d-21f16785766b","block_type":"box","text":"(i.e.","page_number":64,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"537ac2ac-9c3b-4f2c-9d9b-5aec74f92751","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":64,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"7fad8475-b301-4a47-822d-1d5a0a109c71","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":64,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"7ebb4d71-4639-4463-8cb0-6d659398475e","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":64,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"2a6ab522-21f7-42b0-a336-dc7d02bfd12a","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":64,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"58315da3-e581-4a8f-9f43-62a5896cf068","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":64,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"2076b9bd-bc4b-49f0-a1de-dc0dfca356ce","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":64,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"37d3e937-2635-4978-b8f1-868aa5a17d6b","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":64,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"5d3a7a55-c229-4df9-b166-2c077c01e814","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":64,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"e993ea8e-0897-41e4-b87f-c7bb8f95e667","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":64,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"020c7248-265a-46b6-ac9c-20a1c8b3a30a","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":64,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"041e1974-e990-402e-9a78-43b11382d2d5","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":64,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"7464f1c4-b267-405c-9c8a-bdd177e869fd","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":64,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"b4082a7d-b099-4119-8785-6b73ca0d03c5","block_type":"box","text":"Put Options.","page_number":64,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"7c2e33ca-4732-4f62-a742-00661f8b1be8","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":64,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"470e927d-0962-4ac6-ba94-05ba8765fb8d","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":64,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"ea46e8a7-19e0-4354-acd6-75b37e29ea4e","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":64,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"3c8bd821-1529-4264-ace1-a8bc47769e35","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":64,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"e27ec55a-f975-4f28-90bb-54ea2174afc8","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":64,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"9d1f1e59-0ac9-4d85-9a49-89395d56f489","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":64,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"83be7c0e-ea07-4d3a-b8e9-ff587e542a5d","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":64,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"7ee9eabd-6f9f-481c-8026-5c8ecc395080","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":64,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"6c81187c-b131-4a3b-96fe-690f3c470670","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":64,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"5014b048-716b-4ed4-a5e4-fb5ac3117d66","block_type":"box","text":"purchase uncovered put options.","page_number":64,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"07df1b73-d87c-43b1-a26d-7394973b743b","block_type":"box","text":"A Fund also may write (","page_number":64,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"3231d6e3-92e1-4905-93e1-363ec2ee9ca5","block_type":"box","text":"i.e.","page_number":64,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"af32f59a-0609-462a-8768-832284b2cec7","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":64,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"f38a6d1a-0a30-410e-987c-e5022f960841","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":64,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"54dcb3e9-0edb-46e8-991e-54b5a0ed86cb","block_type":"box","text":"A Fund also may write (","page_number":64,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"473678b9-51dd-4de0-a444-2e3c4638fe09","block_type":"box","text":"i.e.","page_number":64,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"892aa604-af4a-47ba-85ec-1774f5587dbc","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":64,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"fe34e44c-785c-4953-8fd7-6fac9e4c766e","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":64,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"886d5096-982c-4f38-b6d8-035d686ad53b","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":64,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"8a927618-56f1-4dc5-93f5-dcab1ee7bb80","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":64,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"8f97eeb1-c5ad-41c5-9ebc-1810c7a0ef87","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":64,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"e4d16ff6-6f08-44c8-a088-0b9a8885b226","block_type":"box","text":"II-21","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9779f142-2442-453c-8697-0627467fe63d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd1b0f34-6a13-4d1c-9ca8-e4ebfdf24cb0","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":65,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"54eb9ff0-2028-4c8a-9e27-84269bfe5612","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":65,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"ed1977ed-4112-4f1e-bf50-1846b16c28f9","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":65,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"a2cc9baf-38e9-43c2-b736-92340d53b009","block_type":"box","text":"the exercise price.","page_number":65,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"16172a5f-975c-4e4b-bb7c-8c295c1dc678","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":65,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"1a2474ba-af38-4cc3-898a-faa1e1b35d96","block_type":"box","text":"The following information relates","page_number":65,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"907426d5-f890-4964-897d-2459800984e6","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":65,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"ba4d133b-fd4d-435b-9ffb-ed92f1a3f885","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":65,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"ac68ee16-6ee4-4801-876a-79367137db1c","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":65,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"1a6d3582-47e7-48c9-9afd-b51ecff75706","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":65,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"16a46021-5fa6-47d0-83fc-cf086ac8fed0","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":65,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"ae889742-276e-445b-8f16-23469f416114","block_type":"box","text":"market in order to maintain its “cover.”","page_number":65,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"d47501e0-b1b1-45e2-9679-5ef1cad6aa3c","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":65,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"c8a1f573-253f-41e7-8301-7b937150ef00","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":65,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"a02146d9-e1e9-486e-8be0-a17fc7c59630","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":65,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"364223ac-3f74-4a53-961f-94d15af72539","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":65,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"b748b6f6-4171-44be-88cc-9dbfe5ba5ced","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":65,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"e0906f9b-2923-4bc3-a2f8-df8dc51a5ac2","block_type":"box","text":"and incur transaction costs.","page_number":65,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"99c5ef7f-136f-4750-8e47-ace8efd05a61","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":65,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"90b62ba5-ba01-484b-87cc-8f37c0661d2a","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":65,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"7c23ac63-9d7f-4fa0-8c41-f6eaa4bba20d","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":65,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"e1228feb-1bd8-4980-a3b7-e35fea5b8fc2","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":65,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"663e182f-251b-42bb-a053-5a86327fd61c","block_type":"box","text":"i.e.","page_number":65,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"937f6ce0-7c45-4a3b-bd2b-ce64ff5b1cd5","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":65,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"a863e44b-f2d5-41c0-abe6-7857d178c9e8","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":65,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"77d490c0-3427-455a-88ec-fb6378f1c407","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":65,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"ddfa2b25-de82-4afa-a248-ee73c678d013","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":65,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"1062833c-8b9b-44f7-bd96-cac007a301a5","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":65,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"a28488f4-53bf-48f7-98dc-046056ebbc41","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":65,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"9121c96c-5ebe-4787-a8cb-26a4888f3cc0","block_type":"box","text":"required, to be cleared.","page_number":65,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"cd936976-a698-43b7-beb8-37637fb20718","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":65,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"9ba28456-04f7-41e0-8e6a-14dc260b5fc4","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":65,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"b3090ccf-2f3f-4757-993d-51549ea96a23","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":65,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"65d58689-e4fa-4f2d-b302-34da7780e8a5","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":65,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"7ab7e3f4-7915-4f77-9d29-05e5baacf085","block_type":"box","text":"Derivatives” above.","page_number":65,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"fcbc1a87-9991-4971-9c49-72977960d624","block_type":"box","text":"FLEX Options.","page_number":65,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"143431ba-63a5-4ec7-ada9-80cb24373ba8","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":65,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"b427570d-9eb8-48ee-9287-817ce206847f","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":65,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"56f6c864-d696-42d2-a337-efc249fa9303","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":65,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"d032143d-d63c-41bd-afd7-c27e403e4695","block_type":"box","text":"exercise prices, exercise styles (","page_number":65,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"2b249935-c860-4c89-a395-563ce3242841","block_type":"box","text":"i.e.","page_number":65,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"26e91be0-e81f-48e9-818b-da8cb1a65a8e","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":65,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"bfdd4c7c-57b0-4c0a-9bad-27e9f0c33584","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":65,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"bcd5a5a3-429f-49cc-8445-6505f5e6a8fa","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":65,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"8630ef41-cd39-461e-9c10-cc823687cf95","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":65,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"72f3f63e-e459-465e-9c8d-888759f6f1bc","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":65,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"55de8e4f-a670-4ff0-ae3c-8045c94882e1","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":65,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"a784f991-5c22-4a7d-a12a-ee572ada710e","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":65,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"51e603ca-75ce-41d0-9164-c0b439a87ac0","block_type":"box","text":"FLEX Option’s expiration date.","page_number":65,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"9e718ea1-61c6-44d2-849e-35bd51d07591","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":65,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"ceb83909-ee6a-4fbd-91e7-929a186705b9","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":65,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"61f39293-62eb-4ca2-85a3-590a06a1dea5","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":65,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"fcce796d-51df-4709-a7cc-64ef87054262","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":65,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"6ce024b9-4e8b-4bc4-8f8e-367808993b01","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":65,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"24fd0d63-cd2f-44ea-95a9-9bb2d6230bb7","block_type":"box","text":"FLEX Options contracts.","page_number":65,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"cf8e7715-e0e3-45e8-8ff8-b2f46003ce01","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":65,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"70854c26-8ea5-476f-9bc4-17671048cffa","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":65,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"1ad1dda8-6451-40de-ab14-5e24f993e1a9","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":65,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"221b1669-4759-46c0-9235-37aba5c6555e","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":65,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"a3f65f32-1e38-4a44-866e-ab06fe978a36","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":65,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"4d19bb18-9c4f-4fcb-914b-02e520d5ae59","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":65,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"d1a47211-c6b0-4864-9cb8-2d4402a3031e","block_type":"box","text":"II-22","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2f64f45-74e1-4033-947f-3cea22304f77","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72b96cfd-48aa-4fb9-99b9-5407b1d85a0f","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":66,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"6414a296-2de5-436f-9428-e0dc8b5d49ec","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":66,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"dc8ed5fc-2cc7-4de7-8221-4cce1866541d","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":66,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"02421360-674b-40db-8121-aa65df470f67","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":66,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"855ce0c7-fe23-4e33-8491-b3c24ace1fa8","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":66,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"e30a1e20-0a74-4ea6-ab75-c88191e085bf","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":66,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"91be90c9-2208-4613-b6aa-aaf73a90bb62","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":66,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"e072b653-a0b7-4db5-884d-b3d01d7d2fde","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":66,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"fb0ce142-bfb7-419c-ab96-fe38c7ce4cc6","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":66,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"3caf7be8-22c0-47ff-b3da-aae609336267","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":66,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"e5c4a105-fe5c-4468-9e04-3f039e87b568","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":66,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"b0819c37-2aec-4caf-9c03-54e0496e0088","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":66,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"d04c1de7-9ad1-4010-af1d-8a527f28f4c2","block_type":"box","text":"expire unexercised have no value.","page_number":66,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"3f9014ae-2047-4e7d-8853-b488b39f985c","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":66,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"c447580f-4884-4659-81ea-0c812d195cc4","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":66,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"a9c8a5ad-794e-4e09-a890-39f52dd14743","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":66,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"d7ee3b08-b0c6-4ed6-b926-853fe1d74642","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":66,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"167c51c5-28fe-4317-afa8-cdd29dd16b4f","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":66,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"92b7b2b8-eed4-4088-993f-a08686fca2f9","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":66,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"5d5fa186-cf48-4268-a83a-541d954ab756","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":66,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"aa5102bc-ce47-44a9-9221-ce4b2086c510","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":66,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"990c6d7a-a341-4fb1-a7ac-27e65fe0d19b","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":66,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"012d3132-1271-466c-8be1-9a117c304c25","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":66,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"1556d3b9-0071-47ad-968e-28f8e44328c1","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":66,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"6a6e2494-8688-4118-b259-958d6f2f498f","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":66,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"1820dd31-f2d8-4ce7-ba11-0eebf2e585ba","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":66,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"ce2051ce-cc1c-4573-8042-0ccde31cf8b0","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":66,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"898f64f7-d773-4d7f-8fb0-77760d2576bd","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":66,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"e7447b2c-370a-4211-9f73-b2e00971c85c","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":66,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"0d4ff913-012e-4bb4-af6b-0155dd79b833","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":66,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"b6f20ed6-268c-4a7d-bed2-a05e227eba07","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":66,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"63249944-4ff6-4bac-85fc-b1c3388430d1","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":66,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"cbc3db38-949e-4995-98e5-d9093b2362d9","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":66,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"fe6bc367-95d2-4119-a01b-35f13773b16b","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":66,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"8baaa083-e925-4f94-867f-761f6496219e","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":66,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"c81a98ee-9637-4218-aa72-d522d48f9727","block_type":"box","text":"Foreign Exchange Transactions.","page_number":66,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"bfb787e5-b0c1-4c39-8f81-e1e9bdd41dd1","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":66,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"ef32ca1f-a3ab-4483-a378-c9abe51153d2","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":66,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"eb2ea0c0-eecd-4a4e-8dc6-c4c690f7bc6b","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":66,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"4e9bf52e-b80d-4f02-a974-7e16b5839748","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":66,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"bd9a7ba3-94bd-4ae8-a9dd-76f8adef45d0","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":66,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"33e88a10-b5c9-4328-ade4-de404fa2948d","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":66,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"5effcd8b-0762-4e2f-8c09-9e4621df5e55","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":66,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"0a408793-3414-4604-b99d-1bc0135f4791","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":66,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"0bd119c6-99c6-449c-b516-1eb124955513","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":66,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"e3cd2cb6-1d93-4e87-a627-09980b772caf","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":66,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"0ce2e43d-1719-4079-a276-aad0fda6f149","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":66,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"e6316d73-0458-485d-af6e-20a9bcdb75e1","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":66,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"43a2fc8c-ad6e-4915-b0d5-0e786abe4875","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":66,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"7e1bb2da-5f2d-4776-9200-2a53500f5219","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":66,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"19463b40-5acf-4de6-93c6-f71bf745ab2c","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":66,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"8eba771a-cc57-4a9b-906a-d5a7c531f0f2","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":66,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"7561b61c-aa7a-42b8-b0eb-d93e639af1ec","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":66,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"f97f59ac-7931-42fe-ba76-cb87402a5008","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":66,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"f6d74372-9142-4d00-8760-9536351f22d1","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":66,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"c37d36be-d22e-4af3-8e63-0b302aa34233","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":66,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"6da4ac32-a1f5-4c60-b9a8-6cc883eb0116","block_type":"box","text":"II-23","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f9ca8064-30b3-4494-b389-b171d9c30888","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"afeb9b86-ff6a-4f12-9d2a-499f2b240236","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":67,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"b944c0b9-e90c-4a69-b0d7-896acdb5b2d1","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":67,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"445fc05f-6710-4d10-b5ca-2bbf4def8a32","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":67,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"1a6c2f30-8a82-4db9-aa47-6dc4442df71e","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":67,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"8d4ba218-e927-4054-b649-f2b85a210f7b","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":67,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"16d5abba-e95c-49e6-bb2c-b6f9d5eeb147","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":67,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"97ef1435-a763-4508-8722-dc0978e3fd63","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":67,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"15f9d138-6a64-43ec-948f-0a9bf74d75d4","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":67,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"14c4d4c0-e6ad-4e7a-9421-fdad5f357ed0","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":67,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"e3db934c-b65e-4272-bde2-e84d5e8a972c","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":67,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"1c203bd7-7209-4621-bb7b-2b4940c3526c","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":67,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"5d61a091-5cf9-4626-920e-26acf742e62b","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":67,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"2ceb3d31-9037-41bb-a9b9-68ad3bf545b0","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":67,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"07eca2b4-94a3-49ad-9a8a-6a81f322942e","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":67,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"e3aef615-1e1f-438d-a36e-54706b2be4fc","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":67,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"ce8600dd-20c5-4fd3-b08c-49cd984aaa6a","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":67,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"f341f789-2118-455d-955b-a2a8cbe0b06e","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":67,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"69192e9d-0347-4566-9942-897d29db4569","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":67,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"1ef96ab3-0042-4449-b8b7-4b0276881f85","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":67,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"bde0bbba-a02e-4fd2-bdab-cc1641305c29","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":67,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"7015d613-08bf-4805-aa44-be24d1428986","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":67,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"a291903b-f386-48e8-81c5-5320473de0cd","block_type":"box","text":"involved.","page_number":67,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"0bcc4ff3-c311-4011-9972-16c09da6ec54","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":67,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"e66de6bc-e155-4098-9939-a49ef2eaaa1e","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":67,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"0adec1e4-f4c8-418c-8063-669243268a85","block_type":"box","text":"denominated in such currency.","page_number":67,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"9acdf2c3-d9f0-424b-81d2-57156d67b4af","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":67,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"97091171-2b04-4fc1-bbf9-4121d561cfbc","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":67,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"4c111b21-3313-4208-a96a-a4e0dfbcf406","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":67,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"da33892b-3499-4167-8a33-cbb8d02d617a","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":67,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"119f9d6a-2d04-4dc2-ace5-7f9886fabc58","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":67,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"fa8ea244-e2c4-4818-9f9c-30cf116bff77","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":67,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"98c86d7d-09c9-4d96-a844-8c3035c59b4f","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":67,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"4cfa45ef-d9d7-441b-ac34-4baf6dde8aa7","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":67,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"c76810a1-0a0d-4ca2-8a70-303c39e69239","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":67,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"44122a59-4a3d-44c4-a0d0-78e14350348a","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":67,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"81d61a17-ecbe-45c8-b51b-a77d76e85c93","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":67,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"8371e87d-8e32-4796-91e4-f8570e457d32","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":67,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"4d449473-11ee-4589-abbd-280dd8173b06","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":67,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"73dd4e0d-2f14-4cb6-a0cc-3b47c4d2998e","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":67,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"cf4544fe-9356-4ad8-ad63-91e8241d4b3c","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":67,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"a7a6d701-2ce1-4977-8825-aa0611557129","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":67,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"2c534ab4-13f8-4d51-be22-3d25fe37fc9e","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":67,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"7d215f2c-2d93-4d70-bd1a-7a6d89a44ef1","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":67,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"72d5de35-ff71-43cd-b430-a2d57cb445a7","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":67,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"bde24ee3-e53c-472d-9c81-afd51a946f80","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":67,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"4007911a-45c9-4bd1-9a87-0b841eb4c3ca","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":67,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"c6acedac-35d6-4db0-8be2-4b2a74b877d2","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":67,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"acafb6cb-7044-4fa7-a631-c54091e0bed7","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":67,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"1551694e-78ab-44a3-90a7-ec84d065a430","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":67,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"db48ccc9-ba40-4b70-9042-bbb5043b0c6d","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":67,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"ac5e7564-7310-4580-aaf0-ab43c483bbba","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":67,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"d1d58ba3-ebba-48ea-bdd3-19caa37e10d9","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":67,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"3f1ddcb2-d2f5-40eb-9fab-ea2dcadf4de0","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":67,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"28ca97ae-63cb-4071-a895-79f83d37754c","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":67,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"12a36b5c-f222-4491-8acd-fc36aadb50d0","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":67,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"47572852-a350-4490-86ff-fec3bf10f94c","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":67,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"aa2a8aa8-f642-4bca-a265-0b0bd288caaa","block_type":"box","text":"II-24","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a1a90fb-0076-4e73-a8ef-6677b6179869","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53a2bc5b-ee24-4010-8380-f7c34a2fd527","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":68,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"41813cdd-2081-4184-9c41-8f1adef02311","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":68,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"717d4d33-3c3d-42fa-a44c-468d19c435ec","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":68,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"6a51e409-419b-49a0-9db3-0a851130607d","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":68,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"672cc8d2-48ab-410e-ab0a-99b75d6e3799","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":68,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"ae8e84ea-eec3-41ac-a0d9-09417a746d4a","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":68,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"1f8067c4-18c8-466c-a8ef-f0678a885964","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":68,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"e78a53bb-1e77-4abf-ad64-f68b74b21d0a","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":68,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"6f690f4c-f31e-493a-b8e0-e778e84a9463","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":68,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"1af57253-b5ca-435c-819b-746d11b11827","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":68,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"728c2844-f520-490b-94ae-cdef4a78be1d","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":68,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"831d9429-c13a-494d-afd0-d8ba4879f4d3","block_type":"box","text":"traded.","page_number":68,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"afa1739d-0628-4027-ace1-e29a93c8ed94","block_type":"box","text":"Currency Futures.","page_number":68,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"30bc97bc-2d42-41f4-896d-860dee93b6e2","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":68,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"3b692e89-cac3-445b-9adc-b7c75782aba1","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":68,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"c7c85f6e-7072-4720-a662-cbbc5225a038","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":68,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"b7c9deb9-b0fb-4248-9c50-0f529a2fee01","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":68,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"5ec7a1f2-ea55-4e5c-918e-284922e5c34e","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":68,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"462b916c-8f81-48fb-b95c-11f5ba3cd45e","block_type":"box","text":"Currency Options.","page_number":68,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"7f6f22c3-b0fd-4bab-80b5-9e7d88c5ecce","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":68,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"4b436cce-125d-4fb7-a322-b6f8eb13774c","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":68,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"be7d8859-69fe-4745-a2ea-bc565376501a","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":68,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"f80e49e6-dfcd-4bad-8712-69f5660d0dfb","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":68,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"e55ff075-cc47-4777-9e3e-5bb8413a70f1","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":68,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"116a5a47-709b-4bc9-aa7d-3c7bc499c3ae","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":68,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"a71ea2d0-9262-4366-a90b-11eb93553d22","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":68,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"3cc53fe5-ab9d-4188-b4d3-d9dfa9931c12","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":68,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"dac8f2d2-ebcc-4bf7-a66d-36b9ed39133a","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":68,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"6ee6dc11-e165-47ca-a465-8a13596f3205","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":68,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"bcad10c2-8740-4f62-bf51-957ba4be7b81","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":68,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"e1955d43-ea21-43a3-b5de-a613a993dcb0","block_type":"box","text":"Currency Swaps.","page_number":68,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"af10df50-f8aa-4687-94f4-2bc0c1d92576","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":68,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"1d01d062-170c-414c-ac06-240f047b9103","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":68,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"a3b6144f-fbdd-45ab-8d23-8ccd5eaee5aa","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":68,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"49068a73-fe86-4e6d-993a-43fb4876870a","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":68,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"9d676c52-a062-495a-baef-503c914501a2","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":68,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"32cf8596-9dd6-45da-8444-d9829e80379a","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":68,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"9177ca78-6bbd-440b-b129-659ecc5f2630","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":68,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"f1de9982-333c-4bb7-a384-29e9005f39d5","block_type":"box","text":"Distressed Securities.","page_number":68,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"263830df-5cac-4558-9591-f7c189ebc063","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":68,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"f79596a3-388e-403a-bedf-11e0692628a1","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":68,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"4befc328-bdc0-4097-897d-ee73df994fb0","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":68,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"a2374352-1a42-4e54-951e-2fd708b49d11","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":68,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"1cc83313-10e5-40c0-8374-dca0d0a05974","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":68,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"6c3f01b0-a586-47ac-84e0-44146995f5e0","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":68,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"d78d0f13-4745-4397-9222-480a51adcaac","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":68,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"e92f0684-31f9-46bb-8c5c-c6cd2e4eb38e","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":68,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"0849e9af-7b27-45df-bb8d-6e5c644f929f","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":68,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"5e40c22a-5e1f-4a76-9ed8-d0ed66ace46c","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":68,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"d6fae697-84fb-4383-b904-37b4e7be97cc","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":68,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"ece7cf68-e7c2-4268-91b1-fb2b303e164c","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":68,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"483736ac-0eaa-44c5-a798-c17449d0e48d","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":68,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"d353959c-9da6-4736-aabb-44bf0f449c2b","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":68,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"38682756-2f64-4d7e-bf60-7ef23c14b68d","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":68,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"6713b668-7a9d-4135-ba2e-d8b30fec1e9c","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":68,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"a5b70e66-9db8-48a2-9f0f-c8a849400b8b","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":68,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"2b1a0dab-cff3-44eb-b4c2-6cf5585f696d","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":68,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"f0638166-e8c2-4f64-bd00-be59d8c48f53","block_type":"box","text":"satisfied (","page_number":68,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"1d34f011-b1ce-44b2-a094-85bc0fcc6946","block_type":"box","text":"e.g.","page_number":68,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"e88a2676-35d9-494c-8790-f84309896bb2","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":68,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"da284453-39a8-436a-b305-631a8e3b88f5","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":68,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"870eaca3-2471-4990-8402-8a79b9e0a7eb","block_type":"box","text":"II-25","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"522a4730-7176-4392-a184-b73adfa73a3a","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2787bbef-eccd-4e3a-b596-0ee630950264","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":69,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"143cfbb6-26f5-4763-a819-4b16ddf9f317","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":69,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"323a84d1-2b81-437e-a88b-ac42aaada6d7","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":69,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"1ad8c62a-8140-44ea-9e51-ae38f6fa3dad","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":69,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"b6b66b76-47a1-46f1-b29c-db27677682f1","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":69,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"faf899f4-30d3-41a9-9579-137898a04ad7","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":69,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"8fda64b6-3f91-415b-b6ca-c53eb4b9d589","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":69,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"e0440d62-98ae-4ec3-aa62-66f32cad59dc","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":69,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"c62e139c-3248-41dc-bb32-3745b7c41509","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":69,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"ef7233da-f617-49e3-8dc6-a6d58530b197","block_type":"box","text":"affairs.","page_number":69,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"c5ed689f-0927-425f-9e05-70958a1cae2f","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":69,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"110db51e-92ea-4ad7-928e-426d133788bb","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":69,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"df3107e4-7e80-43b9-a25d-98a300d6f047","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":69,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"529c2825-8326-466a-a87c-e09a75993c8d","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":69,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"3ecd1937-4354-437c-8c5e-b4a4504029ab","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":69,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"796b1947-19a9-4857-85db-648c57c92fa2","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":69,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"416f3749-9ed6-4dc9-b33f-7ac16d9bd10c","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":69,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"8f705a3a-ff09-4065-b384-7d49a2cbb344","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":69,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"74c5d4de-897b-4902-8e70-8f78c4d40ac6","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":69,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"dcb3cc07-b1fc-460c-9e08-57b32e98169c","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":69,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"558de156-ee6f-4010-bdbf-25c965419a62","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":69,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"fffbfc56-ed0d-434a-b0b1-9a02c981864a","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":69,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"1b2deafc-b434-4716-a36d-abda385a0771","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":69,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"60207307-e508-44eb-9087-fe71b360a12f","block_type":"box","text":"Equity Securities.","page_number":69,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"c946dcce-9919-4ae7-8a4e-efbbff6eb75f","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":69,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"ca421a0f-75b5-4237-8387-a3d4ae05c289","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":69,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"86c10cba-0849-49d8-b3f3-e66b9d4af3f9","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":69,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"63123687-6168-4fad-84d6-3c5be9cc5e26","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":69,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"597d3c90-128e-4a38-9fef-005eec0d8b45","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":69,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"62642e9b-399a-49d9-8684-baea22a88c48","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":69,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"d8d14c1c-dfca-4e92-9212-2d7f136f0f47","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":69,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"63d7cd5c-d80e-4294-8672-0d3bf6b5a536","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":69,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"b034b9c3-3e2f-440a-aab7-b5e0d4f78f00","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":69,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"b7c39285-197c-4c38-9dcd-682538ab1cea","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":69,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"bd06bb73-117d-4670-9a94-dee11d24bef3","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":69,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"d0c9d779-74eb-4bed-9e4e-38ef8222d667","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":69,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"d70e8cd3-4790-4ce2-bfde-327145cd6415","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":69,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"b83425f3-f687-456d-9c14-a1ba347b2250","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":69,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"2e9f2987-9353-47e3-9434-9781d512491c","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":69,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"909d0439-878d-40d2-9869-9cafff4f7fd2","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":69,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"729d5aee-2587-4155-9b76-57dbd2bc664e","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":69,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"f4761256-0f2d-40f7-9194-9d0dfac2cfd0","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":69,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"4887147b-cf98-4cc0-9d0e-255f73b5f9d5","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":69,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"b35c4ad1-d674-49d2-9be8-554e45d24bd6","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":69,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"0f8c0421-acc5-4fd9-ac04-d3048db76459","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":69,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"652eb945-55dd-4b70-91fa-86e74ac4f82c","block_type":"box","text":"initial public offering.","page_number":69,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"1c0ba51a-0115-4a1d-8726-d61097b97801","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":69,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"8c0c5ce4-0e63-4e76-92c6-71f417d513a6","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":69,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"e5766afa-02dc-49c8-ab2f-fa8fa1241f56","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":69,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"92881293-0f39-44f7-94e8-f1dfc1095dd8","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":69,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"4ef0f43e-038d-4e74-ab25-a7f6bae63874","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":69,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"61e56b1c-5043-4d60-9960-cca703a0e0f7","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":69,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"6e932c2a-5bd5-4062-aa73-024799d94271","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":69,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"0c68e905-0979-48d5-9620-bfc3f11d417d","block_type":"box","text":"more established companies.","page_number":69,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"9982b74a-28c6-438b-9a12-f2ef88d857b4","block_type":"box","text":"II-26","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b1a1bfd-0e53-4c62-9ab5-044fc2d8e8dc","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bb8d3c5a-dfcb-4ed0-ba84-4fabd6ba5911","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":70,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"ff5a7cab-d362-41f2-a4cc-e0706143cc84","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":70,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"f2e44f08-cc7f-4be8-b924-02c0e8602e03","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":70,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"32afc53a-2088-486a-a298-f4d68d3b96e7","block_type":"box","text":"below.","page_number":70,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"97eabc67-da5b-4f79-b1bd-4d257b8c9c04","block_type":"box","text":"Real Estate-Related Securities.","page_number":70,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"5005065c-68c0-4e1c-9c2c-80434294a559","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":70,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"63ad696f-560a-4e84-9fcb-8621aad7feee","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":70,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"e0d690e7-f957-497d-9943-0ab6d813b25e","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":70,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"4f156d1f-981c-41b8-bdeb-3ecd68b38c72","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":70,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"8fbd9c52-34f7-406a-b115-cd251f59c69e","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":70,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"9409f99c-62c7-4d90-8824-02120832dc39","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":70,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"574b4e58-dc1b-4b7e-b765-8c141dbfd323","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":70,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"15f180cf-bf80-42cf-9f0b-f8c2d364a581","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":70,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"cad7600b-b918-4d8a-88f1-a97322ddf6f0","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":70,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"0793e282-496b-4d27-8853-43de6b253b6e","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":70,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"0f7f37f8-8c05-41ad-b5db-0f5d4dd9d115","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":70,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"fbe441f1-d2a2-4982-9221-4af46f46e5de","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":70,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"60b766aa-fe08-436c-b5ac-dd68920ff521","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":70,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"6738b582-646a-45a1-97cd-fc9ee3aa6262","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":70,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"0790186c-c51b-4d7a-bc13-b5c82c5c4303","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":70,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"2c6ecb61-ac7a-4dfe-8d45-7414e5339d50","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":70,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"240d59b0-0860-415c-996b-0acd7f7ff517","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":70,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"23a5998d-022c-4cbd-916d-520efaffa2ab","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":70,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"c5305fe6-d513-483d-9240-77ab7b37923a","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":70,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"3911fc68-905f-42d6-ad15-75cc5ded261b","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":70,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"f8fdad7e-0d30-4a55-81b7-a496ac67ff87","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":70,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"57b30a34-9fca-49c6-8200-6e56ab4b28ee","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":70,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"b667185f-29ee-4384-8f79-01d530d9b0d5","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":70,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"132846a7-24d4-4be5-8447-6d48007fa16a","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":70,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"932bde43-d33f-42a2-b8a6-05f4b1aa3bc0","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":70,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"b1e72f46-234e-46e6-8337-43745251b1e5","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":70,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"bd974a8e-40b0-4151-bf5d-30037d444759","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":70,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"e5758629-9ae7-460c-852a-21df3c65b285","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":70,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"a61abccf-8d3f-4263-ad6f-a9594ea2eb8e","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":70,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"3b284c95-b2dc-419b-a06f-ad36fd1f49d3","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":70,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"36ac3e02-a068-4f1a-a6e6-f4b5e1817881","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":70,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"471413ce-28a8-41ca-9ac9-b24ae88a4a93","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":70,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"26e5b3e4-001d-48f9-8954-4be0337b0ac7","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":70,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"59deeb77-a0a5-49eb-9b3c-81debcc3709b","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":70,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"2621d045-e4a1-4522-944b-2c8179944e50","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":70,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"5f2a7dfd-6468-441f-97b9-2ca3f507072b","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":70,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"ffc04fa4-f767-4dba-b863-b32184197b1c","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":70,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"3dfb291a-7d06-4f9a-8b25-6be653096500","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":70,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"2ca25668-d7f5-4410-a715-8083f98c17f6","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":70,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"ff8fc4f2-4328-43c3-8dda-9fb540a3c728","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":70,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"585eec4b-db32-400f-99be-a71056f843d6","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":70,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"f9a8ff0f-3440-439b-bb74-84baac008e4e","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":70,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"db6ce71c-4605-4f98-8b87-a24805bb0f7a","block_type":"box","text":"cycles.","page_number":70,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"5341ce2b-ad11-4d8b-9e25-31b527d17dfe","block_type":"box","text":"Tracking Stocks","page_number":70,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"e1ef4962-2627-4274-aaa2-519fab48f324","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":70,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"80450fc1-9a71-44dd-980b-7727f9f671ee","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":70,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"5098fd59-2a67-49fa-b9e2-d2e374dc5ace","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":70,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"899d92b7-33ac-4a02-987c-b048dfb6bd1a","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":70,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"93259c8c-2a7f-4d84-a1f8-1b4ff200d593","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":70,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"f7151ec6-e75d-4aa2-a3f5-01817c717461","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":70,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"faf9d306-9608-45ce-8747-2e57a6137616","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":70,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"aafc7ce0-c4cc-4ebe-a475-4e00561cc6f1","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":70,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"49c14874-e994-4cdf-addf-3f3adb8c83f6","block_type":"box","text":"II-27","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8091840d-6df6-4ce2-8261-db917a47d194","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e7518cd-9fe7-477d-8a3a-ef8fea5676b8","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":71,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"9d5dcb75-f3f7-486c-b13a-2f2981b0834c","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":71,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"c9844903-e03a-4e86-8305-dc312c9d1bdc","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":71,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"bd8131c1-d764-4130-8e77-710b2e504036","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":71,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"6f5917c7-1b14-47de-bbad-6729aaddb082","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":71,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"6e2ed117-71a6-41d0-99ac-cea94351e989","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":71,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"8c76b6d2-5bf1-4a70-81ce-38df1ca41674","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":71,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"5b450693-b095-4dbe-b5ec-973f888e9a43","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":71,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"5932ce1b-8804-4e24-9f4d-0593d01dba2b","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":71,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"10ae276a-f198-40ea-a276-e86aa4fe4baa","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":71,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"2cc634f7-3844-4b11-95e3-c1bafa2895ef","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":71,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"abb44f74-08d4-4fdb-97a4-3037c4958d9e","block_type":"box","text":"ETN.","page_number":71,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"2a0fa023-81c3-457f-a07d-97930ecce63a","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":71,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"4a188568-c669-4feb-b926-eaaff87b5044","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":71,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"81992a1c-7219-4f3a-82f5-f845105460b2","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":71,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"8e0f1ca1-01f2-44dc-b446-afac8148c1d0","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":71,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"22d5ac6d-37c0-4ee9-9e9d-ac83717531f4","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":71,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"b50cd80b-f70e-4978-8814-bf8c96e35798","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":71,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"071c8c1a-1c77-401c-b8fb-76adff076c10","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":71,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"90532676-413d-44f7-acff-f534354662d8","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":71,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"47054ee1-8cfb-4fb6-99d1-f7b4b84f5d1f","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":71,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"a2a50d71-fead-4303-a34b-f7d97312f822","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":71,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"4f06dee1-29f4-4622-a38b-45df15c74b92","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":71,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"4682220b-7c98-480e-9000-1c61af21a226","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":71,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"d63cae8d-1cc3-4c82-8178-eea8182dc58c","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":71,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"14aeefd7-f4a6-4490-8438-7078a7e3d017","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":71,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"49abf3e8-52fe-495f-beb5-089b7b29b847","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":71,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"9c72c1c7-03e8-4ace-afcd-98fda6db4a62","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":71,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"78469cb2-8b2b-40a0-b62c-85441d03d12b","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":71,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"c85899b2-e283-473a-a34f-d4512f4e69d2","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":71,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"e9839742-8b31-459c-b481-c49782d92c9d","block_type":"box","text":"Foreign Investments.","page_number":71,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"72ebcb64-827a-422d-b0a0-52e642142262","block_type":"box","text":"Foreign Investment Risks.","page_number":71,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"0601b73a-1c7d-47d1-b3d8-08fe2867724e","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":71,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"c93a7600-331a-4a7b-9a1b-c09b3c1bbee7","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":71,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"2ed52084-45b2-4394-9b8f-93627720b696","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":71,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"7dfdfa6f-5f99-402e-b5c5-04db9d8ed63e","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":71,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"8c056520-b954-496c-a9cb-87c9fdd4e813","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":71,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"0580a090-1ee9-434e-af03-1d26505890f3","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":71,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"18d6d276-e55b-46a8-9826-e1d1433c494d","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":71,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"00027e20-d4a0-4112-aa68-5d9be1551082","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":71,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"8ffdf4fb-59e3-4ba2-b284-874822282073","block_type":"box","text":"benchmark index.","page_number":71,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"ca5179d7-3d97-46c8-92a5-b31c8a4d5bb5","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":71,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"af1b4a2e-b1bf-484b-aaee-f8ea9f3da31f","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":71,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"61cc117d-b219-4c45-b711-7bc7389238af","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":71,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"0576d68a-44a0-4445-aa97-9478d4c9e2de","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":71,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"5cb82bdc-c7b1-4c54-a5f2-dae300d0dc10","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":71,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"905788d8-fa3d-4fcc-82ce-abf970a68d22","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":71,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"d0e9c1a5-a353-4320-b5e2-d2942dc83ad5","block_type":"box","text":"securities and zero-coupon securities.","page_number":71,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"420108b8-adf6-4a4e-acd5-6c1db36ab5a3","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":71,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"ba6dc6e9-bca5-465d-9991-428d6a161101","block_type":"box","text":"taxes.","page_number":71,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"d64bb3ce-5cb3-40b5-9849-3864c75ffc9e","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":71,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"7a25c050-1d11-4d81-94ae-6004966c1086","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":71,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"1474371a-62de-499d-b596-c5a2a72bd673","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":71,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"7c3795bc-f33b-4a58-8965-67e70f0a0e5d","block_type":"box","text":"II-28","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"06a91e12-49d6-49ea-b295-4bb8ced8aa2c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"402fbcfc-a480-4a41-adbc-882ee3097011","block_type":"box","text":"underlying security (","page_number":72,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"23426cfa-2adc-4b7a-899f-600ed38e244c","block_type":"box","text":"i.e.","page_number":72,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"b7e6bc84-5a3f-4da5-aff4-ed1dcc0022db","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":72,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"fa074d03-286e-4d1b-9b49-1d1875435a2e","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":72,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"9cde6970-da0f-4b80-93f7-76b29a427f1f","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":72,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"8bce3c41-3e4a-4e89-8c4f-6761edb03eee","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":72,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"71c7b989-ff1a-4f20-965a-e4edda116390","block_type":"box","text":"Foreign Market Risk.","page_number":72,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"365682fb-de44-4e90-b40a-873c0e5060e5","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":72,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"bf3178f2-4791-49f2-a9f6-35c9bc44671b","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":72,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"79e05bfd-5bf4-426d-a56e-b2fbd8acf7e1","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":72,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"5f71a004-d41a-477d-8fd5-3f780806a8ce","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":72,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"3890b70f-8399-4fdf-8c82-9dbe60caef43","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":72,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"0ed156ed-ea1d-41bf-a095-7f17eeeefeb9","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":72,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"d567c008-653b-4501-b641-5adc21c1953c","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":72,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"3af02448-842c-4e3d-848a-1be7c4be9e9b","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":72,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"db4377af-c7b5-419b-917b-4d4cabcb3100","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":72,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"ab1a0f75-f8ea-4524-86d0-20a7b8491dcc","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":72,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"acad34e9-23e2-456d-bf71-91e9ebb7f806","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":72,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"e3ec7836-72df-4e92-9ea6-6a537b294594","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":72,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"d143b1e0-8a0c-4b61-8b3c-06ca65788cc3","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":72,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"2d27305e-4643-4e32-84c1-ede40c5b692a","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":72,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"31f426e5-59ac-4a7e-bcdc-dd49f1936c50","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":72,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"b59afe70-7c1f-422b-b1d8-5cbc9415360c","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":72,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"67a45c88-4346-4b49-ad3a-bd585dff5e9c","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":72,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"cf6f1830-01ea-4650-93d6-6e883a1d515e","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":72,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"88f08017-3629-47ca-a59f-3cd8f291653a","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":72,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"7b421b22-925c-4079-b3a3-092b20caca1c","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":72,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"d6f0ece6-5cc1-42e5-ab1a-768b69cd5feb","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":72,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"67d87ac8-140f-479b-9653-be28e8be312e","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":72,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"1e4be913-92b6-458a-8574-121c6641f6ce","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":72,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"b1810879-6587-471a-aae0-69593a181b97","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":72,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"de76e7f7-9cf3-4d11-af17-6a809b1de0f3","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":72,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"f15ed08c-2f7e-44ec-9a82-2c218c186d7e","block_type":"box","text":"Fund’s operations.","page_number":72,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"29f8d8c4-3fd9-48de-ba70-0f7324682e12","block_type":"box","text":"Foreign Economy Risk.","page_number":72,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"eac9ecad-a8a0-4c63-87ee-dd867d65b208","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":72,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"c8953143-d6f1-4f01-a446-ffd39495fb17","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":72,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"fb7ca401-8859-4ae1-b083-fd8fcbd01fce","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":72,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"967665dd-c4ab-423f-9d5a-3c7c68ee2460","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":72,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"1e2d6f6b-3ec8-4913-940f-091f0bd5a909","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":72,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"410519b6-889a-4d97-a3ca-0266edb1865f","block_type":"box","text":"measures.","page_number":72,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"4420701e-70ff-456b-9614-3a0ba94ea568","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":72,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"fd7697b5-78b7-4362-b836-2bc8b52d04e3","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":72,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"9c2566c2-a4ee-430f-9939-018afa746ecc","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":72,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"87531cb7-9625-4be1-a95b-96b7e91e212e","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":72,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"089bd061-f8f0-42a2-925e-ad24f568f5a9","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":72,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"5162305f-6456-44f2-8445-9b3e5624980c","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":72,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"fdd0b1ca-968b-4605-8a8d-4fe8c014cbb2","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":72,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"e7b41697-67b8-4d67-8823-98bf678d7797","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":72,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"ed42a719-a4db-4a25-bbae-f3c29053cbfb","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":72,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"ca377f4e-94a1-4865-943d-0d7005ca0958","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":72,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"e896364b-5800-4215-81ee-221f42fe5ae2","block_type":"box","text":"United States or abroad.","page_number":72,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"a632e362-c8ec-4f26-88b7-450079e28ee5","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":72,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"77c39b04-5c61-4c6c-bc94-3d96e55bdfa7","block_type":"box","text":"Many foreign governments supervise and","page_number":72,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"837acc99-9b88-4f5e-ad4d-63b34a24fb0e","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":72,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"96a82f87-8fcf-476a-a0aa-5cb088ff1b49","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":72,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"3855d0e1-ce26-4140-a03b-68dec1af31d1","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":72,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"03b1c9e9-e3d3-4bf1-a911-2b3e5229adba","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":72,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"388cf5c3-78ca-4a1e-9a6d-fd889810546d","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":72,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"1b65bd3b-134c-4663-a90a-2987730a337b","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":72,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"527fe02c-a467-40e1-9da2-515a579282f4","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":72,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"7f9f839c-b2a9-4cc8-bc21-e9f28b61db98","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":72,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"c675f985-a3d3-4ac7-b0a4-57eeb2588017","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":72,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"73a6b5da-d858-4833-9ef9-b4c872d8f805","block_type":"box","text":"II-29","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"15905cd4-be10-48a2-8736-024d06b721f9","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7845acd8-88a0-4d85-bace-3f412f0d9fd2","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":73,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"8172efd4-6c39-4800-88ad-c5d30dba87e4","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":73,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"622d0095-b13b-47b7-baf8-f0f3d06894dd","block_type":"box","text":"investments.","page_number":73,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"f8a0e7a9-3fac-494a-af47-12b45094e706","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":73,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"9a6f368e-b325-49b0-a7bb-2a6658a0f87e","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":73,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"86533780-ed5d-4c28-ba93-f04a786f7d4e","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":73,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"f3112c11-71ca-445d-b0c7-ef4bcbf3d2cd","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":73,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"906dca54-99a5-4b42-b8b6-f40a03f1992b","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":73,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"4e2e72f3-bb28-4cc4-9b6d-65aa1700514f","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":73,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"5e714741-c64f-427f-8777-6f9fa99b577a","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":73,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"4e605d15-ccec-4805-80d6-27ccbaa49767","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":73,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"062ac232-e9b7-4926-abbe-03412a3248ca","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":73,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"fcdc032d-068c-4bde-ae6a-5a03ba8e0825","block_type":"box","text":"States.","page_number":73,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"f9da9cd4-3031-4f70-a1ff-419960a06b94","block_type":"box","text":"Publicly Available Information.","page_number":73,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"c9ef05e3-fd14-48b7-a7bb-dc93f77e43d7","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":73,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"54d92cd5-09bc-4685-8faf-1d38b8d22b02","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":73,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"93a50e40-f0a2-47fc-b16e-9110c867305e","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":73,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"29f46fb2-77aa-45be-82c4-e0625fdf4e67","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":73,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"ca041159-d9b5-4967-ab52-83f2d3e5dcf0","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":73,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"250ef2ab-98e0-466e-bea8-f77efa65de26","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":73,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"9d74901f-d1ad-473f-809f-1be84f849dea","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":73,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"bc1cd492-0667-415f-b1c6-6a1b934d99bb","block_type":"box","text":"United States.","page_number":73,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"21dfb3fa-37f1-4c3d-86da-609fa5e78fed","block_type":"box","text":"Settlement Risk.","page_number":73,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"a2053c48-d92a-453d-8060-0324eb5909ae","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":73,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"7414ddda-fd09-46e8-bfa5-bc741cd879be","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":73,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"646939e3-9dd1-4d59-abfe-815248f7e048","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":73,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"e11e5a04-078a-4923-ab69-c2e1a063d42b","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":73,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"02aae10a-f5bc-48ed-a07a-0d4717e71bab","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":73,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"fef1c6be-778e-4169-b5b9-aab080b79fbb","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":73,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"304f7c8b-d342-4b12-9955-a359fb8f2ab4","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":73,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"36bffa7c-3513-4afc-b3d9-7d31c9b7aa54","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":73,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"89e99bb3-1243-4356-b0e2-189467b1fb7d","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":73,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"04c5c049-6ab4-40ea-8145-2f4c53dfffdf","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":73,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"b66c8ce9-3822-40b7-b29b-8d4870981bb9","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":73,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"f6d2b349-84fb-4d82-aef1-aa952e9434ce","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":73,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"b8b92391-1d3d-4761-8de3-1ea470cea3d4","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":73,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"6ad68a3a-a029-4ca2-9b52-9aeae284c914","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":73,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"059d868a-61e9-45bf-acfe-707be8cb06be","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":73,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"12b83241-b92d-4484-8bb8-7743c5cda844","block_type":"box","text":"Sovereign Debt.","page_number":73,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"660566af-3401-4d2c-b6eb-e0066cf9389b","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":73,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"c9501453-f4ac-4b44-8923-876bce8e2ed8","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":73,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"821277bb-430c-4028-bfe6-a51f458753f0","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":73,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"74fe5125-8f90-423f-b780-782fa8884d5d","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":73,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"967ffa5a-4318-4faf-940d-d7a15ea38c0c","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":73,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"317b055b-3adb-4e93-8f2e-fd44631397b7","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":73,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"55f04185-5c13-4685-8f66-1af65cfe264b","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":73,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"22a79dbb-7469-4271-9ab5-61e5019468f7","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":73,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"fe6e129c-ca9e-4743-b3b1-820d53fb0f1a","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":73,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"b890ef37-1630-4017-901f-8c8a5dac8c08","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":73,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"f8d57bfb-8bc2-4935-91e6-40c9eddd700b","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":73,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"d3589b9e-fcac-4169-9544-a01480a03171","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":73,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"032c1739-4e68-45b9-9e91-6180a16812b8","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":73,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"7be55fed-fc72-4ce5-b650-8cffbbf084b4","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":73,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"850a1708-bb32-47b2-aa3a-d703a5a212a9","block_type":"box","text":"debt.","page_number":73,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"3ba409ce-1255-4c0a-8e86-f2f4bff5d3b7","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":73,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"5d3e8fdf-c8aa-45f9-86bc-6b7f8dec35f3","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":73,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"12341bc1-1f63-4c37-b255-78f05e103b10","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":73,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"4bdea148-b573-4cd4-901a-dfd1e6d989fa","block_type":"box","text":"II-30","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"13593b25-7f19-4285-997b-83e3b17d7464","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a6dc889-5f7c-4afa-b816-548a3802423f","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":74,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"884ab8e4-8d08-49f4-a95f-c86cb9441afb","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":74,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"5d333bda-a82c-4ec1-9f83-504b9a71c4d1","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":74,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"55056822-43e8-49f5-8cd7-f1d160f0501e","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":74,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"20a7c7db-f339-48af-afe9-021b09f52f88","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":74,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"7aecb889-3675-4d48-bd00-7fe3c6aceb51","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":74,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"c2f20f61-3042-4c31-ae63-6385b4f96d5f","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":74,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"de418232-c349-4b71-ac5b-d29b322a7692","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":74,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"9f824678-23ba-4019-b9af-6f394c8c3a04","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":74,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"a83c32fb-9d25-4718-8e24-0606e624a81b","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":74,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"69cbeebb-27bf-4686-a2fa-dd8f7bbae52a","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":74,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"87699be1-b723-4e47-8f79-52246972414a","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":74,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"f77a24df-56f7-454a-b805-b1a71e841cb7","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":74,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"4e75072d-3653-44b4-b9cd-3570ebb2cd6f","block_type":"box","text":"in the Fund’s net asset value.","page_number":74,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"beaa807e-e523-4099-8379-733ebda1eb5c","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":74,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"4a9b5a00-9d90-419c-bfb6-69f37def1dac","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":74,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"6195a140-efd7-477e-882c-5604179d5484","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":74,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"407ff879-19b0-42b3-a999-6b779ededd57","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":74,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"0be6f0d5-dd9e-4e03-b10d-e3974619e736","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":74,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"f7a805c9-04e5-4bd6-9cc0-bee666436a1d","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":74,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"33442d5c-9f6e-4ffb-a8cf-26dac6ea7c5a","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":74,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"216a7103-452b-4605-9030-4c131e44e0de","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":74,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"b0411e78-626b-4b36-bd77-5fde886d433b","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":74,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"8f35a7dd-5aff-4f02-8f5c-083dc57c4014","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":74,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"c197eb66-c179-4730-a6a8-0bece32f360a","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":74,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"a6475440-0a92-4818-a813-5edd65409474","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":74,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"46b575a0-3f85-4b06-ba7b-8add95841b0c","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":74,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"0241a45c-19f9-4bf0-a302-8f2243e49b6a","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":74,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"7f99b8e9-059d-40a8-89a1-e640f2d70abd","block_type":"box","text":"Fund may invest.","page_number":74,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"53ca9de7-c749-431d-878c-9198ff57f9e6","block_type":"box","text":"Funding Agreements.","page_number":74,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"b6856676-bd8a-4bf7-816b-d3cd45f27e8d","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":74,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"2b8e84e8-41c4-4dd1-b0b2-7159467a419c","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":74,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"69d8a02f-8f41-4cc5-82c7-acb9bd7c4279","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":74,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"9725d6bb-be41-40e3-9992-c4c145722bd3","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":74,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"2d782808-820f-49b2-98bf-3b6cd243c9d7","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":74,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"348efbd6-59dc-4dca-afb7-468a7feb0c70","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":74,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"20e14c84-a6e0-4411-800d-4cad8308d9f1","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":74,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"8b7cf54e-520e-471e-bc05-01799787644f","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":74,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"b9c2ba47-81e2-4468-b376-6af281e2ec27","block_type":"box","text":"Guarantees.","page_number":74,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"9fc5d6ea-f04d-4226-b0a5-580bc6b23e56","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":74,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"c774955c-84e9-4a61-bb9e-14c3dba38e10","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":74,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"5578c6ad-248b-4f12-9b53-8033c27b0a1c","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":74,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"250285b3-e6bc-463d-8e68-db6066e0cfbe","block_type":"box","text":"Illiquid Investments.","page_number":74,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"f5caa542-7b42-4b06-b896-873c124e9a69","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":74,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"658771e9-36ae-41e5-89bb-e3f3aa43ef70","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":74,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"debc049a-e3ee-484d-8b5b-efbb8ccb288e","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":74,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"03e5c1b5-cca4-4c0d-9101-b39ccdd968f7","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":74,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"981a1f4b-85d2-4650-a047-a2f1bd62bce4","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":74,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"a3ba5431-1336-4cfd-b10a-e19e7cc58c10","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":74,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"a2b0a4f6-81fc-49a7-9b93-910e90bf7afa","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":74,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"c308c970-0fad-4ae7-935d-7a8057b39cef","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":74,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"cc2ee410-3104-49d4-94dd-3ea8bb2bc317","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":74,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"651f1c9a-b614-4e18-9efb-9ab7c0369987","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":74,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"ecf3f5cc-6d4e-44a6-8dac-e3006a4d97c6","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":74,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"f6b3f753-ee28-4aea-be56-340cc162ec06","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":74,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"ecbad524-a824-4825-823f-306648ecafb7","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":74,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"f14d92e8-ba69-4462-b76a-d35ae6309817","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":74,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"80ef5bb3-cd6a-44cc-bd2f-824e2b2c7ff6","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":74,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"b0ec6b19-d499-4176-95c4-36de926ba384","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":74,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"18b3393c-8891-480f-82e5-d726fd32b529","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":74,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"61041fde-1e3e-4d84-ab49-b4e94c5f2f69","block_type":"box","text":"II-31","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"175c8ff8-6edc-4ad0-a5f2-57c76da1de1f","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e22a624-3469-4a13-ba2e-407b7b77ba30","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":75,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"fe0c94ad-882f-4026-a139-bbba681a9910","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":75,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"93c01db6-3af0-486c-8f9c-81598cdffa25","block_type":"box","text":"Index Funds.","page_number":75,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"ec50c21d-99c5-4c8f-bd25-e059f5251035","block_type":"box","text":"Cash Flows; Expenses.","page_number":75,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"318a00a6-809e-43af-a054-f271c05af3db","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":75,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"c73e287b-b904-4a91-80c2-285c6dd876ab","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":75,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"e92695f0-5723-4735-82c2-4f3905c5dd4b","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":75,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"abb9470f-6536-4fcf-a97a-f3f020659c61","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":75,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"cd92b9f4-319e-462b-a1db-17857811069d","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":75,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"c13b98d0-b92d-49d6-990e-539adaf71db4","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":75,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"99aad139-e8cb-4e32-a573-b6168a4e0633","block_type":"box","text":"(","page_number":75,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"799a2d33-2095-4d24-8a4c-69ed9bf09825","block_type":"box","text":"e.g.","page_number":75,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"3cdb8312-4969-446b-a580-c4ba6bf13975","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":75,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"0c4ae561-20ed-4391-95f3-a2211a74404c","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":75,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"4d944f94-b262-4b4b-938d-c95f64429925","block_type":"box","text":"par ticular security as an investment.","page_number":75,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"1d1fdbb4-80c0-4325-9fe5-7d8fa564d41b","block_type":"box","text":"Tracking Error Risk","page_number":75,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"805d2cea-a5fb-46e6-bdf7-e0a058e6c2c1","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":75,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"ab1657cd-a7ba-496b-a391-fffaf662e45e","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":75,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"b7144d6d-4bc5-4de9-9fff-951498fcceae","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":75,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"e2396c5a-9a0a-4e8a-849d-b4aecb037989","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":75,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"f9043210-9824-4031-838c-e513bbf4338d","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":75,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"a6103e0b-153b-4e51-9b37-ecda8ad77661","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":75,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"05a72122-c091-4235-a9cf-29b9386fb485","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":75,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"92517b2b-790c-48d1-a56e-612574ccc992","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":75,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"5b056708-7478-47fb-a50a-d253f9245770","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":75,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"b1ebd632-045f-45e5-a89f-133c35392d65","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":75,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"a792867b-bd02-4034-adac-e316778e5c83","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":75,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"5780a151-9bee-4a8d-87a9-352d373fdf64","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":75,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"333d0088-c5c2-430c-8371-2d832d28ff8b","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":75,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"09292317-abb8-4166-b76a-860d0a0fde6a","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":75,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"0e0c6d62-4552-430c-aae2-4deae5bba94f","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":75,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"b1a6c4a9-39e4-44cf-8399-9e53f0d1eb82","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":75,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"e4b31ddc-e346-4958-bb40-985927a9582c","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":75,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"45beee03-b920-4e09-99b1-b2477d9a48aa","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":75,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"3df6185e-7fe0-49cd-8657-14f4db42876c","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":75,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"3383e193-764f-4579-91c9-b3d380c76de6","block_type":"box","text":"exclude such securities from a Fund’s por tfolio and, if it does so, such Fund will be subject to increased tracking","page_number":75,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"ae3abad1-7445-48c8-8a60-9e6322f180f3","block_type":"box","text":"error due to the divergence in the securities included in its por tfolio from its underlying index. The application of the","page_number":75,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"3b9ebec7-a8e6-4644-b8e3-ba9048c2d056","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":75,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"1650224d-9fea-4748-9f66-00532f5b884f","block_type":"box","text":"and its affiliates (without any guarantees). The analysis and screening may not exclude any or all high risk securities","page_number":75,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"5f22fabd-57a5-4aca-b46f-690cc5b8c7cc","block_type":"box","text":"from an Underlying Index or a Fund’s por tfolio, and the inclusion of such securities will result in an adverse impact to","page_number":75,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"b6913ed6-070e-403f-be32-93a2dca19932","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":75,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"bf2598c6-1576-4411-b9e7-ef7500c780f2","block_type":"box","text":"S&P 500®","page_number":75,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"87193daa-0a89-49a0-975e-15cfb9e6f300","block_type":"box","text":"0®","page_number":75,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"d2c75012-f073-4b34-b12c-5c9f6348822c","block_type":"box","text":"Index (“S&P 500”).","page_number":75,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"a160dda3-fd10-445d-851e-64a624c76cc3","block_type":"box","text":"“Standard & Poor’s","page_number":75,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"59bfdb53-6550-4d46-8eec-a4b09a92f982","block_type":"box","text":"®","page_number":75,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"64296d1e-987f-4274-bac5-b79b91aca8ba","block_type":"box","text":",” “S&P","page_number":75,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"be2c7bf8-17bb-4797-b2f7-fd101d10d63d","block_type":"box","text":"®","page_number":75,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"565c6edb-cd61-47cc-803b-fb9fe566c379","block_type":"box","text":",” “S&P 500","page_number":75,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"40f467c1-cb08-49b9-a66d-b2824852c84b","block_type":"box","text":"®","page_number":75,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"a05aa8d6-c774-47d1-a297-217e0cc9000c","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":75,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"ed972e90-b3ae-4706-85d5-f54758b1266a","block_type":"box","text":"are trademarks of S&P Global Inc. and have been licensed for use by cer tain mutual funds sponsored and advised by","page_number":75,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"224b2d38-5bf0-4827-aed4-98d1e4c8af66","block_type":"box","text":"BlackRock or its affiliates (“BlackRock Funds”). No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":75,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"857aa0e9-4832-48d6-9095-cfd91feb4517","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":75,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"d680feae-fedf-4e0b-887c-1f1c99534107","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":75,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"2a98da08-b663-4100-8f90-c581a0c091e8","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund par ticularly or the ability of the S&P 500 to","page_number":75,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"ad4cf9ec-030c-435b-83d9-df973fb036c2","block_type":"box","text":"track general stock market per formance. S&P’s only relationship to cer tain Funds is the licensing of cer tain","page_number":75,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"87d1c481-6e6e-4779-8f03-291d9248128e","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":75,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"97796b6b-b9f5-4b88-b943-e7f9a6b9452a","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":75,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"5a3cdae9-70bc-434b-aea4-469b20903aeb","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. 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A Fund may also invest in so-called “inverse floating obligations”","page_number":77,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"25150dcf-8b98-456f-87d1-047f1e5b1b75","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":77,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"ad3f3c08-4250-43a1-ae86-02c964d81522","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":77,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"4fdc48d2-59cb-4132-95a0-d3558dd9fc51","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":77,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"3cbf39be-814e-4c0a-a2e7-6cb484a86b00","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":77,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"a04128c7-07e8-4a62-8b03-dae069e1b6bc","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":77,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"6ff60fb5-3142-4f06-8d1c-64885f2c7747","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":77,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"65861599-28e3-4226-82ed-aa6bb807b052","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":77,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"5eed7abd-7d7c-40d2-9646-27b5a89626e2","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":77,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"9c1b7cbc-2b44-4cea-9fa1-4c56b77a908a","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":77,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"77ab0b10-932c-42f3-b5c6-2617bbf9a8c9","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":77,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"c207495d-94ad-4eb5-9d9b-8271ed69db60","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":77,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"af8e0b2e-f506-40fd-9c8a-41eb1813560e","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":77,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"7b786b30-2c7b-4d54-ad73-5ff7987c37d6","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":77,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"cb106cd3-6324-4b50-ac6c-43d2d627d976","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":77,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"270332fb-f6af-4c3b-90dd-e9a7a83cdff1","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":77,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"12b09446-4d7a-432c-9566-d0a4b439fda8","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":77,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"6f5a0e27-b8b0-479c-92cf-34969c71619f","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":77,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"d701cc4f-93d2-4588-90b8-61178aaec6dd","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":77,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"884bb5c4-b739-444a-b6f8-67b88078b94b","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":77,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"6fa05a47-1ca1-4187-8781-4dcde1e3f6d8","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":77,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"883e4100-3276-4a2c-9479-b0d65a28f2b8","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":77,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"c46d26b7-a3c5-429f-a39f-5715cbd84fe2","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":77,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"1091f8aa-3599-45a4-bc02-88f91f70a494","block_type":"box","text":"Inflation Risk.","page_number":77,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"93c04857-f0cb-4f1e-80c1-e772f85f6e1a","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":77,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"5ff4301d-09f3-4234-89b3-1de575380948","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":77,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"1206308d-9b7a-478a-ba15-d69b15043bbc","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":77,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"5c08d81a-7396-4f58-ad07-a3fa42e7340c","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":77,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"293ad60f-373d-4a0b-b2b7-d120c1181775","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":77,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"eefc735f-b26d-471f-b479-f494fb2e0274","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":77,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"88786971-6334-4744-9791-249e10bd754f","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":77,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"48028169-7eb5-42b9-874e-77cab875cda1","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":77,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"a92a905e-e80b-44df-b1b0-81e081bcfe4a","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":77,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"cad0b7bc-ff66-481a-a202-1ffc5c3a1b2b","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":77,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"99b3b291-c0f9-417e-8085-550966e908a7","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":77,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"be307378-fd54-45a7-a9d7-64432e62332a","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":77,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"a8376a48-befe-45a5-9618-eb91ada54570","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":77,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"2f59250a-6900-41d6-92d6-d49e394a0b09","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":77,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"c82181e7-3fe7-4a95-8e54-f77a4d7f6818","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":77,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"a168d693-dc72-48cd-aa40-acd48541b8da","block_type":"box","text":"II-34","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"693c2486-baae-489d-b4c3-d764cc0024a6","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61e480fc-c7ff-45d8-8bff-6e17dcb599d3","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":78,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"39abb8d6-d8b8-4c63-b227-5988dfdba77c","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":78,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"67898e6a-d94c-4908-89fe-35103ce56265","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":78,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"f2e85fe0-4d80-4889-beb2-440bda414f27","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":78,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"060a8e86-5e98-463e-aea4-9246914ba3c5","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":78,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"22e2c958-a892-480c-bf0b-1103e09eaed9","block_type":"box","text":"be available for very limited periods.","page_number":78,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"aab80d9e-4444-480e-b48d-be3cc07e2956","block_type":"box","text":"Investment in Emerging Markets.","page_number":78,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"97994b72-6d3f-4cdc-bf96-da8dcd297c84","block_type":"box","text":"General.","page_number":78,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"278f9962-03e0-42f4-b34a-3648a43723cc","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":78,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"373629b8-6908-407c-922f-1826de858335","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":78,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"ce015735-307a-4b24-b825-5a2806f8bd3c","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":78,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"ef08b862-4c62-4a74-b7e1-2efe98b20a36","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":78,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"c6017ba7-0be2-4882-8185-e6edce802d20","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":78,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"b9a42559-f89b-4f62-89d0-b818efd6849d","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":78,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"e4608723-8348-4965-97a5-6884ad90eb81","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":78,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"b3df7a27-dadb-4aa2-b63b-02d08bac9d45","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":78,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"84ddb946-057d-4a57-8f81-f482b3253bb7","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":78,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"2fe4ea17-9228-4f46-afdb-7284d02aaec8","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":78,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"3a1102fd-d8b7-43e6-afcd-4f7d80aeab8f","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":78,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"c8b9c363-64c6-45e0-b953-47bc8b0725eb","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":78,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"806e8e3a-c851-4acb-942a-1de01b3194ff","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":78,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"785fc93c-4374-494f-92ef-48be14dbf857","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":78,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"dbc6f0a1-47fd-44c5-bc07-a9eafccd88b8","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":78,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"bf990745-d088-49a2-86bc-e8325c12a4d5","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":78,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"c43100bd-8557-41f1-ac82-111efec33520","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":78,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"73714161-eff7-401f-b1d7-27c8f4b9cc87","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":78,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"68daeccf-4fd8-4e00-9109-af813d917ab1","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":78,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"0fa07b93-6a0b-4a01-b23f-a6a5b25f1137","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":78,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"32eb4be6-30ba-4e45-a40a-bd03d812ce67","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":78,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"4afd38eb-95f9-4167-a005-7f69ffc4b479","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":78,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"d27240f0-b61c-4a7f-9b0d-8d98e87a66af","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":78,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"9a2f4966-cca0-4336-8055-6335e21ee53b","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":78,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"f824529a-a0f5-4a6b-82aa-8d92e954a1b4","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":78,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"fd02fe38-a993-4e3d-b25d-612b2b1418f1","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":78,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"16f385e4-b887-4687-8ea5-bbad016943b4","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":78,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"d960f8b5-6e15-4894-bba3-325ed624a758","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":78,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"ca482250-9a24-4cdb-b9b2-d2aa743ec645","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":78,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"3dd0f0fb-2e0f-4c31-865c-c56020817194","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":78,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"350d5426-bdbb-40c4-b364-a8c2bfc1b79c","block_type":"box","text":"volatile than investments in more established markets.","page_number":78,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"90c5e12f-46d7-4a23-aafc-692b273c4a9f","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":78,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"647d47aa-ef51-4b35-893e-62122929d5a1","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":78,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"f2b8d320-9008-4e39-9f46-69bb256f7114","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":78,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"8d24d2b2-aaf0-4dc9-a7c7-b53c9ac9a097","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":78,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"ed150a5b-133a-4dfa-b932-5f7c4ea6856f","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":78,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"5cd956ef-0313-4f84-bfc3-fb30a3b0a013","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":78,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"d8b2202a-727b-4dbb-89f5-6938a3c0cf8d","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":78,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"73209f95-acff-454a-a293-abb144ef9d9a","block_type":"box","text":"acquisition or disposal of securities.","page_number":78,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"ff0ff0ea-c576-4a8a-b87d-01edcefcc0a1","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":78,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"159c06d2-ab8d-4b9a-a926-b1c89aad440a","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":78,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"502fc86c-4004-4028-af8d-f7894db4f731","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":78,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"e0fa5fa1-fabe-40c9-a1a1-9e2bb51f6d3a","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":78,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"15932d5b-490f-44cd-83ba-b7688e3fc1d6","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":78,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"637f6c84-2b8b-4a0e-9d28-9613d5dd4f62","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":78,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"889e605f-7c5b-4ae4-910c-a65170efb642","block_type":"box","text":"II-35","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"45814886-9ae2-4d50-a6ab-97c9ada332d5","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"176af580-fc93-476b-964e-9bf0213fea00","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":79,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"5e4dcf01-f8dc-4758-b089-607a6903c1d4","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":79,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"52f80395-50b5-48f9-9192-1b3c895492f8","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":79,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"74b0f6e4-40cd-473d-9812-15baa502d4ed","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":79,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"a14cda11-534b-4354-83a2-c87b36b4e0b5","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":79,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"39e295af-a73b-44bb-ad04-7ed85ee14c79","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":79,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"2c42192a-fd4e-4577-a90f-5866b41f10bc","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":79,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"2133d479-c249-4ff1-bdcb-1dfe491dd9a2","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":79,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"8b08f974-8794-4e1e-b25e-2897f73affab","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":79,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"e7193d8f-67b6-454b-8455-b7456e7d20c2","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":79,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"7aca733c-d042-4412-9632-a97b4ebb58fd","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":79,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"0d102abb-4d92-46a5-bdfa-548aaabf5d28","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":79,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"ceea9878-1aea-4917-8035-0379823d93f6","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":79,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"22fed0cb-20a6-492f-b6d0-a38f8e0be56e","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":79,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"53959408-1ab1-4efb-8996-deadd913487c","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":79,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"b9fd8a4d-7ffe-4572-ab87-47b0143e8b2e","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":79,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"96c5cb69-b3fe-41b2-89ee-3f0e462e0010","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":79,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"c2488d4b-ead5-418c-86e9-76e33e9cebd4","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":79,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"6f263c45-d45d-4dfe-ad4e-57568e376376","block_type":"box","text":"per formance of the Fund.","page_number":79,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"540460bb-dc98-499e-86e6-59b773b69fed","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":79,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"bbd2a658-a585-404d-b87c-5255c0b741de","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":79,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"8ebee423-2565-4995-983c-551eb206b410","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":79,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"6fe79abf-e41b-42a8-8e06-e2a1f8284bac","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":79,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"681f686f-eb1d-4fa0-90b1-7b82f561619a","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":79,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"12f18b7c-56b7-4dfe-af9c-ee4019b2e7fd","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":79,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"578c5c17-d563-46e3-b9aa-09f1f85bcff4","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":79,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"a85f0868-a7a7-4a04-906e-cb8f4e8c5c2b","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":79,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"f63ed538-33d0-40c1-9514-f58e25d3f410","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":79,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"c4641c5a-5017-470e-9c9e-fbdf2b5b0866","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":79,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"d512b2c3-cd7d-4ee1-b7c6-764829e8ddc1","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":79,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"b9467037-3942-48e9-9c09-7896c245dd28","block_type":"box","text":"affected by a variety of factors.","page_number":79,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"5c65fb7e-bcd9-4721-a969-2b5e261b8b83","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":79,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"7fae3897-09af-45d3-bce7-d0ed8d09d199","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":79,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"ccbfa94c-b803-4842-81f9-a0b46bfe7dd2","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":79,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"cacd7eda-2c6c-47d8-8425-b85a08629ca4","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":79,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"582a2818-1b5a-434e-9724-3f4876314efc","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":79,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"4061a5ca-7996-4ab2-86d8-b8afcf12a534","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":79,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"684aba80-d18a-40d9-8310-d2130c88ad53","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":79,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"bab4fc6e-ff7a-46b0-9dcd-42020c70474d","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":79,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"59159e87-d5ba-49ef-972a-78180e95a62c","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":79,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"e3eb25b9-591c-4a96-8677-f10e28f82de9","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":79,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"eeeaf5bc-ed50-4dc4-b124-736cf26b4ec2","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":79,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"ff1520b5-3192-42e6-824e-943e184484c3","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":79,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"3eac3ddd-0dba-45f2-8e96-353ad8bd05c8","block_type":"box","text":"nations.","page_number":79,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"d2d77190-7b15-4180-939c-d9a72d84f1ab","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":79,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"d4af2a55-bd95-4210-a7ae-4bfc2d3aecf8","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":79,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"ed5e87e1-0a5e-417d-b29b-49d3b5b5da0b","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":79,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"82f399d5-ac83-4c4a-b89e-7840faa181f5","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":79,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"1d9cddcc-6cd7-4293-b801-2c5aa2ce0b31","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":79,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"7fb7aa09-c16e-42bd-8614-de05c15a1f1d","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":79,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"3ba20233-f12d-4e0c-b397-6af97062ec46","block_type":"box","text":"market Asia-Pacific companies.","page_number":79,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"2764d780-f3b8-4cd0-8082-2da38d63db3c","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":79,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"041be3e8-608a-4385-b196-15e68d0f216f","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":79,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"0c62f1b8-6f41-4767-98c1-6a8a563a85b7","block_type":"box","text":"services for such securities outside such countries.","page_number":79,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"ae9793e5-06dc-4caa-b482-f29c48a42894","block_type":"box","text":"II-36","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"415d37fe-940b-450a-8315-2ec365350ce3","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"17ec7321-1f93-4535-8a9e-88121e4c5226","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":80,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"02e8724f-579d-4851-ab68-327c8dfba268","block_type":"box","text":"to commercial banks and foreign governments.","page_number":80,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"b6f46291-daaf-4b43-8588-516e54fc8357","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":80,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"1f104950-81f9-4b44-9c72-48f999cedef9","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":80,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"f8c4cefa-a59d-4e98-af8a-8f7587f6c8af","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":80,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"c1550f6d-155f-44c6-a990-f581169b43e4","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":80,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"2f83a0a1-497f-4fe2-b42c-f5ace8679515","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":80,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"47ca6bdc-3082-445d-9d74-da89135cdcb3","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":80,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"b2981334-a5a3-40a3-bc35-e59ba3727e21","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":80,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"ca6f777a-8870-4570-9063-7b6942626577","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":80,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"9813750b-d53d-4cb0-808b-01a3043c0431","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":80,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"a4dc9b20-4e6e-48bb-b7d4-83ac904e1d5d","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":80,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"bc9c8538-264b-4f09-af96-19cb592dbf0e","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":80,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"c74bf610-0a28-40f6-b31e-0d95b09cff04","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":80,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"995ba4f8-7d28-49a8-bc79-63ef491ca5ab","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":80,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"e8ab2d1c-a777-4ae5-8300-276d18de91bf","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":80,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"588e2c07-a141-4a30-9b7e-cedf079a5074","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":80,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"f7df27f3-c226-4b73-a510-5d12e1c4140d","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":80,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"477566bd-a7b6-4082-82bf-bd94aa731fa8","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":80,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"b2e6904b-8616-4d2e-88bd-e13848c4d3d3","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":80,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"a0e8f736-c736-45be-a246-54eb6669da26","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":80,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"544c0d3b-28ba-4c9f-b4df-8e9bc9948611","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":80,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"2bdadee2-3cbd-46d0-9741-e0a92bdab0f0","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":80,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"603685b5-0889-4ac1-8722-7afbfe2dcc6d","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":80,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"8a6b2623-2ef7-40bb-bbfd-e94db1579502","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":80,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"6c61ff52-69cf-4877-b339-2a3cf1778c8f","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":80,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"08b97731-7dfc-46cb-8026-9a7e9fb87c59","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":80,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"af4e0b26-1963-4301-92a3-766328af2424","block_type":"box","text":"investment at that time.","page_number":80,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"4d58abf4-ddd7-456b-bd9c-fd0eef13f2ee","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":80,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"9e177ea0-15f8-4738-93bb-c9851f33c185","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":80,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"03fb88b3-9892-41a4-b4ff-be56560f5879","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":80,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"1ffdb119-fd04-4df0-812d-0cc34cfadf9f","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":80,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"bdd14092-663b-4efa-95a5-7155b38a7976","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":80,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"f9b460dc-93aa-4d74-9c06-8c73acc07287","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":80,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"f5d29e80-3ed2-409d-8cca-e4e7d06e9254","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":80,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"a78d54bb-18bb-46a9-833c-4f97b3a23759","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":80,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"b29bc3ee-b71a-4660-915c-b6355a7f3ab5","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":80,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"9f4296ec-6b7f-4c61-873c-2cfa68bd086e","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":80,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"f42ab934-8dee-4d7f-8b52-30871033d208","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":80,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"d80d5765-c14e-41c3-b5bf-c4126b1e9169","block_type":"box","text":"government).","page_number":80,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"85fd312f-f4f1-4209-9577-f1fb2fe28542","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":80,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"ff6da4e7-16e0-4cd7-a4e2-e6d9e5d00e32","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":80,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"a974586d-604e-43d6-998e-3fd7ef91f904","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":80,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"4c2f7800-bbf8-470a-9a6b-6bbc4459689b","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":80,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"d63c6aff-107a-410a-bfb7-9d7350e26345","block_type":"box","text":"foreign banks and other financial institutions.","page_number":80,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"9ff7d683-a423-418f-a5da-1713654794dd","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":80,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"e6daa20a-be03-4316-b0da-45582a9b7bd7","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":80,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"b0b97b3b-9465-4b41-96c1-6f24f31a86f9","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":80,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"43bcaf36-0864-4985-9a42-ed7243dabfc0","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":80,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"823f4551-03bf-49aa-976a-c1a705b13961","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":80,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"6d06c670-bd6c-46c5-b2be-b2440b11b36d","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":80,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"f22981f0-84d4-428e-ab07-d8a1a5d54b1d","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":80,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"21435920-741e-40b1-9f48-2439bf252be0","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":80,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"6d41808f-6688-4e81-ae4a-632aa7f65999","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"4c46cb35-b819-4b66-bc8f-ed9f5611dc38","block_type":"box","text":"II-37","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"307be596-f2d1-440c-9e1c-5e86c08baaeb","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3546860-946d-4486-b371-2f1d86e07813","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":81,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"6968babf-cbee-4138-add4-e3a0078bcf2a","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":81,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"bc0c9272-29e5-48fe-8da7-a72b5ac83239","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":81,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"42bf4794-c4a7-4dc9-9e17-dfac83a2191a","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":81,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"8b9fb11b-fa32-4f84-ac58-1e8e893ece76","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":81,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"7e2b7197-fe16-4487-b8f9-88ffa59b3c14","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":81,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"d48ff3aa-f123-42d3-950e-b86543dee2ab","block_type":"box","text":"foreign securities.","page_number":81,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"521024a4-a4ea-4a78-88b4-0c43b426638e","block_type":"box","text":"Risks of Investments in Russia.","page_number":81,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"605ac1e3-dbed-44bd-91b1-a7c744ebba5f","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":81,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"9deda1ad-53ee-40ba-b787-267f50348ddf","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":81,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"cbb13a3c-2ba4-4c0f-8469-cad1c1433d93","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":81,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"5fa042a7-0bc5-4cf6-8484-d3d1dec69623","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":81,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"485912a1-92ec-47c6-9353-dacb8880183d","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":81,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"8a0de98a-65b9-41d0-903d-8a00b5be6e4b","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":81,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"5ef2e0fc-bd9b-4e61-993c-0eefc3bafedd","block_type":"box","text":"developed markets.","page_number":81,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"63b1fddb-56a9-4453-99cf-42eb5fc470ff","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":81,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"827aacc6-713a-429e-a3b7-587af311dfa8","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":81,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"a3db0847-c456-4eee-b63f-d7ccb5a3e6f2","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":81,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"8d5bf16b-4047-4b4f-b3ea-323172dfbba1","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":81,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"bf1990d9-2a25-46d1-a027-b2f6b58ee0e4","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":81,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"d1e07835-9300-4802-9843-60cb7f356686","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":81,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"e37a5763-8e2b-4e26-a2d0-b981770e91e0","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":81,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"1fe00195-faca-440f-beb8-b26befb5be22","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":81,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"4784115e-792e-4ff8-bcd1-6f2bc13f071b","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":81,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"1fef371f-32e3-4e17-9905-92e1c5f23cba","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":81,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"a87481c5-0d81-44d8-a26b-fab8bd6e7440","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":81,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"4865d0c7-f128-41a3-accb-c63767ce2e4d","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":81,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"a41baec8-3c44-4d92-96ed-ba3deb85af29","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":81,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"24780762-41ea-4dff-8757-4c19b856eb64","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":81,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"ab459f1f-f971-4a4f-b522-27f7840a59e2","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":81,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"de58716a-a483-4ebd-bc40-ccabcb2fe05d","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":81,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"0e225c78-d266-41fe-8436-c3267e4a2d6b","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":81,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"6b0c76ce-bcbb-4087-8bbf-add266be41a5","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":81,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"1c241d04-daa1-4d1e-9647-547bd8d67e2f","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":81,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"af79457c-d069-4b61-9e1a-4effec9d0938","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":81,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"3563fb80-24f7-441b-8600-e0791b0655e0","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":81,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"9a869078-afb1-428f-a793-06ffa6a09759","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":81,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"413d4a19-1056-4b7d-9fb8-76f387dc8adc","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":81,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"ba8c95ed-15e2-4ebf-aadd-12fe822b61bc","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":81,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"129c922d-00fd-4618-bb51-3852858b4b73","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":81,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"0f238bf8-6d7f-44eb-b4bd-eef069f194f1","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":81,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"6147a621-563d-403e-a7f3-d8c1b8582506","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":81,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"7f6a4fdc-c8b1-4fff-9e78-7567158a525a","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":81,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"9cfd49b8-a8ac-4e28-9bab-31187e91e8de","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":81,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"a311af20-3a0b-4904-946c-533af717442c","block_type":"box","text":"sectors globally.","page_number":81,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"2d0b94f0-c519-4c2c-a7fb-291f2551da84","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":81,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"1eb976f2-bc9d-47a2-b4d5-6605ba77c5d4","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":81,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"b4130df6-e7b3-4854-81df-c779df480cb4","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":81,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"2d86dfd3-1cf6-4a73-a968-8497ca0279f9","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":81,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"fd5edcbe-7a05-4cf0-bdc4-0ce9d2c83ff3","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":81,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"c889a504-56f7-4b3a-a838-5aeda042cd25","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":81,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"b1eccd81-2678-4d3e-a4c4-63a0cd643a7f","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":81,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"affc3cf5-7bbe-4009-a497-6225f3395040","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":81,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"633c6651-5579-41ce-a1ad-6b57948e73ad","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":81,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"fd34e8a8-54b2-4a12-b18d-2c9c1e66ca5d","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":81,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"1dcbef36-c3fd-45b3-9293-9517c8ab73f6","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":81,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"12c66843-4b97-443f-9446-d08c00a54284","block_type":"box","text":"II-38","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eacd6be3-c754-451e-a03b-fae9c3faec66","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f51376df-ae68-40fc-b3b6-c54c0e5e0ed8","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":82,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"a61df0b8-9aaf-4029-bff5-8235e8183af0","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":82,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"abc495a5-1066-4085-9054-441511a6485a","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":82,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"c002176a-f31c-4747-99ff-7ceda3042a89","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":82,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"47333b45-5e8d-42c6-8238-c06fbb1c4764","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":82,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"74a6f553-3783-46d0-b172-6f35bc90b46e","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":82,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"f82e4abf-6fde-4435-9356-feef95f2b079","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":82,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"cbc4d2de-aa23-4514-adf8-04c8975e9aa9","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":82,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"7889b6ee-9852-40be-8779-53b4f9effdd4","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":82,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"89ddb0c6-cece-4667-b2ad-14fbd417c9a0","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":82,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"933c4dd3-3a53-4ae1-973c-bbed2b1b8e6e","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":82,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"a7d517cc-ec26-4132-ab94-97f5dd109c39","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":82,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"8061caac-945b-496d-b776-7356274eb8c1","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":82,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"effb31b1-e280-4761-99a2-5ed97698f31a","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":82,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"13e32647-cc3a-4f98-9e1d-576d27aca03f","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":82,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"5456a9cb-bebf-463f-af2a-beadf2d02e09","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":82,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"758324ef-4181-433b-a50a-519953028839","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":82,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"a9e4d3ad-ab3a-4785-aa61-b2a6380c2b7c","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":82,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"8aa303c3-d4b9-4708-81cd-9c38d2bb3398","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":82,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"649301df-3b4f-4359-9645-1e1cf5880f02","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":82,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"68b87902-0019-4b7e-924e-a70b688270e6","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":82,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"7862de7d-36ab-4b34-a0c3-726a08352667","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":82,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"1ce451e0-8ae2-4800-88f8-40ca703cdc5d","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":82,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"ae607249-5190-4b03-9ba9-ec21b683773b","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":82,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"caf4abaf-a478-46c2-b0b7-9421da932df5","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":82,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"56cd6f54-03d1-403a-9ba4-97b121ecad29","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":82,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"8ffacb13-860f-4756-a62d-f4e9995ef46c","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":82,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"30a5a451-3c2a-40e2-b40f-a46b675d55b0","block_type":"box","text":"impacted.","page_number":82,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"c8e85103-5f9c-4a3b-8b07-e6d81ae2a4f7","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":82,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"15496df9-9a6a-4ba3-88e9-aac25a350eca","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":82,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"e70db4e3-d798-43d9-b1e5-cc0a126f73f3","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":82,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"72914970-caf6-481e-8ce6-f8756c0e55d4","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":82,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"42660d61-bb41-40d0-ad73-c5e51b108929","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":82,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"124ee095-6e25-4f80-a58e-43d931e8dd8a","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":82,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"41dfb04b-c0eb-4140-b44f-4af8242117a8","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":82,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"05d1f40b-0f59-4dbd-97e0-420bf3cc6175","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":82,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"6fefcf7d-aacd-400b-9573-755895b87d57","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":82,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"f24e1b61-9d43-41c4-b19c-1962bcafba55","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":82,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"309fc474-7062-43d1-8df7-0bbc9d269eee","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":82,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"4b6f8436-53cb-4be3-a1ff-077a8dcd3806","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":82,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"7e6a6ab4-5989-4b82-b4e3-8cf47437e567","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":82,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"fd5aca62-1e93-4902-b3e4-fa5b49167c85","block_type":"box","text":"economy.","page_number":82,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"f5fde295-d351-4a44-a6a1-3d3516ec8782","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":82,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"1ca58106-0630-4ee7-aaaa-08003172377c","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":82,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"c8f24808-9cab-4c72-8c78-000bbfff9fcb","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":82,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"1f433c09-f2dc-433e-bf4b-406efc00c7ca","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":82,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"07ff184d-9637-4503-84a7-7156d3bc2056","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":82,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"81ae0840-2196-4c65-b378-f79ab785aefc","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":82,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"ef82edcb-8088-43eb-b9e1-003905d189d4","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":82,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"f2044582-c2cd-4803-92bb-238796b11316","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":82,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"d865f8f5-808e-493c-95aa-f5dc1e8b12bc","block_type":"box","text":"typically the case for investment managers.","page_number":82,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"4100ea7d-9622-43ca-8671-c22bab92f3be","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":82,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"bb1480d8-2b5c-492a-8447-4cb8b8b03eb9","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":82,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"986d28ee-f8cd-492a-b34a-5ed5b6a73509","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":82,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"3e9ccbe3-a458-445b-90f4-3647b2f82d07","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":82,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"5a66a83c-7d29-48e4-a0e1-095e65387da5","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":82,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"1a49f14c-f604-4db7-9ccb-297e28121910","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":82,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"86cd09e6-be0c-4bf7-a18e-7655c4a27d66","block_type":"box","text":"II-39","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"66d57ffa-ad5e-478a-ab63-1a651bf2d304","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"92722028-2d90-4c5c-8b87-ff72ffc61d48","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":83,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"e828a3a3-7c81-4d80-a295-d68684ba60b5","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":83,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"1b671a95-fbb0-4a71-9640-556acfd23786","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":83,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"b0890d23-07cf-4237-8339-4c37a49f0046","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":83,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"c324cb58-f4bb-402f-ab76-d94e046328c5","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":83,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"3f959a48-471f-4851-8a44-568999932f32","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":83,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"fc074c51-d054-4087-87a7-c37ae0c4567e","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":83,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"d507f967-cd94-46ef-9c99-6d714a2ba2de","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":83,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"d0cbbfc4-c7f3-4f44-bdcf-15cfbc90db83","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":83,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"48c5ffc2-7886-4b42-92e2-700e6f9ae287","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":83,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"f3b82ee9-550f-403d-95da-fdbdf6bae4e3","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":83,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"a3f3a8b5-08bf-4c5e-b96f-31a45611e3ee","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":83,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"dd2cface-c979-4f5e-88c0-ecb8d597f6d2","block_type":"box","text":"will be indirectly subject to those risks.","page_number":83,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"8ad95c89-0f94-4aea-8f17-015a4a8022b5","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":83,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"0cc1bfc8-97a3-4009-a5e7-2a260b5681e8","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":83,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"758c4683-0ad1-47b1-b045-1cf04d1dcd83","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":83,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"ca344562-d951-45d8-a88f-44e4e4e95b93","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":83,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"67b41918-94a4-4a0d-9c75-cec7227ee9ae","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":83,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"faf6b6a1-d6f7-4211-9a1b-66ac2e723812","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":83,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"5241d27e-2a2b-430b-9faf-b2d40af12193","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":83,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"d6c5eaeb-83b7-43fc-967b-a792a430adc1","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":83,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"8d9c1bae-2b8a-4189-9b2f-49976f84e7dd","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":83,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"67fb7712-72e7-40d7-9398-6f1ff4c3e65c","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":83,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"0289b33f-df85-436d-b755-985b68e516cc","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":83,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"dcfd524c-87ac-4349-9cec-27a1d94c11ae","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":83,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"dc96bf05-a8a9-4c53-8a59-dc8c3054e17c","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":83,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"23af61ee-b0ee-4284-aec3-58e4388f8b8b","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":83,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"f28809ce-2ab5-42da-a9a9-737a31559ba2","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":83,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"a3177701-192e-4c49-8ed8-149ac380a36c","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":83,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"84acf43d-14bb-462f-80f7-7891317077d7","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":83,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"44d1f54e-c725-489a-bbc3-2b4b8bcd87ab","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":83,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d572e7ca-f2a7-4f20-b603-4577cfcc1b05","block_type":"box","text":"impact on a Fund’s investments.","page_number":83,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"d3bf35db-d724-4680-abdc-a72f759df472","block_type":"box","text":"Brady Bonds.","page_number":83,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"09ea9bc1-6d9a-464d-8d01-44abc99fcb45","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":83,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"c54222f2-e5df-435e-8093-496c7c1f62ae","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":83,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"9ba4bf09-2be9-493b-8d40-0c2dc33e9aa8","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":83,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"36ff93c5-98ab-4a3b-a162-a61f875712e9","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":83,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"f2140aeb-48fc-40de-b621-16cf88c080f4","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":83,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"cf837f96-887d-47e6-aa37-0f190ab6ee6e","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":83,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"0a07f11d-c5d3-4581-939a-48ef0536f54c","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":83,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"187c8bd5-fa21-4fd6-a00a-38244b93c3c8","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":83,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"2545b5ad-0a3e-4fba-8638-40769431a01d","block_type":"box","text":"Venezuela.","page_number":83,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"4b4fabf2-1704-456b-9c7f-f7efbeef3376","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":83,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"2fbc5594-78ca-4eb5-9e48-d8e97d0bdefa","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":83,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"17dbffb9-d65d-4ae5-8d46-686ebfce5764","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":83,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"6cc7ff40-26a4-45de-b1b1-339b5112841f","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":83,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"6abc98a0-636f-426a-8e7c-fab0cef6b4d0","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":83,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"6d9cd660-bc04-48ce-8ae8-e883be9ebec9","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":83,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"21881110-d075-46a1-8b65-5db38b37ffaa","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":83,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"8bd50443-b5a5-4ce8-b479-ecedb9e0eb9a","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":83,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"a8d58921-e8f1-4444-a95a-6149294ae07c","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":83,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"5f48ff05-520c-4829-af97-1dd639f60339","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":83,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"387892aa-b2cd-47f0-b40c-d8a66281d308","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":83,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"50d272b0-57bf-49ad-be08-9b225e47f882","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":83,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"337feb70-f292-4a12-8de4-502c37bc417e","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":83,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"c1d71826-c3a2-40ab-b584-d8cb5f668af5","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":83,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"fdf603b2-ae42-43ce-a03d-632e1fa44e8c","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":83,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"4143de34-8378-49f5-8348-b168e8b3749e","block_type":"box","text":"II-40","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"230f47fe-5a06-4fd0-8d6d-d8cb95932d19","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d270f605-0d39-4a9d-bbbe-caf54588097e","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":84,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"6c588625-5633-4df5-b313-ca7a73817db6","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":84,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"257cf786-f95d-48bf-9eb2-ff9c1426a834","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":84,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"a987fcc2-9cf7-4d3a-9f8b-b90ca4563df9","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":84,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"9a5f97c9-6d62-4233-804d-52d522b364ec","block_type":"box","text":"China Investments Risk.","page_number":84,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"67b50a8d-edfe-457d-9128-028e38ce4e65","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":84,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"6af119f1-9525-4463-b10d-4137ee0818ca","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":84,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"2ebe37b9-edbf-4c81-ab49-c501d0c1e9cd","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":84,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"eee33375-e37f-4253-b42b-4840b4408e5e","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":84,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"17855a74-7cf5-4225-ab12-f92dc45ec0e6","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":84,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"fe6d2a78-9820-4673-b080-cf8d485f3289","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":84,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"b08d6341-9248-4afc-8143-ef220b7dfc8b","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":84,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"4ecd1d5f-c9e7-4257-a2cc-bbe6c8c13946","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":84,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"bcd0cfe5-d1d8-4d0b-adac-929500627233","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":84,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"a571be46-c302-49d0-9370-2fa341e3e90e","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":84,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"e225986f-a4ca-4a23-b7f9-88d1577c78c8","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":84,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"f80aa207-a633-41bb-a38b-251516d47403","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":84,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"120de824-80d1-4726-8361-75e80ff02010","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":84,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"4499f184-a79a-43a9-8938-40b370c1453f","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":84,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"8ff3d234-9320-4063-80fd-2f288d1d88b2","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":84,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"225d78f0-30c4-4893-802c-3a5231cbd60c","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":84,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"a33113c9-c5c2-4c5c-86ca-d7340626e696","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":84,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"8ab036da-9230-4a8d-a27e-135debc6629c","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":84,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"3f0cc888-a66f-466a-bf9c-86404477797f","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":84,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"6aeeaff2-eee4-4833-9056-04ca3f9a73da","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":84,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"518e039e-c168-426f-a185-df11d56a0adb","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":84,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"d695cd67-fef7-47ef-976a-7c5ff6e4190a","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":84,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"f4d8b7fd-4bc8-4ece-807c-cc6431ff21dc","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":84,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"44b71fa7-3d03-4d24-9bf1-add0fd6c8838","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":84,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"33a62a31-8ee0-4e1d-bda7-8797e4f5ebad","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":84,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"bc201d9d-c464-42de-a10e-78f3d17ceab7","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":84,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"1124d1f8-01fd-4908-a73e-1f1a686248c4","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":84,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"3c58beb7-34ce-4666-96c2-e1b8f9e0d469","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":84,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"236b0b2f-d62f-4a26-ad1e-d96202357b6d","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":84,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"66187525-6927-4e81-bf40-c729df61c800","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":84,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"9d691165-0b9d-4866-a217-0a29032414db","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":84,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"9a488fad-eccc-44bf-be48-1fdd74f10ed2","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":84,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"553666b1-b680-4f59-8f36-65213f8283ab","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":84,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"fe9c2ab8-269d-468a-8d1b-33c542535eca","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":84,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"87de2136-d9bb-4d0b-92e0-147ba7a7c266","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":84,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"d15b3976-1cc7-4387-825b-eaa7fe59e0a1","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":84,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"32634768-6e5a-46e5-bc19-e432bc9f8433","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":84,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"79f95c1c-3762-44cd-a48d-31f4161da11b","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":84,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"2d465b3a-6760-4be6-87e9-1cc761dc3a61","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":84,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"5b608775-9531-41f4-bd70-b4fd04070715","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":84,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"8463c202-be7d-4b9b-858d-e510196fa10e","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":84,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"e709d037-f03b-43aa-a053-64be0fa4e47a","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":84,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"bbc348b6-4547-4ac8-bb8f-f8aa40e2c358","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":84,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"16405d10-f47f-4a04-8f15-0665f0739db0","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":84,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"7087a07f-aee9-4ab2-9204-de124bddebea","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":84,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"750acebb-d54f-4f98-a31d-9e828d7ce301","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":84,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"aa421231-76d3-4925-8b82-dbebfc0fe8eb","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":84,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"6446a247-d954-4a5a-81db-f380b43eb466","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":84,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"c206f42c-5d84-49f2-8727-72791bb8013b","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":84,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"fc31a317-38b7-4497-b253-10342e519be3","block_type":"box","text":"sub-custodian.","page_number":84,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"0b83d517-3292-44d3-a00c-6f872548a15e","block_type":"box","text":"II-41","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b41a22c-13f4-4273-a268-662f87756941","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e66e93f5-e41d-452a-859a-1abacdcd35b3","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":85,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"a8f42987-986d-48c6-8574-ff9d522327fa","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":85,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"ed816d54-2cc3-4ba3-9be2-a56eaaffd20e","block_type":"box","text":"on investor protection considerations.","page_number":85,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"efb61cbf-d747-4aa4-8216-fe40d8631ff2","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":85,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"28b1cd66-e227-4f67-8edc-3d6ce42f66bd","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":85,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"84ced217-35b7-4dea-bdd4-1b2da0267e90","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":85,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"c92a07f9-82c0-4e73-aa90-51c44cfd5e00","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":85,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"99a85705-b545-4078-9d7f-9da9818f528b","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":85,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"b31b75b9-86e8-4ccf-b4f1-68da38a02312","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":85,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"168e8bab-9dde-4d54-8da1-6271090c4b6c","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":85,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"52d367c4-7137-4901-bb65-57ee1f2fff2d","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":85,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"577992dc-3783-45df-a0fb-3badda1d3425","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":85,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"00258984-d2ca-48b0-b8b9-492da137c8d3","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":85,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"a06e2f2b-0f07-4046-93ac-16b9c74772e5","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":85,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"9d72ec7a-2196-4d63-b4ed-af66f4d889dc","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":85,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"5ab3eb6d-61e5-407e-a285-5ff2d0e60cdd","block_type":"box","text":"accounting firm.","page_number":85,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"dd7e4bf7-ccae-4de2-8aaa-8441b44d77ba","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":85,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"42180373-cf41-4388-be84-a357f387a2fc","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":85,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"c79a6c8f-0e6b-43b3-86d5-c1bccb1817bc","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":85,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"3f3cba54-bd75-460d-a426-caad1379e4b0","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":85,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"d2b936a2-8e90-4bbf-bb58-41763530147a","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":85,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"9df05aa1-b627-40db-b14e-cbe69f4bba9c","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":85,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"53a52b03-ba1e-4ea6-b22d-6bee66df7b36","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":85,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"7026fb01-4206-4921-a68e-3bec58a6b457","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":85,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"fca03718-516c-4957-93cc-e0e5901271ec","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":85,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"890cf6f2-4aa7-43d7-838b-9901140f5f7f","block_type":"box","text":"RMB (“CNH”).","page_number":85,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"3def12ef-7366-4d77-bdce-8a4763e96b0a","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":85,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"70d2da3c-f34b-45c8-a433-13f1abc24824","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":85,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"7002da43-86f8-491d-a629-afcf29188b9c","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":85,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"41eb9813-5a22-47b5-ab1b-d0e03a1a4c52","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":85,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"fc2b17da-4a2b-44f8-9d09-bd73a1483571","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":85,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"ab78cbba-1ba3-4b67-b25e-a0430bbc3a6b","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":85,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"a5316ae6-eaae-46a2-9aad-aca7f25b3962","block_type":"box","text":"represent equity ownership in the operating company.","page_number":85,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"f2b35c05-2869-43a5-a7a6-93683e2b9b67","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":85,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"b5727871-f7fb-4d3f-833d-fa05cb40684c","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":85,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"22a97d36-e81f-4825-902d-0456f21b76bb","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":85,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"ddd1c440-950c-4306-987d-06b6d8d1f181","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":85,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"1b64b8da-8502-484a-8399-d89fca4afde8","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":85,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"bc68faaa-9001-4f22-855c-9e1ca9fa7d29","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":85,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"ef5cb3d1-1931-4587-8b26-723c25779b5e","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":85,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"369a0d0e-2f3c-4a1f-a915-61803bf1d5d5","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":85,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"7e680e27-a9cd-4bfa-b1a7-8a3e80cb58f4","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":85,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"4eb81caa-18e4-4fbb-afb4-20d42fdc62dd","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":85,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"cbe12180-05c8-4323-9c02-590d65fb2f4e","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":85,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"bcb6ad43-a806-4fd2-a049-1f9a44f68077","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":85,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"86e4755e-ba0d-4403-96f8-5c6226804a7a","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":85,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"f6523330-82d1-4fca-83f6-ae2911bd4c3d","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":85,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"74a877f0-94b1-4d4e-a49a-89907efbe541","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":85,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"cf815a05-34d5-4b57-a5c0-3212d88f2608","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":85,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"f5f6a6e8-6aa9-4d1d-86a1-ff4885d8fc53","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":85,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"e2a008b6-3434-421a-a607-d068fe2d4814","block_type":"box","text":"losses to a Fund.","page_number":85,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"79ad3998-354a-424b-b66b-412eb772461f","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":85,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"dc0d96b9-8440-4f63-8719-b79dcd51d7d6","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":85,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"ff908d4a-9079-417f-bd81-0bb866b2a9ff","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":85,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"5df858a9-9dcc-47ee-a47c-e98ad656b7f7","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"757db87c-2d01-4259-affc-4752abaae01a","block_type":"box","text":"II-42","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bbe8be46-46d6-48d9-8ada-7e90c7ef5e0a","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4844f199-d4b4-4004-9756-a117dab90280","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":86,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"7eafa877-e8b9-4eff-86f2-28d6ce26c416","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":86,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"bb226010-0853-4d83-97b9-27dee5b732e7","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":86,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"516e6aef-e6ac-4513-9046-de16d1158f06","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":86,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"9066613a-d9e9-47dd-8237-26a78cb53779","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":86,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"01efdca1-1246-4fb5-b270-52560c434256","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":86,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"4a77c8b7-ffc2-4f4c-9f3d-0427fe4a970b","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":86,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"72767fcd-b44a-4147-8459-a2925e9649e2","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":86,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"ba999777-dce9-42e2-b747-8b5d11fcb91c","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":86,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"f599fcb1-233d-402f-9a2e-076784148735","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":86,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"6e983d99-a70e-4684-adad-4c57e19c16ec","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":86,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"eacfc2fd-9b0e-4152-9f11-27dfc77b7ebb","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":86,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"c660e220-27a0-4736-81b7-9f2ad3f46d5e","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":86,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"d11f50e0-3788-4cdd-8528-1e8614a36d4c","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":86,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"359b0ed8-591d-4986-a279-28dd94d2a6a3","block_type":"box","text":"such companies.","page_number":86,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"bde06644-7043-41d9-85e0-3ef7851b68c3","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":86,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"1c27331f-556a-4026-a39b-29ed4bdca4b2","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":86,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"617b2230-8261-43e9-9f27-8c3b586119bc","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":86,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"7a5cd334-236e-464f-946a-63336a611a92","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":86,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"6a89cc98-02b7-46cc-a72e-ace883f1d664","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":86,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"be1edbca-8210-4bb1-9479-2f2760f63f0d","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":86,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"0f6a1b71-0626-47e2-84ea-019d190497ee","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":86,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"c449bb93-9ba2-4d53-b5e7-9aa2d9bfb357","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":86,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"fe384ba9-6477-4e06-8d78-91c24aceda80","block_type":"box","text":"standards.","page_number":86,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"8e8a3a6c-7070-475e-802e-d50301ff3633","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":86,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"382bd6c3-b4b5-4c44-a4ff-862c60faba3d","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":86,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"57fa516d-19cc-4225-a9bf-764b97efb8ea","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":86,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"6d8cee57-7e02-47e9-90ab-2dff436de476","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":86,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"730ad6d3-d3bf-4ed3-98d8-237a6b708da0","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":86,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"bdec3f3a-9a8a-4222-8f95-96f859abb2f8","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":86,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"212663cf-c97c-44f1-a561-f390557ae976","block_type":"box","text":"General","page_number":86,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"f05ec62a-e07f-4978-ae1e-3449a849e08c","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":86,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"874618b4-f4b8-4fd8-9f03-c79976dcd689","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":86,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"1dcf985a-9fae-4a5a-ae1e-c4c285dee3ff","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":86,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"42cb049f-3f35-4553-b4d2-0a7c0b5266bc","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":86,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"34ea9a79-e06c-4ca5-909c-27be103e3a0a","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":86,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"311e45bf-1fc4-40fa-96e9-b1283b8959aa","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":86,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"2ac0ad13-b8a2-493a-b17f-3a71d5a16f46","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":86,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"3c4e124b-003f-40cd-8148-faea29a89b77","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":86,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"4c83adfc-7220-4f18-9550-c1c6c38c5625","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":86,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"947a771a-5317-4400-9288-a916483fa702","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":86,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"a632f527-6831-416e-9ef5-c54d13bfe9fe","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":86,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"43c3d9ab-b3d5-4e29-b07f-9c00ddbc8776","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":86,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"25e6beaf-3e07-4960-bdff-127c3dba44a2","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":86,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"e8bf2fe9-1b93-4ffc-a492-050742745782","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":86,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"637c7bed-2e1c-4f49-990e-8411532082cf","block_type":"box","text":"company established by SEHK.","page_number":86,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"b01b4baa-1485-498e-b4d2-c8cac901f6f5","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":86,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"326c718e-54b0-463d-8610-ff7705e57c75","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":86,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"42725b8c-a125-4911-9861-76b03e5701b1","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":86,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"f6c3fa39-ee47-4938-b605-b6700e5d2681","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":86,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"b83e3f9e-efb8-4eda-8a2d-254fd5e15980","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":86,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"66956b37-7101-4b29-897f-58fdf5ae2c02","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":86,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"c7d0a1aa-343a-4d60-838b-ff18e215d31c","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":86,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"894b026f-cf01-4d1d-bc89-c38517b692fd","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":86,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"06675be0-ab5d-4ca4-83ac-3d58e544318a","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":86,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"e590362d-42d7-409b-8351-e6ef405f398a","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":86,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"83746da2-598e-4317-aa24-1d5c8098f013","block_type":"box","text":"II-43","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"94eb3c90-3732-4a9e-8904-f962602c1d45","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b979c693-9250-4d59-82c1-1e0e0f66697f","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":87,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"d2039072-c0e9-4ae3-8984-9876524fe6d0","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":87,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"d1222f28-713d-41f7-ae3a-08d1e885cce7","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":87,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"a0862627-4577-445c-b6af-17daea0a30ac","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":87,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"64376aa4-cb86-4842-b001-c487895cd1a5","block_type":"box","text":"i.e.","page_number":87,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"9a7a81b2-508e-43b2-aee1-b8593ec04fcf","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":87,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"0b56506e-8160-46f5-ac4c-63b7065f0563","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":87,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"b98be20b-e63b-4dc7-b4cf-38064625bf1f","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":87,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"8b818d85-a737-4c68-8b1d-0f07db172e6d","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":87,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"9191704a-2758-4c6f-a444-e8d67a6e5fb8","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":87,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"84c4caf4-8517-41e9-aa76-47a80fb3fad4","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":87,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"77713b78-8d2a-44b1-a4a2-0f774e81318b","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":87,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"58fe25d3-47f4-456e-9485-8f8b441197a9","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":87,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"aa185ac2-ec68-4ca0-8c2c-34198a5602fa","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":87,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"a0fc7a75-f5a9-4fd5-b32a-af0eb55dde50","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":87,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"a2112ec0-39c8-47f1-a2e6-e1e2fa7f326b","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":87,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"a9e663b1-da58-4e6e-9d40-3c158d0e05bf","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":87,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"1485a68a-58db-4091-a86b-823e651e60c1","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":87,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"9ea2cbb3-8047-4911-82d0-0a2cf40c21b6","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":87,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"1c86eb9f-858c-4b1d-8cc5-0d05b2d7b66c","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":87,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"db5baa35-72f0-4aa8-aaf2-d85eca591ab9","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":87,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"7b67f0bb-4cd5-45af-ae35-f67a98e4e309","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":87,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"52c10530-e4f0-4cbd-83a0-d5d7e45d227a","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":87,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"2781416c-af2a-45a2-a96f-3f880617ed53","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":87,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"443f6081-5355-453e-9d18-65ca05d644f6","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":87,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"8f21427f-bbbf-4635-8fcc-5726f76bbc45","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":87,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"35e1cb2a-3902-4411-98fc-6a75ec04bc8b","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":87,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"ef3b5070-833a-4fec-94ed-4d06ac53aa20","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":87,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"7508f34d-782c-4fdb-865e-01a912161dc9","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":87,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"d693c17f-1658-43d6-8e74-a8ff7f06d918","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":87,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"9d0ac355-b40b-4fc5-a3e2-886b28927edf","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":87,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"3417562d-4742-47b7-875a-392ff627bd94","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":87,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"09ef103d-7bee-49ad-8786-07f81fefbc3b","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":87,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"1b291412-e6ef-4de6-a40d-2548b787595d","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":87,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"0ac5da26-0588-4511-aecc-d9b5a0ecfaec","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":87,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"bd13a918-8a6c-4d91-b1dc-5509bb3a4107","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":87,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"e013517a-f4b7-408e-8d20-a8ca62fcc16f","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":87,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"64cae26e-9ba6-4488-af5d-1ff567ebefd5","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":87,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"af260297-121a-4edb-b7a7-967bdc769f61","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":87,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"203d9907-d5a3-48d3-8dcd-dfe715e32434","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":87,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"ed714bc5-90a3-4555-a7b6-c3e090b37d94","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":87,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"be1ceef4-f335-49db-8ef8-6123f37c176a","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":87,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"2549fbe4-0b82-4c40-ac89-d8f5532e2e18","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":87,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"39b2c6e9-0819-4fa4-a7da-9fc6d7e6e513","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":87,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"d87a179e-8289-4b90-b708-e62d8997b3c9","block_type":"box","text":"PRC.","page_number":87,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"b071ae91-2c48-4e05-aca9-bad2c81d6b17","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":87,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"ec1df111-70ba-4670-8f39-041a53349c30","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":87,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"f6e0d5ee-9913-4858-badd-d8b43ccc500e","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":87,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"f7c35dde-0307-4a37-953c-56d034ae54fa","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":87,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"af11f1df-0a30-46e5-bd5b-5d43758a0a36","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":87,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"30bb11cd-e1b1-4882-8b62-13ab9e9111b7","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":87,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"df05fc8e-53d2-4f89-aa4c-1dd7879f0c70","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":87,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"98f953e7-91ab-447c-a552-1ba18306d2be","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":87,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"18c79f11-2c4e-45f2-803a-df03b5759884","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":87,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"f9391d6d-ab20-407c-88f9-0007186ed22f","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":87,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"6f4455c9-b566-4c58-9547-d51f67390099","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":87,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"5daefd52-ffac-4a13-a499-75c9772d7aae","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":87,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"f6460598-e622-45a6-9340-74de969807da","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":87,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"21ce30af-e493-46eb-95b0-509ddb84bd8f","block_type":"box","text":"II-44","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34dc7d2a-c32c-44ae-9b8d-45c70c2a6b34","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0d4f7f0-3476-4cba-9d19-969147156962","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":88,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"1939399c-9887-45f9-a93d-4e411c74b62a","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":88,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"24b5dc29-b313-43d6-ab8c-940e7a0b0760","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":88,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"1b22df67-a541-42dc-b9d3-4fb39aefcb61","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":88,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"f5a84af7-8b0e-488b-bbde-d33c232859f7","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"fe038ec8-da45-4850-984c-2f7e07fafb0e","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":88,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"7c87404e-772b-447a-930f-b7b6f9e600a5","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":88,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"60f8359c-1dcb-4404-8f0d-57cc4efe0450","block_type":"box","text":"Suspension Risk.","page_number":88,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"0b097f29-ec0e-4bfe-a1b8-409aea699dc4","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":88,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"c4592dc8-f60f-468e-9788-f0a8a73ceb55","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":88,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"7ad2522c-0974-4489-b619-313066d8321d","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":88,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"136aa3ba-bdf7-4174-9206-3a6e58c60bed","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":88,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"0e9a88f9-0251-4804-93de-ad24bc6759d1","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":88,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"a24a861d-d260-4101-ac58-d15a5aca3e99","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":88,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"9aee123d-3b3f-49ef-adb8-a562a0ebc6d7","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":88,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"2e7113a5-e5a6-4d29-8b10-cec4f6d63416","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":88,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"da7d2478-8f9e-4d4d-8d28-168c502b49dc","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":88,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"d09c8bc4-2dd6-4160-b52c-111465dd1820","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":88,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"547f078e-057c-47fb-8bb2-5214e41eb92c","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":88,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"60adf446-faec-4d0a-b4e8-854d76849df7","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":88,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"3f285339-60d1-469e-8b10-874368359247","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":88,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"240b62dd-ec17-4116-b95e-911aec23279d","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":88,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"c026d30f-df3d-4728-90c0-498404d650cb","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":88,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"4f8b0324-5f3b-4435-92b4-36c1e6d8ccda","block_type":"box","text":"A Fund may invest directly in the","page_number":88,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"9caeea70-4c70-4de4-8e88-7e731fc67057","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":88,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"20feeea5-6518-4316-9158-e3bf80533d2d","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":88,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"f326d81e-fd68-443d-81e4-d13e7531e579","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":88,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"2598d9c5-93f6-4c21-a7f9-5cb4a5804bb2","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":88,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"4ad25c44-1389-442c-b24e-b4779d3f9d34","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":88,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"5c4e3068-1e8f-4cc4-9855-a0bd772a9b1f","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":88,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"fb852043-b3d0-480b-87d3-b083ff2168b2","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":88,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"c6bfabf5-066f-4667-b6e4-28ecb0900e75","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":88,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"25c94d1a-bd96-4ed3-85bd-d8ca07f151d6","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":88,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"49894a1b-54f8-437f-9639-96f50fa27967","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":88,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"794f7353-e555-4f49-97a7-76a76ad65cb3","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":88,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"e9b70e3c-aea8-43e6-b794-9f11bceb4d20","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":88,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"58055ae0-7a98-4e6d-a4d1-e15a658ee743","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":88,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"34cca8e7-9d1f-4078-9bab-bae3bd79feb5","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":88,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"c20d5599-5d83-4c33-aa4f-d458f7525e47","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":88,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"8ab1bf7c-0712-448d-a87e-3922ed95701b","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":88,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"80d05a07-050c-47ab-ba74-e883e5593706","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":88,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"3a6b76ba-79fa-4980-8581-4ddcc6ece8e5","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":88,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"9746d138-131a-4777-975e-409cb82bc03d","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":88,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"d1718d16-ff51-478e-a916-f60d8d6ab81b","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":88,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"4a98de4b-bb3e-481d-b010-35b564de90d2","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":88,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"de210b6e-331c-4272-9020-b15985c356ac","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":88,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"b6bae2d3-e6c9-45c7-b033-8fe2ab4bb5da","block_type":"box","text":"i.e.","page_number":88,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"1d59a918-d668-4a13-91d4-3aeb3d084441","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":88,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"2f483926-d5c8-475c-bcb6-348084144e18","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":88,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"c718b290-efd2-4faf-8121-ef2c76a08f8a","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":88,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"fec8c300-d776-4350-8565-d98eadbc719a","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":88,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"aa6f9260-29d9-456d-b78c-0c40fd585b33","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":88,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"46b808cf-88b9-45a7-8aa5-5d0d9623b07b","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":88,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"afbbbabc-e693-4f71-b945-c21d1832e6b3","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":88,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"dae5ea79-d4f3-4bbc-b14b-7ade108c08f2","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":88,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"93b2b8c5-694d-4a26-be4d-41a653a29cb4","block_type":"box","text":"par ties.","page_number":88,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"ed0e7c6a-12c5-44e7-91da-8e6a2241024b","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":88,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"e419f57f-d90d-4fd3-ab28-0d8d785449ad","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":88,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"9dd966b6-736d-43f5-9e47-49aa921bfcd0","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":88,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"425a9272-c85a-4d68-898f-2c46b4a7af68","block_type":"box","text":"II-45","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c26272d6-cfd4-4987-9e57-03d27a1d64e5","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"294e6791-5849-4cdd-9f1f-c37f3d585744","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":89,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"126d5447-6937-4ded-8216-aa3125937ed7","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":89,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"42ea8b78-d7ae-42f4-b3b4-3445936354a9","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":89,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"f5adcac7-0a09-4a9f-8439-81e41db70c96","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":89,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"9ebf5df7-7237-4324-8710-79f6f57d4c90","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":89,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"d024883c-83bc-4975-bcfb-738ce22eb46d","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":89,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"ca79833d-84ba-4718-90a9-fa2710590a28","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":89,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"e74373fd-5bde-4bc6-87a1-d82efa32e265","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":89,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"47e7a25e-a0e5-47ac-880d-52816d2f0246","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":89,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"d64cf961-b256-4f8c-ac9e-32f5a9ac9240","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":89,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"70c27fab-2797-4dec-83ea-faee28820564","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":89,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"ad82afbc-7b61-4cff-ada4-d7a3a8cfe013","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":89,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"7d4149c4-9948-4279-988d-3b56e0463e1a","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":89,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"a0827b1e-6998-490d-af2a-c4402ec715a5","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":89,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"19c47bfa-1d12-4ec0-8c18-7a78f8f4f10a","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":89,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"ada1b061-ddb1-495e-8dd8-a7637d660add","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":89,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"700049b5-0c39-42c7-9b45-68e2a89e2882","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":89,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"018fb0e5-f8ff-49a8-993c-aaab4d2ec05d","block_type":"box","text":"per formance.","page_number":89,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"9e5eaddb-75e1-4c51-84d9-66fd46063f11","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":89,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"e629a628-2de8-417a-8407-716c4b439c8c","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":89,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"522badad-d08c-4fcb-a3eb-7cc26ae168fd","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":89,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"3ffc0acd-e583-4cee-bc4a-9e0c2b67a07c","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":89,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"72a7afff-1d0a-411a-8eb7-48ddf1812bbc","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":89,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"dc600cff-be7d-49fa-aa2d-b79da444748b","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":89,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"d15d693b-ad54-4455-9fe7-354a3998c591","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":89,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"b94320be-eed2-4967-8fb5-5036e91b2e27","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":89,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"267b3510-3aa6-48fa-b323-146279a9395d","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":89,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"e879e390-ab82-4c52-81f1-afd013aca954","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":89,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"b4e959da-c5ef-403e-9814-3dc188c27211","block_type":"box","text":".","page_number":89,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"3044804d-031c-47b1-8f9d-06b1b782f2db","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":89,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"eeefca75-a1b7-4098-a071-4cb136ba81b3","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":89,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"53fc0bf8-b17b-4cd0-98d2-54c3acb13cfe","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":89,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"327bf1e3-27af-4b74-a623-2a6b1547abab","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":89,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"b2f4f9fb-653e-4070-967c-a0da6f7add0e","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":89,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"53189e63-a55a-43ab-ae2c-f373b548ed98","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":89,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"c5405c0a-43b0-49a7-a366-8a8e44aefd97","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":89,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"00d712a0-ba86-4f85-af8b-c777b4da0ec4","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":89,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"1076b1ca-0577-4bab-8b37-0143f6fc6aba","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":89,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"068e7a33-9274-4a46-b741-dfcd206ec60c","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":89,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"7c1f0e07-999a-4aa7-be40-12448a81e3de","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":89,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"5ebd32f2-7d5e-4d33-a408-eca4c3a45eb9","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":89,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"57bae2c0-0774-4381-8ba2-08a52b71e6c6","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":89,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"3b534019-0042-4434-b8a6-ef946f9944aa","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":89,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"4d67527f-fbfb-44cb-8e8a-31ecc26e6c0b","block_type":"box","text":"without notice.","page_number":89,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"7d2deca6-6bf8-427b-a8ce-8e5c0fdab571","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":89,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"0d40bdba-7227-4991-bb0a-fd025d35abef","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":89,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"2fdf44d9-0ada-41ce-adc4-52c1bd054379","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":89,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"709a5e3d-4e63-4028-aa3c-0778327d70a5","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":89,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"b3e3fb05-7e53-462f-98fa-15824bce0b7f","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":89,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"972ee9a5-832e-4bd8-8ebd-d0f00d780564","block_type":"box","text":"December 31, 2027.","page_number":89,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"7d879a58-a5c2-4dff-b76e-eb76b677a25f","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":89,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"dcb64f46-9e97-48b4-a51d-2424291ec3a1","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":89,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"312507d6-baf8-431e-a15e-263729ee5fd5","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":89,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"2a975696-61db-4770-984e-d77b84b538d9","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":89,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"1ceb736e-0cdd-4d18-a646-ab139faffcf0","block_type":"box","text":"II-46","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3cdc2dcc-8f59-42a8-b2f2-5e1d79b8a14f","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"686a3856-9204-424f-8b28-9c2643375105","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":90,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"5b7f6405-5470-4ef7-a64e-474a0e64ebcb","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":90,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"00fc4259-1c89-4576-9f8c-2a0e0de38951","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":90,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"89ed4ebd-92b8-4d01-9e3c-c9da31e19d0c","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":90,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"1440d0fb-0765-40b0-bdec-71429ceb870a","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":90,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"d58b5d69-bd22-4ad3-bb07-5c24f6c3e357","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":90,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"fec5050e-60d6-4160-b782-a381dac6dbc3","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":90,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"17ec898f-a5e9-48de-9bbf-d3ceb3a4e525","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":90,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"24c7d589-66d7-46cb-afa3-7eb9e01ef911","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":90,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"8d0579bf-72ff-43c1-a988-97991ffdf052","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":90,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"9347ec45-211c-4218-b2cf-89f27eaefdb3","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":90,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"0b26f1f8-8dae-4fcf-83ad-5d59c18fe439","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":90,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"e8c4227d-f691-48a1-9f28-5136594726ce","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":90,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"4366ce50-f00a-4c96-bb2a-ea3468bacdb2","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":90,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"b807495a-e65d-4fa3-888e-b7a98d4102a8","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":90,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"f464c1fa-a7d5-461c-9a5f-fd855555a069","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":90,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"723b1302-2252-4e3c-82dc-216e12c6d1e3","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":90,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"b9219312-185e-41bf-bc4d-3b7f883dc0bc","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":90,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"dc5d05e4-3a24-42a2-8640-c68d583e22ce","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":90,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"bfcd2a07-9f01-4704-a0fa-6d7149d12ee6","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":90,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"9480fc44-e8b6-425d-8f91-c1cd16cb46bb","block_type":"box","text":"the PRC in notifications.","page_number":90,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"0ab5a239-53bd-4fe1-815a-600894e84b32","block_type":"box","text":"Investment in Other Investment Companies.","page_number":90,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"f2c39bfd-7b57-432c-9896-406ab36b3c28","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":90,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"2158d891-bb8a-46db-81df-0a29330dd460","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":90,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"4ee9855e-5dd7-4b15-be9f-d56f5d743df6","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":90,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"b57e2588-a7df-4fda-aab7-19590ddc845c","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":90,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"b31e690b-f2b5-4d25-a9e4-7d8ca3c39ddd","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":90,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"94b4d5ba-a140-4d52-a44b-12bf16b08da3","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":90,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"f56eb8e6-f492-4254-87fa-c4c2a87e8a84","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":90,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"03f3b3ba-14da-4efe-9ec4-73b548acb1b6","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":90,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"5e90b5cb-c8a3-4a78-81ba-900c638fbee7","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":90,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"9b4d6e65-d2fb-4610-8fc8-60cf8153144c","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":90,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"2ef50ed3-4a3a-49e2-93a9-01ece3f01156","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":90,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"256e6df7-27ff-48b9-a107-d945e6ece88b","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":90,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"c09793bd-035f-447f-9d31-479eb1626ee6","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":90,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"5fc12052-17cf-4723-8562-506055b4e981","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":90,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"6faa5b62-0757-4a22-9c46-312be1bcfc43","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":90,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"2407c342-a761-4ea1-b3b4-e88c6b3b84c9","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":90,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"8b72f856-884b-42b9-9638-a9965634f835","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":90,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"c24a588e-7227-438b-808c-9ac07d25b7c0","block_type":"box","text":"subject to cer tain conditions.","page_number":90,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"c84e1f7f-d76e-497d-9c70-d64456e7cd78","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":90,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"77ca7f37-96ba-488c-97b8-457972062df3","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":90,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"49d10424-6ee0-40a2-b300-7ce652ee228c","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":90,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"188c1229-ee39-4df2-8544-044e4425ec22","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":90,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"9aaaee4f-0157-4d84-9ea5-09e8d15d92c0","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":90,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"7d5b4b5e-80c1-4f98-b835-c28daff662b3","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":90,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"9246a95c-6525-4a34-9c33-60cff9e83312","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":90,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"7550cae1-7973-48dc-8db0-12d74a764634","block_type":"box","text":"loss.","page_number":90,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"2f2a5754-8789-444b-8bbe-db8766289855","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":90,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"cdf11b2b-8fda-49c0-8206-7d0339e93630","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":90,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"ccc42072-5781-4d0c-a739-d74abe0d5ccd","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":90,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"9318d0bf-d7b6-475b-9812-f5714d54b2fd","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":90,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"5cb297d7-b520-452d-9af3-c56b6f6ae24f","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":90,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"4ae2b67a-564c-44fa-9f42-9b65c048ab85","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":90,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"bbe3cfa4-5761-486e-8398-ed5d433c3f2c","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":90,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"ce9b4948-5de7-4176-bfb1-4d048a3083dc","block_type":"box","text":"II-47","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0be198d9-b2d0-4485-b587-09620af1dcb6","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a28d6b9-16fb-4ffb-a554-d96babfd20a5","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":91,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"8a05ffe4-2065-4aa6-a3c2-24655a5060bf","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":91,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"a09c8f4b-f37a-4d26-b848-bff14fa5a1b8","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":91,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"1a8b851a-43aa-48d5-b7bb-6c78057428ac","block_type":"box","text":"assets.","page_number":91,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"c6141e04-3f2a-4433-a010-2b5100c786c3","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":91,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"941f40c7-5705-46ac-96fd-a41e36241888","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":91,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"34734ca3-2669-4296-bc48-ac0b1288f599","block_type":"box","text":"e.g.","page_number":91,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"bd3061e8-1ae1-476b-af21-fbc2454ae7fa","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":91,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"65310550-92c7-44e4-adfa-99947fd9290b","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":91,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"fd22da79-2752-43f8-845b-aaeaed54cd76","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":91,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"78c1c15b-7031-4135-aed6-720d92611adb","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":91,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"95d73292-e444-431a-a195-1b7597fce305","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":91,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"4428c499-b525-4b0c-863a-feb7a6cc7c3c","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":91,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"96c1b60c-c90c-452f-b180-49cebd8fc7db","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":91,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"6da35de3-793a-4bbb-9499-141aadd74e80","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":91,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"68508b30-cf2e-4f0d-adea-d2699d4f4ba2","block_type":"box","text":"countries.","page_number":91,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"57d0d042-806b-4670-98e4-6f1ffb407873","block_type":"box","text":"Issuer Insolvency Risk.","page_number":91,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"7f41d48c-0d25-44a0-9521-b6f6f0304923","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":91,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"5933d3e5-4836-42bc-85dd-92ec29c590af","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":91,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"af2e59fd-8ba0-4b72-9864-f17e8a7d2373","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":91,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"1f3ec200-c2d0-4d04-afa4-bca9ce91cc96","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":91,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"cf17151c-6c0c-4496-a4d6-5caffc385e16","block_type":"box","text":"issuer uncer tain.","page_number":91,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"2d414f69-3361-4297-a3d4-464c8802dd69","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":91,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"81997c2a-a165-4f72-810a-e9ef12d490f5","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":91,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"76718e4c-f234-4ea0-916b-ab933d9d37bf","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":91,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"f884c545-e924-40b6-8e91-4abb3aca58ee","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":91,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"4b44e120-222e-4f3f-8bb2-7dff4bcd447c","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":91,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"55150c05-bfe3-4e5e-80cd-67ef3d559ebe","block_type":"box","text":"eventually be satisfied.","page_number":91,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"47bfaaf7-befc-4681-8e15-e28675143d14","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":91,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"a9eac976-8c27-4bba-98ce-47896cd9e89b","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":91,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"7ae32afe-5c8a-454c-8d5e-91859bc46c14","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":91,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"42a85774-6450-4b63-8e21-ac60407d5d26","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":91,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"e7a4af01-8c2b-4044-864b-983d76a9c8c5","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":91,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"c35d9437-c4c3-4c59-ad8f-c8de9af22bf6","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":91,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"8c5d1c44-ed35-44a0-b29c-4932fd2e0af4","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":91,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"d6e04c7c-c726-4594-9fad-57e5fe77d5cf","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":91,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"6f4578ea-d0a0-4613-9d3c-0ce777d0d0e2","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":91,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"4000d59c-a208-46da-a110-ece801a7543e","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":91,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"696e8479-c153-492a-a7fc-e9cb32c7d548","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":91,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"7cf51341-49f8-4cbe-852f-fa03d48ef81d","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":91,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"4ecc43a6-3d80-407c-a685-1a1e0a4984b9","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":91,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"f1b540c1-9957-4696-b7b0-49f34841a1b1","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":91,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"453a8871-f279-4aba-ae98-4f0e4bf57ed6","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":91,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"6beff63d-8311-4585-9473-1a325ff79c41","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":91,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"d1672a05-bcf1-4e88-a8b0-a4657519c9c5","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":91,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"9358eeda-d332-46c2-a743-7767ab2d5a58","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":91,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"b975112a-f95f-4b62-869b-8b3d122391ae","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":91,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"ca44b773-c9d0-4680-a07c-e9ee5c8e48a6","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":91,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"7d29146e-d5cc-4f39-bf74-4649485dcebf","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":91,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"c873412d-822a-4942-ab3f-f16cf844d5ce","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":91,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"c077bdf3-6e60-4e7e-a6ba-42897cae350b","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":91,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"0491c94e-54e3-44aa-becd-635589f22efb","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":91,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"38ce9184-0945-4949-83ac-551567110fb8","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":91,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"86343f0b-5ff7-42c2-92d4-f3a45596b4c6","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":91,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"21857f2f-75e4-41d3-8e02-877f818a14e5","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":91,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"62a646c2-b5dc-4447-a8bb-ed48072759ec","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":91,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"b6e5e17d-15da-4620-85d6-fa205ff995fe","block_type":"box","text":"that assumed generally by an investor.","page_number":91,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"8c867d7e-d2f0-43bf-97c1-ec994bc9fa61","block_type":"box","text":"II-48","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f84c8cde-1297-4b84-ad22-815e359ba234","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"951619d6-8105-4711-b77f-6d2ab2d3fe2a","block_type":"box","text":"Lease Obligations.","page_number":92,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"54c64dea-f3b3-41db-9345-4875a1ab6bac","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":92,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"5575b0e1-8b8c-48a3-8120-2ac74f42a01f","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":92,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"eeab82e4-ab3c-46da-9ba0-e347d20b3afc","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":92,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"6207608c-5084-48d4-948c-29c5ca019cca","block_type":"box","text":"Life Settlement Investments.","page_number":92,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"1706512d-349c-4c85-a5db-15834e604bde","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":92,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"3bec93b1-9ff9-401c-b310-b29dd8232377","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":92,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"3498e23c-77fc-4490-83b3-be086f347c41","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":92,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"82b64a42-2793-4759-a43c-a1d162d19eac","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":92,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"597bf8b0-274e-47d5-a55f-99f6e3c20f9d","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":92,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"aeb09e40-ab07-4595-a3d7-f7dc37eed478","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":92,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"948f871b-d4c6-4f77-8c93-e73f59895a86","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":92,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"a14e02d0-897d-415d-9016-e6dd2cb8af6b","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":92,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"62a27312-5f01-43b7-b780-8edd811b2ee9","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":92,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"314c3dd8-b36a-4a9f-9314-4acd72bd30db","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":92,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"3f73a066-1c4b-48a1-9784-6664699f2c3b","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":92,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"5ba736ee-b590-47fb-946f-82df59ccc051","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":92,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"4db15f98-a0d0-4c2c-928a-5d3c23f2cf23","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":92,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"18e7d5b3-b09b-497c-8122-1686c876cff5","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":92,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"86bb3e4e-1577-4550-887b-473274c64261","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":92,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"303c212c-27b8-451d-9c98-57aaf9229940","block_type":"box","text":"Liquidity Risk Management.","page_number":92,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"65e6f449-d4ad-4488-af5f-5992b3d03bb6","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":92,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"5ba488f4-aaac-41c0-8df0-6b22c0506393","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":92,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"9a243f94-2556-4fa4-b5d0-6ba7d7539d50","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":92,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"c6ad82cb-100e-4f7f-aa4b-c396e364b7d7","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":92,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"57e2d722-29a8-4e1c-9a52-aec0f7d3257d","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":92,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"e80ce8f6-ced8-4eb5-b892-ce5ff7b4d3cd","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":92,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"a504efe3-19f4-42a3-a690-a7e6722849ca","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":92,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"a2bba882-327a-439a-9d0e-5d36a507e530","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":92,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"d808f04b-8e8d-479b-8ba6-deb0e8279832","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":92,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"f1dfebd0-bdf7-4148-9c73-06569ccae47d","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":92,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"8c118297-478b-4e95-a79e-c537b3304de6","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":92,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"f3fbfcd5-1297-4120-ae35-a3aeeecad384","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":92,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"697f32b9-507c-41e3-98ff-82d1bf4474d3","block_type":"box","text":"Master Limited Partnerships.","page_number":92,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"2539003a-e2b3-4545-ba48-2c8b5137abf0","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":92,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"dc4ba10d-d143-4f64-9378-7933a453c5ba","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":92,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"b64cafdf-d892-4706-b024-2a8d907abcc7","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":92,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"15b2126a-86e1-4c1b-8293-88a9eb3e5ed1","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":92,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"1bfc2360-c5af-496d-9ee8-da70a2b4bdae","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":92,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"24b0ebec-9329-4534-9e55-0577cf12d1ac","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":92,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"52eb66f7-c1ba-4b57-8bfd-7f7c98103a8b","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":92,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"8ac94b82-5f74-45d0-9611-85f416faade5","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":92,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"ff144426-20d2-4d32-8177-7ce32748d113","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":92,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"d37b4c8a-f410-4643-b889-513ae708dbda","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":92,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"96dbc314-6e73-411f-952e-9f3c8e496291","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":92,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"9c7c50a4-43c5-4035-b580-30f2e527a447","block_type":"box","text":"in the par tnership’s operations and management.","page_number":92,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"9e4ff1cb-7901-4008-8523-6741adc60cf0","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":92,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"42d9e79e-d001-4427-8bea-8094c48bbf1e","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":92,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"f4aa97a6-39dc-4fd7-899b-d7016d323a07","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":92,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"09946b6b-aeba-46a7-b23d-77e6958a60b7","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":92,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"81ff190c-3a88-4732-b185-8e537ec04e70","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":92,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"90f32f9e-cf06-40fd-968e-372d5d1e524a","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":92,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"1528bfb7-ac09-4b01-81ae-7c0f0b82b789","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":92,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"d6d6f602-3696-42c6-843a-60c5106f8476","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":92,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"6e6791dc-e962-4ea6-a4ee-ac2eb435a9da","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":92,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"e592f05f-fbb3-40ad-a88d-babdb279e7ac","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":92,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"e156b0ce-f8a1-4fb3-937c-8d9ebedb8c3c","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":92,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"82b793f0-2fa9-42e6-ad48-a742db801282","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":92,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"b446ebb1-c74a-4daf-b14e-22a898986a0e","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":92,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"3ff345fe-9905-4511-8ed3-edcfdc73d45a","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":92,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"1ecd9dfb-ec78-4181-a998-baf9ddf5555d","block_type":"box","text":"II-49","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6d4509c0-7643-4c7d-9fcd-52cb59a623a2","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1401c437-07bd-4fc3-a0f5-4ad908dd0203","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":93,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"5e2ed2a2-3040-45e8-9455-121ee2d4eeab","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":93,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"c7ef506b-0b52-44fc-a79c-60169443549b","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":93,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"a520b4b7-ebc7-4854-9c1a-429e5bb0b58e","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":93,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"11d44773-bfac-457a-a261-6ba02dbb2493","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":93,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"13d11d66-354e-47d1-96cd-c4c7b88a3014","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":93,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"613a4773-a1fe-477c-867c-13882c25e42a","block_type":"box","text":"Merger Transaction Risk.","page_number":93,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"40271bd2-5ecb-4c67-8e80-937ae7837434","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":93,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"e8dab322-8993-4d77-a2fa-12e1faef91aa","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":93,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"92c8f069-19ac-44ef-b3cc-437e4d4ae1ef","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":93,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"d85fb724-7741-49db-b5a4-7f7143f72bd9","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":93,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"9eedff46-207d-48c8-b422-66dfc1940c44","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":93,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"71c79900-fedd-4366-9041-2b20117f13d8","block_type":"box","text":"the Fund and may lose significant value.","page_number":93,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"9ea43243-0d69-4020-a407-a2e0411c5352","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":93,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"a8371c80-a970-403f-a6a0-91eda2fa6011","block_type":"box","text":"Cer tain","page_number":93,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"95115879-59a8-4ba9-b6f1-187df292265d","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":93,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"f0fc7c2a-62f1-46b4-a373-010252ac9cd1","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":93,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"deafea4e-47a5-4e1b-9a38-5cceda955470","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":93,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"a4659b91-6ab1-42f2-9397-e231a27f4af2","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":93,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"9b649182-052c-4104-b72d-98e716d0bf3c","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":93,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"b92a7603-cd99-4a0a-a2f1-752c1b592083","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":93,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"21001f75-fd3c-453e-aac9-eed06e250b76","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":93,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"76c599a4-a362-403a-9408-59deb8defdc2","block_type":"box","text":"branches of domestic banks.","page_number":93,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"470b1a9f-b388-4041-bd60-9e3132ab1939","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":93,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"957576c6-f0d9-4f7e-80ae-cb04f455d167","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":93,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"7973361f-4417-41df-aefd-2c20edb53e04","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":93,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"7f404c22-7292-4173-90a9-3c3ef229a6d4","block_type":"box","text":"paper of a foreign issuer.","page_number":93,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"ec375b7d-f415-49a7-880b-cd656025cdcd","block_type":"box","text":"Money Market Securities.","page_number":93,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"4af648e1-f7fe-4d71-8dc8-b5ed0e377977","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":93,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"c4f7fc72-fc96-4b5a-b4dd-f86454238b50","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":93,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"0b9cdb98-1927-448b-ac2b-f766e8163db9","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":93,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"cb7afadb-de9c-442f-93c1-f361569bd4b3","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":93,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"5b4da248-ef70-4770-abb9-cf1ba82cde21","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":93,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"c67d4fed-818f-4399-8c86-37cdf20007a5","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":93,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"99adc47a-e478-4fe7-812b-076c465b6ee8","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":93,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"e259a315-5776-4709-aeab-8fd63bd89e04","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":93,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"b48972f0-3399-463b-a259-125d1c595ad7","block_type":"box","text":"agencies;","page_number":93,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"abe381d9-58d2-44ff-a64e-2a3f1f11610f","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":93,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"5de3509f-8ea9-434d-ae7b-2ece3c6e429e","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":93,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"010d617f-07d5-46c2-82cd-96d50670b348","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":93,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"ae46b956-ff74-4da7-a79c-cafcf3ea93ab","block_type":"box","text":"obligations and credit card receivables);","page_number":93,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"5a5986a8-968f-4f10-aad2-910275e4df62","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":93,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"89019184-7489-40c9-90ce-001b8ff8adee","block_type":"box","text":"authorities and related custodial receipts;","page_number":93,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"773c7cfd-0be3-488f-a6ae-317f1e2cd6f0","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":93,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"307bbd88-0513-41d6-84f0-675515544bd9","block_type":"box","text":"agencies or authorities;","page_number":93,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"3b936a2a-4327-459b-93a6-76a02b55b99d","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":93,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"2de40304-1a62-49cc-85e8-ce6f727c402f","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":93,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"20a10860-2960-4f59-b1db-ba0be991a231","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":93,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"2a986b73-fe6b-4843-9b7c-ae4b5d855eae","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":93,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"dd7336cb-cae2-4f06-9e9d-2adb07ce3112","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":93,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"1310b206-71d6-4090-a820-40698479d17c","block_type":"box","text":"States;","page_number":93,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"9ba748a7-7144-4ab4-935b-6d8f87577ac7","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":93,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"aae5d2d1-3d37-409d-a908-df69a042a57f","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":93,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"6b5a89fb-4442-4352-bec0-63dcd9524b9b","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":93,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"3f8fd4ac-2cd0-40d2-927b-942ec53adcdc","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":93,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"bc837e52-dbe6-43b8-b96f-73468069066a","block_type":"box","text":"II-50","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"10c911c6-9563-44bc-865f-ee3cdfe693e5","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fc4e31f3-5ab4-4364-baeb-4c222430c958","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":94,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"af369c12-2afe-46a8-a6e5-74bb494e36ba","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":94,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"dde6f8d7-b3df-463b-9257-c570474c7d57","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":94,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"d49cda62-1eff-4493-b732-51ca01794f9c","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":94,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"f31bcd55-6f3c-4901-b43e-d78ffb33c1f5","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":94,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"c6634cec-d86e-4a6b-9108-d036e2696fd0","block_type":"box","text":"States.","page_number":94,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"d97267e4-0d66-4f35-be8f-fed5f538728b","block_type":"box","text":"Mortgage-Related Securities.","page_number":94,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"05708fb3-e6ca-446e-a9e6-129a291883f0","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":94,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"68e3250c-10ee-45f1-90f9-008f57046d7a","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":94,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"5c646571-4377-436e-8ad5-98aac7435afc","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":94,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"61bc004f-578f-4599-a63f-f16f1e0badde","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":94,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"fb4c876e-d3bf-407c-912e-3dcc1030560d","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":94,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"a0498c61-83db-4177-8560-08bd1554f1e6","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":94,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"0d073fa2-3e46-47d7-8581-c1d5f83c7691","block_type":"box","text":"maturity or specified call dates.","page_number":94,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"818127f0-7ca5-41fb-a24b-587f23ec068d","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":94,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"8405ea99-ca6f-4c61-8271-7a349147bda3","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":94,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"b2d5d8ba-4ee9-4752-973a-635de9d3ead6","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":94,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"37ddfa21-5ea7-4d7b-937c-55f15cfbcc87","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":94,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"3b0d2bab-3c20-42ee-a7d9-353995cc9040","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":94,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"d64c62b5-8fa4-47f3-95d5-545b12b06059","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":94,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"76154da4-11a0-4451-9407-d69a87f6bb97","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":94,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"4e6260bf-96a8-4db7-9b3c-20233720d506","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":94,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"04c4e3c4-1938-46d8-b09d-84986ec4760f","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":94,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"cc7f076e-ab5d-4c56-bd5e-02fdb874f9c8","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":94,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"f1010635-b569-433b-8b65-f70eef3997ae","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":94,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"8ca0343b-6ef9-4858-a19a-473e62db5184","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":94,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"1a8739d3-889a-4986-be4e-5e5ea83ddd66","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":94,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"b0cbae0f-6040-49ca-beec-aa92c0a38529","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":94,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"774b79c3-b9ea-4c78-bafa-8478a059c27a","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":94,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"5982c019-ad45-4518-a384-8f87f88f43d9","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":94,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"b93b0081-33dd-4460-8804-1f22a5c2cc9c","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":94,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"025c3751-a1e1-442c-8e2c-d3bc11127d3a","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":94,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"ea384b5d-8b85-48e5-8def-4c21c5f6b07f","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":94,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"415ad5b7-9db9-4871-838d-2752775e466a","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":94,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"78a4bf4a-f1ef-40da-b362-9cddf4011be4","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":94,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"f5f26e0f-4083-41f2-a85a-00a1cef08585","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":94,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"fab2cadf-8c6c-4501-912d-1d5e319d94ef","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":94,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"e3bc6bdf-636a-4558-babf-445206a90613","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":94,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"66aa1644-3bf3-4c49-bd13-527be80089d2","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":94,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"0a47d89d-af80-4572-8b24-5695a20b0fcd","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":94,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"1f8017e0-7729-42b0-81f7-502d4f132842","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":94,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"e65d0dfe-86bc-4fe2-9ef4-13bc5c58bb57","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":94,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"8af5fbad-68d9-4ea1-a837-07654be8bea0","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":94,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"60887a07-2b51-4c7d-be1b-a2d11401e5e0","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":94,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"511f5050-0fa6-4a1b-8b43-0ea2b568f8d2","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":94,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"2d5d0876-84b4-4b83-a199-078b76ff9e2f","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":94,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"1a7971af-446d-4ff2-9b29-a3d962316c72","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":94,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"c6d49415-2620-423a-a038-ca4455bed32d","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":94,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"707f0f0e-e2c0-4ae9-b188-2b41474ec739","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":94,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"637a112c-29a9-448c-849c-05227ce0ca82","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":94,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"d448f951-8666-4409-a804-b8161cb9b7fb","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":94,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"b4d0d4d3-7ffc-4911-b437-5504b13d5ffc","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":94,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"468e670a-41e7-4166-9d69-95f591ec38eb","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":94,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"9dc0a2b1-b8ce-442e-8b3b-f62f9dd4644e","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":94,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"36fbd20b-b1bf-4317-af6f-048584e49242","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":94,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"68e376a6-b8ae-46e9-b2e3-f7b4ffd757f3","block_type":"box","text":"II-51","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d9bfe753-a4e5-45de-9426-81983dcfef8e","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"467ed982-8610-4234-b6b2-7648937f2ec7","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":95,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"8adf801c-5298-4eb6-8432-b48c12c98073","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":95,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"553344c0-aa87-4a90-aca1-f532cd92d9b9","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":95,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"dfc85aab-38a8-4f52-b805-47bc53bf8e03","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":95,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"500d514e-8dae-47a8-ba35-405279ec41d1","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":95,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"8a8fc402-da90-428c-bf59-8461d38e321b","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":95,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"4836435e-6e28-4dca-a1d0-6c0bd8d66c92","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":95,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"3fb700ea-04f1-4915-ab1f-945ebcb58ac3","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":95,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"1ad9c091-1baa-483a-b62a-8fe44bbba34d","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":95,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"12cad694-bc67-4b86-af1a-635c30686b0a","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":95,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"beda956f-f7f8-47be-b0df-afbec13be045","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":95,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"675f686c-b088-4431-8c62-f54f72e6f85c","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":95,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"bd98d4d0-7147-44e6-ac64-2b17e5882fa8","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":95,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"5f0fd835-05e0-43e5-a910-47ca3332d986","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":95,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"0e1897b5-9127-445a-b720-17edfcf5e0f8","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":95,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"a0b39a42-1b3b-4c25-b01d-31ba7696a759","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":95,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"f0a65deb-fdff-4038-9f77-1141cfbeefe2","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":95,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"c096a085-3e97-408d-9035-d6cc806ba25e","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":95,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"c56e6786-6e08-4c7b-8bfb-7d9b2a5c29a3","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":95,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"f378436c-85ae-43a3-a524-def714fe0188","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":95,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"2341edff-c612-4e70-b53a-2cf1e05558f1","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":95,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"8e5522e2-dbb7-4c65-8cc2-06dfa5408b67","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":95,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"e6bff3c5-c108-4c52-a7ed-4cbaf7a18641","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":95,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"d1c91435-f7aa-4d95-b33e-99625f9c7896","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":95,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"769ec957-c3a3-4524-93bb-47f68abdad93","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":95,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"658f06a8-62d7-43fb-8a24-8c01847c5869","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":95,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"4c8f35df-f6f0-4a4d-9780-23c00e139c90","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":95,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"9db3537b-0e76-4561-8aa5-be7541e36726","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":95,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"a0d6d6b4-e005-4a1d-abd4-d58762af38b3","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":95,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"c1a3f8b0-016f-47d3-bb30-da1eea58b711","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":95,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"269f7ddb-fc3d-4ada-acea-105a10132f89","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":95,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"3788a1e9-7530-4589-ae32-6c1862a07bd9","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":95,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"d3ddbbd5-5078-4b76-9c15-86344dab22fe","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":95,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"afe86055-4dd0-43f5-b037-38ba5575b13d","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":95,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"b361a68c-c73a-40e4-94a3-f328ab504926","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":95,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"e2898f2a-9987-4e01-bff3-1309c5befdfa","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":95,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"ac3629d2-f9ee-4b72-9998-913872497768","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":95,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"2bd2cd52-2637-45fb-8506-6fa8375a7627","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":95,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"48a7e543-c066-4b8a-b785-a41469e03680","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":95,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"0b539311-7cab-4a45-b652-12be729b7a3a","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":95,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"468da84c-464d-41f1-83fb-e50e4e8f5bed","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":95,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"405bc085-2ecd-4477-b752-ed90c3b23e65","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":95,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"121b12c1-b7a8-4fdf-8888-c02b043b7a7e","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":95,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"17e16db7-df04-4ad0-98e5-7b07203fc7b3","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":95,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"f68e002b-7964-465b-8228-60cc6cab5136","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":95,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"df79ce0a-daab-478c-9877-2bf9d46722b7","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":95,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"44b3e964-cc01-443a-bc99-f6b45176d8b7","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":95,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"873e6c16-c4a0-4816-85a5-696637395d5d","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":95,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"da9e9141-08a2-4062-b673-7c303b21d969","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":95,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"fad9e2d8-24e4-4022-85c1-47b7060cf365","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":95,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"f997a0c9-676c-4495-926a-8180634b1c19","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":95,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"310dc63d-e0f8-42c0-9b39-7f97e87a1219","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":95,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"c4d3dbe1-bb14-4401-8ed8-af9fc11da3d8","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":95,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"ceb62b8c-c4b3-41dc-a65b-38e168056b80","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":95,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"af615943-7bbf-4162-9550-af71bd195df1","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":95,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"9c70dee6-d2e3-4f76-92c1-6154efedfc19","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":95,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"09e785fa-67e9-4acb-8775-251f60c3dec4","block_type":"box","text":"II-52","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a6d0422-c23c-4a80-ba95-3a10f4a1fa85","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a95498e8-d01a-4bbd-b7c5-d7111ea0f8f2","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":96,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"ce668123-8f13-498d-a0e8-32cc2ef57aff","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":96,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"6a1ff401-ccf2-4c5f-b83d-1102774a3473","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":96,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"bd2a1b64-f266-42d5-a679-246e9d3d6eef","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":96,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"848c75a0-a892-4ddb-ba34-9abb099735a6","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":96,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"ba148e62-aa60-4156-9f61-9aa615bd4105","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":96,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"207fc93e-90fa-4f4b-9ed2-e71eeabdb2a9","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":96,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"30f04a8f-28ed-455d-b097-efd39ed62c21","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":96,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"229d0b61-a1fd-4660-8661-0811a18a05b5","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":96,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"ceacfa40-1d67-4963-97db-b3227f7b9eed","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":96,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"ee786a62-4266-4475-93e6-346f9b4a0900","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":96,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"065e092e-e083-4838-bb6b-91640ed028b0","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":96,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"fc2e7a7a-7986-4553-a1ff-a6cdd9af355c","block_type":"box","text":"of principal because of the sequential payments.","page_number":96,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"30c0d4fc-5181-49a4-b6c8-bf119933ef72","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":96,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"9ca03086-d091-4372-9bd6-9dc770206479","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":96,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"edd1be75-7837-45ea-a966-8095f1d31e72","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":96,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"03cdca4e-d671-4686-bc35-555e9b23f22d","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":96,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"c173ee43-177d-4e76-91cc-ae4a4cb0affa","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":96,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"29ed19ed-c410-4f43-ba65-9cf9c5a7ddea","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":96,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"12ddf2c5-cacb-4a8b-93c3-8007828dc268","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":96,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"d3e3ec5c-471b-46f6-978e-69218ef0b81e","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":96,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"0cf023c3-a120-4474-a897-3b5f0b3e3b3d","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":96,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"f6a9aff3-566e-49b9-8c0c-57b6a992b264","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":96,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"8a969685-5d98-4296-be7a-173bf0fbecc4","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":96,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"10a65c5d-1962-4055-9f18-ae84edd71c1e","block_type":"box","text":"securities of any single such entity.","page_number":96,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"c9616a7e-b850-4f2d-bf39-61c5a22f1f4e","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":96,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"d2d0d6b4-b432-46f7-8668-f5d125f63a9e","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":96,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"e600a674-4757-453e-9b6a-82c4523d55c9","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":96,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"2883c968-7877-472d-9fb7-95efc157709c","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":96,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"14fe89ec-38fa-4a1f-beda-72137fdf8f80","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":96,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"88d84132-d429-416d-b9f0-c3b91ff74889","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":96,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"3d413544-7f76-437e-90d3-25b658248084","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":96,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"a1bbc4e0-3432-46b9-ae29-22d460a90561","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":96,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"4d3f2ff0-1132-4f6e-868a-8eb857ae1fc6","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":96,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"bb700079-eb3a-45b0-b0f0-aadc81650c75","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":96,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"f40375f2-d9c9-4157-9026-1947cbcad52c","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":96,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"2a0a2646-4006-48e5-a607-51978af81617","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":96,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"d0746b3c-74d5-4e0c-ae38-7e2c1ac2e2e4","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":96,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"24519302-20fe-462b-b1a3-efde951ff541","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":96,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"8db7bdc6-a266-43c9-9832-303a95062603","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":96,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"78672d28-fecd-47ab-8ae4-7b574f4e80d0","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":96,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"020a4a9f-a3ba-445d-b16a-232848d87b1d","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":96,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"924d816c-61ac-4dcb-aadd-13dd353916d9","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":96,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"3dbb7674-45d2-4a41-a159-f542b3027f84","block_type":"box","text":"classes.","page_number":96,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"8f05c60c-c15b-4324-adff-fbbca7b8ef6e","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":96,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"a81941af-5204-4821-8187-5450217c43e0","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":96,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"283fbc14-d7bc-410c-ac50-4f6e18e78b02","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":96,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"40591f4f-0e45-4196-983c-ce0a9a0a44a2","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":96,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"0f7fff00-c238-4a9e-9484-855862580331","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":96,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"2afa2d82-1d7b-45c3-aeae-ff7a174d6a39","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":96,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"406ccd63-a357-4d80-ae05-cecae7800363","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":96,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"bfcb8b80-1437-4c9c-8fed-d68fb7fb0c8b","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":96,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"c8b41599-c5f3-4ba3-955a-bafcbf8e3e2f","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":96,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"e3b40457-dddf-4467-9507-7be978525093","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":96,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"efc8f6c6-490a-4c3f-b50e-d3e0318a3079","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":96,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"e43bfdfa-5677-4bd4-9c09-ba935f42abe1","block_type":"box","text":"to a designated benchmark index.","page_number":96,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"4380deb8-4e63-4122-8301-e8efd4b306fe","block_type":"box","text":"II-53","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2dc12416-a9a2-4ce2-84a6-2fbcb248311b","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d0fb5cb-03fe-450e-86a7-2f1c1ab61a0c","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":97,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"4f7725a9-22b5-4e97-b18a-84b1f281d515","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":97,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"92a859d0-7a45-403d-8874-0a886d1de787","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":97,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"a8379a80-8774-4975-bd06-cdbbc2ff983a","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":97,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"d8264945-efc8-4fc1-9810-3f48c3f12b3a","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":97,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"8fbef6a8-9b6e-4494-bfb8-2ceeba2ce923","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":97,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"74c5a2b8-39f5-45c3-b2a7-c00fb1b27945","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":97,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"083a2c66-3bcf-4e87-aa42-0ffa7ba9f439","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":97,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"0f70b01b-d27e-454a-8766-58d59bc5e8fb","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":97,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"9aadcbef-77d1-4b8f-92f5-29497ba11b89","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":97,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"747b3975-ed1a-4e65-8a3e-be3c8a18b0b3","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":97,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"d8cea9ed-ffc4-45f3-8d9d-3883f71a1327","block_type":"box","text":"CMO Residuals.","page_number":97,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"53acf7de-c54d-412a-8dc6-24e828522c5e","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":97,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"65078560-32fd-426f-9fba-932a5b59252a","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":97,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"1c2e004d-b86c-419c-96ab-88c49be2016a","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":97,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"37e041b7-45a9-4c77-9f30-1298fda9678e","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":97,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"fd216633-15c0-44d5-b143-a090a35e41c9","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":97,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"1a793171-5ca9-485a-830e-20322f82ce1b","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":97,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"17699ded-f15f-4633-8e4d-9ba4ce5da43e","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":97,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"c5bd8f04-5656-4233-aac9-d886892f8240","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":97,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"bd65ffec-7b6a-4fe4-b087-e03791545622","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":97,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"78bbd049-cea2-485b-ad74-a9cb96cfdcc7","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":97,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"f9453a99-7090-44ae-81f9-57e3824d42a5","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":97,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"8a8f64a9-656f-48e0-a012-c2f44432ca9b","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":97,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"03ee8bcf-596d-4506-9fbf-e7bf01c994da","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":97,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"6fbdb467-c396-49e5-ad7c-0ed4b0037c17","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":97,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"6c870d9c-dd6e-4fb3-9dc1-6545c375d17b","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":97,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"d2105488-d5bf-45d6-b862-a474b8b7d78c","block_type":"box","text":"a CMO residual.","page_number":97,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"afa9ccd1-c80f-463d-bfdf-67ac81eddb63","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":97,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"0ec25d64-bec6-4d7d-9231-5b2d5a721f2d","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":97,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"ccf89375-3089-4ef3-aae1-904246cbd7a3","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":97,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"ee8747bb-fd5e-4b03-b274-5aa411bf3fda","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":97,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"c402d467-4338-4a6f-86ff-9c0d5ccd0399","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":97,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"56e49fcb-45ab-495f-859b-7a479dc0f091","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":97,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"9d6a2147-a59d-46ae-8347-8ea463e91bfc","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":97,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"f0cf86ff-8a8e-4852-891c-d2b49ec6e1c7","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":97,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"9dd2f714-344e-448c-8a8a-6dce68131392","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":97,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"c528eb59-beb2-4c20-8c4b-e6fdec8cf7e2","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":97,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"dd535ffa-220e-4ccb-8e5b-e353706de371","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":97,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"2574e713-29dd-4ecc-8077-e91e07750818","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":97,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"68cd58c5-aebd-4cf7-b6b7-faa5569ccfbc","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":97,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"27696f1b-27ed-4493-8cbd-eb4dc44a557e","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":97,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"cc5b3a12-2e96-4bed-9ffe-9947e0cd981d","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":97,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"cd0dbf1a-c8db-4ea4-b0e3-28100f0b5910","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":97,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"c9dc7eaf-d27d-4a0a-8b9c-f62b784b93e7","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":97,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"0e32ef39-b387-4156-8b3f-ce671e90414f","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":97,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"ccc09347-3f25-43eb-9d56-2d963289e4db","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":97,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"a0435699-da2f-4c18-bce1-714642431c48","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":97,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"cd5210eb-dde9-4124-ad12-36669b9787e0","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":97,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"c9b41368-472d-4bdb-95f8-c52c94350187","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":97,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"7285ca9c-184b-40fe-9200-31f3668b0ecb","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":97,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"4010010a-42d8-4580-a075-0e638ac44077","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":97,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"54ea0c9f-cc01-4d69-ac2e-0e0f0517fc63","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":97,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"060e110b-1f94-44b2-b543-156a8d4bbe87","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":97,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"20eb8803-4be5-464b-b26e-e3e07a028dae","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":97,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"b6819141-5684-499f-a0f8-99d2b3d7d6bf","block_type":"box","text":"Tiered Index Bonds.","page_number":97,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"8947e745-5269-4d48-b847-df9a67684d96","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":97,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"ac875e04-05ab-40ab-8b46-1f6835c8a853","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":97,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"10f63cc7-c623-45e2-b425-53b69fd1ec6a","block_type":"box","text":"II-54","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c3071c45-ef25-42e7-b8d2-16f877c54679","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f18e2b9e-ad71-41ad-b48e-7ab47458ccc4","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":98,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"55f63e2e-ecfa-4ff6-a68e-33d774b33624","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":98,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"4a52d4be-a5a1-4bf7-9fe1-ac04d6fb1c3b","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":98,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"d6e9ccb3-d893-4469-8c83-6e43b85a6d0b","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":98,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"683700a0-a41f-49a1-88a7-b991e9e29215","block_type":"box","text":"that of a fixed-rate bond.","page_number":98,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"8064363e-b3b6-4a64-a7da-cd9b6a6217ec","block_type":"box","text":"TBA Commitments.","page_number":98,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"6160e0ce-9d14-45f8-9a94-b35d7e8a5e84","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":98,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"3989a642-e4f8-42cc-b931-44e70058c0bc","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":98,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"267ec718-637d-42d0-9c21-c7f0a10ffa5c","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":98,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"6da9d4fb-ce04-4635-a01c-18e83fb9ab94","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":98,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"cbb9b5e2-8d9a-4148-b9b8-b834edf4f632","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":98,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"e257414f-30ff-470c-ab14-4ba30c278db2","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":98,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"49b1d83e-a945-472a-b42e-823ab8bf3d07","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":98,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"70a13ac9-e38f-4d6b-a07f-6458ea5b3286","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":98,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"6bd8f812-491b-44ba-99d9-806a7918213b","block_type":"box","text":"below.","page_number":98,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"fc77d669-309b-4396-8b39-ebe56d8fa5da","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":98,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"49c6aa56-4436-4cd0-97a0-3db6e14df026","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":98,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"9ee00786-b3ef-47b7-9b6e-f84d95da5216","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":98,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"46b3e94a-7168-40e0-b10c-b35330a38dc6","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":98,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"5595b7f6-2a1b-4476-a5f2-0f8a990050f0","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":98,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"dd23d4ce-a233-4ac5-ba2e-611025b276bf","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":98,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"bc9b77c2-0630-4776-8c9f-db29ac964e70","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":98,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"c6dddab0-f2d1-4633-bc3d-24df4d9a72a3","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":98,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"a2c00a34-c233-487f-a1aa-321828065ab6","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":98,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"50867e9a-f79d-4488-a3dd-3f9b3a2f3d48","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":98,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"a79822ac-f5e9-4822-aa48-7022cb3dfc04","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":98,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"6726d52b-8341-449a-991d-8bed25e06d19","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":98,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"ee825556-6bb5-4731-a90b-35c604f4372e","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":98,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"a3291445-0fde-4b58-95de-a4193a512bc1","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":98,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"d10c890f-388c-4a4a-bd3e-e7a25287b0e6","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":98,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"fb56dea2-c9b4-47bd-b8a2-c6919f596067","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":98,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"8a68033b-5bd3-456e-875b-92a4115d0980","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":98,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"2f725cc6-c2d9-4e04-9638-74979b1cd579","block_type":"box","text":"securities in the forward transaction.","page_number":98,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"5ea045f5-b2c7-482b-8bf6-4525632e0f2d","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":98,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"68c3cd9c-7edb-42fd-ab7e-c19b2b9a0cd4","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":98,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"1dc6a387-0102-4991-880c-647725d30716","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":98,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"579005c0-f413-49eb-ae2d-09d576478926","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":98,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"9e85ef3d-c0f3-4d8e-a873-4d12620f3b6a","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":98,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"c9eb9c9b-705e-4781-8a5d-9ebc9ef1e24d","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":98,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"ee0e0f3f-caa8-475d-8fb6-7809b21a28c2","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":98,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"21e3390f-6229-4e22-a663-fb078e5c76fe","block_type":"box","text":"securities (","page_number":98,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"878d44fe-9bfd-4ce9-9903-36d86b90b955","block_type":"box","text":"e.g.","page_number":98,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"8780830a-f87d-4630-acac-75e3860fdbdb","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":98,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"b8a51047-3b86-4c98-a444-d5820aa11d0a","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":98,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"e9512834-634e-40f5-bce9-6a314b428ef3","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":98,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"d61dff52-b5ac-4971-aa14-0710da888d6a","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":98,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"42254c42-b044-4bb1-aafc-73e17c58da0d","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":98,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"2425fab4-5f91-466b-b984-c85a9282fdbb","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":98,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"25ef230e-16b2-483a-a81b-aba681d8da49","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"92a51af2-0fe8-4694-9d0b-064f9cf084e2","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":98,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"2149a761-9c99-44b4-8224-5621b32db588","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":98,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"5d3a8a24-e214-4461-8704-9abbcca453bd","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":98,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"a46e5b72-e25f-48e2-a396-5dad12f67424","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":98,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"a34addea-f2df-4a58-bd5d-5330ba2620b8","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":98,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"31d364e2-7622-4f3b-aa93-404079cd9412","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":98,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"1038b0c6-be3d-4e1d-b35a-793c28b5b10f","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":98,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"4ea72fc8-31d7-4d8e-8970-c8d32e7f2e32","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":98,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"0d763fd3-8c63-4b1f-b7cd-5ccf0d85c3ae","block_type":"box","text":"Municipal Investments.","page_number":98,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"a1e1063b-26ff-404e-a83d-b39b12cb6781","block_type":"box","text":"II-55","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2923e7d1-3a3c-4e97-b32b-80d1ef9c5ded","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f69f213-1219-4b39-8853-b1d72ce862df","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":99,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"76b81339-4c58-4bc2-a600-379c922b7378","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":99,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"08e249e2-fe82-4d9f-b292-174b994fad31","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":99,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"dcc5e433-bf1d-4a78-8ec2-5065b6bddafb","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":99,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"01cb0b1c-32da-4a4b-92c9-e9348f07cf30","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":99,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"033aceaa-ed30-4507-a6eb-372e17599c2d","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":99,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"15f14307-9e9c-499c-9bdb-731b5996ca4b","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":99,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"4056072a-7bb5-4d26-a5f4-c09a1a361ff1","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":99,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"44b097d4-fd34-45a8-8423-38d7aa5fe6a3","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":99,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"d8a09449-0818-402c-9cd6-bfb356f78982","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":99,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"cc92941e-75d5-4ff6-8cbf-eccbc66cd5b6","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":99,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"ceed4011-6e4f-4a81-b53b-29aadfe143f9","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":99,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"93bf0247-54ec-4073-b96a-ecbe78b59682","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":99,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"d1dfa8f9-d074-40bf-a3db-641c29fb4ce1","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":99,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"ba9318e1-9966-4cb7-86ca-014b37e506b2","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":99,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"63285de6-3833-48b0-9ae0-c49be555dd7c","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":99,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"1b3f876e-7793-4ceb-b832-2291132d4561","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":99,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"d961f153-1d8c-4bab-9458-bae7ea48ae53","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":99,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"36b8d952-f27a-49f7-8780-cf398e1a80f1","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":99,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"2018bd62-918c-48fb-9a28-6dea2babe430","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":99,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"1cdf4c17-4b91-4ce7-8e59-4b837e96672a","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":99,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"53580339-2de6-41e9-bf91-cc8c6c1885c2","block_type":"box","text":"The risks and special considerations","page_number":99,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"e7432a4b-41e0-4e9f-86c7-b85772387011","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":99,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"b822aa58-48b1-4fdc-a8bd-19d7f7147b2e","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":99,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"74cc7cf9-8d76-46d2-a8ed-26e7e00e6be2","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":99,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"3b0c770f-8e29-497c-af27-a89582cbed11","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":99,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"b63c28ee-626b-41ed-9363-34ee9750c4f2","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":99,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"9f97bb15-4e63-4850-9096-c37a8d267a36","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":99,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"b27181b5-f306-48f1-84e4-d49c2661a813","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":99,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"5d54205b-8765-4d5d-bf12-c4f95605494f","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":99,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"0d94cc1c-22c6-4f10-801c-7fac0a64be1a","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":99,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"e6a29306-1e37-46ba-9042-fda3386d1907","block_type":"box","text":"II-56","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"07e3ca13-08bb-466b-93cb-d60896ae1b5e","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e04432e-e04d-4602-917a-bea439b6f2f8","block_type":"box","text":"Description of Municipal Bonds.","page_number":100,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"bd8f38d0-934b-45eb-8c31-f567065a8fba","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":100,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"f4960ed8-5a35-47a3-84d3-84b4a4700f1b","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":100,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"3ca09166-4713-4f4f-a4d5-402f5771bb58","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":100,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"15d7cb87-a4ac-46fa-8617-11f6903c6685","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":100,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"7fd938fe-f5b1-49af-b1c3-12d32fd4cbf3","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":100,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"2f333a7b-cc7e-4d3d-ad30-6ef444599288","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":100,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"e7902157-3b32-450a-bb6b-1960f1ca2608","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":100,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"bea7e105-48ee-4ebe-8af3-44b23ba32027","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":100,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"23b67dba-52e5-4421-a4a3-f2efd18a0200","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":100,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"9c0e537d-6bf7-41ac-96aa-fad4dfec3d1d","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":100,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"c39e3681-3cfc-46a6-9540-d813e59eea4a","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":100,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"af3b6fa1-0b70-4cb5-97d5-c0ee73023686","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":100,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"73b6970b-1f1f-4b33-9599-1db7bad3171f","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":100,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"3d2f06b7-2dc3-4511-864c-ecc10bf2f18c","block_type":"box","text":"General Obligation Bonds.","page_number":100,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"3eb12685-8d96-48c9-8a55-520fe33bbe88","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":100,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"f0a0df4e-e491-4f16-8c7f-c1a9730f2ff0","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":100,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"84722cbe-705c-4184-b049-4d587f513b85","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":100,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"cbda7826-d048-46ec-bd5f-cbf3f0200b33","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":100,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"2a64aeac-60c6-409a-ad0f-eea20b72072a","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":100,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"5f3e8c22-5511-4a00-97a1-c579fbc9ad04","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":100,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"04073244-0efd-49ea-a58d-b1c1c4dd296d","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":100,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"5d87fff6-0b09-49e6-bf81-0ed3b345d068","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":100,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"c71d5cd2-e965-476c-ba3d-888c1bd9e7ab","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":100,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"f78895f3-3c4f-4886-b03e-8963292a6dda","block_type":"box","text":"Revenue Bonds.","page_number":100,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"1afebe79-027f-4192-91d6-a60388aac4d9","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":100,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"c5f6b9bf-1cc3-4c88-ae98-7acaf0e48ced","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":100,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"ea488dd2-836c-4172-ab62-02c763f31582","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":100,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"41a30f9d-0163-4dc0-8589-8c15594dffd8","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":100,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"d34c9f3a-ef0b-48e5-a6df-64f9fc2151a1","block_type":"box","text":"viability of such facility or such revenue source.","page_number":100,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"a853bb7e-a529-43bc-ac7d-b5381713d31d","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":100,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"8637c7e8-b99c-4187-8094-c036be32e1be","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":100,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"c3fbef1d-fa6c-4e54-a063-ace71f63145e","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":100,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"e3041604-b80a-413a-b7ec-67a1ffc7184f","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":100,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"5494562c-7bf8-4afd-95da-8b62a8696bfb","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":100,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"d78e5395-8607-467f-aff3-db7c356145c7","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":100,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"44ce96b7-dc21-4d3d-b7ef-1a5a91d468bc","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":100,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"abadc741-e7f9-417a-a063-cd41255411df","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":100,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"185d0853-54bd-413d-b727-76b7ef3f20a0","block_type":"box","text":"PABs.","page_number":100,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"c7062705-06da-4c75-86a5-89a59475a271","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":100,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"b7b254f1-9d20-498b-b83d-ef415ed3bd4c","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":100,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"43d8225b-f748-4020-9f11-4129ae92a907","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":100,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"29f3c631-5765-4057-8db5-38a5e1af2026","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":100,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"16f17db0-bb27-4b97-b9ee-09733773ea73","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":100,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"d8a2adbd-5cdf-4999-8f17-46f3467d1256","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":100,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"3138b4b2-e361-4f08-95a9-b213ad7802a5","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":100,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"c1ab3ce1-3886-4482-b9e8-869d2327cd15","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":100,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"05230023-47cd-4ee9-b48a-49f12596a3dc","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":100,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"07b752ef-3793-4d8c-a788-3025e1456162","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":100,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"edcb81db-d99c-4306-bbe3-7ac8b74d1b9b","block_type":"box","text":"the par ticular facility being financed.","page_number":100,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"eabb5d24-89c8-41f7-9d69-9646c81512ff","block_type":"box","text":"Moral Obligation Bonds.","page_number":100,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"117dee7d-b59a-43c4-8451-16cfb72e410a","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":100,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"b9b19d6b-0c08-4ce1-a1a4-d80977852e7b","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":100,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"b9a6991a-542b-453c-aebd-82e5980b1635","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":100,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"c1259baf-ad56-4829-8995-aa0150f7f43b","block_type":"box","text":"that issued the bonds.","page_number":100,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"04eda938-c4cd-496a-9d8d-f51e5e52a518","block_type":"box","text":"Municipal Notes.","page_number":100,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"88c577f0-3f1d-4a79-8c24-874eba8e44cd","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":100,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"c0109c16-b2f5-4e2d-9242-6806252038e9","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":100,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"894b7a2f-023d-4a80-8a7e-f07ed9b24452","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":100,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"a1c99921-12c8-4717-813d-ca2598ad8b02","block_type":"box","text":"II-57","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fdf91bca-d596-41e3-974f-f9d3af6d1805","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"869654a1-3bb5-4d3b-8907-34713e2a7b14","block_type":"box","text":"Municipal Commercial Paper.","page_number":101,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"ce6e45ab-0944-4ae2-be10-807eb41ea348","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":101,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"365df91f-7e49-4e55-978f-425d2bb5c307","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":101,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"66682443-25f3-458f-8090-b1958ab2cb9f","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":101,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"d1d1aede-9f67-4f28-b6e7-95b4ef665784","block_type":"box","text":"Municipal Lease Obligations.","page_number":101,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"199ebfe0-9660-4cd5-b5ed-63ddf5074075","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":101,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"6b579f82-4ddb-42e7-a517-5a46fea03c44","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":101,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"198bac7c-5e0b-420b-8d0f-db30f09b35e2","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":101,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"2d50990f-b5ee-4646-978e-ad7a1016a912","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":101,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"b9f061e1-e3dd-4dd8-9a30-92c7cec64b9d","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":101,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"af856235-ee00-4dda-8b94-a1981128825e","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":101,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"17b50f09-0b3d-4579-a9d6-55bc6b1468f3","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":101,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"87d8df03-c116-43ca-ac4f-6e87a69e5a81","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":101,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"3ab32e84-dff9-47fe-8b2a-8a6ea743daa1","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":101,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"1b8a253d-6087-453b-879c-0447a6eecd25","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":101,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"ddc4d7bb-6637-49a5-b4cd-8b5be4fb9946","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":101,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"c2b6ba49-0d98-46c4-82f4-c7a9ad3bb8b2","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":101,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"06a5c319-6813-4d8a-ac70-5b6d8d34c4d2","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":101,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"7605049a-4a4e-49db-919f-1906169af1cd","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":101,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"8b5f15c1-b6ac-4117-94a2-a9ed7ea798d0","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":101,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"29ad93d3-fa9c-4213-b262-21e4b600ed2a","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":101,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"38e80ae7-42c0-404a-aee8-4357cd2ea9eb","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":101,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"6c8a1976-42af-47ce-b962-320a23158381","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":101,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"c9e46ebd-33ba-41e5-b0f0-f5275a5963da","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":101,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"aee8e069-a1a1-43c6-9a2a-fcc358724cc6","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":101,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"343f456f-0673-4135-a348-9b4525003fe8","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":101,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"74fe0549-033e-4a27-b5cc-434a3478fcc9","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":101,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"3d2d768e-7869-4044-81c5-941d5d2dce95","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":101,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"8409040a-62be-4fc4-8fa8-5e02e5760931","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":101,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"e9e00c60-5347-4ff9-9539-7b1f8923723f","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":101,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"e150648c-a85d-4006-b550-580e5a47b2b1","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":101,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"7ac3881b-c97a-4af1-99e8-c1744bf3a2e0","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":101,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"17c3e369-24b8-4a2f-8e02-470d31f80a54","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":101,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"240fccc8-3c51-41bc-9119-0dc4a27c0323","block_type":"box","text":"Tender Option Bonds.","page_number":101,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"f4ea5b86-0659-4bc9-9774-a54be12d44b5","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":101,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"ea402ee0-ac93-455b-8505-28202e2553e1","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":101,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"9998328f-a6d8-4c58-8d20-77f05feabbbe","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":101,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"711425b7-a8ac-48e5-91db-ef3644e668ed","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":101,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"2351de7e-5f67-4dcb-a9d0-77f409a5e9de","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":101,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"47c98180-1077-481f-8082-5627fb9c294d","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":101,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"f27774cb-a904-4c7c-95cf-4f89e52d6de9","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":101,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"783d0e02-d76c-4dc3-a87f-a05bc519ac7e","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":101,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"ebabd8fd-8e4b-44ba-a226-d3f3757348b8","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":101,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"067208de-e914-456d-ba67-5dd644f90703","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":101,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"9b4b3e9f-ac27-420e-ac48-f641ee9be688","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":101,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"694a9c45-4637-477b-8dc9-d1c7cf779cf2","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":101,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"857dbff1-7029-49b2-a1d0-3f31277f55a0","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":101,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"8e23010d-7868-4a28-80b4-7b3b9da584fa","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":101,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"00a0e73e-34bc-4a58-9182-3af114372806","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":101,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"17314819-7cc3-4822-a5f7-2d1958f84ff3","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":101,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"0f7f3cb9-8a25-4c75-9c9c-a9269f05b0a4","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":101,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"ab49ab33-7881-4cdf-9527-91b33602c057","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":101,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"7e58717a-05a4-4ad5-a9ce-b471bdbb2d5c","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":101,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"5b6bd62a-6ef9-462e-a7c9-394dc813aab1","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":101,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"c0bada2a-e70f-4cfd-8fbf-108ac5194211","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":101,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"aa14a180-7345-4a2f-9685-790d9ced84b9","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":101,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"931356eb-84bd-4ff1-bcd8-b5a1cd6e76ba","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":101,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"4f96c4d3-d337-48dc-9abc-eef5913b1fe1","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":101,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"fea0b78b-a343-42ae-95c2-0b3e81844512","block_type":"box","text":"II-58","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"44f99144-af91-40d3-8f6d-1e133062e2d2","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"637f5598-4f93-44ae-9351-16dc2401a207","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":102,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"cfac8a8d-940f-49a0-83b8-282a4829206a","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":102,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"f93cefd9-514b-4ef0-a144-75e568dfeaaa","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":102,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"c8d17e75-ff03-471a-904a-87a7a532385d","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":102,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"74bb51f7-8a12-48fd-ac09-78ab364b8c31","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":102,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"014e0277-485d-48aa-b281-e8622e807888","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":102,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"e0c0d695-900b-4f32-9a93-817f7ee2f7d9","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":102,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"30c81251-be5b-4673-845a-ca7813d121da","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":102,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"564a8ca7-c1ae-43f1-b9a7-42129b1255c3","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":102,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"061336ee-0bb3-495f-a49b-f669fc0e2ecf","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":102,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"6fd28dd4-3472-4492-8014-87ff9dd6feed","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":102,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"2cdec4fd-8082-4896-8a29-b880462e8ab7","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":102,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"494fbfcf-f9f0-483c-b564-16a2eb1775f7","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":102,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"08d4b2d1-b2ad-4ec7-bcec-858bb3cc4612","block_type":"box","text":"issues.","page_number":102,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"2b9ffd0a-4f48-47be-8575-71d8eb33ce4f","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":102,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"5765ea4c-1431-4497-aa70-9456eeb46679","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":102,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"648c05fb-bb5b-45af-b14a-ee35f79caa4f","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":102,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"0830c253-6804-4796-83d9-12711971d225","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":102,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"ebb895bf-9402-4477-b058-bbc077d89a04","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":102,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"cfbdbcf3-851e-4749-af61-ec091ed32ec8","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":102,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"1e2838f2-1d30-40cd-92ba-16b534d23f99","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":102,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"d50ad071-416f-481d-87d5-c81a0e759402","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":102,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"53d5dcc3-f293-426f-8db0-764f486b6d98","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":102,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"220264f5-8a4d-4174-aa82-db32d969a111","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":102,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"7edda881-cf46-45f5-906e-fd4c1c6d4747","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":102,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"712da4fd-bd9e-4a25-ae33-437c222f7385","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":102,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"a5db01a4-018b-4bf5-acee-0bd98527eab4","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":102,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"594dc645-102a-40fe-b276-188ddec500a5","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":102,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"54150da8-f906-451f-9c38-44532d3f3ca3","block_type":"box","text":"i.e.","page_number":102,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"2e6103fa-592b-49e2-9a66-ad8ec8d61adf","block_type":"box","text":", the Fund). In contrast, in the","page_number":102,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"a9919b1f-ec4f-492d-853d-53fa9c5c686f","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":102,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"c87ea771-1b61-48d5-8147-115eec733a4b","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":102,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"b08795be-f84d-42ac-b5c6-48423aadff11","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":102,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"b9d76730-b84f-4b5c-99d7-98f1fa7da952","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":102,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"f9fdd70b-b773-4c53-8de6-e621285376c9","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":102,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"af678505-a6fd-4db2-9e17-6d8b5314d260","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":102,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"fbc82187-dc59-4ae4-8f6a-97366528b345","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":102,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"d1a56461-07b3-496c-b430-e9e434cd4de9","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":102,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"c3d95afc-65ac-4e7c-b580-14fdce702a73","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":102,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"eb2ad17d-1a1e-458d-8f9c-839d76812b73","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":102,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"e8917e35-ce9d-439f-9e1e-801353813c1e","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":102,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"472ba133-5e67-4943-a8b8-e6bb0b67a25a","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":102,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"faa3a30b-98c0-4550-9f84-c0224733320d","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":102,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"fa359d37-dab7-4f9f-aa00-2bc3b6a603a2","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":102,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"f67994c5-6f57-4348-af8f-7c710ceb58a2","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":102,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"9146138c-90b0-4428-ac2b-773b95ff12e9","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":102,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"5ca56465-0b6e-41ae-9649-4014db9b8182","block_type":"box","text":"Trust.","page_number":102,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"87628f6b-6e53-406b-9e81-9f6efd5766d8","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":102,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"d2eed9b1-a613-44a1-b849-80beaa025034","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":102,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"2ea472db-6929-4ef1-b45a-0f07abba5602","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":102,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"b9c7186b-d91a-4c7d-9091-5ce9249864ab","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":102,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"850d2e66-5fb7-4fd3-8da1-ec02a7220299","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":102,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"6e8e3f2c-c63e-4726-a610-19d34d26c5f1","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":102,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"762789d4-fc2d-4a25-a66d-2a3de3889b46","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":102,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"0180e35b-8753-4799-aa3c-acfc26d1b67a","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":102,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"4ff7904d-9684-4f97-8d10-2800e5df77d2","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":102,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"5c15fabc-33bc-4f43-ac5b-316b73c75e97","block_type":"box","text":"II-59","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"828983b7-289b-4279-8330-6b4b5d6eec8c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5875e6ab-f83e-4a94-96f4-e3c0196e5c17","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":103,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"8930d33f-935d-46c4-909c-cc69062102b9","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":103,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"e26b9fc3-43e7-4c88-8b6a-cdd7f152990d","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":103,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"46f41a43-f5f7-40d1-a26a-b38629edb83d","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":103,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"87c700db-5740-4684-a367-ff283492f9dc","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":103,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"c182254a-453f-4eaf-8536-bb52384f0025","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":103,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"ce6a3a20-53bb-4829-99d2-401e27d82cca","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":103,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"e13ea19b-62ed-411e-be9e-74796b98d345","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":103,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"e6315246-526b-4460-919c-9e35f5f57fe9","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":103,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"d51a614a-b011-495e-ab30-4849c5b7ccfc","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":103,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"dca76e77-2343-428c-b8b9-b8794ad18b3b","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":103,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"d93c5feb-ad74-45a6-a2e3-3e8955ec7ce2","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":103,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"d04ef348-b33d-4a3e-8128-0926ad243207","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":103,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"e9e2868b-2778-4c07-be5c-6dae4c902806","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":103,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"dc71715c-ab08-47c7-ae89-4841e606da5d","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":103,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"0b297ec4-74e5-4fd4-978a-5850ee0144c1","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":103,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"50292329-9b45-45d0-b8af-d7608d0ff7ee","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":103,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"53b9e924-a59d-4817-b1b4-ed5caa90f0ba","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":103,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"ad306ff0-10f4-48bb-ac1a-a201a0d7ffdf","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":103,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"c29ebfa5-cee3-498c-8f90-28e09f843b4a","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":103,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"72bbe765-5795-43c4-9ec1-649e5f9671bb","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":103,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"96263c87-d658-4efb-bc26-d760a570af90","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":103,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"117c77b1-7210-4864-b466-e9313bd0d11c","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":103,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"9f6a6550-bc7a-472b-bf50-81403eed26fc","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":103,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"704fbc3a-a938-4273-9b09-83e75883d533","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":103,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"e943e059-8b96-4f86-99d4-0c749ca9377c","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":103,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"8d143cbc-0b35-49e2-9277-1da53ec4471c","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":103,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"a03001f7-8f2d-439c-82c2-f8e02c288a07","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":103,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"7ccd2be8-ff06-408b-9dad-90a170754b57","block_type":"box","text":"i.e.","page_number":103,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"2b146f89-1564-458e-923b-2c681e203e70","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":103,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"0054373c-97e5-41c3-8af0-3325f28ae544","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":103,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"eebebe4d-08f9-49ee-8267-b31e5daedd39","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":103,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"aee62deb-37a2-4643-a443-bb48ceb9b815","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":103,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"48f26cc7-e38f-434c-b619-5364e3f34101","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":103,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"a38d9b3d-3fa7-4cc2-b536-fd34e332fcf7","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":103,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"4d9772d5-afef-4f44-9393-0ed75a947aa5","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":103,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"a2a132d6-bc61-4ae6-a0d7-4efc91a90417","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":103,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"8a5fce34-b791-447e-93f7-984f74147944","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":103,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"b6676fa6-501e-4317-825f-b1c1d6c54ff0","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":103,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"3c020ab7-f9de-4e20-a6b6-b3df175a070e","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":103,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"ed0621f6-59c6-4ff0-a0c4-831ba46682fe","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":103,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"899e1585-05cc-493c-a3f4-9b58d73efd4f","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":103,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"a27c3dca-a9d6-4f42-8ec9-00e672003a2f","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":103,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"e4801f6e-2980-4502-b63c-48d512807461","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":103,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"3e34aa4e-9c4c-4dee-8049-242aeab33c77","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":103,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"583f2ede-0d64-4ca6-8bcb-38f9294bb031","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":103,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"e73f050d-238d-42a7-b3f6-40d55a2e406a","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":103,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"ae3baf1a-636a-494e-b623-feffb4f98e4e","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":103,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"1268c3e7-f080-4acf-b0a8-94d74bc10e5b","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":103,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"b7083b8a-c431-49cc-b996-e51b160455c0","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":103,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"7aaf0afd-6c75-4175-81f1-05b525451aba","block_type":"box","text":"market is not yet cer tain.","page_number":103,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"ac6127ab-3c9f-4b33-a324-cd954e9a6313","block_type":"box","text":"Yields.","page_number":103,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"8421c793-7c46-4dc1-bb04-4c565e4342cd","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":103,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"991d2b45-d146-43a5-9028-c8d4ab26d14f","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":103,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"e9e6bdd3-5e01-4190-8d45-65a115281cb4","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":103,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"3a9a27af-8e6a-467d-b9df-7abc51303680","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":103,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"13ab6096-6826-4992-be2c-f447c1cbed55","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":103,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"b1c53802-a35e-46a7-8346-8bfd0e5379b7","block_type":"box","text":"II-60","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d43f4942-e130-4887-9263-481bae109069","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ee8d704-02fe-4b5f-b10d-a61efb4603c9","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":104,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"b6a8d0f2-5d93-44c0-85e2-ac8de9ee7d02","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":104,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"ef9e5ad2-22c6-4821-a152-e537fa79b730","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":104,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"c9c2d10d-88ff-4567-97da-98204de63c41","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":104,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"d7a99285-66c8-41b8-90e7-b05171849b71","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":104,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"9b51c453-1c64-41ee-9aee-89c799bfd676","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":104,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"0cff81f2-ed2b-410c-a29a-762adbda9e89","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":104,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"f12df363-a823-415d-9273-1268f80f3efc","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":104,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"b3a57cba-d5ac-4f72-a56e-00b06286f6b0","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":104,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"c5f31533-7e29-49f1-8e5f-42ea7feb35b9","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":104,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"c78537a6-9da0-41d2-8aa6-66e50fcb9e44","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":104,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"ec219d23-e57d-4098-9e04-c64c84a68bfe","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":104,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"6f31a189-562b-4f8c-8dfe-0b25a1a75cff","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":104,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"2deef9e3-e09f-447b-8d42-b6f7dda2287f","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":104,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"2a366e94-1d6d-48e5-b8bc-74316393196f","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":104,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"960a137c-a52e-41af-ac92-123a51c89b95","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":104,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"c1ba20f9-845a-4f90-876c-43864a88edfc","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":104,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"7789217a-4d86-4c8d-823b-da559e93dfaf","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":104,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"2be6e389-1730-419e-8c81-39298d76d38e","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":104,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"e9c5dec0-9655-49e7-add8-f549b30cf706","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":104,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"93106e5a-2cbe-4bb7-980c-0510acc38a61","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":104,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"ad994ac3-5f33-48b2-89f9-fdb917cf33e1","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":104,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"bd56365e-2943-41aa-a270-3e69ab940bd3","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":104,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"a71cba56-1a50-499a-a037-811786b22e92","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":104,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"50ed79e8-52f1-447f-8d68-938295ad770e","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":104,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"77a80512-19eb-4230-8780-6e18f7449451","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":104,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"d32a1199-4be8-4f53-93c1-60d3cd6384fd","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":104,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"1dcfcb15-3fef-49d1-9008-f613ac591ffc","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":104,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"9e56a884-f5b8-40e7-a8d2-7b0b0f3c0227","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":104,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"a466ccba-d89e-40ec-ac47-5c36ad199317","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":104,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"1db6eb65-5291-4918-8a1d-5ade07a438ab","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":104,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"33013559-eb20-45d1-8099-c9eb8d3301a4","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":104,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"6bb9866a-436b-4e5a-9d79-b90c527e367f","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":104,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"c94c62a7-f7e5-4303-b04c-831c897f8bcd","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":104,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"36637b43-140c-4d9c-8ef1-83b665f1392a","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":104,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"9281b321-cb5c-44f3-b0da-10d7eaebfcb8","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":104,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"e8b209f6-a74f-42d8-a6ca-d136b7a1f3a2","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":104,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"24ff0818-af85-40f4-997b-192b22b6745a","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":104,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"3c18c0da-43a3-4025-aa44-478190c5fa34","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":104,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"651773cd-920c-417e-aac8-ba68a31bbc83","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":104,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"3eb11f7a-a25c-4239-9f7d-699b71c873d4","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":104,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"df0a700e-e3da-496f-a464-e616983d92be","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":104,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"c457aca9-fb58-4121-8684-c785527186ae","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":104,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"b78e5b17-f652-48b5-903f-9621587a2a83","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":104,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"13f21a7a-064f-4003-ad10-2383c6a798b7","block_type":"box","text":"Call Rights.","page_number":104,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"3054357d-8138-410e-a5af-31ebce082234","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":104,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"c19f3e98-443c-4b11-9325-f2d48421a865","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":104,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"9e1c06e8-4003-4d4c-91ba-8ebc1d63440c","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":104,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"19495bda-8da7-4121-99ff-5258acc51c4b","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":104,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"245bed35-d895-4b3b-ba61-1afc8888cec5","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":104,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"875a6935-c9fc-44c6-911e-ceec3f8305cf","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":104,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"06ba241a-39a5-47d9-bba4-f27389c5539c","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":104,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"b6052464-d6dc-496c-a174-f73e0a5815c8","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":104,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"8a24b260-1639-4be7-b93d-7b8208cf9078","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":104,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"a05b6254-1abe-4aa8-b12f-912fe2829d2e","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":104,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"dd720f7f-f70d-47af-9d4d-0f86e7169f51","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":104,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"4370c1be-44fd-4ead-b994-15ebf2aa1362","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":104,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"0d84af45-1af1-4d2a-9ac5-2521527346f1","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":104,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"283366d3-0b2e-4692-936f-f8d28470e280","block_type":"box","text":"II-61","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c168158-60ad-4a20-9ddc-28c60799d33d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c690abd-9997-4b5e-9754-f2954adedda4","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":105,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"d11c3b08-7438-4ab6-b8bf-6d3f4c2621f5","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":105,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"ce617b9c-c6f5-4a03-bc23-4de13a1a2019","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":105,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"5656e972-2ebe-4ec6-8a26-51213759b532","block_type":"box","text":"i.e.","page_number":105,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"a270c8d4-df4a-4227-9873-88cc89d95088","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":105,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"c58d6377-c2d4-4434-94cf-b6ae8fff2510","block_type":"box","text":"rates).","page_number":105,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"d3468f45-3119-48b7-9e7f-549b0505de2f","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":105,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"4c7e3129-1352-4f27-b4c0-30d369d7bd1a","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":105,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"cc7e1444-2e0e-49f3-bd1d-96f264a6c500","block_type":"box","text":"e.g.","page_number":105,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"3d9c7217-301b-45d8-b635-b0951e751b8d","block_type":"box","text":", an exchange of fixed rate payments for","page_number":105,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"2dab5ac6-8139-44eb-abdb-4f196e8ac715","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":105,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"0336290a-103f-427d-9d08-8d3814457d11","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":105,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"377db654-1afe-4153-bcd6-f5d07868547b","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":105,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"7ed1d5b6-fbb7-402d-993c-3f6b97345ff9","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":105,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"f70ee579-ed61-4568-91bc-647089f54ae7","block_type":"box","text":"with the same attributes as the swap (","page_number":105,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"008f8d2b-0380-463a-9670-343c8e6a5b7f","block_type":"box","text":"e.g.","page_number":105,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"1a6d533c-a11e-4c80-b9db-f298c7e1d96b","block_type":"box","text":", coupon, maturity, call feature).","page_number":105,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"f8a0e5c0-f3bb-43e2-bb74-cd70746ef520","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":105,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"336bcdab-92a3-4dd5-84b9-3028d23491e8","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":105,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"a1cd2fb4-120d-4b05-9ca4-d5e17954ea53","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":105,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"8e1902b5-79d0-4a77-850d-c60b5fb7142e","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":105,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"692055c4-d667-40a2-9918-15ec47c255b6","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":105,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"a497c9d1-da4f-4cb7-bd95-fdea41534411","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":105,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"278748e9-c96c-4687-8978-b741087894c9","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":105,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"f2ef71ad-7c12-42b1-a822-132b33efef9f","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":105,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"a5028613-9b14-42a8-a5ee-fde940414a3a","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":105,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"8a9ae0d8-ebd3-4807-9bd4-42199606e0ec","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":105,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"415fbe90-bdce-444d-aa1f-1218775d5272","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":105,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"fadd917f-0951-4ae7-913c-0b6e7c8551e6","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":105,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"188113b6-e3bc-45fd-b99c-7b0984ad8b4a","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":105,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"91070f05-37bb-46e5-a22e-5669e754172d","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":105,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"2cab6dc5-006b-4d04-bbb1-b45199c681b0","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":105,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"77be14a8-7da4-436d-9d25-e56cd100765c","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":105,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"7269ebed-23c1-4511-8ed2-fc2be220c068","block_type":"box","text":"Insured Municipal Bonds.","page_number":105,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"c1322ceb-5ae6-4345-9dde-98d0ad4c0d82","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":105,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"2e3f7884-859e-4d22-bb4b-90971b537af8","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":105,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"73d166f6-3246-4d5b-a945-f5e554b77ec3","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":105,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"8e636062-aaaa-45e7-9d37-ee7c760759e3","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":105,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"46d83f6d-c2fa-4aad-96c1-4bd3602aa582","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":105,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"2f987674-71a2-4ccc-9012-0aff24da8781","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":105,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"ee6ba77d-dd7f-43d1-b065-8ece09d17ec9","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":105,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"dfd27b3d-e1f7-4744-be5f-40dcf94a1dc6","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":105,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"8d07629c-40bb-4d14-a445-8a15588afb94","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":105,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"dcceeb38-e3e2-4edd-82c4-77e2b5a7d633","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":105,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"a7a7db4e-694a-43bc-91b3-d73713ac0f6b","block_type":"box","text":"bond could drop.","page_number":105,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"7f98f76a-3fc4-46cd-8c22-d5379d7984eb","block_type":"box","text":"Build America Bonds.","page_number":105,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"53f6d5a3-3a51-4de2-8cd8-758587ed055f","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":105,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"cdb59533-cc28-4efb-9c42-132de17101b0","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":105,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"0d395511-2924-4562-b9ce-32d3a0af020f","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":105,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"b73ae121-c235-437e-b113-f193ea6f603d","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":105,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"cb81224f-8ac0-4700-a7a1-64dbc3d2af76","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":105,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"b7b3f832-8c01-4a48-a16e-73253e49f798","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":105,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"7eb0cc4c-a8b8-4818-a01d-f9b01c5fd2dc","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":105,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"73b3f5ed-2ebe-4cef-8c00-4ccc9f603a26","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":105,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"b0d2b6c7-994e-4ccc-92f8-aa6e110ed021","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":105,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"5f3aff77-3ca6-4d6d-a200-42064ef0c7c5","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":105,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"baea0172-f222-4631-98d0-99ac6da6cbe7","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":105,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"8a601a90-10b0-436a-aab3-38df96c3a1bd","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":105,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"f8ed5bcf-be88-4058-9410-e47e77c6e9f4","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":105,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"b144cc05-51ef-48c4-a0a9-5a7db5f1d275","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":105,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"dd3ef867-7e83-47a4-b200-f7ee3ba06c72","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":105,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"778dc7f3-5332-4d09-90f4-f9ee3aeecd87","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":105,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"6487cef6-ab99-4197-bc34-4f355aed118d","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":105,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"53b16ecd-45e9-4b19-a504-94f4be787a1d","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":105,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"fd175959-d0ce-4623-b535-fd8660a4da40","block_type":"box","text":"II-62","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"85434eb3-0dcb-4afe-927e-95fd3953f338","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"159fb20f-b83e-403e-8a58-1c19f6db2e03","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":106,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"344b2ca8-0b49-4777-b463-7050dc7bbfb4","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":106,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"6743c103-5926-4c79-9234-925b0c0c4b4a","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":106,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"46269faa-1657-4e08-8934-6e5767c3c16f","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":106,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"1fb396ed-0149-4e4b-8a86-52569e1bda88","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":106,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"ee36ff62-806c-4cd3-bb48-6855c4752b87","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":106,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"c766d08d-087a-4517-aa5a-763ec3db4dda","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":106,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"39d65969-50e5-471d-bea0-75adecd0616f","block_type":"box","text":"their face value to the sponsor (","page_number":106,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"b5fb3115-ee3a-42c4-b5f5-30426273c27e","block_type":"box","text":"e.g.","page_number":106,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"e46e2179-d046-4dfe-b325-031c7a8b359e","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":106,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"a50e7caf-5e60-4016-988d-203a1bd077e0","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":106,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"4a0cb8c4-710b-41ea-9bdd-b4114ac732a1","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":106,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"413abdbd-9dad-4d40-aecc-bd3af653048f","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":106,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"2cfb5026-cde1-4f07-9d47-2b0f4f9fc17c","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":106,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"c159c17a-728f-4866-b527-1e7d1658db9c","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":106,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"0080359c-2256-4475-8520-5d3a655895e6","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":106,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"b3f365ce-84bd-40f1-81af-dd7dc03ae6f4","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":106,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"44a048a3-c1ea-4880-b2d9-c9755a906029","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":106,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"19d8cba8-8f88-4274-9a95-38bc2c6655bd","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":106,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"8ecea381-4686-4317-ab1d-8a3155a763fd","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":106,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"659ec9b3-8018-4e69-8ac9-f33c33c91212","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":106,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"d231e2b9-02fc-4bfd-9008-61fd2862b831","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":106,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"ccfb70f9-5d06-4977-bd0e-bcdcc5b8bc3c","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":106,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"d9aa33e6-79be-4300-ab79-18b86526f70e","block_type":"box","text":"such opinions.","page_number":106,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"9a8d90e9-afec-4499-a087-281873f5bc14","block_type":"box","text":"Operational and Technology Risks.","page_number":106,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"18381a81-5d13-4672-9fe0-462647d785d2","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":106,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"50d6d155-7297-4456-b0dd-604e45d8d021","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":106,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"3022600c-77c3-4af7-a746-003cc1050d1c","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":106,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"831cec16-5abc-4486-8ec8-6f3bdd045902","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":106,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"c0e03715-e940-48e4-a882-d29e8925c4fb","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"29b0c60b-2711-437e-92b2-fd5d956f47c6","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":106,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"5f5a81b6-cae2-4a4c-8610-61a1968f8b40","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":106,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"bece3928-6989-462a-9e1b-3dd8429b3de6","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":106,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"c7910fc2-ec4f-47c5-8771-cedec3d05f02","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":106,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"98e0a44c-680d-47f4-8f25-2b7732241933","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":106,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"ee84b122-f3a2-4f56-aa84-63b66bb32742","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":106,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"8b1e707e-aa19-4b00-bee3-62642a8bcb0d","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":106,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"8aebaca5-0f9f-4230-9fff-62bb3905e757","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":106,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"b078b928-2b5b-489f-9e44-2872d6e0f40b","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":106,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"71e5bc4f-09ce-4f5e-ba29-1f4ebecd0dc1","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":106,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"73a5f221-5024-4b76-8efd-cfc54e2c51ac","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":106,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"04518443-df74-45cc-aa6b-8c2dbc49832b","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":106,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"7e1333de-5b9c-4f32-baa9-425d94ae6831","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":106,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"14a7bc32-f5d7-4d67-a1c3-8a6237167216","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":106,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"7d43d065-ce64-4cdc-afcb-7f909bb5c73c","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":106,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"aa172401-9e4c-474f-9fb9-6d062cad6b2e","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":106,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"974c0191-59e6-4b6c-b00c-8caf07442462","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":106,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"e1d06dfa-8304-46fe-bc74-556ada6ab138","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":106,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"a04fa6f0-c35e-4f16-8c50-e3d3ef3f2cf6","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":106,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"39c01306-7608-45e7-b9e3-182eaa196e1d","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":106,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"22e5c125-f760-43f4-ad1e-db54f430d6bd","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":106,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"bba0a8aa-4998-4383-96b1-722b473c4baa","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":106,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"ae8fd989-a010-4ce7-af5a-dd99bb966069","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":106,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"e3b4d0eb-e177-49eb-b146-91ffc3b1343a","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":106,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"c438721c-8f86-40b3-9903-9b2b961f8670","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":106,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"504b848c-b767-450b-a98c-2aa25dd2c236","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":106,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"08049573-2e9a-4afc-a76c-b0adf96cb36c","block_type":"box","text":"infrastructure assets.","page_number":106,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"d52e3662-f46c-4015-89f4-3368e992bfef","block_type":"box","text":"II-63","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b7cb057-fc74-4df2-8451-fe0c0dd54df0","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0609f058-e4a5-4740-9e7c-e630b31b3592","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":107,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"f2ffa16e-bafa-4dc6-9596-7d4e2412e113","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":107,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"bd4a5ea2-542d-48ea-9ed6-a66f1387d34b","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":107,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"fa089b81-924a-4b47-9573-d599edd06e98","block_type":"box","text":"or services.","page_number":107,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"a265c2a4-437a-4052-a393-55a8baf7b30e","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":107,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"4f10ea1f-4408-47e4-a5db-8babf6e36f79","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":107,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"db92c1d2-cbda-44ac-90a3-dd2a075e13ee","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":107,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"d4faa264-d93b-4b4c-bbba-c6fd485296b5","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":107,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"2cfbc26f-4ca8-41fe-b449-a5f5eb7a5592","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":107,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"0e184603-61ca-4e7b-9800-e1877c227870","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":107,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"28cadce2-2aa7-4f5c-8e30-1897188f3e03","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":107,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"d5911064-beb6-4853-8740-eaa4e0b29cdc","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":107,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"542d5f58-1424-450d-aa77-977f4ee46643","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":107,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"1a0605cc-83f1-42c1-81d3-1f8d4e3afd5a","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":107,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"c9984722-bdc0-48d9-9633-0bd1bc5ccec8","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":107,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"3efd28de-0a82-4c9c-8739-406569ce0bb8","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":107,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"c582e9cb-e3e0-4f90-b049-3bb0e32352ae","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":107,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"129bb4c7-031c-4919-afe0-532e7c3d3518","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":107,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"a2d0585a-dc67-4327-9179-989458c9ea7b","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":107,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"91c3f119-561c-4de5-abf6-709d2c5147a5","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":107,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"14f6d2fe-8f68-44f3-8c6b-1d1e796965a8","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":107,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"d51f1e3b-fd43-4326-b48c-305586ef668f","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":107,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"81326c11-6e15-470f-b5fa-1aced4823899","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":107,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"3b89856b-d374-4a7a-9d5f-19044cd7e5d5","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":107,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"630f304f-151c-4364-84f8-3e38a250975f","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":107,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"f130b657-17bf-4a1e-a57e-096566e55b45","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":107,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"8695bb00-a011-45d3-bf4b-b2edd0a6e644","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":107,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"ae8924f2-5509-409a-94ef-86dbe62387d5","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":107,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"44888c5e-495f-4650-8fbb-d6a8a8b973f6","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":107,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"6fb788bf-284c-4161-9e16-c47190a30e19","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":107,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"daf79a6f-4af3-4e7f-ae8e-be4865fa7961","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":107,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"3d2a4d92-3cac-4f15-b06e-588d9a382ad4","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":107,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"7bb3d639-5702-402d-9882-8ff6058eaa5e","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":107,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"229ef21e-fa69-48f1-9f57-e348265d9d3e","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":107,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"83589fa9-e2ae-403c-81e4-de9f6a3cfda0","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":107,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"83337dac-1061-49aa-a956-587e7e7e84a8","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":107,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"a9741cec-9538-4530-91ea-8c62cb47b097","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":107,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"e65fac99-7755-46ad-9434-45ff84e238f7","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":107,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"cafd27c3-00f5-447b-bf48-0191d4ea6c11","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":107,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"a222b4db-55d2-448d-80ca-14f94ca859ed","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":107,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"9583b4a3-23f2-44a8-a6a4-eea4ce296543","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":107,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"e4e5193e-b32c-419d-9848-e23e66604744","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":107,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"30a9d841-8ec5-425d-b5a5-78c191283435","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":107,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"7b63204b-2ffd-4bb5-91a8-cac9d3f71c0e","block_type":"box","text":"resources to monitor and implement required changes.","page_number":107,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"244f1c41-ebd1-497e-b09c-96aafa6e0829","block_type":"box","text":"Participation Notes.","page_number":107,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"591bfe7e-9ba9-41fa-b224-6749374be45d","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":107,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"21b26e00-4f70-4417-b2b5-293a2d67147d","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":107,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"ab7ad4c7-bcfb-4424-ae5c-3058969be345","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":107,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"2151c22a-664d-49ae-ace9-7d8681b74b03","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":107,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"ccfd128a-0b3b-44f8-90fe-6b7e9c8760cd","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":107,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"7d50dfd2-d16a-4cff-8245-b26b17460355","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":107,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"93d7aa1e-ce32-4331-9b0b-cd9f8ee8d139","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":107,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"39d25ea5-3263-49ac-a1a3-a0a77915ea7a","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":107,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"ad465e5b-b009-455a-9665-0e40231d693b","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":107,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"e88a4121-f35a-4adb-b1dd-32a30340ec6f","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":107,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"3e16a01f-0067-4c4a-a346-ce829791c897","block_type":"box","text":"II-64","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3a28a7e5-ca0c-4f82-9c09-52a2530dc2a0","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f9d583b-3977-4fec-9fbf-0300ded32a8b","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":108,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"24b2549c-1f6f-4555-91d9-0e7a1103e058","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":108,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"07d2a8b6-678f-4ba8-a229-a751d5bf9e2a","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":108,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"d0a65d07-eb73-405d-b74a-d63668e3f554","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":108,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"9653994f-a0c2-4400-836b-e42f5fc5cf63","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":108,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"42d44253-3d04-4dd8-b35f-fc3f7e26bc4c","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":108,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"60513b72-d1b0-4c14-a0c6-d6ab93f27963","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":108,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"1cca0aee-1beb-4210-9fa0-e914d81b82d0","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":108,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"ee9ceb03-e36a-4650-88de-c2e0e1313d02","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":108,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"bd8655e9-605e-47e1-a4cd-02c0797407e8","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":108,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"64f6533a-9ba2-4a61-ba13-df668c30f190","block_type":"box","text":"Portfolio Turnover Rates.","page_number":108,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"33809543-489b-4e89-bd28-287fc36b4da9","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":108,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"01a28861-3c42-4607-8d67-393007437a11","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":108,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"0d32226b-1174-4754-ae7b-99625f603c7d","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":108,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"a0ce8aef-90ee-4ac5-bacc-3e0ed88c6e13","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":108,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"fe830081-2626-4140-ab62-3ee35ff7ed3f","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":108,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"e9bd8a0c-9f86-4ce9-b234-c960c85fdd00","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":108,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"2704270e-5cec-4768-a899-5288e200edb2","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":108,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"64f669a7-c4a6-49eb-b01f-5de13efa5ec4","block_type":"box","text":"i.e.","page_number":108,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"0f40472a-6c0b-4711-bc52-06cb839fe506","block_type":"box","text":", 100% or more) may result in","page_number":108,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"bf9d0274-ae7e-4959-ac57-b7e8fcf9d983","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":108,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"3cba5de3-3fcf-48f7-9441-5ebf325b660f","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":108,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"a8461d1d-08ed-4dc0-adbe-c475f52d3e5a","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":108,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"b893e8bd-7fa7-4ff4-8e11-ef696c4951be","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":108,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"032bef73-4adc-4703-891f-226e42e47054","block_type":"box","text":"Preferred Stock.","page_number":108,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"eab16be2-e567-475a-a058-9fc6c03d0322","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":108,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"78004cef-ae92-43c9-900f-fd58ede5bf27","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":108,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"ebed5c0b-a67e-457f-b719-688a5145a5d2","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":108,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"3e29fe9e-1361-4fbd-a5f9-da8934815d0d","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":108,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"d16a4acd-1c13-4962-b74c-87ec964e36b7","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":108,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"2508ed8f-99a9-4acb-8060-57f70ded48c7","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":108,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"e61d8b56-0135-4c0d-99da-2d994f9f26d8","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":108,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"008f2ae8-376d-45f5-9aae-da8d8b74beb5","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":108,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"65b62865-e342-4a54-9282-9ab5c68d0dd3","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":108,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"fbb73351-99aa-4b66-8bf4-d64f15487b45","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":108,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"05516d94-3a79-477a-b348-c2ecbe36f06d","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":108,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"c614921e-60de-4f2d-8b5c-38374de131e1","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":108,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"185c85f8-8bb9-416e-81c2-5e175738249f","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":108,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"c563d03e-e109-4dc1-8d9c-5bdac5cd5892","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":108,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"612d5632-06d6-40d9-8ece-ff1a51547c5e","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":108,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"b0cef88f-36f1-4620-b3e9-d01cc9d886fb","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":108,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"786b1f39-223a-4d6e-893a-235350946276","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":108,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"5d366272-4caa-476a-948a-aef131f00f3e","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":108,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"612e7e29-f104-4f54-bed8-0329acb1efa1","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":108,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"d86a6bef-6a1f-422a-8601-30d8137efb2b","block_type":"box","text":"Trust Preferred Securities.","page_number":108,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"aed7952e-07d3-408e-8c15-712e5ce13ea1","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":108,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"9dac4b86-a954-4f57-b486-101cb67eda77","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":108,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"2dadb4a4-36b1-4480-a177-dc418b27d90d","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":108,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"24cb7699-50d6-4b03-9f6a-2546bb1a75d7","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":108,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"723cab1e-fd35-4bd6-9daf-0b239a532bb2","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":108,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"9c396ce5-3f38-42a8-9d0e-70e53fc43701","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":108,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"2ae6c40d-bbaa-4daa-965d-8cd4d8661acd","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":108,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"7bca9818-d24e-489c-a532-b04b3c9c468f","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":108,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"32c7f4b0-12d0-457a-8eb2-3ef8733faf1c","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":108,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"24c56e76-9a52-4d17-b691-706ed85f709d","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":108,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"6981c3cd-20a6-4180-8d9b-537f2d37e54b","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":108,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"59670372-5422-4b23-b765-9aca16e24443","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":108,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"be997c8a-16da-4fc5-b5d4-a56c00ced222","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":108,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"b5906f4d-30ef-4a9c-b726-789395e89fe5","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":108,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"4138ce6d-0b58-45b4-becc-07f7fb30498a","block_type":"box","text":"®","page_number":108,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"139446e4-484b-466c-92c7-e9814bc1f3a1","block_type":"box","text":"”); monthly","page_number":108,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"481739b5-252b-46d8-a826-46a2390a007a","block_type":"box","text":"income preferred securities (“MIPS","page_number":108,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"5224dc1d-8573-4aec-b24f-42361e0618bf","block_type":"box","text":"®","page_number":108,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"350c70e4-e519-4f6f-8e55-0d71bc7877a1","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":108,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"f6b5f007-a634-41b0-9890-f252831947d7","block_type":"box","text":"®","page_number":108,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"a02e58a7-3f85-480f-93d5-62ee1af2be57","block_type":"box","text":"” ); quar terly income debt securities","page_number":108,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"1d8299ad-9ae7-41f8-aa16-7a2d7706be58","block_type":"box","text":"II-65","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"edb97aba-abb6-4e17-accf-d43d26a6b887","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41ec1268-7fe4-419b-b3cc-76db561e2dcf","block_type":"box","text":"(“QUIDS","page_number":109,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"ccff56fd-1f5c-4877-ab19-69ad92d90691","block_type":"box","text":"®","page_number":109,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"eeda275e-80d5-4019-806e-026763201369","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":109,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"b6bd56be-7e10-4ce5-b961-ae38ed5160b5","block_type":"box","text":"SM","page_number":109,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"96761699-be47-4373-a201-8e0f59f28308","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":109,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"0d7f6518-5378-43bb-babe-af24f81670ec","block_type":"box","text":"®","page_number":109,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"f821775a-3b58-4728-bfa4-08a8904d2ff2","block_type":"box","text":"”); public income","page_number":109,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"109ddabb-19df-4775-bfbf-5e7311399519","block_type":"box","text":"notes (“PINES","page_number":109,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"ca6aa4ee-be93-4c2c-9320-bbfe3b821ae2","block_type":"box","text":"®","page_number":109,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"7b36f614-602f-490d-b54c-e840d37f93cd","block_type":"box","text":"”); and other trust preferred securities.","page_number":109,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"1519c9da-21bf-45da-9eed-4322bb4730f0","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":109,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"cad8b0ee-4e04-435e-a465-87177c0be0c1","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":109,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"a8da963f-7d56-4af1-89fd-5647dda745a6","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":109,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"592f8893-3f59-4aea-af7d-7564b249533f","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":109,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"e90e6b2b-19c9-41a7-ad37-6b9ca0094909","block_type":"box","text":"regard to whether all payments have been paid.","page_number":109,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"ba50e69c-0d5f-48cc-b39b-56df52716aee","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":109,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"42c4b3f6-2611-4770-bf87-21edcad3d08b","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":109,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"a1de4086-83b5-43ea-851d-b517117061f3","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":109,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"5e65e3cc-4b78-4384-8cd0-99c39a0b75d0","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":109,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"db3e2aad-08b7-4cb7-bf90-102130351559","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":109,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"a2ecbbd8-5586-4008-a3a2-fa8861e20a16","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":109,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"16af106a-45da-4699-9e67-b5226f52798d","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":109,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"790e211c-f932-47b8-8d4c-cb0209ff6774","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":109,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"05eb9204-06f9-474f-893e-db8bf665208b","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":109,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"b590fef6-8b5b-4a0b-806e-17998e1f5e74","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":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"2f4aae11-5d28-483f-8181-a0120e91b00d","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":109,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"529bd023-8c92-4bc3-8a00-de0073c88ab1","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":109,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"e4951a67-a552-4cb0-88e1-220bbcc3bae6","block_type":"box","text":"debt securities.","page_number":109,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"9b0e696a-8f0c-4316-ac6e-5b5602347c6f","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":109,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"c8335937-b334-45be-b76f-b9b25c557617","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":109,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"3aca697b-4e37-444d-9f45-e81526f9be65","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":109,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"81b439e5-e3db-4439-aad8-3e6b3824c851","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":109,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"5bdf199a-a1ce-4581-86b1-710576fb3c28","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":109,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"ffe6e7f0-6673-43e3-b2d9-cee56ba0debb","block_type":"box","text":"i.e.","page_number":109,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"048f98e2-48f3-47b3-925b-79d3c8801acf","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":109,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"f32b3364-fef9-42c6-b8a6-91fb99e268cc","block_type":"box","text":"buildings.","page_number":109,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"ee0d80a4-bfe9-429e-a129-6c312377258b","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":109,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"f9d0ebd9-57a6-4171-bd63-8fc016fae0e5","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":109,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"0c8dff07-dbdf-485a-9229-29102973c304","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":109,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"9daa3b22-d045-4c0e-bca0-36b6fb4956f5","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":109,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"63128c08-e8ca-4cc2-8435-7ba1467a9d0c","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":109,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"f2f118f2-a6a4-4959-982a-71b005bfb8f9","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":109,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"5ce8ba23-5bb2-4007-94c2-ab11fcce69ce","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":109,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"ce6d531f-0580-4c9c-851b-e00719ba26c0","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":109,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"5a05dbe3-69a8-48e8-8803-21231876133f","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":109,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"3aac9055-53e3-4a05-ba17-69ea715bec2c","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":109,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"55c5a405-f5c5-45df-8234-b174b5c30f80","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":109,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"af8f841f-5b27-4e31-9ab1-87cd754e59fe","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":109,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"fda9c1b5-4573-41be-9e18-24b375c196e9","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":109,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"bbdc4a09-b147-419b-8533-5dde309b9120","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":109,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"f779f1b8-8862-41a8-aaf4-7d444bce8e9c","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":109,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"1064f69d-cf6e-4510-96b4-6b03a7590635","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":109,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"86e5a76f-2b4a-40f6-b8f2-da71a71345a6","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":109,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"636ec2ef-b5fb-4aba-a0e5-3d09da2c6188","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":109,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"9c2df713-9dca-4f79-b4d0-6e0c3376729c","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":109,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"e553275f-da6d-4285-9a13-7b586dbe44bd","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":109,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"01fc2a5c-78e5-430d-a28e-692a2e725baa","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":109,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"92d38a91-06d5-48ba-9278-e5912b45f2cb","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":109,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"daedcb9a-7af3-4449-bd9d-4c8df6856c5c","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":109,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"aee977ff-cad2-4ef3-88a3-291da491002e","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":109,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"02bcc194-4ce4-4328-bf0a-e8276e4e23f7","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":109,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"fbecd26b-dfb7-4aa8-aa6f-b316f8a8a183","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":109,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"5e70d9c2-76b8-4356-9674-03f6a41e74eb","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":109,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"ebf49765-f64a-4074-bec1-8575210262a0","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":109,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"fd94a7bd-959f-4dd8-b731-ef446b0e46a7","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":109,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"9606cf5a-a9c9-4807-af8d-eb62d0d9cb68","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":109,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"f21f075e-233e-402e-8200-ccb3f390fd40","block_type":"box","text":"II-66","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d7586c1-8c94-4c16-bb42-da5bf6e50a8f","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2742d4cf-bbe7-4761-9ee4-2af5c3efe724","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":110,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"89f608ef-19ec-4464-973a-69db6f51cd28","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":110,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"3dfcfbb9-2fc3-4561-a1f5-5ff54c5ffbd4","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":110,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"3d39303a-b740-4a96-99b4-4f5e7985e6c1","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":110,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"ecc9856f-4a47-498b-952b-68e1226933ee","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":110,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"29a06a1a-2794-438a-a00c-35e9700d4641","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":110,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"bb6c264e-168b-4433-9df6-45b14cf91ef5","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":110,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"f75eb0f4-3ad3-41b4-9cc4-a47933cb5865","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":110,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"6eefed93-ec20-4d0a-9677-499533abc4ea","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":110,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"d0288bf9-d914-4336-8794-f41bf9e2f4bf","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":110,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"9466ce11-dfd2-4b72-a88b-64943a83c5d7","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":110,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"2ef7b049-c0e9-4631-be3a-3867c934dcf8","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":110,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"70a3c3d4-678e-445d-9f63-e86ce33293fa","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":110,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"025a33f9-1121-4e71-bcd7-59555af47264","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":110,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"ea8a80d4-022e-4585-bb4b-f39e64b544d2","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":110,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"869de6cb-0442-48d6-bdd4-1dabf435ebc7","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":110,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"254e051d-5f23-4273-b56b-ba9a50b9c440","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":110,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"5280de29-74c1-48fa-b8f4-5f5cd07e9b9a","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":110,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"26c362d8-30f8-4c3e-ae8c-57c71a97531b","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":110,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"6c379b2a-d725-46d6-b710-0f6f1b9b3314","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":110,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"2b0bc429-8061-4e0d-8d35-5476aca973b0","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":110,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"eb74e4ac-680b-4ab4-bb60-112df715076e","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":110,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"241a95ef-9348-4fd5-92e0-042a21cd1f7a","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":110,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"e6557516-d930-4df6-aa0f-5e0f3e852655","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":110,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"0eb5f6e1-90e4-4759-94a8-d3d593a8ced0","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":110,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"941769eb-003d-49b1-878f-276e78def77a","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":110,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"0056bfa5-1729-4455-8948-0f05d82fa007","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":110,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"53128e27-28f9-4619-bc66-6750f0492c98","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":110,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"a89e24c3-5cd9-48f2-9fd9-f3806ac3af43","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":110,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"0bfdce56-6e77-421d-847b-4d1076667879","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":110,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"f5b19a26-2880-4b63-9582-95922faf7a4d","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":110,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"32461103-ba67-4424-a913-172d4ebf808b","block_type":"box","text":"conditions.","page_number":110,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"bc80063f-6f6b-4588-8d7c-b4bf7d6b9b0a","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":110,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"74350653-95f5-44d0-a4de-65ce93e79fbb","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":110,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"309043d0-4b10-4b9e-bae6-7cc13700eca7","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":110,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"7e26f2f2-94c0-4aa2-99d1-faed8b6bb032","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":110,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"c7c1c23d-bc1a-4aee-8980-59df50e878ce","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":110,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"350fccf1-ce63-4ae7-bb65-b8bd2b5d9746","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":110,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"2276e9e3-40a3-4379-b97e-e002e461858a","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":110,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"68201529-1a52-4993-b28b-1d6b4c520d64","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":110,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"e53fcebc-2dfa-469a-9bcf-2aaa1a3045d9","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":110,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"06da7762-cfc5-452e-b400-0a3b58ea43e3","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":110,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"34efd464-6290-47b3-84c8-2aa8d3c807f6","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":110,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"6efb8c62-0361-4ea4-bc9c-c86d7e274ca3","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":110,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"e506d4aa-0077-4f81-acc1-2760d58499f6","block_type":"box","text":"affected by such events.","page_number":110,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"e06bd97c-2f5c-477f-97e0-8f9d4b381f18","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":110,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"b4141080-fe6d-4a56-bd19-a0fd9baafcbd","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":110,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"b196622f-e2e0-4f91-bdf6-7b1517bdf4d1","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":110,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"bbb72b31-79b9-4065-b9d3-c1be66194f4e","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":110,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"6eccc5a2-38b5-4357-9b0d-1b67d67e83f6","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":110,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"72f52fb2-7ebf-4bc7-8d50-d32daf248a12","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":110,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"8d1d89de-ff90-45f4-842d-542d9321ec71","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":110,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"3b02673b-77ee-4049-b5ad-84f518c765f5","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":110,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"c72f970b-21a1-4909-b29e-aca2517b3c79","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":110,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"893dd9d7-73fa-41d9-a9b2-fccf191f6a37","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":110,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"a80dfc65-7edb-4aa1-b928-5a7c54ed1197","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":110,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"19b8f9fc-07d5-4597-a8bc-6aed158e0f93","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":110,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"b8d2d101-6a6e-468b-8dcd-7072f93eb02e","block_type":"box","text":"II-67","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57a00948-4793-4088-9d51-39e5af369678","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad6c4611-5bac-4bba-ac27-46d351d54ea4","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":111,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"336d9b9e-16c5-4baa-9899-0a59f66828c5","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":111,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"129f4781-b24c-45b5-8232-109ca17f6438","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":111,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"6d622dcd-d7c4-422d-b1be-8e0cd2e49fb3","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":111,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"d1395345-3932-4d43-b180-b1ccc7380ff6","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":111,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"ba962305-cab8-4123-93ec-bafd403fa297","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":111,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"a29a30f3-97e8-4e63-8905-171f885612f2","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":111,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"ddfffe1a-5f50-433c-8489-8465c6f399c9","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":111,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"fc7cda6b-5e0e-42db-8005-3a5199261a79","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":111,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"6af44706-d5ff-44f4-b7be-b912943353bc","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":111,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"9f37c841-d9f0-408e-8c3d-6fafd15c0d99","block_type":"box","text":"investments.","page_number":111,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"f112b845-d110-4a1a-98c4-c92550473a96","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":111,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"37c0938d-c94e-45f3-ba5c-896ca0d46ad4","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":111,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"f2566fc2-d5f2-4322-b20a-605ed7c01d47","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":111,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"f8c6f415-c466-4be8-8d39-fd5d73dc1bbf","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":111,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"127d396b-227f-45ee-b094-c771b93fca91","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":111,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"f1e0b1c7-f652-42db-9e25-4a1f1b5f48fd","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":111,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"5e8c1dad-128d-4a20-ae01-db8191b4686c","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":111,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"9326518b-5adb-48f9-9700-8a82bc9f0cc5","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":111,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"5cb5ce3e-8c31-4139-b059-3e2d64cc183b","block_type":"box","text":"Legal and Regulatory Risks.","page_number":111,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"091348ea-2a22-430c-a04b-ce931abd225d","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":111,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"6c7bc575-c6d4-41ba-bac3-d06e03d50774","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":111,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"ee5f5029-5a7b-41d6-9cd5-8b57f3233c63","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":111,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"a1f4c500-e4f0-40ca-a015-9cffe522a40a","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":111,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"faa22f95-0e01-47b5-b3e0-0f0e56b9915c","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":111,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"2a804d3c-2cad-413b-96ae-8c57ade67b6d","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":111,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"4f2242d9-9517-4e54-a720-fcfe217f373e","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":111,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"3cdbc9be-bdff-4ef5-b30e-c0acec313f52","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":111,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"4f53692b-82bd-46fb-af9c-7000c83016c7","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":111,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"ea08ac93-741f-4740-a4ac-e109bb95d0b0","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":111,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"0857f550-81a0-410d-aabf-7a3ec1248b93","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":111,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"04329d25-37fa-4f62-a0f9-e2db581e1615","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":111,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"f4913fd7-decb-44ee-bc64-b25a4ec415a2","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":111,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"f3c2070e-2cb7-4d5b-9e57-a7899fb2842c","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":111,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"6f1f4030-c28c-4fe0-ae42-cc9d26069756","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":111,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"19ea6964-099e-41aa-8f92-8fb1a476b4db","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":111,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"897827db-c98e-48a0-a811-1ab1a01951d7","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":111,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"bc573110-7281-4623-bc04-063039eaf6c1","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":111,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"71341677-153d-47bf-99d1-5b3d289729de","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":111,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"7991a217-487c-495e-9ac2-98714c11d546","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":111,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"17eb6aaa-46d9-438f-a7ef-219c3c72159b","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":111,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"23d91201-efd8-45e5-9361-db7c13028115","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":111,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"4e1b10d7-765c-41f3-9068-3c9286a898f6","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":111,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"946f6124-9069-4522-aaac-0694f9b7568e","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":111,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"7c107e8e-b43c-4d03-99a8-6ed35371ce85","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":111,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"e11a8e6e-c6c1-481b-8be9-79fbbfa42107","block_type":"box","text":"Geographic Risks","page_number":111,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"3ba7b746-0402-4a5a-9644-cb743b74ecde","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":111,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"b2f20d51-2bd7-40cc-a520-da6d903ef267","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":111,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"4f428b59-5199-45c0-8153-ab9758b16724","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":111,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"f5938b46-9bf4-4062-9fb5-fdd5b6390756","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":111,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"2d05ac62-d0f0-4005-8b36-eff362bb55dd","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":111,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"df8f297f-efea-4195-a9a2-8bbccf714191","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":111,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"6443eb19-9384-4b89-9175-2b4f4d315fae","block_type":"box","text":"Fund.","page_number":111,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"177636ea-19ad-4904-b7a2-ed9bb36dcb94","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":111,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"f7aeb365-243e-49cb-847c-417684f4972c","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":111,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"e89c07e0-e098-4424-8ff2-fd008af9dd86","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":111,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"104b80be-553d-4bfc-a294-cddf4fc58def","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":111,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"04be7d5f-5d04-427e-afe5-73c00be28867","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":111,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"3ca470af-0a6b-4480-9647-934db390a669","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":111,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"d09a898e-5325-44d4-8c5f-010c260330b8","block_type":"box","text":"II-68","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"73ff9395-bedc-4ea0-882c-c2d3d08f89c4","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2960490d-617d-4fbd-aef5-b684cba8c6a1","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":112,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"24f681b0-3d45-498f-8cb7-d97d31cdef7d","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":112,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"9e86b97d-b553-43cc-9f75-d052e4c8f14c","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":112,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"b2cc572b-9fe2-4b9a-8e11-9790980fc0b4","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":112,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"a5289073-5686-49e4-962f-cc3b5a93e095","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":112,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"4b410fb6-19e0-4584-a374-e3f1b8d98aaa","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":112,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"69e80482-be2a-4a1f-aa21-c8653c6fab93","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":112,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"95a96058-87f6-463c-9b20-4071440046c0","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":112,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"b472c2f2-d1e0-4b83-ad95-c0e560f34352","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":112,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"81386e03-73d4-4eb8-8a2e-fe0ef9597d12","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":112,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"71c6aa57-23a0-4281-b0ac-c3c18b7eea98","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":112,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"26cfa276-3b51-424b-a8f7-ef195df70719","block_type":"box","text":"e.g.","page_number":112,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"7450b837-d1ec-4673-b0c4-dc7df1ef2539","block_type":"box","text":", SOFR for","page_number":112,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"23cc30b5-fc42-4ba8-a110-a5ca89376668","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":112,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"35658d35-95bf-4526-b6c9-8ce671c8b8ff","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":112,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"2c50a6bb-2b3c-4ab5-9f00-a4c145b07820","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":112,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"36b68ae4-735a-4988-9440-600bef7c6679","block_type":"box","text":"determined.","page_number":112,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"dc358271-a46e-4430-8e4c-e85af8d90e2a","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":112,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"ea72babb-3d8b-43fd-be68-44d8a0358089","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":112,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"98515b1d-1d19-495b-bda0-5262d2d12c48","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":112,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"fe2836c7-67a3-47bd-9a7d-ab2ead716ab3","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":112,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"72c3431d-09df-4583-934d-399a3abd954d","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":112,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"94547cf1-2bdf-4cc3-b988-d8c5dc831fa2","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":112,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"856254b4-c29c-4486-903c-454fa4c21705","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":112,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"6729b8d1-90d4-42e8-902f-2d643996b0c7","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":112,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"179d1443-05b4-4462-b856-9ff420d3bb62","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":112,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"f06f63c2-0755-4f4b-8e99-7fe64b576361","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":112,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"370fac20-ee76-4e56-a199-d6e65ccea76a","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":112,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"36de8725-a911-4d2a-a437-e22c04f0fa99","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":112,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"ee674f64-ee3c-4399-86e0-4e16a5ee64d8","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":112,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"ee48d8e0-9f8c-4f74-9de9-f0163b4a0182","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":112,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"69349bd8-8107-4a25-aa2f-a3111fe07211","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":112,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"3db838f4-010f-411c-93e1-93ff5b716631","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":112,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"6be71474-5d4a-4a74-8fc9-e92392ac6642","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":112,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"951c1236-f4d4-4304-80af-78634aba7e74","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":112,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"5d747fcc-cdc1-4a1e-b126-5e4e1dffcd67","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":112,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"0f1175b2-6fc5-40f0-bece-72f77ba0cc44","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":112,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"47c806d3-4607-4d65-9c0e-01734c224143","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":112,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"3e2fe9d5-1a71-446b-8ec0-9c1a39ef6e29","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":112,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"eddf2278-fea4-4fd4-9c62-d3b3e3b06d45","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":112,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"fc3b9eee-910d-4efd-955d-f545e6062b14","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":112,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"dc08c02f-73b3-434c-a262-d728dd2eddb8","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":112,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"eb340f8e-069c-4446-bc42-6051f2eda9f7","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":112,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"ae6fe58f-60ba-4980-a3d2-5bbc0bf0c9dc","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":112,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"54b0fa32-7fe0-4e80-9965-44126427e726","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":112,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"a1dbcd4b-658c-4c50-a189-e4205eb0d7b8","block_type":"box","text":"consequences which cannot be predicted.","page_number":112,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"cbb74474-2f8b-4f0b-8fbe-abb2d09bf44b","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":112,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"0cf27e7b-c0fd-42b1-9e7d-d531643694cd","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":112,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"99108018-65ed-4e80-af6b-4d3f6c3be5e5","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":112,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"c44fa7f3-88bf-4e02-af83-6191a3b34d72","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":112,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"eec7b4a6-1402-4150-af0e-f62069a740ac","block_type":"box","text":"term of the agreement.","page_number":112,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"275d8af0-00a4-4e6c-bab5-c640e9cbbb94","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":112,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"c5b4190a-0e2b-485c-a5a7-66f37eaf3b21","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":112,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"17103297-952f-4bfc-a57e-cf5bd338380c","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":112,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"b8792251-ef9f-417a-8355-f533b8f9a7f1","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":112,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"6264844f-756a-4c67-83ca-2d8545f3eebb","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":112,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"8b7f2c33-3eba-4b5d-b5fa-f6320cfd5c8f","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":112,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"bb42fbee-5939-4b9b-9964-4dab01902bd0","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":112,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"ff45620f-1452-432c-b7ab-804ca10c580e","block_type":"box","text":"II-69","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1268c8d8-4692-40fe-8227-4f30d9d58f85","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90f5dc04-4d5a-4ae3-9760-cf8a12481629","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":113,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"adffd7c0-a090-4ea8-acd8-3a3af80d936e","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":113,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"ceb765f7-f02c-4c51-81ac-d38072a95b89","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":113,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"bb3b72ec-1276-4abc-9a89-064382ba1c85","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":113,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"56dfe7cf-76c1-4041-9798-10f7d093c2ba","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":113,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"3142011e-df71-4d04-aa1b-eeb80ac768c3","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":113,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"dd103841-6d65-455a-9859-a6f1a2fcf210","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":113,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"02ffd2c2-0fac-4056-90f1-32fb49ca33d9","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":113,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"679227c9-7e94-4cb8-87ad-8c8b46dfd254","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":113,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"f62bf3fb-bd2b-4397-ad76-6bd6633a4552","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":113,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"f7d0fe8e-bf25-4ea4-a015-df6ac8d4d626","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":113,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"22616bca-63e6-406b-a441-ce9fd26ac8ce","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":113,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"1066f32c-5182-4a22-b437-538539329b8f","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":113,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"9a734637-d606-40ba-8f04-438debc8c2be","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":113,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"4e344015-c746-4e5a-b046-7b86d3664181","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":113,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"a4979361-534f-4d1a-8345-dd8a0c04e2dc","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":113,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"97b93a4b-ae9c-49a0-8303-203cc6b6bb5b","block_type":"box","text":"or by another authorized securities depository.","page_number":113,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"dd5029cb-09be-47e5-880d-696e3ec8d252","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":113,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"e8cf6c04-fd68-4deb-8f4a-8a8c32ec0ec2","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":113,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"b24a62ca-a9d2-47db-8ed6-5536736ad725","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":113,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"4977ddeb-7b53-4967-ac39-aef1d29104e4","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":113,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"f12fc8ec-cf4d-4d22-b87a-02b7418f33a9","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":113,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"32d0a2b9-c5e7-444d-8727-250efa32c2ad","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":113,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"9e66ec1f-ba88-4c20-b73f-4d5c3ffd1ed1","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":113,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"7a9cbce6-a338-4efd-ab6a-680bac599104","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":113,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"47accd0f-954c-4971-accf-2c695afa8e1d","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":113,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"d842bbf7-c5ff-4696-abc8-7a54de6534cc","block_type":"box","text":"the repurchase price.","page_number":113,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"3596f574-2b97-4e5e-af1d-e2fc7d9a5132","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":113,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"4c99bdcd-b398-4c02-8668-8556f0981af7","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":113,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"74a5b6ae-20e8-4258-9472-6a56ea5f0c00","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":113,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"bcab3d68-7ec4-49ff-9c06-28df4766d8e9","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":113,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"011511da-5b09-4b6b-ad72-933b42c759e5","block_type":"box","text":"strategies without the repurchase obligation.","page_number":113,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"d43ef0dc-670c-47f2-bb3e-fe2e3227a291","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":113,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"c16e8324-841e-4da9-a6c2-bb0f34c2598d","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":113,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"5a4ab936-011c-494b-a413-5392086025c2","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":113,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"c7bc0559-761d-4d86-9ce3-a4fb6e21c0e1","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":113,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"9f9ff43b-6735-456d-aa02-c9e5009c683a","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":113,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"ba779855-9da7-422d-bc54-311bac666e94","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":113,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"781be754-ae97-42ff-8503-8a0606050cdb","block_type":"box","text":"i.e.","page_number":113,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"33d4b07a-97dc-428e-889e-c4186d7551cd","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":113,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"678c7548-57be-49ac-85cc-2ce100c5be54","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":113,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"215ecca0-5776-4235-8293-5a64a11ad7e2","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":113,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"d4e6ffc9-6aec-443a-ac26-939fde259bb5","block_type":"box","text":"and income involved in the transaction.","page_number":113,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"c20e466e-296e-402e-b758-66ff2949124a","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":113,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"8ce0c92b-c660-4a69-9b60-549364f74b4a","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":113,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"2063cba0-2008-4e84-9246-cc1248766b36","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":113,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"d0e26fdb-81bd-47e1-a6b4-56156182e58b","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":113,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"47ef4966-44a7-4c1d-918e-2619337551c7","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":113,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"872154dc-2781-418b-ac27-6346d76a7e13","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":113,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"588f97b7-2979-47cf-9da9-82dafa7e4043","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":113,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"eee7ca38-8b50-49ed-ad11-ee490306dd28","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":113,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"3725f802-f4f1-42eb-b8a0-67896fa1da5b","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":113,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"5d00ff60-4ad3-4060-89cb-886b66165c6c","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":113,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"3417d373-68b2-47b9-a12a-7d1c8e1c350a","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":113,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"6cf02928-8139-4440-b41a-aa2639fa1e7d","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":113,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"6781a979-447d-4763-9976-be359fb6f4c9","block_type":"box","text":"Restricted Securities.","page_number":113,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"4aec6da8-7107-42a5-a652-0816cdce07d2","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":113,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"e4724f2a-e0ba-45ec-afa6-73bd1bfb6636","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":113,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"ab12e187-fba5-4134-bc32-7b4fad855ce9","block_type":"box","text":"II-70","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9df51ce1-a4b9-45e0-ae06-eff31385e8f3","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0da418a9-f652-46da-b86c-a3068f3bab11","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":114,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"1bcdbc84-83fa-457c-b06f-b94d2a6b5cc4","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":114,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"7ca05877-3bb5-4629-9328-7546a97ab8ff","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":114,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"1d9dde07-7fa6-41ff-a35e-68b8f5e230b5","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":114,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"e04716b7-8499-4873-ad84-96ed3b5f4674","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":114,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"cd31ba0e-0fa1-419a-8e66-0b3d398fb1fc","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":114,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"85603d9d-0b06-4f43-8c3d-58096fac37ff","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":114,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"69f9fb8d-030e-4346-a629-04a098dd37bc","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":114,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"9b9f5476-9042-4b57-894b-c7df07b687cd","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":114,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"a610d8e4-4a5c-4d91-b262-271b43fa5abc","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":114,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"8662acb4-984e-4862-aa6d-404cf3c3a994","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":114,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"aceed8aa-1882-4f43-a07e-f9eec3a2064c","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":114,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"07cf0bc5-64b3-4c90-88a0-df36d6b827f9","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":114,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"42b1471a-f266-47d8-9439-d83a6aa7288f","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":114,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"73729ad6-f374-48a2-b5ea-93e38db4189a","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":114,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"7748b22e-01bb-4c9e-926e-d21d05d6e32f","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":114,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"91d62eea-097c-4733-b08c-32ad613efd87","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":114,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"b5553577-e568-46d6-97d8-569e446fdbd3","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":114,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"06f7025e-a972-4a7c-97ae-9ab93e8f404b","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":114,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"6aeef6e6-caeb-4afc-a9df-0e0dadacfc78","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":114,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"c16ab255-6f82-4423-a02c-78aa430d61e6","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":114,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"ffdde486-7f31-48a2-9e31-583837468abb","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"c7b681c4-29d4-43df-b299-26af48d43d9a","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":114,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"2ea3e02f-096f-4dbb-b24b-406debbe1a3d","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":114,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"1b18725d-f98a-464a-b92a-28a17c24285c","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":114,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"d7fd8cc9-7e5e-4617-8c2b-83a7d5584186","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":114,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"187a6926-1511-4fcb-afd9-e8d4ef2866ae","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":114,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"8987220a-90b3-4687-a56d-0aca943ea722","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":114,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"8c2e353c-e299-4315-bc73-b73fb6a52cbc","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":114,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"9d06d24e-fe9c-4ad2-bfee-b2ff0a2f143b","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":114,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"ba7d5de8-6f6f-4096-903f-8b862930f93b","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":114,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"6723704b-8a27-4497-acb3-aeacd65e3936","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":114,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"39f37c75-9c65-4909-9594-1bf07ed36df8","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":114,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"4780d179-eae3-4b74-8fd0-55ad33a05fb4","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":114,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"535ce037-3850-4b9c-9741-b631c0b641f6","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":114,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"811bc84c-cf6f-4aaf-83fe-2f03909e9b0c","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":114,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"6ffd140f-b148-4b33-bb23-4485d827c230","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":114,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"6f6aed11-3e3b-4e1e-9de1-a009fb845029","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":114,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"50e3d1a8-72b7-4ba4-8152-c8f149367b8c","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":114,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"32800264-f9ea-4056-bae0-d67dadf32bdb","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":114,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"d96939f5-6326-4464-9b6e-7c893bb46185","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":114,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"3e472e9d-c3e2-4eb7-8b15-7f67fd83dda1","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":114,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"94571ffa-68df-4ed2-9b29-e1ac9486c6c5","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":114,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"0e802944-1acb-4c89-b983-e49173880e22","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":114,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"a5494f31-1d2e-4e4a-bcfd-1d88eacb865e","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":114,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"0f95a45d-99df-43ab-91c0-b4bd21d67ae4","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":114,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"6ac6f10e-7c41-4ff4-b466-64e72fc05798","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":114,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"07080950-7707-41dc-9525-93b7ef61fea6","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":114,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"6743683b-757e-4cbf-b7df-d99891087926","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":114,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"5496324a-3f89-424c-a0f6-37a6a510abde","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":114,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"cbea9f2e-4327-4356-bf2e-c89b3c0879a7","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":114,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"3a634e05-baaa-4b8f-8d76-c76732f12d5b","block_type":"box","text":"especially as that Fund grows in size.","page_number":114,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"b65fbda9-aff5-4b4b-8ed0-519a0890b7fa","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":114,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"7ad82f03-7c88-4368-84eb-4b2399c2502b","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":114,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"b893776b-5b0a-439b-b94f-846a21e1fcfc","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":114,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"10bcb606-da33-4495-af34-374c7756691d","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":114,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"279e9fb2-7752-452f-be6f-9839b8d5715d","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":114,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"272c1ee6-54bd-4b35-937e-ebaa6e55d13d","block_type":"box","text":"II-71","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"47268970-5067-49f4-b03e-6825b11d6f16","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15e0f576-e1e4-454f-82b7-b616ee982386","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":115,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"4032b95b-0c25-4817-aa7c-b9f9a1c26676","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":115,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"e83fcf1e-6cce-488c-ab27-7add57199b6a","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":115,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"ca23360a-c642-46ed-8571-7648786fc4a8","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":115,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"75f4151e-afad-4980-95ce-f30930d5c182","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":115,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"51b27b3e-596c-4f54-a365-3c150798c657","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":115,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"55dfe58e-48cb-42b0-b132-56cbb6381d2f","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":115,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"4908b4e9-a2cf-41d7-bd36-729573609be6","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":115,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"30d87e5b-3b11-4c23-aab1-f590e7071f86","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":115,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"3aca65ab-b09c-4327-9b2e-fcf428c1ed6f","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":115,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"72cfab10-9eee-492c-b435-b7c8a47d25fc","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":115,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"b83cf52f-e802-4a09-82a6-93e2426ce483","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":115,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"74e0481a-c75a-417b-8a4f-d7c35a59ef35","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":115,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"3fc8f97e-d5aa-46f3-9cf2-bd8fb2cbf555","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":115,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"e60f1c7a-a34d-4df6-88a9-5a80977a17fa","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":115,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"e59aa21e-d2e0-4e84-aa5d-7890ae3867c1","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":115,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"4122ebae-d2b9-47fd-b09f-532d3db8e614","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":115,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"b5337cfb-738a-4cb1-b44f-9ceb98ec10c8","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":115,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"c1596081-f3dc-4741-8e91-4b5d9c64d65d","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":115,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"bda1f596-4e46-4789-ad51-9838c1ac4277","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":115,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"cadc76d0-8462-4192-9eda-fab54ca75b30","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":115,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"bcabf673-1643-4ee3-aaf9-0e3f303edf3f","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":115,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"2c23bab3-29a9-4ad3-b691-e26ab3bf5ba9","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":115,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"7ce28c14-ab7b-4a2f-8caa-57956d9877c1","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":115,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"32c4ea12-f675-473a-bbf1-c8ac0a8a476a","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":115,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"79a8ecae-96e2-4f6f-b4ac-9913029d7ce7","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":115,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"3c46a08c-2f6a-45f4-a226-56f2fb10718d","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":115,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"5aefddf7-ff27-4bdf-a237-765fca4e9e6f","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":115,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"f30a81cc-703a-4b70-9008-dd0e07e0922e","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":115,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"d937a6af-1705-4858-a7a7-53c57fb49f5b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":115,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"8043b0ab-0f5f-4de9-9a17-97ef26db9f61","block_type":"box","text":"similar financing transactions (","page_number":115,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"f269f064-463e-45fe-af78-e6ca69c81c68","block_type":"box","text":"e.g.","page_number":115,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"e9d31ce8-9987-4186-886a-7a9014725e52","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":115,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"3b3dbd6b-777d-4168-8c72-53248211bab9","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":115,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"36713e78-0694-4f35-af69-8f4becf456d7","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":115,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"756a3bf0-b0c9-460a-8f5b-0d19ef74354d","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":115,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"760c9573-c2e6-41db-881a-ca74459d63b8","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":115,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"45ecddaa-71a6-4238-8acb-82e038d39d9d","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":115,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"8a530dc1-27a0-44e8-8a52-73a4f37553b1","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":115,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"420682fa-2dfb-485e-a68c-ef2d8f97ca56","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":115,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"98530ced-dbdc-4b45-84f4-17fff6766b78","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":115,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"48d77c47-1727-48f5-9fef-d4c47e55f8a8","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":115,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"90369e06-ada5-4ea2-b651-b24c8c5296b0","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":115,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"3c14bb11-4fd4-4ab8-bc12-915b04c6dc9f","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":115,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"25a797dd-a8c3-40a1-8fb8-80dbf360033e","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":115,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"81d05746-a469-4e84-8038-79c5e30029c0","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":115,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"eebf6b4a-54dc-4cfd-a5c4-f2c610c54549","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":115,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"735edbf3-c279-4507-86fd-f7a9b04b77ef","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":115,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"510c31ba-c8eb-4669-8177-82a9ff01abad","block_type":"box","text":"amounts to be received under such agreements.","page_number":115,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"3f24b881-d1a1-451b-970d-78130a054bf8","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":115,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"a220a156-e269-4eae-a0de-497278a0d883","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":115,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"ec882f70-3b7c-4845-8002-0320e7bea31f","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":115,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"df287325-5bb2-468e-a88e-c3472f714f30","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":115,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"e0d5a2cb-78f8-4ab8-9322-b60cb58e59da","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":115,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"bcf1f911-8c33-4940-8ff1-3d6f557451b5","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":115,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"bb66ea6b-1cfd-49b6-9522-91416c60a9f5","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":115,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"53d0dac2-91ff-4c07-9685-89fe780be67e","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":115,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"31ca0116-4e0f-46c0-babf-09775451925e","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":115,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"e8905652-064c-4306-b8fb-18d3fac8e871","block_type":"box","text":"II-72","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f80b45d1-a91d-42be-a6bc-a51804fb16b4","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b93c4c38-a0f8-4c41-af3c-3df13f9dd36d","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":116,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"372a80a8-7cb1-475d-b5c5-4bc1d5e1cd1e","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":116,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"2ccbd778-0f28-401a-841a-cfbcdff9dbd0","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":116,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"4f1ea9ce-3641-467e-98cc-ed9fac5694c3","block_type":"box","text":"Rule 144A Securities.","page_number":116,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"721a218e-e632-42a1-9f6b-57475f2d61b8","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":116,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"57f73f20-7442-4e95-828c-268596978306","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":116,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"6a8bfc4f-7b64-468e-9e97-8c81c5fc36b5","block_type":"box","text":"Securities Lending.","page_number":116,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"245b0c71-86df-42c0-8d56-1552f3c072b7","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":116,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"7328be08-10fc-4a1e-98b5-f7007de3e475","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":116,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"f67fe105-7179-43fb-a015-e350eb10a80c","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":116,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"6066d188-03da-4fcf-81a6-2784166cc97f","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":116,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"23d916a7-41b1-4796-9765-0a33b4feb095","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":116,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"64aa5f08-b25a-43b0-b31c-d1f2f03be911","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":116,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"a9eb4a37-7df1-445c-985d-d7f6f108e6ab","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":116,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"f1609026-6af6-4c9d-8a85-0350ff6fe603","block_type":"box","text":"the securities were not on loan.","page_number":116,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"cab1635a-c3ba-4502-9c73-856a5280ad93","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":116,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"b4df7dbf-6ad1-4bd7-865e-782681c24873","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":116,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"32d803e8-8a5f-4760-a658-f7fbba3ea859","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":116,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"fecebc40-7f23-4c24-9cfc-0c3455dd3d89","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":116,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"bfccc80e-1773-4cdb-bedd-1e3e2fc6cd2f","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":116,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"eab4edef-8434-484f-b816-fb2b54f11da2","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":116,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"01d01e39-9517-407b-b857-47d7186de562","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":116,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"9df3e8ed-d184-46fa-be14-8b4e8d3266f2","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":116,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"8c768c7f-427f-4255-964a-dc1f6afbe1f8","block_type":"box","text":"i.e.","page_number":116,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"82608a0d-c889-4e4a-9a56-e2b36d5bf830","block_type":"box","text":", the risk of losses resulting","page_number":116,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"36027040-6483-40bb-bc36-22a05cd09a27","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":116,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"04e98299-8fe7-44e7-bd6c-5fabe02aebff","block_type":"box","text":"i.e.","page_number":116,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"f74a5be5-4db3-43a2-a9d2-735d6707ea42","block_type":"box","text":", the risk of a mismatch between the return","page_number":116,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"463d21c2-0ac5-428f-bf14-d153e7bc8333","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":116,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"89403417-5617-4ec3-97fe-a0958a3e318b","block_type":"box","text":"i.e.","page_number":116,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"030ad7b1-02fe-4651-bbf2-b559c92fb123","block_type":"box","text":",","page_number":116,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"8a0c0f13-8d4d-40b3-a903-b88b6c082c0a","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":116,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"b809bf68-ea2b-4f1a-91f5-86f8accdaf8c","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":116,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"101230d3-ea81-47be-bbdf-6e943302130f","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":116,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"81b8f29a-d191-4c44-bf66-ef3971015e56","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":116,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"0cc04741-630c-4848-901d-147c9cad391e","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":116,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"cff89109-8c5f-4221-970f-0c77744988d8","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":116,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d28c69fb-3e77-4a72-a330-bdf68b894b9a","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":116,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"1c5c06a0-c28c-4e38-8f53-98f3f6944eed","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":116,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"8e2e5e40-630e-4c75-bae1-a2cfc2c77dd6","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":116,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"13bd721f-ea71-4da1-9b92-ca4d8a58a0b9","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":116,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"7c7780e6-09dd-41da-9477-a0fd62e3fdec","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":116,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"cc32e5d8-2d34-4a5c-ac2e-686f981cc1d2","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":116,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"9e7f6c51-5aa0-43b8-b803-2120913286fa","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":116,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"599ea1d4-b5b4-4c6d-8119-e64ead34d45d","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":116,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"5d55f9fe-a7fd-496a-a3f6-60303447f4e9","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":116,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"d689bc95-27dd-4381-9c35-1cb736a63a1e","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":116,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"aaf2e869-f323-40ca-911d-9c00ac6cf702","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":116,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"15b341c5-b3c1-4949-88b8-2bba6361a86f","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":116,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"d6439230-4a86-4c93-9e49-5628d7f7adb9","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":116,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"95f87634-309a-4819-a00d-40954ab6e8b9","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":116,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"b3f2f3e2-1731-4e97-9a0b-588b5a3988e3","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":116,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"944de23a-61d3-47bc-b0dd-cb264e6b54c4","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":116,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"42f325d9-df11-4c28-b000-c995100b32bf","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":116,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"251e5f7a-feff-464a-862f-524812857e9b","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":116,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"ff92e478-1355-47cb-901e-88580227b936","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":116,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"d8b849af-8f2d-490f-8cb3-0b9bacdba4cc","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":116,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"96ffaab1-e0a6-4b83-afe2-80b3f7c2e02f","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":116,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"595063c6-5d9e-45b5-915e-e3a6e7cab869","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":116,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"8fa15af6-a51a-40e6-9f7f-1be34685edf3","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":116,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"a41ced9f-514b-46ac-bb20-6f792202eacd","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":116,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"537dc542-0e3c-433b-9c2b-18d79cef21f6","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":116,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"9feb604a-92ec-4a01-8f76-435b77bec714","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":116,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"4a503f6b-3ff5-4fec-be47-470e34355b30","block_type":"box","text":"II-73","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c463e325-d05f-42ec-9e05-53279d5ed2d1","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"00aaa9f6-9e4f-43a5-b047-8e221529c3e0","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":117,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"3e4c6c01-2f87-4615-83c3-5456e285e6ec","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":117,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"fc0f36af-c615-4bc1-aeea-5b7a20b8d604","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":117,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"b73107f5-0091-49d4-a254-95b8ba7145fe","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":117,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"ef6b3c7c-6c95-4c30-a2f2-1b68fdae845b","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":117,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"cfe9e54e-bf26-48b9-b510-0d59a75c06d4","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":117,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"323fe7ee-e46b-4cab-bda2-993037af07a4","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":117,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"96c16e22-6503-40d0-a039-fcb549bdd36e","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":117,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"f74bd955-ceba-4b9a-ba9b-5aa74d79a510","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":117,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"a0228d32-1850-4228-a0da-2c7ffedf4f2a","block_type":"box","text":"the current expected compliance date.","page_number":117,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"cad51ae1-4fd2-462b-b3b9-7b0c141e1677","block_type":"box","text":"Short Sales.","page_number":117,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"98fca731-e0c3-475f-a82e-5ab1811b2711","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":117,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"590c0ca0-2ab4-40d3-b797-f5d1a63326fc","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":117,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"0296156a-9211-4b7b-850c-3a1424ecd326","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":117,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"78eb3e7c-adc5-46df-8320-f675d4442b59","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":117,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"58cf4693-550c-41f7-a212-9c4db6c4b160","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":117,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"83e2ebe2-be67-4487-826e-fc0d6d2549ae","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":117,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"63d92a5c-1b62-4c71-81b9-81d94ca3adbb","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":117,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"932881b2-bf95-479f-964d-daaf0563fdcb","block_type":"box","text":"securities to the lender of the securities.","page_number":117,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"0eabdc9a-2c6f-43f5-98b8-027b9993dd74","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":117,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"8f344b6d-cd83-4689-9ef6-75bebeeb41e4","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":117,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"6b1dbcfb-ee29-4efd-9de8-0289000b1c7c","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":117,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"abeab7a2-5301-4467-849d-8c4f17dcfb15","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":117,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"29edcbdd-a8ca-4889-ab46-31eb6a56c349","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":117,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"ab300255-c6fa-40fd-80d6-399cbb317909","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":117,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"8ad9a5ee-b4a1-4ae4-86fc-820cf8b185fe","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":117,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"84a20196-b2f9-4746-ac10-ead9378207cd","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":117,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"f9ce5a44-6e0d-40ee-971c-4ee61846ab59","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":117,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"a9080870-57ee-4535-ba5a-83f4b6b15b7c","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":117,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"c6721fb4-6db9-4003-af76-eba22ed58b56","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":117,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"3f6ca9c6-a453-44b7-8990-5d937c83f1f7","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":117,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"7199ef42-d40e-449b-b525-85018b56c3e6","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":117,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"eac0b072-bb83-4715-aec4-d17c4a377bf6","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":117,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"684add3e-26ca-491e-a419-8e0a9acf935f","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":117,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"dfd445ac-bfba-4932-b2c4-297734eafcdd","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":117,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"99662446-b2c1-4c53-bc1b-9de3526a1926","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":117,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"a92ed4ff-1a4c-48e8-a4d4-fc73be90155c","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":117,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"8f535dc1-0873-42c4-8cd7-290d842f76ee","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":117,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"39d373a3-4514-4785-a307-1943de8fa792","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":117,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"afe65dd9-7727-4883-b9a0-367b7096cc36","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":117,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"9a4a5481-6fd0-4fc5-9ea6-f6fc46994b1d","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":117,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"fdef12c0-cf5f-4d7b-b599-6e66b2f67f2c","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":117,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"3825f2a4-0e70-4fe5-96f5-2d1f0efda9d9","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":117,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"8d67089b-f03c-4016-8647-2d5e88df5412","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":117,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"4a9e6c03-cff8-49de-8cfe-fb1866affabc","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":117,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"da638d1b-9a0a-4f24-9c03-73fa4024af08","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":117,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"0d7a5e70-cc0e-4c0f-b825-e6c7a02d21c3","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":117,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"723c308e-69a1-485d-97e2-3b9febdd5d89","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":117,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"d51f63b6-1a11-4307-b30a-8a1c6d1e18db","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":117,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"9d85cb31-749d-4276-a191-eafe0da6a93e","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":117,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"89e2851c-7b6f-43bf-9fdc-5afb5b33d75f","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":117,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"54ecfd8f-cef5-4827-9140-b2adb2b3c172","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":117,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"9a99656c-d99c-49f7-89af-75bf73fb2cba","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":117,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"ef554523-b9b0-4acd-943d-642b26a883d9","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":117,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"73691130-1230-4cc2-b248-88bc0d3f2cd4","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":117,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"150f8a0c-751a-4302-a418-0d42b9a1b667","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":117,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"cb8755b0-6e1a-47f4-aad5-16380ed9b8fb","block_type":"box","text":"II-74","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84fbbf58-5a8d-4c82-ba5c-e7c194cca799","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e7a64d20-db94-433c-9c8b-996262c2bd60","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":118,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"ae434fbd-6052-43ef-8873-02a322f10fa2","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":118,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"8635cd44-3b00-4052-bfec-90248ec1f0a9","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":118,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"2c9749b3-a95e-447a-8801-2e37fcfddbd5","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":118,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"cd13d5ec-74c0-4729-a7e7-d48d311b882b","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":118,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"65c4f403-c593-40ff-bc41-1062de2dbf90","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":118,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"109e38e5-9657-4d0c-80a3-e75739a39e27","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":118,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"015c5e4e-9cd2-4449-a51f-95e32b80b9b2","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":118,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"51d7bba4-55dd-4c18-a954-48d4c80f822d","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":118,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"a3946106-e844-47fd-801c-e5cec78b36b5","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":118,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"72b72f13-6d03-4c80-8090-c21fcc9ea1ca","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":118,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"7be72ea1-8235-4066-817c-b7c322e597a0","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":118,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"9de56f02-8f16-4654-9033-fcd1708b0d14","block_type":"box","text":"Standby Commitment Agreements.","page_number":118,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"7cea38f4-404d-473d-b9f7-be56d039b17a","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":118,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"5649f162-dd6b-46f5-be59-fe15d19d9c1e","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":118,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"d77c9517-1f59-4bb7-8be3-ece1502ffb06","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":118,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"92c10732-f3d0-4959-be63-7a9bfeb15b4c","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":118,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"e4c869a8-c830-4253-aab8-dc5f11486537","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":118,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"936f01c6-dd63-45a1-ab48-074aa46ad9c6","block_type":"box","text":"advantageous to the Fund.","page_number":118,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"5055cbbf-e88f-483c-8064-afb7ba01c210","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":118,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"0af6db0b-959d-4381-bf53-a025b0b13a5b","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":118,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"c624292b-9128-4c8c-9e68-0c1908953b6d","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":118,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"c7bb5345-5173-40e1-b7f1-ef836400e35e","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":118,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"3dff1180-3139-4788-91a0-45ea12bd7a77","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":118,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"32613a04-e058-4300-8654-293fbca5967c","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":118,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"75f45cbf-2c24-4126-9b6a-70f683608ac8","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":118,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"4eb9a01a-be1f-4af2-b4f3-a0f78c1ccb90","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":118,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"6025d654-f25b-4517-ac57-cfa9162861bc","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":118,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"9fd455aa-1279-4656-972b-a74f8ed58230","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":118,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"10a9c911-592c-4f3a-944f-41d9d9485aed","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":118,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"bd21942a-e470-4f10-a322-f3e0abe3942f","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":118,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"e7bc3efb-f57e-4788-a12d-5ca4649f77d9","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":118,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"cdd2b086-1d2a-4216-92f0-a25d71924d2c","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":118,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"6a65194c-4cd4-4c68-993a-8a80b106bbfc","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":118,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"0b5f197a-38c0-4e4a-b414-f8460cd3d5e3","block_type":"box","text":"Stripped Securities.","page_number":118,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"af745fdb-38f5-4da9-8724-177176930a37","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":118,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"ef6de77a-582a-4490-8d8d-927488631996","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":118,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"39f69503-6d87-4047-8bbc-cb3fbb60e2b6","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":118,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"a6581a1e-201c-4d8a-8c78-6f1a481b1f5a","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":118,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"75688721-e0a3-4e14-82cc-bfbdc0c2f0d3","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":118,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"2076e582-0c37-40fc-9e0b-b3bef850d3da","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":118,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"2f6b5ee5-8a08-4a89-9fd0-d1648495d4c8","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":118,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"ac2840d7-7d8f-4beb-8ce8-c2890c0a8d79","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":118,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"f90fdfd1-a4a2-4afd-b078-4b4ffe9f075f","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":118,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"7fcf8171-d71d-475b-95e8-980eac62ac96","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":118,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"5e7638cc-3815-4657-ab8b-3b824b85c149","block_type":"box","text":"Structured Notes.","page_number":118,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"3cdfd913-eb33-4eb5-84db-9987d9d7bd6f","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":118,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"3a218134-5535-4dc6-9cb3-1d421f77b83d","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":118,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"94bc19ec-4ac0-460b-8e78-fcdcb66c2a26","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":118,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"ae8304b9-6182-404f-9f5a-350239b01ef5","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":118,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"407f0cf7-f49c-471c-b751-df84c07d4a9a","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":118,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"ffea9cb9-9da8-4318-a80b-e9e4e02b8fca","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":118,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"05eb35e5-5388-4eb1-9b42-94f8ed3904b9","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":118,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"c1b999bf-55a2-4ab6-828c-95534fbdd108","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":118,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"19bd47be-c47f-40c8-818e-020439b1ece6","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":118,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"1645bcf3-d170-4bf6-b1a8-03a1efa21140","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":118,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"c214ca62-8dd4-48f9-b6de-91dc8f690656","block_type":"box","text":"II-75","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b8e7306-c802-418f-a408-2643076b5a69","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d59d7d0d-5e8f-44ce-bf86-0c4e9944c8e5","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":119,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"176ad2cf-6d8a-4c55-906a-3a435f46e567","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":119,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"b7b9acb5-6fb8-4a89-b3cd-47486bcf3764","block_type":"box","text":"the risk of loss.","page_number":119,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"6affaea3-c553-42ac-82b5-3c95650da0a1","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":119,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"1963991b-cffb-490e-aaba-f598fdaf58c7","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":119,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"ddfb7864-2601-44a2-b752-003811f016d6","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":119,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"a009b96a-be4b-48c2-81f6-5f5d78c2c4de","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":119,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"f73986ac-6cb0-40a8-9293-66b77b95d885","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":119,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"c01f7ddc-209e-46b8-97cc-115a34fa2cc6","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":119,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"1722d07d-9f3e-42e2-80bc-adb421acfd48","block_type":"box","text":"Taxability Risk.","page_number":119,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"d8234158-a35c-4430-9766-92197c7ab9e5","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":119,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"7cf9062a-43f8-4164-b70d-e33da2a16cfb","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":119,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"ddfdac5b-a813-4d05-a02d-701a4c217d7c","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":119,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"e7861fcc-804b-437e-9811-7be776d6d954","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":119,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"adeaee47-65c7-44e3-b919-7f1393060b5a","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":119,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"d9190fdb-87a1-4ff1-915e-d0b564fd05ab","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":119,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"68d99902-bb99-4168-be99-cee5eb983c53","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":119,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"e0cd0282-25c9-427d-b329-7b3d9a95a2c6","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":119,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"6bcede72-d60f-4e88-b7e4-054490169888","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":119,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"367dff5f-a278-4df5-908c-49157dc65926","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":119,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"022b3ee7-2e75-4642-8fd0-13a3143d251a","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":119,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"85b90532-c118-41b1-81a4-6953facc93bb","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":119,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"c91a79c0-07e2-4be7-865e-c00b68117a52","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":119,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"5f5b2640-c8fd-40fd-bfe4-5f83d4ebb68d","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":119,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"2467af4d-b8e5-4ea2-ad16-74cc001c26d1","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":119,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"86397726-1706-42bb-991f-f5feea55e166","block_type":"box","text":"the value of an investment in the Fund.","page_number":119,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"bd34ffdc-411b-48ed-b199-622bd11e8f1e","block_type":"box","text":"Temporary Defensive Measures.","page_number":119,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"6673b6df-8cd0-4583-be62-c0450a24c75e","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":119,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"21166076-acdf-4a0f-818a-f987ba0f5817","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":119,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"82eacadb-74f8-4973-98e2-1f6e13952409","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":119,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"8d95d550-48a2-435a-8321-5cd625f827a6","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":119,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"42d6a51e-4b8d-4913-8ce3-1fcdd328697e","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":119,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"31ccc723-a8bb-470d-aa53-7d45a6638e5d","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":119,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"cbddf029-7d18-4a95-83ec-6dc4e5fbb33d","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":119,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"7c89ad98-6a67-400a-a73e-b5542e3521ec","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":119,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"fd89aa3e-c7b4-4b9a-85e1-6b5f20e5f960","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":119,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"2e3ac1f4-a3f2-4bee-aa1a-4f75dfafe3fb","block_type":"box","text":"its investment objective.","page_number":119,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"79bfe503-9c10-4bcf-9ae5-c2cd2f6edea6","block_type":"box","text":"U.S. Government Obligations.","page_number":119,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"f73535f6-b102-4f03-acd2-f4f0df7517f7","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":119,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"f991b87f-7f6d-49d9-9c22-2b540fdfaec4","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":119,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"a90b99f3-5c72-43b9-adcc-4ef7a014180c","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":119,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"6cdf2a8a-5668-4900-9f77-ef566da4cd37","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":119,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"0144d130-09db-46b3-8563-49349b4095a0","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":119,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"39823687-ff23-48e1-95aa-6b7e808ec3ba","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":119,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"3ca1af4c-891a-4a98-bb0a-cca6e4af7120","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":119,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"88bf9487-6b17-4b9f-bc59-c953eabd4831","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":119,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"1ac22b5e-c59c-49b9-a2dc-b89af9d3eddf","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":119,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"a86ddd0d-1dc0-4e72-bed1-1211dcccde1f","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":119,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"a2de3d45-68e6-4bbb-bff1-61129a5daa01","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":119,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"7267f082-a395-4703-bcf1-e9fe5e4dc429","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":119,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"711d68ef-ac75-4151-b29c-71f681e3d034","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":119,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"64b2db60-8370-4803-b434-c02149b743b2","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":119,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"26b0a443-2603-4bcf-bdb5-455752b9ffec","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":119,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"efe07a6b-4970-45e6-80a0-30c5a16e1803","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":119,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"05f575f9-4840-4f11-9b43-39f6f053e54a","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":119,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"c87727ce-9005-45d6-844a-910eec08559c","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":119,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"e1bd99ca-3e53-4b84-8e0e-89f3bd5fe340","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":119,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"4610a42b-4f92-4ea9-9ee6-bd5aeb97e5ad","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":119,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"6d0ffac1-41ba-44f2-868f-e788218851f7","block_type":"box","text":"II-76","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34c88259-2d9d-4c65-8f2c-24f6d92fe254","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a30620f6-09ff-4767-bc7e-4f5fa39f6697","block_type":"box","text":"U.S. Treasury Obligations.","page_number":120,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"4d5c15df-cf67-4137-bc17-475c2c00a25e","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":120,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"5cc1fa3d-4ce7-400b-9a3a-6e07dc7b0225","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":120,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"7f780bb8-0bb5-41c4-b468-b1bd7267048b","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":120,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"ed4688f9-cdc8-4448-bb90-fd16335a3b4b","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":120,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"1e98fe8a-cc55-4025-991c-d132be90a9b0","block_type":"box","text":"do so.","page_number":120,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"44d7cac8-eb2d-4084-be17-c0c054687caf","block_type":"box","text":"U.S. Treasury Rolls","page_number":120,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"70614666-e290-49b3-86c4-325d51efa9c9","block_type":"box","text":".","page_number":120,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"786d5b82-e6a2-42ea-8289-1a8444fcd421","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":120,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"e923d17a-65a6-4afe-aa6e-846570ca8da9","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":120,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"c9ec0a53-26fb-4980-9c4c-8e04372ee402","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":120,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"260b072c-b44c-4798-bb6e-5c02d297abe6","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":120,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"4e3ebaee-21c9-48c0-9b2a-3eb00b6d25a8","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":120,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"6d404faf-ba5b-4a88-ae1d-9399549a7c5d","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":120,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"65c0a689-dd7b-4b5b-9eb8-c132d1b0f04a","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":120,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"65034ec6-7f15-4dbe-b197-11e4f1added7","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":120,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"8066a8e7-eddc-4474-b9d4-713f84b6e80f","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":120,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"dfa9707b-4561-4747-acb7-55906768247a","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":120,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"f4231167-5de2-4b51-b37c-01f4a6a50837","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":120,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"37bc6380-efa5-44ed-bc77-4969e36b47a8","block_type":"box","text":"Utility Industries.","page_number":120,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"aca8dfb9-1de8-4ae1-956c-624a06c90794","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":120,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"67278bac-7847-46de-bea6-6fa419f780e2","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":120,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"16a510ff-16c0-4d7e-a92b-5f490c6dc557","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":120,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"2348c8fd-31b4-4d64-aba6-9a3531572e42","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":120,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"2988682e-83c7-436c-985a-b2011e427de6","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":120,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"04ac952c-af3b-4cf7-a5fe-13f52b3bebc3","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":120,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"507bc699-dc5c-4aff-85e2-19ce5511c386","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":120,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"44a13607-b599-4a98-a439-042ed53684fc","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":120,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"63da07c2-0594-465b-a700-fbe32eddcc2b","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":120,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"a87b6679-8f7b-47b0-b80f-a172769e5845","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":120,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"c5509485-b346-492e-8a89-04b0f4bc7ffa","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":120,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"eec43cd7-a5d6-425c-a0ba-b5f7de2a33c5","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":120,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"b114671a-d0dc-4f8e-bd0c-7e6b1da91386","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":120,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"50d9681b-0f5f-4793-ace5-b0faee21a02a","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":120,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"7ef09fc4-d064-489a-bb9c-ae95f8dc72e4","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":120,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"ceb76e72-4192-4b8a-95e7-ae7f0faa293d","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":120,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"9f80b56f-1419-4e4a-8bc9-8898c34fbaf3","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":120,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"668361d4-32db-4d32-a6a4-f7f0f73b3000","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":120,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"e1c71028-bdf5-445e-b7fc-44f9be5c79f1","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":120,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"4a774db9-1c54-4af6-922b-5f51a6617813","block_type":"box","text":"utility.","page_number":120,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"a1517ac5-49e0-479e-8645-bc5ed5839921","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":120,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"067d9563-1cb2-43a9-acf1-14073d7f2ed7","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":120,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"8ea826ba-4d22-4880-860c-92904131cc23","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":120,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"61d35934-bcda-45eb-85eb-86e329b3161a","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":120,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"6cf9977e-0861-4b25-9041-6576ce3bbb9a","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":120,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"eb7e82fe-1da8-451b-9e6c-086ba0575403","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":120,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"751ba9db-641a-4b25-acb8-0c9db5c3fea8","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":120,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"27626329-7dea-4520-b93b-1dd1cd1db7a3","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":120,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"299a2947-2d1a-44f6-9060-a0bb67d3dc8f","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":120,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"3b74cd60-9e9a-41b2-a2ea-01483db6409a","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":120,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"3860cade-e157-452e-b3d2-93d67465580f","block_type":"box","text":"continue in the future.","page_number":120,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"4d601a33-ac40-4b8f-ae71-8a0c6fe0b15c","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":120,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"d7594d25-b50e-4370-9112-f554e317570e","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":120,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"a979bbe8-0d1b-4327-9dcf-20763d122bb9","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":120,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"83fa4fdc-27dc-4ab3-a315-a6cce3bbddca","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":120,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"aabbe477-9aac-4159-85c7-d702fd588360","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":120,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"88445bb0-02ce-4e1c-9373-6aa739a79a8b","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":120,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"3c098aaa-b4a3-4fed-a022-95ee02f7a85c","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":120,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"8041b6cb-b386-4903-958c-dff5acdced93","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":120,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"0e364834-cfc3-4c4e-a90b-e32899e103fe","block_type":"box","text":"II-77","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0f7b5c25-c41e-4c31-a3da-71407aa09c70","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70510ee0-1a4b-4753-95c2-2d2554b68e21","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":121,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"c27d696e-0236-4cbd-b5ee-240a2f04186b","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":121,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"26f770c5-432b-4bbe-9335-920d18cf57a1","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":121,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"5b32b68e-ad11-4013-a2d7-d059418acd6b","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":121,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"c35cfb57-7fb6-45ff-9816-b19937c5d2aa","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":121,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"d63a7ce5-89f9-43a1-8728-5accdbddc69f","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":121,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"35e6b51b-8580-4ad8-9c2e-dbe2b871f1ae","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":121,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"0513ae66-a9cb-4a5d-b7cd-e56baaf4e100","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":121,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"c28b98eb-5e47-4a70-91d4-a6ecd5593832","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":121,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"174c2ac7-0912-47c3-bdbf-f723bcbd4b4d","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":121,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"3556806e-6150-4961-886f-5923cedc6ea9","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":121,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"dff9ab6e-9c89-47c1-b150-61a50b93b617","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":121,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"b3a634a3-d409-430f-b46f-137236984b76","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":121,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"e66a99fe-0e0d-4f77-a7b6-e8965af3bd67","block_type":"box","text":"ways different from regulation in the United States.","page_number":121,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"96001296-7603-4291-abe4-b037286ca6e9","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":121,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"1d9c5e59-9672-45fc-8657-e8a7543db44d","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":121,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"9eef828a-46a0-4849-a14b-b1a492567158","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":121,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"d9307630-9a85-4d0a-bf6a-453a0e0d75ae","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":121,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"f115439e-8ddf-4f52-bb29-c9cb48dcd51a","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":121,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"93fdf33a-f078-43b5-97f1-def9193fa7e8","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":121,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"61bc2d53-b871-472a-bd08-f4a2d6a27197","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":121,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"92c96861-5adc-4678-af27-1e657cb8c527","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":121,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"67d5b10c-826f-4319-bcc4-866e1b8a9ddc","block_type":"box","text":"increase.","page_number":121,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"ae2121d6-e19e-4415-acbd-9ca0c9dd3189","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":121,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"4f199875-f859-4904-85e2-c8bfd7fc91b0","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":121,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"ea423d34-283f-46fa-8c6a-b9a75290699d","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":121,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"0a7db626-026f-4f64-99ed-0e1cefafa927","block_type":"box","text":"Electric.","page_number":121,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"b2bb0f7d-55bd-4e99-b9b7-06d60ef4ac7a","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":121,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"4866860b-b081-41ae-a033-65749ba3c713","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":121,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"cc3dbe2e-51e4-4a9d-b4a1-3925dee6310f","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":121,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"3f94a1a0-4d36-409c-89c9-a36095b291f4","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":121,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"79f97408-667b-43e0-bee1-88d03a61096f","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":121,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"a461f0a4-f6e6-4f41-9abd-39e284cea39f","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":121,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"7a679b87-7091-471c-8cd5-61c6e1398c8d","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":121,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"8a650bb9-2f52-4944-ab1b-9200465c9051","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":121,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"23cf2d3f-b03e-43b8-a51e-9e0be449e58f","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":121,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"28795d2c-b236-4981-bd79-b85a7e4a8b6a","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":121,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"8c5ecc9e-3d8e-4c49-be11-43a322b788fa","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":121,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"75776fe5-3209-4ebf-97f8-02e9f7122933","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":121,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"a551c5b8-204f-45b9-a9a4-650619761e71","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":121,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"d2c1c15e-905e-4919-ae60-9b33e46c5e5b","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":121,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"122801eb-0180-4b07-8734-dc6d9347ec08","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":121,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"33e41afa-6bdc-417a-b476-58cc08ddea19","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":121,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"04bc9ccd-6397-4485-8f75-4150914dee74","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":121,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"b5ba02bf-b6db-49f3-8ebd-0fc679af19d2","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":121,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"904a25ef-1cbc-40bb-b7ef-624670c8bdbb","block_type":"box","text":"and for decommissioning such plants.","page_number":121,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"9fd70334-a53d-4dae-9071-2be33bcb6d2a","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":121,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"d010791f-f75d-44f5-b2dc-c979ff3e2e8e","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":121,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"221ff1dd-d23a-47a1-ac1d-66c0a03b0758","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":121,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"e2870771-d883-49ab-a67c-06b88cb05eb9","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":121,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"9172993c-905d-4a34-be8a-1f90aeabe910","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":121,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"5fd191be-6082-46c6-86e8-9688b17d86ac","block_type":"box","text":"greater predictability of cash flow.","page_number":121,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"f7b6ffd9-29c5-4ba2-afca-b02d7338e19c","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":121,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"6bfcfeab-4d8c-42b6-aad3-65b971a1a6bc","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":121,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"54e6c84a-44af-401f-829d-43d9e29405a7","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":121,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"d1d22b0e-67b2-4f84-803b-15de0e35e41e","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":121,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"e604ffcd-15a6-42de-a987-ba341c18f08c","block_type":"box","text":"II-78","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"500eee74-279b-407b-9f52-bb9cae06dc04","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43943c36-7cb9-4286-9ab9-b0a4986e6540","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":122,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"4bb0396f-6f1a-46f9-9809-f7862d227dbb","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":122,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"ca541c09-7d50-4d3a-abec-467ccd7e2909","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":122,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"fe3e59a6-1396-418f-aa0a-88a2a52c7dcd","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":122,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"ca1e0582-e609-4f7d-93df-d584a42a2813","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":122,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"00b343d2-1655-4c13-9864-b05bcb821cc9","block_type":"box","text":"Telecommunications.","page_number":122,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"828c43d1-aeab-47b0-8c93-bd418cd8c3cf","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":122,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"96d707d4-7d20-4e41-bfc6-4b62c880925b","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":122,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"bd4cdf3a-6f6d-4284-999a-ed6c08ce46d3","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":122,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"d3aaa9f3-268d-408c-8131-3d1f030e13f1","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":122,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"b1d794db-68b8-4526-8dd8-89b2f9229081","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":122,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"a7c0391d-2283-47a6-ac59-86bd2c64605d","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":122,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"6864c653-f3e8-48a6-b616-50450fdb2910","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":122,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"d34d9caf-12a7-4cad-8414-c04a8686f206","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":122,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"07eaaf7e-98ed-41dc-abc2-db1bcd4349ee","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":122,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"9c87e6de-6d57-4986-b148-2031fa8ee8fd","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":122,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"b4c06eb2-4e8f-4883-aa0f-e108e3b3c613","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":122,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"b570eb07-6910-4469-89ac-5772fc83c3e9","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":122,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"973b6ee3-7473-4fbe-828a-1201644bfebb","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":122,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"e81d94eb-17b9-4465-892b-17ad80d50489","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":122,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"887797fb-b7d4-4551-9837-1c1e68ad3cfc","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":122,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"71f97a33-0883-475d-bcb4-5c487cda0dc3","block_type":"box","text":"residential, corporate and governmental customers.","page_number":122,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"aed6e904-7492-4b58-85f9-a443af271542","block_type":"box","text":"Gas.","page_number":122,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"c43d4e6f-26da-48a1-a913-0dbdcedc7e5e","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":122,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"556e40a5-9207-4876-8029-5b11bc470da4","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":122,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"a7d415c3-c6b3-4da8-8ca1-bff66f18dab0","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":122,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"9032d0f9-a2f6-4d5e-8737-ab344bb83f82","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":122,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"fe6858d7-532b-469a-97ca-9b4a3c116fb9","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":122,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"bc0031e3-f730-481f-b598-d6e4dcf3ecfa","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":122,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"28757bf7-0c1c-43b9-9e71-a36b4b140ca3","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":122,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"8c47ae20-970f-4e1d-9214-f2f9d9b5b3ba","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":122,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"d24c94e0-f535-4e5f-bc30-2f44dce79bb3","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":122,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"1321863d-2cbf-41a5-9301-33514782103f","block_type":"box","text":"Water.","page_number":122,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"36efc01d-db27-43a6-a7b7-8c7fd9ece6b4","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":122,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"3ee2f584-fd63-45af-86e7-2e6903e7cfdd","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":122,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"e3b48be1-324b-4f7c-80c5-0757ebac7d8c","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":122,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"c7a45d7b-f776-444b-9829-a03582b77a74","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":122,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"fd24b283-fde3-42ab-b5be-caf608e77c12","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":122,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"803ca731-9a86-4c68-8a54-40c7d7cf7713","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":122,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"92f27445-e853-49c6-a6ea-82fac951ea96","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":122,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"52013cf3-44d4-4a93-83b5-24b49ab4433b","block_type":"box","text":"Utility Industries Generally.","page_number":122,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"bd96cd93-8ff5-4f94-bb52-3e86ff87658c","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":122,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"5cd18cbb-1c62-4379-a35d-64da106d6474","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":122,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"0965b484-61c4-4033-bdfa-3dc048183335","block_type":"box","text":"not develop in the future.","page_number":122,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"7d90e2a0-0e7a-4b5c-920c-1bae4623075d","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":122,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"688da73f-df69-48a2-866f-18fddca014c8","block_type":"box","text":"A Fund may purchase or sell","page_number":122,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"2df002f6-1ad3-4824-9eaf-2c0f8fa1afc5","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":122,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"5e3cf331-7bd0-4703-9333-e426c52f3ca5","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":122,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"74ed3716-1c81-4b11-bdda-523079b343bf","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":122,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"c90faefc-5d70-465f-ad4c-4123939d809b","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":122,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"6a0203eb-385d-43ed-97fe-08d2ac19c76d","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":122,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"4fe6acb1-194a-4621-9a78-07714c2d377b","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":122,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"78aa4325-4518-4de5-a08d-0a2dc8751826","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":122,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"9ee9cc79-e8da-474c-8d98-db0c20389ee9","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":122,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"c935f4b9-2d59-43c0-889e-7c0e7a6b85ce","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":122,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"a8bfa1bb-a1b9-48d8-86fe-d04183a9faf2","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":122,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"b002367e-2782-4872-94e5-a6bcc81eee23","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":122,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"eb7c218b-c4dc-4322-97a5-a9fcea48cc5b","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":122,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"286dd955-7a9f-439f-a4ff-c1e164526a2a","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":122,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"bbd1d99f-4f0f-4295-b147-104a5a7151db","block_type":"box","text":"II-79","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"27ed2bc2-aa87-4172-8c21-9ef32815d424","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f1c78a84-4f03-4749-8bac-7aaf5d3bf710","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":123,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"39305b9d-589f-44f5-8204-b004866a1c6b","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":123,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"ef4c29aa-7551-4389-b745-d4fecf4543ef","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":123,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"2a17d149-6f4e-4169-9be4-77ea42d550ae","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":123,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"609bf3d2-8d5b-4668-88d6-322f3ced75be","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":123,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"e6316f2c-be1d-44c4-a0b7-63a75e0c9607","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":123,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"0b8829fe-0447-4339-bb70-7761dd26324f","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":123,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"e364e91c-1924-41fa-a5be-588305410574","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":123,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"d7600757-c60f-4cfc-9e90-d958fb844c39","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":123,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"8f860d1b-0a06-4a3c-aeff-64104c2c3c3e","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":123,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"a53e4780-7e70-4358-b427-8168b863a236","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":123,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"624a6294-798e-47c4-a4ce-d41847e884c3","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":123,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"d0bcf6fb-8b2f-463f-9d77-6fde5cb8b24e","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":123,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"07565d77-794f-4ec0-aeff-6910a40faf8a","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":123,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"28853886-243a-4b92-bab6-ce7cfcd03135","block_type":"box","text":"securities (","page_number":123,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"3d0d42f9-cbab-42c7-b62e-39e5f96e1901","block_type":"box","text":"e.g.","page_number":123,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"cafb64c9-4ca4-40f3-80b9-026fc40ba2d7","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":123,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"6cb6aa65-769c-4779-950a-04cb29e6dce8","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":123,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"9c6d7168-628c-44d8-9f8a-07224ef9bf62","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":123,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"215bb0fd-0dfd-478b-885f-26a402cd3398","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":123,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"a91057aa-d2e8-455f-ba05-190832fa8751","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":123,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"79372edf-90fd-4826-95ea-3d74c22b0eb6","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":123,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"bbfed251-462b-4d18-9c2d-1d716c799bd9","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":123,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"bd716628-feaf-4977-9bfd-65d652a3caa1","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":123,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"8f08c3b2-724a-4881-ad61-1483ff8310f9","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":123,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"b848daac-2171-4622-810f-0aa70932b326","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":123,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"20ab06c9-2d2f-47ec-b70d-f89a3e27d3a3","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":123,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"effe355f-0231-4094-a117-9f9e220fdcf9","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":123,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"fc4638c6-9610-4b7b-9b62-68633c88160f","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":123,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"c0ec7044-a940-4a70-aa2a-1aa4d764eaf7","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":123,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"6562c897-05c8-4625-ba21-87bdff3e42f7","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":123,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"878767fe-f843-45f8-938d-b898037c687e","block_type":"box","text":"Yields and Ratings.","page_number":123,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"1214da3d-2d22-4d6a-ada9-55513e490280","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":123,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"0e4e4263-f2eb-4e37-b9e6-fb5cedf85245","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":123,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"bc739c3f-a009-461f-be01-f069f5b0708c","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":123,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"c32bd623-2980-41e6-ab9f-7a231e78e717","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":123,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"0ec39163-b5f8-40ca-9edf-eb99d9adc483","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":123,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"e09c78a9-42d0-4b3a-91fd-d5c7770e6c2e","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":123,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"1fc60e54-b34f-4216-8223-aa1296d1deac","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":123,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"f2cef2a3-b946-4aa9-ac05-634957f0dc74","block_type":"box","text":"continue to hold the security.","page_number":123,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"34c1c6ea-1032-4992-92a2-2ca5ab035669","block_type":"box","text":"Zero Coupon Securities.","page_number":123,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"41c688c6-187e-4f27-af94-b4bbf95d7b1e","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":123,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"1675c5da-453e-47fc-a46a-c9446428d6a1","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":123,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"76c72d82-ff75-4bbb-bb11-cf95064e70bf","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":123,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"30642552-66e2-4a42-bc4b-d90577ec2957","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":123,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"e6770535-c41f-44a5-af6b-09c5bb55d081","block_type":"box","text":"security.","page_number":123,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"5eb18636-2337-4a96-9f18-fcab1e49d93f","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":123,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"94742abe-22ee-4037-b815-4a5bd4d06cbe","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":123,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"12add2c5-507f-49c5-ae73-9dea232941ef","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":123,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"f85132bd-5849-436a-8683-20759596d4ef","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":123,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"a2978cf8-74ee-4bca-8e4c-0d2750e021b1","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":123,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"24a2b566-f2d6-4f3b-828c-db20ae2fc82c","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":123,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"fd77d5fa-3c1c-44ad-9e31-0f99765e4a03","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":123,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"64aff4a9-393b-40f5-a59e-751d4cade119","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":123,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"a5b58241-a6cf-422d-9bfd-a105481103c3","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":123,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"63c07589-e58e-4e49-bc66-bf1d2c3b1202","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":123,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"2cdcc034-fe64-48fc-abfe-558acff2bb7e","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":123,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"a5f366ab-652a-45b1-acf8-fea67dc0eafc","block_type":"box","text":"II-80","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c222884f-199e-48c1-975e-c3cbae95c86e","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d70c228e-3c22-4701-af8f-28ef5adbeecb","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":124,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"12d06e04-d42a-4f38-8bfc-bff913a2740e","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":124,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"46d75c0c-4dad-448f-9fee-d730c0b7068f","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":124,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"8a4ded84-447d-4747-bde7-cac206dcf73d","block_type":"box","text":"intervals.","page_number":124,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"5f2cf4a3-042b-4ad2-8dce-d2da311f8f42","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":124,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"35e1d25c-bfe7-480e-954a-04194efd106f","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":124,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"e3de9050-0a1a-4642-967f-a4b6cd5c4341","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":124,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"3e288fe7-9f0c-4bf4-9b7d-39888dddf151","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":124,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"6959d71a-da7f-457c-8495-f794297ea678","block_type":"box","text":"exposure to zero coupon securities.","page_number":124,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"29f12475-a0c6-4ddc-b979-a2edba526308","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":124,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"a88ea2d6-9de9-416d-84f3-ac1e98e46469","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":124,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"8d0c32d3-8604-4d6c-9fda-2bd860588771","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":124,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"0609b367-2560-461b-8d95-3bd5211d04cc","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":124,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"43e4db3b-61fc-4e80-802f-14c4ec1b3495","block_type":"box","text":"Suitability. (All Funds)","page_number":124,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"eacaa067-1cdf-4777-8256-f81eef5b9308","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":124,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"7f4eb15e-15de-4ebf-8fe2-7d2f392fcc74","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":124,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"cfb9c9f7-788e-4f4c-9a83-5c12c7a70d8d","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":124,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"26c4714b-182d-4dc8-b115-eabbe5b9f212","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":124,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"a07fb374-d2f3-4d5c-b95e-dc271c5185bc","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":124,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"9cdc2e55-da18-49b8-80a4-125627537efe","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":124,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"74106734-2b69-4ff9-8887-ff3fbdeb5368","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":124,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"d8e8498b-4971-4fed-b4f1-b738a63adfe8","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":124,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"c3258401-fda8-4730-80a1-1aa78f711523","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":124,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"7757fb94-97e7-4a23-8f82-e6a99113e0a9","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":124,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"eb88b041-176a-4184-ba4d-a157e3dc912d","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":124,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"f7d16467-8a8f-465d-ac34-2520dd53b5be","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":124,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"2502133d-ca60-4ffd-b3a6-69411d7f6871","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":124,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"8e48efe5-65c4-4c0f-a14c-bf71d1ba2337","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":124,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"ff330d99-5aaf-4fe4-b6b9-e9fd638aecd4","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":124,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"f5e98c86-ca48-4f98-8398-127dd5c2ed61","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":124,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"9562ba08-2743-40ac-9151-553b2c960495","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":124,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"a2cbfbb6-d84f-453f-8dab-c63968953db9","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":124,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"2f740b11-65fe-49f4-a22a-a21a3ba98c59","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":124,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"2f758aa9-42cd-47a2-bfbc-a6b2c51e7b3e","block_type":"box","text":"(","page_number":124,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"0427e6b9-a74b-4e79-831c-6e1d6440458a","block_type":"box","text":"i.e.","page_number":124,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"62057253-056c-4029-9b64-4c4c1fbaa32e","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":124,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"980dc16f-c6a9-4e26-a3c6-5ebd10816962","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":124,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"083b7b3f-b4b3-40aa-97b4-895508c19012","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":124,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"8db20bff-b43a-4c16-a8fe-84e1821b9df5","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":124,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"9fbe7683-b845-4961-b914-064944163421","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":124,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"3e872a1b-57d6-434d-bec2-4ae19a04ca06","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":124,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"4ec9fda3-e6ab-49b3-88a5-07861e69783d","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":124,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"7c3be82a-4738-4cda-98c5-88f0ffc3aa71","block_type":"box","text":"regarded as the sole issuer.","page_number":124,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"9ba3d6aa-19b4-4ab3-81bd-5cdd8e8b1b49","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":124,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"2ed7cf80-0f4e-4054-a771-bb7315f0939e","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":124,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"0562f80e-aad6-40a7-a2a0-e6c74ca85775","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":124,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"e938cf1f-92ff-4239-981e-eec5f09831db","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. 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For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":125,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"07e13948-de99-4385-a24a-888979a51cff","block_type":"box","text":"Management Fee.","page_number":125,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"ff497a21-3293-4236-8148-0265e819bec4","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":125,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"750e3c6c-f823-4b2b-85a1-4598ffa550b6","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":125,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"d86c2606-1add-4c62-a823-bf4ce9cfdf94","block_type":"box","text":"net assets of the Fund. 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Cer tain accounting services are provided to each Fund","page_number":125,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"cfe6aaa9-e1f8-45ee-b63e-7e7fb28a7111","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":125,"box":{"x":69,"y":612,"width":830,"height":11}},{"id":"826f569a-e8c5-43c1-bdd8-63a32cf8b6a7","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":125,"box":{"x":69,"y":627,"width":794,"height":12}},{"id":"c1ef98eb-5485-4892-8ca4-fd6b8acf125b","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional","page_number":125,"box":{"x":69,"y":642,"width":778,"height":12}},{"id":"64ea0206-b244-47b0-9226-43cdc04117a1","block_type":"box","text":"expenses of the Funds incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed","page_number":125,"box":{"x":69,"y":658,"width":839,"height":11}},{"id":"ab7e8699-5330-4902-8e8f-aed20fa3ce9b","block_type":"box","text":"by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. 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Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":125,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"670697d6-a5de-4a95-b17b-fb6de4ac1063","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":125,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"050a80b6-8249-499b-86af-d53224ae9cd4","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":125,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"a50f4483-5ac5-4cd7-b2b9-4e8d0dfccb1b","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":125,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"e5ec5962-2314-4765-a28f-4a42636297b7","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":125,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"edc36009-e58c-456d-8a86-2cf799903f42","block_type":"box","text":"Duration and Termination.","page_number":125,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"09192343-dc0b-41d2-9202-73673aa2c669","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":125,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"483941c1-0e26-435e-8ec3-e847a1e31376","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":125,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"7dbcda08-6bec-405f-9c4a-77c1525266ec","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":125,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"939eccce-a27f-410d-b6ad-734efa19ef3b","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":125,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"add57dbc-9f79-4aac-8a9b-da1ce3237baf","block_type":"box","text":"II-82","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aace23f4-de34-41dc-a9ac-04d80e5ba3c3","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"92b64f0f-757e-43e1-860c-4373a97aee80","block_type":"box","text":"in the Investment Company Act) of any such par ty. 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BlackRock may have a potentially conflicting division of","page_number":133,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"5a86ffd2-c7d3-4590-a62c-67a8dfb3646d","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":133,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"ea8375a8-7b43-4f01-9e9b-439555afcf7e","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":133,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"e84850ea-bbb9-4c02-8586-a2ec935dfc19","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":133,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"df546340-800c-43f9-b624-9e50f8c38930","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":133,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"364f105e-0a1c-4537-a87e-fcbd58fc9bc8","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":133,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"39d40fd5-d892-4076-a8a7-b6202659a087","block_type":"box","text":"case.","page_number":133,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"18b1fafc-757d-42ea-bcdc-7b971462b2c6","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":133,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"f909dfe7-ed32-4aa9-889c-bb6c8cbc82f2","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":133,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"52aa482d-83ad-4813-b4b3-d7232c5c5d76","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":133,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"6a165350-c0cf-457b-8957-c335decb1994","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":133,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"097c2642-e4a6-4fcd-84f7-433fcd22b120","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":133,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"8599bd2c-112f-40f3-ad38-425ea18c5852","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":133,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"c3ad102c-9315-4a23-93b6-32ce231b6f4d","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":133,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"5251b64f-4a9c-4935-b02a-2f8c60ee0ad3","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":133,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"5f07a387-1c27-489d-8533-db21450bd4e6","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":133,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"4be5aaf3-baae-4e6a-8ab1-7c0fd6346a51","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":133,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"f46b881a-c708-4531-824e-11366528216e","block_type":"box","text":"II-90","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"91878060-df46-49c9-8be3-cc92c7b2afc8","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a8597d55-82d5-47be-8be0-6f2b571f68dc","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":134,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"bda84c98-8b18-4fd4-885f-8c5cfc40a631","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":134,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"ec74e9a2-b08a-4792-b8e6-daf9f2aa63b0","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":134,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"1f8b7ea7-7af6-48c3-98ab-8b33dd2256c6","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":134,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"4b040477-64ef-4c5e-ae7d-0d43bb7e9bcb","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":134,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"efd7cb0d-5a19-4a6a-951f-72f52a4fef90","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":134,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"262568a7-6fc0-4592-a35e-4225f5573626","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":134,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"76bf8123-ced6-4794-b6e0-791ae6cab958","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":134,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"cbb236ab-3254-4541-96d8-a1f47d3d9492","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":134,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"238db1ed-101a-415c-8716-f60ffacf3ed6","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":134,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"a969a726-1382-4bc5-be9f-f1377ebb588d","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":134,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"5684a7ee-1e54-4bc7-b950-c01f27187bc6","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":134,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"29ea28aa-c6c7-4b9e-92cc-d13c24bbc49b","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":134,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"a696f7f3-7d74-499c-b606-1361b494b571","block_type":"box","text":"managing a Fund.","page_number":134,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"eeba313b-e8be-4b97-949d-1ab84e874f56","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":134,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"45bdf079-81ab-48df-a078-d89ff5e4858d","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":134,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"854e214a-b451-4226-9dd3-4c266bf457be","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":134,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"c2c3a2fd-4be3-43c1-8d98-0d76b22c1d3b","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":134,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"4d6695a5-0a1a-4e96-a91d-14c62b92ace4","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":134,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"915af1d5-6e38-49ae-aea3-8a2bc521dbd8","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":134,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"f1f6033d-3c88-4e4f-9386-5402d03c744f","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":134,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"53ca964e-a2c6-479b-b140-1924b946cb49","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":134,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"aa976f68-5d16-460b-bc3b-29c8fe8680ff","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":134,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"2e0afb5a-bf13-45f1-a2f3-51cc9b3d01c8","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":134,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"2f867953-267f-4b9c-a02e-abb42ab21554","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":134,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"0aea78d7-e6d5-4f67-8f87-4215aeb7b822","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":134,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"551dce83-30ef-4696-bb77-6193f71bf1c8","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":134,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"cf6c4cf1-4333-4f61-8214-e3f888c13bd6","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":134,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"f4b935fd-8e34-4e44-a9f4-fa2351bce52b","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":134,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"4ced492d-b35f-4697-825f-dd8acf025085","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":134,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"5265cb2c-0613-4480-9121-24e3a49e01c1","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":134,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"edeaeccf-c489-49c4-a812-94ccc6a022be","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":134,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"d029c76f-c35a-424f-9e87-201b61c0428d","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":134,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"eb5baf58-a41f-4023-ad21-58f51e509861","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":134,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"fe94c1f0-3f2b-4519-93d5-328246cfab1e","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":134,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"237f3a01-253a-4078-a050-030888ceeb52","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":134,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"a093fdb1-7067-4ced-8727-e6eb49a9add8","block_type":"box","text":"under management for BlackRock.","page_number":134,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"d3ddbb29-cf23-44c0-abd2-a98ed78cd78a","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":134,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"3398387d-6624-4cb8-a11d-4476b2629578","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":134,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"a527bee1-9d8c-45e2-9904-dfd088607a37","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":134,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"e24e8fb8-d482-419e-b37c-7a94d778cc2b","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":134,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"415ec59b-3bc4-47db-827f-9adc78d96cea","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":134,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"8c4ab768-beb0-45e3-9160-96b3f16bc4a3","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":134,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"e234f548-ecac-459d-b095-a5f2c3b2b481","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":134,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"18701370-1709-4f7e-a31a-876164aacfc9","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":134,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"8843d453-1903-43e9-ba55-9a2b54edefa8","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":134,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"2a21751f-83c9-4897-afd4-dadc5db1813b","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":134,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"045f44cb-507b-4da0-be3a-a87a8f3df359","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":134,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"ecff0f79-8759-4dff-86ed-061e165e28e3","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":134,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"700740e8-203f-4dfb-ac1f-3487b287ed3d","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":134,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"db233b4e-f941-4841-b2e6-b084bcc58c8f","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":134,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"a0ed15f0-f187-49f5-9509-c9c346df6c7d","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":134,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"a3616af5-7ce2-4d40-9838-a334d09d859b","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":134,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"2b0a1160-d3c5-4489-ac77-ef97d99b3472","block_type":"box","text":"II-91","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6cd27cdc-9eb8-4ab4-b83a-351db5504d1b","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e17b399b-1a51-437a-9fe5-5db86217ebdd","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":135,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"1a02e918-8f89-44eb-8b09-61b55e7a3e5d","block_type":"box","text":"any such fees or other amounts.","page_number":135,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"5a5b3ffd-6a48-4e88-a689-598b9bb818ef","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":135,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"659ebec2-8047-4d5e-b8d6-b18b5b6bb396","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":135,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"7088d6eb-9af1-4e8b-b2ae-6d92de2283a2","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":135,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"9638ec28-698e-48b1-8b6f-deab78d79dd2","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":135,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"6fe672fd-658b-4e3d-9801-dbf500be510c","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":135,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"a54a45ce-c865-4eea-a1bb-40deae727850","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":135,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"c87461ed-0c3d-40f4-8a83-b4d9bb2af707","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":135,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"9232f810-3d1b-4d41-b0e4-eb2ff268a9e4","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":135,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"4cd2c5ec-853a-4269-8358-2e98d6e4c3c1","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":135,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"c2d1c454-20c1-4ac5-9760-b20cea44c03c","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":135,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"359bc1da-7308-45ea-8cc1-dd1481e86f72","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":135,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"a39b397f-b96f-448e-8a26-d52bdccf3b9b","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":135,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"358ff447-787b-43d6-b1a8-424a97ad336c","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":135,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"2172fdb3-04a5-4aa1-b0ea-e3e002b6138b","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":135,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"e82b9774-90d8-475a-aabd-9296de9d0754","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":135,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"17dc2ee2-0c61-4f25-be05-b1559d580a7d","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":135,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"b85164a0-5d6d-4745-8197-a56377a8e127","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":135,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"e1bb65d6-36c5-4f76-b37a-5dcffe5636ef","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":135,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"4b4a1b67-576c-406a-9cec-30d8225a3d37","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":135,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"efeaa04f-6b0c-4866-b79a-e1e95ce6a611","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":135,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"df370b21-c044-4ad1-8d1f-8b9ffb3a6d61","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":135,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"0903dc99-e5a0-4e3c-b73c-e772b63ff881","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":135,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"360dd819-738c-4ba3-9b07-c5ca6ef67f4d","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":135,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"9bf50641-bde0-4dba-87de-a1953788bd76","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":135,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"daf33361-3c62-46f3-b698-80476fa795db","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":135,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"2b6bc898-834c-4d61-889e-343849579b8d","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":135,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"9892af4a-e50e-443e-9bb4-8744ea0d175c","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":135,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"e083e2f3-b7b4-4a31-ac39-62b02d6217f0","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":135,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"915a3624-875f-498d-b75e-b9da09058897","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":135,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"d23c5219-ed8b-4a38-b944-4a1e4e2d896f","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":135,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"47ac1b20-9e2c-44fb-a3b8-9cdaaae79bda","block_type":"box","text":"regulation.","page_number":135,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"f9202027-854b-4bb6-9f87-cf0144ee7f3a","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":135,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"4f3caa61-b5eb-4444-b049-b87f81e300b0","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":135,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"51b6aaf3-5834-4de3-9cf8-eec7bd55e19d","block_type":"box","text":"various program limits (","page_number":135,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"97628dce-64af-47f5-90a8-ed934d33fc98","block_type":"box","text":"i.e.","page_number":135,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"a9f0ca1b-46c0-4bcb-9385-5c31345aadbd","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":135,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"05f82519-7ec5-4f2a-8244-20dff4e24995","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":135,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"37085c8d-0086-4c1a-b898-f93d07ebf2cc","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":135,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"24734b52-1579-4024-875f-a9ddfee059c4","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":135,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"33945555-8bba-450c-bc20-a3b05d073b9c","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":135,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"c8a77cce-d6e8-40b3-bcb6-5f61f1187de2","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":135,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"7c426307-aa6b-4fc1-8caf-0b18751a28f6","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":135,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"13b46b5b-d394-4cc4-876e-e2c81c4a4f50","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":135,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"1f422324-1621-4572-98e7-5699fcb6e654","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":135,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"fcb1701d-3531-4d8e-92c3-7d13ca6f7d8f","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":135,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"71697cd2-090e-4c84-aa9f-fb970845ba43","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":135,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"7081a268-4ae3-4821-9519-9c3000924954","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":135,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"caca0715-a893-4846-982c-9f15f5d6c148","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":135,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"693415c7-3fae-4413-ab91-e53b5793a92b","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":135,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"24355d5b-def7-41cb-9ebe-0555812b64c1","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":135,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"53f1ac61-4acb-4074-b7cd-b40e11bed143","block_type":"box","text":"II-92","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b730e67b-c21c-4a98-90d9-715efcf55bf4","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8c9391f-1e9c-47f5-809f-75e07865bc79","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":136,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"b422f67f-04d2-4f3d-8469-779a8e33c537","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":136,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"e42f8930-e960-4885-9570-622025f9d54c","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":136,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"7c2b6ff8-d20d-4acd-bdb4-7a41ff9654d2","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":136,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"211daf66-cd84-4ece-a786-dab7c4205e07","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":136,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"669b9486-e2d5-4d90-b25e-8d37b62792af","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":136,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"bb1d9c5c-d967-4cf3-a737-9e8b6746912a","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":136,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"cfa1574f-f189-416b-b667-c14076af08ab","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":136,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"e22edfe4-9cda-4975-a6df-6178699fc610","block_type":"box","text":"than through client commissions.","page_number":136,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"5373256f-ee8b-4b46-ae19-9427d9e5b274","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":136,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"bef757ea-44ca-4158-8680-5a85b09d356a","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":136,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"65e2952e-eeea-476f-8871-beebe55bd5d9","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":136,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"1df5763a-f596-44b9-b1ba-6bd837efaa99","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":136,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"50518979-2d59-4721-932d-da2110d60ab8","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":136,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"3780f65c-5bbf-4854-8334-45c071cb4e1e","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":136,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"eac2c63c-e0cc-4a0a-b5a9-dadd482627a2","block_type":"box","text":"research-oriented software and other services and products.","page_number":136,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"696bc98b-d137-49d5-9006-980cc23190c4","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":136,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"b973d32e-ca1b-437e-8c8f-f48e0be4cb15","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":136,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"4da98333-fd93-4acf-876c-2f4048344266","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":136,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"ddc6f259-a7de-4fc2-bd8a-485c22b1f0ee","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":136,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"0bf7ac8c-d86d-4962-8539-7c17df347041","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":136,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"7afaf069-18f8-4142-80e8-0b0a45bf7cc8","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":136,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"e6dfe67d-d3f7-4503-9616-5e2fec7ae338","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":136,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"0727595a-af9c-43ac-930b-35da91bee622","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":136,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"1590e5d3-ec1f-44f7-8155-c9a1db8e605a","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":136,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"4351c232-0350-4f32-b1b7-afe3161cc4a6","block_type":"box","text":"and services itself.","page_number":136,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"1716e2b3-f9c0-44db-ae83-a6262214f29c","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":136,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"feaa0220-cfcc-4267-ba8b-482ab3f294c2","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":136,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"7fa7326c-6674-436a-a93b-894c761f4d7b","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":136,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"6fb0192b-6c53-4266-984c-20e1066e2f16","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":136,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"8bd940e7-ddb6-4067-8d74-753e809539c0","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":136,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"c6ef57a0-d046-4c59-95ad-1419f75afedf","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":136,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"60b10b53-2f60-4fac-a7f8-11d5de936e36","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":136,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"6321f9b5-8d5a-41e0-93c0-4a1413099556","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":136,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"2732db55-98d5-4740-a827-e2e3a7cdb8bc","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":136,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"83bc07bb-b6a2-42e6-987e-59ce058907e9","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":136,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"0fac0ce8-68c4-437e-aeed-0dffa01192e0","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":136,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"7e195e53-f324-4f9b-a68e-db81c39189f6","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":136,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"c1ad2a92-2065-4675-b28c-64d8b7a65121","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":136,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"692a02b1-cac1-44a4-a509-efbb7eac32f0","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":136,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"cc085fc0-b904-4eb2-b37b-670000994c3f","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":136,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"b1e8b72b-2391-438f-b411-082042e7a9a5","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":136,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"4ed225bf-1c1c-4979-b839-807fccebed72","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":136,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"5688305e-9f01-40f7-bff4-ed7b48244efe","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":136,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"889f93f8-8df3-422b-9507-23256fbdf456","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":136,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"7732cc5c-a25d-45a2-b81c-14cd5fdcaf55","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":136,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"35d9ce04-b1a8-42af-9f52-6ef802e29669","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":136,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"1102e7a7-6d73-41e7-85fd-37c91e766091","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":136,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"778c68a0-422b-48e8-80d2-0975a1badc6f","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":136,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"53eb7209-b011-4701-9e6b-c37b0d155883","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":136,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"a7e42b5c-a909-4eb9-a4f1-8504ff7877f9","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":136,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"7c9ed759-36bc-431a-8ddf-44227ecc83f1","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":136,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"abbfb04d-586a-40c7-bfa4-f7893fc071ea","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":136,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"4fb18d39-505a-4d9c-a614-f8e0af3ea337","block_type":"box","text":"II-93","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9c2a7a73-ffbd-4950-b6af-b6f7b607146a","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca235ee7-7da3-4063-9580-3d1981581759","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":137,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"14576bb4-8837-4c35-893e-b829bbd36c61","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":137,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"83664d61-0d3f-4cd1-9409-e1f7fceb3988","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":137,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"cc793a14-a17e-4dd9-a093-34912e1f8138","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":137,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"ac7513b1-5c7d-4982-b484-709f84e22fa7","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":137,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"f8130ec6-465d-4da1-8689-799a2e5be3f5","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":137,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"da6d5c2b-2793-4d7b-955d-e83ccec66e06","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":137,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"95f5b1ac-232b-467c-a2e0-6353b3d0a49f","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":137,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"669d4993-3ffd-4a23-a2c4-b342aa1cf7e5","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":137,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"913a2d39-8b32-4f5e-86a1-6d1da220c55a","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":137,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"d6f6b19d-1b84-428b-8b09-d2e6a1a5b6ed","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":137,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"38af2962-bf70-4fb4-ba58-95359501e4f7","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":137,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"779545db-2c41-4be1-8c9e-1afa951401dc","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":137,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"d96efda6-8aa8-4035-a9d9-653679bf361a","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":137,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"371b510c-73e3-4cba-80ea-73eddade33ca","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":137,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"ffb4d03e-37c3-4237-81a9-120442f97ea9","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":137,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"efb1f905-fbad-423e-8a93-d17ecf9c1a73","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":137,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"a1d2d853-d68a-42d7-9bc3-d5822edf749b","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":137,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"bc2456cd-67fb-40f8-a287-413bd52dc0f2","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":137,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"93265480-da68-4f0c-98fb-c17b428d2de5","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":137,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"c3aec9d8-855f-4621-b36b-c610b98e4ed7","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":137,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"6608265d-3924-4dae-984f-e943275e5aa3","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":137,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"cdc32cd1-6382-44a0-aa95-dbc1faa61a01","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":137,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"03bf7105-2b48-4642-8441-cd7579c9d885","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":137,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"29ebd97a-0654-4425-9fda-4c17353503f5","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":137,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"87b16978-1b6c-4702-9d25-03cd7e115a06","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":137,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"eaec863c-437c-41e2-9d2d-dd78d625737b","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":137,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"1b3bba5f-5df8-4000-a5e4-17f98c2f8f41","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":137,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"7aa9016e-4bbf-4232-a0e2-b1efd78e9532","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":137,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"b4ae674f-5185-4315-8232-d49693496d25","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":137,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"07ab0404-5d62-46fb-b913-ec76e857f3e9","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":137,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"56f8e4a4-bcc4-4d5b-aa40-2e35b36fb05b","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":137,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"25d72903-48bc-4578-a123-45a5b3037673","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":137,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"24bc8fc1-3353-4ea9-bb21-68232c9ef02f","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":137,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"0384e401-af76-454c-aa8b-69107c902e1c","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":137,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"0d2e1321-1cca-46c8-bec7-3a04f30f977c","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":137,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"2e59c5e1-32fa-4ecf-a842-04b1b092302a","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":137,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"cfb39ff4-1d35-44d4-a312-7bfcf0169c4d","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":137,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"e9ae98f4-819f-40a3-938a-c6e45c860a41","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":137,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"5b0e6d2c-9701-49f5-973c-0c527aacbcde","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":137,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"c364a9f6-9019-4554-a1ae-127e06340bb0","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":137,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"55820d1d-e8a9-4653-92cc-436da414b39e","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":137,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"8c133369-7ff1-4bfb-b443-1cb65248ecc1","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":137,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"e9c53b12-e7fa-4d6d-80dd-ffa78f903c43","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":137,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"b28e409f-5534-46bc-8c12-06f950487b37","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":137,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"94866d06-ab06-45aa-bf2a-cb8d43b3b754","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":137,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"55337d41-fd55-4616-afa2-ee0084fc3a6a","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":137,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"386abfe2-88c0-4e74-aaff-ab2e94769287","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":137,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"42d5dc2c-b815-4fdc-aca0-1d346d997b93","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":137,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"b6df7ff6-7e77-4e58-b3e6-6f33ed47b615","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":137,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"0626bdeb-54cf-40d2-93a4-7f974246fde7","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":137,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"d2c5d752-f000-4ec4-8615-dc1a5134ef6a","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":137,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"13605eb0-3fd1-4a03-8437-4a2d2a1e1389","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":137,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"632e741f-1599-4c86-936c-7187d53154f4","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":137,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"f2c8a3a8-7122-401d-b7d8-aac6067d8fbd","block_type":"box","text":"some additional expenses.","page_number":137,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"40b2a87d-f1ea-49f8-ad72-4ac62e386e10","block_type":"box","text":"II-94","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0bca2618-1f14-46d9-b1f6-c1cfe9fdedf5","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4bbf1084-69ef-48a7-b5e8-5b6b17e998cc","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":138,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"bf7aa319-f3c8-48fb-b569-d19d2315df2e","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":138,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"57ec8eae-0e91-4c0d-847a-4d23f867819c","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":138,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"07bb7b34-b0bd-441a-908a-571bee496f89","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":138,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"1dd8e4e2-45c6-4b6b-9de6-b0061c36a7f1","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":138,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"d4a2712a-34e6-44b5-a160-e8ff58212452","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":138,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"36095614-927b-43b4-be74-babc5cef49ff","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":138,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"5d1ad2b2-0a46-44ea-8914-e0d63e3cf5a7","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":138,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"72a62ce2-de3d-48dd-ba4c-d224a9a5d43c","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":138,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"b4ad2c15-a618-4c7d-af1e-9541cf3ce485","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":138,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"6a2a89a6-9c29-4a17-9444-8358d8381101","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":138,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"f8cf6312-0fe4-472e-a813-1ed32e9d524f","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":138,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"add1275d-ec91-47de-bee2-f55ae148f655","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":138,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"ff9943fb-78a8-45b2-af81-e4517595f50b","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":138,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"0731b49f-676f-4d27-8341-69b32a40f590","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":138,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"3e8eb331-c59d-4c40-b2c8-38802718c63d","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":138,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"868c9968-9cb0-40e4-b65d-f6ed880861fe","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":138,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"26aa2993-c839-4de2-84c6-4450f2701cc7","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":138,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"49db752e-075b-4b5d-9b1b-055fec02cdcc","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":138,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"05598b9c-0832-4e1c-b7f6-ce3d1f8daab4","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":138,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"a441875c-fb4f-4b54-ba0a-0b40db57a4b3","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":138,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"07729f41-2b78-4967-b3b8-de1ebb94ea4d","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":138,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"3b60a978-040d-4cd6-99c2-a180222956db","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":138,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"849663bd-3bb1-4c21-84e1-b39ffc644325","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":138,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"71efcaba-4444-4c6a-a435-3a55b77e9198","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":138,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"4ed637e7-10e6-4be9-b571-46134a8fe321","block_type":"box","text":"public information about the company (","page_number":138,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"32cc029c-a792-4039-b2f1-fdd2df21aeef","block_type":"box","text":"e.g.","page_number":138,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"abb2c6e9-3e5d-4ae3-a887-6efd175102e6","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":138,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"8ae859cc-9269-4e3c-9494-5bd9f6e86fbd","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":138,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"a32cd054-f3ef-4039-b764-51e7a4e95002","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":138,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"a501c9b1-f8b4-45bd-b816-e9e9922f9969","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":138,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"abf608dc-53c2-4680-9cd2-e7967e2439ea","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":138,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"5ecea48a-fd4a-4230-8316-a0f62d608a30","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":138,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"7524a6c6-5714-49b5-993b-37d5ea6e5fbc","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":138,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"9ffdc9df-992e-4c70-b702-ebec69bc0c47","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":138,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"dfe0d69b-9192-43ed-a70e-065e263c1a41","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":138,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"5efe3380-d352-429f-b669-182b0760cb31","block_type":"box","text":"of the issuer.","page_number":138,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"4155306b-5653-46c3-9363-325511e1eece","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":138,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"262c78d7-9f19-4898-af77-669c271be124","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":138,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"b2c348dc-96b6-429d-b887-5202672eca86","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":138,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"0ba60f00-e395-459f-a232-6ce5f13e0002","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":138,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"6991d101-81c7-4004-9634-a7b316acd518","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":138,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"62c4e17b-bdf9-45da-9b8b-0d6f1d6c9266","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":138,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"77e6a594-8028-4391-9134-fc3d99ac9a6b","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":138,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"f1200e53-4f79-4003-964d-9b9127ea7f52","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":138,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"3b897e94-b1a4-480e-8d97-2ce7f4b7db46","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":138,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"7d254f35-bc21-46ce-88ba-d8dfc484280b","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":138,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"7c86c369-3bdf-405b-be39-e7659b38651b","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":138,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"f5509d7f-c3ef-40bb-8ff5-2b246df10d07","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":138,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"261f4527-870a-4891-8fe0-e09d06720f5a","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":138,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"aba54a53-d4cf-4655-91aa-98cffa5cba95","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":138,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"72286d41-7374-442e-8458-7aaa341e35f1","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":138,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"7a423b73-4b00-4060-a1ed-762d0adc5cff","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":138,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"5dac6000-2346-42a3-bb63-8cab79b26a81","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":138,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"4b204ae2-e725-4d83-af7b-d19fdf01fb95","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":138,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"2f0569df-b266-4c73-8b63-6f0864b60035","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":138,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"8c2a4ff8-b8aa-480d-bf80-1c87a583dff9","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":138,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"1ac86357-98c2-4182-a324-9643f1d976c5","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":138,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"3890fabe-c00a-41b7-9af0-3a6786f8d4f6","block_type":"box","text":"II-95","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e3aced76-82f4-4f73-82de-b567b5dfc58d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad764fa9-d988-4e83-a43f-b885ddc0adef","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":139,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"682f663b-ac88-4180-97e0-a86c0033da46","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":139,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"bcd690e9-2b10-4114-8778-9040da510301","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":139,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"5f91656a-5b41-4d2c-8c4f-c9aa994657c7","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":139,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"c9621042-a8bf-41e8-8e1b-79a54f21b038","block_type":"box","text":"a barrier.","page_number":139,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"bc0fe793-37d2-4cfb-8998-4ceb7f57034d","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":139,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"d41879e4-a379-4da0-96c0-fc0249fe0159","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":139,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"1e557fb7-33e7-489c-8cc5-aca706815963","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":139,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"38f21232-9b94-42f5-8a0a-b61d691967a7","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":139,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"14a491a1-5fa8-4071-8ddc-050665bb4f67","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":139,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"57b9e996-7fed-41da-b9b1-b27443569fe8","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":139,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"ee84f68b-bf97-41e2-9c48-6bc404e9702b","block_type":"box","text":"that operate in cer tain industries (","page_number":139,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"2ccaa122-cec7-4caa-a9f5-95ed22e228ea","block_type":"box","text":"e.g.","page_number":139,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"1a46c21b-ffa3-4af5-8d65-accd25f63532","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":139,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"1cebe9b9-5b17-4c07-88bc-656b6ef8ca57","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":139,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"67f753c5-723a-42b8-8622-43b1ecf45e13","block_type":"box","text":"e.g.","page_number":139,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"ea0e2d41-4f22-4898-b296-7e94b1c43ea4","block_type":"box","text":", with mechanisms such as poison pills","page_number":139,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"9162b7cb-798f-4194-92f2-4fc2e82a72cf","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":139,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"36d8c408-c5fc-444a-bd96-22db3069e351","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":139,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"f6d79448-8555-4139-90d4-51f684f63e22","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":139,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"a36806d6-7627-4414-b778-f956dbf19870","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":139,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"2b981e60-bbd7-4cdc-88ba-e5097863e586","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":139,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"4c0e8ef1-8cf2-46b0-9878-77f766ac4f1b","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":139,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"4415e3b4-976d-489a-82db-f3df7707ab3f","block_type":"box","text":"seek to make indirect investments (","page_number":139,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"b8beadd4-afec-4418-9a9e-86ab1cb7c7bd","block_type":"box","text":"e.g.","page_number":139,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"6809343a-5ca2-4aa7-9873-d9d9af970201","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":139,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"e082920a-d1ab-450e-9d00-e4519bd4233b","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":139,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"a6ca8c7f-cf2a-4fb5-b76e-823a41029df3","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":139,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"abf336d4-ad1d-468c-985a-7136060b8d59","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":139,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"907a7ede-d595-45b2-b8f0-59e620cdeebf","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":139,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"70b773cc-bade-4eba-9e04-f8ddeb8b07ec","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":139,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"579d50a3-151b-4707-94ae-36ab992455dc","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":139,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"9c8bc99c-11f8-48d7-b3a2-f47c5101b548","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":139,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"cba24f16-fcf0-4211-b735-9ab52bb30bd1","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":139,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"831ab508-9dd0-421e-a8db-103d2eaa6aa8","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":139,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"451685f8-01d3-4727-be9d-bacd6a3b0cd2","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":139,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"b79e0a27-a669-4d2e-a7e2-db2d5487f473","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":139,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"1c9ee633-c651-4c5a-a73e-0cd714cf7732","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":139,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"cde13e9d-07dc-4798-8379-e24469b098ae","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":139,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"2ac7c1d2-d407-42e9-af83-8c9536d323a3","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":139,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"c82a726e-2b76-448e-b00e-fe2d01acb4d8","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":139,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"b8659615-9103-4340-bd25-27f18abb2f00","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":139,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"0cc8c0fa-220e-4e0b-96c8-f2bac4ff0d91","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":139,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"685f8998-9657-41e3-8eb9-c4a6ab477ded","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":139,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"1b40ac0f-d48f-46d9-8339-db8283d3c6db","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":139,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"3d42753e-aced-4bac-a736-c933f2fed492","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":139,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"6f1385cb-915e-4b3d-9e05-d1dabfc2b54a","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":139,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"25f82fbc-e73b-4435-a064-57ab6cbfdc21","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":139,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"816315dc-10e2-4130-bb4d-61922e73dc1b","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":139,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"9b7bc184-6824-4e89-a026-29547553d7fd","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":139,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"653e430c-0a52-40ce-9529-e08365e8ec5a","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":139,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"9adf8325-84a0-4767-890c-2a371ea36361","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":139,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"4d1b1d29-55a6-4889-a331-06358adb3733","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":139,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"fba903ab-8288-4625-8019-5c23a27e6550","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":139,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"097a7d7f-8828-4d4a-987d-ea88c92832de","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":139,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"480a7425-e5a3-4520-89e8-0340a12bda9c","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":139,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"cba0f49d-8d2a-4a43-9982-46389a9a33d8","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":139,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"cef991ca-8077-4d5f-9d5a-98dd1708f780","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":139,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"53d822cb-406f-42bf-b9cb-862ada361409","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":139,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"6816c411-ca50-47a1-8c6d-b9a251e778cc","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":139,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"bd731155-36bd-4baa-9a85-a903392d1653","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":139,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"98b8411e-f0c4-4402-bb9c-51285a5e3138","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":139,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"e8ea065b-f8cd-4315-8132-16cc66fbfbe2","block_type":"box","text":"II-96","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"09882224-90fd-4a70-9d3c-b14c3480327d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b141ab5c-be0a-40b7-81ac-7ea29569a289","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":140,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"c614bf4a-48e3-4241-bffd-25ac0f9befe5","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":140,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"e94a1a35-7ada-47ea-a660-e3ef9888baf8","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":140,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"1787490d-c59b-4354-910e-67b2d8fd544a","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":140,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"f92d4544-1e57-42ad-883e-554edeab23a0","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":140,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"5a4d1435-ebf4-497c-b3dd-2875d128f94a","block_type":"box","text":"strategy with respect to such security or asset.","page_number":140,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"65129d56-0080-475b-9836-3b8410eb5e7d","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":140,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"9ae50d80-b30a-4933-989e-4126cf8105d3","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":140,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"79baae7d-cbc1-4f9e-985f-a4a769c2ca6e","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":140,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"2b19b7a9-e318-4b46-b768-cfe33f29da15","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":140,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"012fcd9d-2fbe-4207-9cf3-0db617ee873c","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":140,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"e0d4b0c5-6dbb-4ee7-8fd9-b336366e5e48","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":140,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"acd14396-1166-49f8-8b9e-911db6c80f4e","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":140,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"b0d939d4-6ee4-4c5a-8da6-257607984093","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":140,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"fdbbf2c4-f9f9-457e-8836-68b953f9ea94","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":140,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"5115541b-f889-450f-a7be-b26eaf2733de","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":140,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"49fd3238-3349-4a47-8195-944064e93be7","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":140,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"d25c5d98-6e53-4495-a2a1-ff5fdf902ed8","block_type":"box","text":"e.g.","page_number":140,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"5e44ce73-c5cd-4981-92d4-d49df6b94226","block_type":"box","text":", custodians,","page_number":140,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"4ed7923a-f69c-4c24-b847-ee1467aba80f","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":140,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"34aecbda-243f-44bc-82e9-b490aa08cc8e","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":140,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"888b5e2e-de9b-419e-9a3f-46e7d161cd46","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":140,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"5c502da3-4f94-487b-af1c-e3fcc0b003ad","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":140,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"3008d456-7896-4218-8ac4-dfa3929f8f44","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":140,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"3901696b-b08c-4e1e-b4c3-f298b2effa71","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":140,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"cae82f88-511d-4b17-975d-7e6f1d1ce954","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":140,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"196fada3-5fe0-45e1-9b7f-364e7683590f","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":140,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"c90ca61b-183c-49af-a01f-87204c0d0ca5","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":140,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"678de4cc-f9cb-4981-80fa-d4afdf33e018","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":140,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"eb4adfc0-4a86-4614-b048-279827565eeb","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":140,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"c644a123-f0c0-400f-bb0c-eb82528608e7","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":140,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"951c478f-3ceb-4bd0-9bba-a585b1705fc3","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":140,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"c9131d67-bda4-4eb7-8c4d-a935b5176711","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":140,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"f2996217-420f-4472-8a07-2cdcd429d3b3","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":140,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"92c72aaa-999e-4022-8b2f-30f2c6f7aac1","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":140,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"45848377-fcb6-4a2b-8a5d-c04223febb45","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":140,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"ac574177-e74d-41f1-afce-32c1ecce46a1","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":140,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"f1f64632-a6ad-4ae9-8473-4218971395a5","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":140,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"d22498f7-57ce-4e50-86b2-1f9510f82ee9","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":140,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"269b9aad-1313-46a8-9ab5-9685b65e2ff3","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":140,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"667d6270-9b58-4d3e-a81d-a46831550acc","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":140,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"9ed4113c-b52d-4b46-a093-6e4db6d96dde","block_type":"box","text":"provider.","page_number":140,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"d8980f41-b1c4-4a67-ba2e-66d23512452a","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":140,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"551e22ab-e33c-4f27-9f9f-7bfb83171a48","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":140,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"f8f31580-6ad8-41f8-b4dd-d92fbafb1ec1","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":140,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"1f6ed92e-c086-4eb6-897f-397c2a59c6b0","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":140,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"bd45d96e-d113-4c52-9083-15eeee6a0eee","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":140,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"8937d469-0dc8-448c-a113-65107084aedc","block_type":"box","text":"PURCHASE OF SHARES","page_number":140,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"cc1dcf3f-8a26-4450-9190-7c69de46aae2","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":140,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"ff1ee838-9282-4f8f-a60f-a9eed40f1563","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":140,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"a5a4b692-4ee9-4578-bf3c-04df2bdb2fdf","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":140,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"8a567b7e-8877-4521-bd4d-80f0dbc32dc7","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":140,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"2e98d589-97a1-4e0a-bfc0-2a13fc5e6299","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":140,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"762ef0cc-dc9f-4ec7-8a6d-d50465fc5770","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":140,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"96ffc8c7-8ba7-4529-af1d-5740271c8700","block_type":"box","text":"II-97","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b4905728-b24d-4b5c-8479-9bc0d1d3d918","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab801071-8807-40ce-bb70-fa2d82dc4be5","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":141,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"c3e88cb5-47d5-466f-aa90-ba94f4e95590","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":141,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"1ba75031-1426-494c-9eda-33acda64a54b","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":141,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"714feace-cd39-4fa5-866a-71c82d549945","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":141,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"c8cf49b2-6011-4b33-a35d-7fc95d38d49b","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":141,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"692b93f9-8224-4e1a-b365-18b8071ee971","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":141,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"6e7f6c02-2eb4-4f5b-ab99-c12b45df7f4f","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":141,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"0959fa2e-3d12-40de-92c2-6db524d519e2","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":141,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"eec29327-3ec1-4b56-9cfe-ce81813bafa0","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":141,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"940c9592-b80c-4ef2-a486-733a341fc87f","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":141,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"474c35a4-8176-420c-821b-c5315c4ff4d1","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":141,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"3a711084-81b1-4f4a-a419-b1a9852312e1","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":141,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"f030630b-8e67-4a02-b592-3ac9f504e98b","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":141,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"d6d0cbb0-4ba7-485d-9226-9ab60f3ae0a9","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":141,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"c8b7cc50-11a1-4eb7-ab51-380404ed4af0","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":141,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"53900084-94e7-4ed5-b9ee-41d7b31bb251","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":141,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"075f87b3-f709-4ca4-912e-9496df1b0916","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":141,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"cd27bd45-d909-4c3e-afca-93fa38ee823a","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":141,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"be3153f5-44c2-4b7a-9639-6193ff4931c2","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":141,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"e0c704e9-a74b-4a3c-8e51-4bb86524e8fb","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":141,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"9244bbef-487e-42a2-92ca-654853d3e1c5","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":141,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"c0befb7d-82ab-4356-8b44-ceeebd7d45d4","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":141,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"013e7e7c-0e3d-4d2f-ba7e-869343c2ab34","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":141,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"f670e7d1-fbcf-4533-bde7-7b0b498da533","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":141,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"a2f6c002-9c0f-484f-b610-114f48912e5f","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":141,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"fd47691a-7af3-4ad1-a7a7-24cdc3e9a23e","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":141,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"182ee689-9bf9-4fdc-a3ed-9d4648695ea3","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":141,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"e3f59bb5-6855-4cda-96dd-329210132b6b","block_type":"box","text":"investment is $25.","page_number":141,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"ea02e916-d476-4ca2-b8a0-4d7190d69fcd","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":141,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"585f8820-e296-440d-9680-a3a8fdeec820","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":141,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"ac4fbecc-333a-458f-ad18-53c3bdd903cd","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":141,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"4efc4638-2a03-490b-92d5-a4ebfda8eff4","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":141,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"4aa048cd-5ce3-43ac-8ca7-25c7740956fb","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":141,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"5361192b-0534-42cc-9857-c76cb5eceba0","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":141,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"c2909bc3-3209-4231-b02c-543e4757c5a0","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":141,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"080ea41d-7d74-4285-ac24-a62c117006da","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":141,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"1fffbfb3-115e-4c77-a27d-ce8f7259e95f","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":141,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"a8fbe2ba-3bdd-4945-a653-3c6e8e32caee","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":141,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"da947df9-8022-4cee-ab77-f581232e4480","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":141,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"ebbef277-a624-4a32-8755-20650a155274","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":141,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"520ab21f-6be5-46c1-a512-c165511bcce8","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":141,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"e02a5870-a24c-4a27-a803-556b67d8228a","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":141,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"36ee06b7-72ee-415c-b4ef-505fd1191d9d","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":141,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"6e32a050-2bb5-46e1-aba8-f00ead2e5e02","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":141,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"2b7a2cfb-fb85-40d6-bf83-8daf38242335","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":141,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"e5063941-fe8b-483c-87b5-7952d7e74efa","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":141,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"9b245aed-ac73-4e39-bb7b-f533f9dd3b91","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":141,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"61dbbc21-9231-4365-bc47-9d7f9e223685","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":141,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"c38f7ff7-da8f-456f-bee1-3c7676820564","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":141,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"c97f4e27-d2ae-439f-9fee-de8b44699454","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":141,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"683b0f89-2940-4a8c-bce5-17783d031de8","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":141,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"90764207-3ea7-4818-9ad5-c62506f649f0","block_type":"box","text":"adviser.","page_number":141,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"8ccc096e-d98c-4656-87b9-bc488246d02e","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":141,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"c64345eb-d72e-4afc-9afa-6ec02c4f562c","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":141,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"414ad1cf-1d54-4e48-bd5d-1a4c5d5c6891","block_type":"box","text":"II-98","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b656a66a-057d-4256-ad6d-cc908e546c4c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54e3288e-7a23-47d2-893b-f592586787c6","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":142,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"9ddd1055-0fea-45f6-a372-7a30eeb4f2fd","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":142,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"a3356eda-b4eb-4ea4-b17b-9366d05ce038","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":142,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"fcf8d829-ae59-412c-88a3-958ca47973b7","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":142,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"1e74a743-61b5-43a9-a87b-e95e3ee4161c","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":142,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"e8ef2872-507f-4b25-8e38-1e289f32ca78","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":142,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"7872f43e-7f24-4dc7-bb42-5ce21ba26e9c","block_type":"box","text":"also be restricted from making additional investments.","page_number":142,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"6e49e07d-8f14-44b8-a02f-a93ec8d3cade","block_type":"box","text":"In-Kind Purchases","page_number":142,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"3550e38d-e142-4ada-82bd-ea9e9203cf63","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":142,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"30251d38-f6b7-45e0-8778-e8e3d365c5b5","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":142,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"75bddda1-cf49-49af-8f09-0c161eadd171","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":142,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"27b3210a-b86c-47a3-b3af-403ffe5d6590","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":142,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"42fc73bd-d898-4f85-8a71-c28625cc1cf7","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":142,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"89545aec-2bcf-49b4-9177-e9289d351a76","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":142,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"feedcfd4-507e-477b-8316-f3fb920838a1","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":142,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"e3f35748-5634-4348-8142-37d2fad3b3a7","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":142,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"d1af2689-6f97-4108-8a7d-1d5544063088","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":142,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"90c68398-6630-4fcf-a4c1-00cfee0afe4d","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":142,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"5cd7d0ae-64d2-4c63-a880-9b1d6acbe513","block_type":"box","text":"has settled.","page_number":142,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"a11342aa-da57-4e6d-b232-6819ccc3f1f4","block_type":"box","text":"Institutional Shares","page_number":142,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"480eefae-019b-4a60-86b2-6e799bcabd84","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":142,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"788db9da-9964-4c6a-ab76-241881c66956","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":142,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"c55a055e-236f-4333-85cc-cdf93361686f","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":142,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"aca1fdf9-e330-4f90-9a85-5d28ff1756b3","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":142,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"f9c08ad8-fdf8-4c89-81e8-f5d823db7eca","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":142,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"0890f65a-b872-4567-a168-a0a27b1e6412","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":142,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"03e3cb3f-d700-423f-a08b-e523ed849482","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":142,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"48b37b44-6b51-4f08-8986-5c07fa4ab989","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":142,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"00d5d41f-b74a-41fb-b057-5d7f91a150c8","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":142,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"eff5d4ce-4863-48c3-9d04-7a8848e7b593","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":142,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"078f230d-96df-4ca2-b49d-2949df246970","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":142,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"cf613a46-21eb-409f-9a99-cb655ec785ac","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":142,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"7d434f18-fe26-4a81-9a61-3bdbc7037900","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":142,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"3a8113e7-20bc-46ae-9181-574f006a1015","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":142,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"01cd0edc-9d2f-4896-a69e-5090a0409d79","block_type":"box","text":"these fees and conditions.","page_number":142,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"e8b6efb1-c25c-4873-9806-de5e22775315","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":142,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"5b463dec-2d91-4868-8b89-5f953b264d03","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":142,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"0aa457d7-569b-4b6d-a306-4491e112f0d8","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":142,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"29c26f9d-b203-4963-ae80-013da509a792","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":142,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"988c8ad7-5f96-4b00-99bf-dc25fa86066c","block_type":"box","text":"incurred by the Fund.","page_number":142,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"e1cf2dc0-001c-4bcd-8caa-0a55b9050f7a","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":142,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"a0ef7ce7-6f3c-4ac7-a50b-a4ff632bc845","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":142,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"b00edeb3-1530-47f1-95bf-b6320bae4267","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":142,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"40044ed9-ad15-4aed-9b40-e992eddd0e0b","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":142,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"31ede0ae-dc35-4db4-b171-432e3406d190","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":142,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"bf92b627-72d1-46f3-b815-72d0298f3823","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":142,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"ceed81ed-bdd8-4324-b3dc-6d0d16687d21","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":142,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"06ae9fa5-1a1a-422c-b7e3-ef9518c906e7","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":142,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"70ac2ca0-0908-4622-9542-f0f8296f76de","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":142,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"7330d38a-596b-4dd3-9afd-5d26a8fc79ec","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":142,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"43c7e418-7ea3-4eec-b281-d2251ddb5516","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":142,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"09baaabd-0f82-4932-a515-f50d97aa7dd8","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":142,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"d60cdc57-89b3-45da-8d9e-92834f45e886","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":142,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"33af5cdb-ed2e-4879-a130-4dcbc57dc244","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":142,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"43bfd449-ea12-49cd-8af1-f8123df561e2","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":142,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"a13b6b3d-c638-4edd-b1e8-c0942859027a","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":142,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"491c220f-d3a1-4db0-9707-6a5450b9adb3","block_type":"box","text":"II-99","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a67f5068-bbfb-43dc-aa57-83480a60645b","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84533e5e-0a75-47fe-b35c-9305f35b3590","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":143,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"1486312a-5e2c-4a47-876f-1413709ea35e","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":143,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"7a3e969e-a847-41a6-b26d-61655e165cd0","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":143,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"c63029ac-d0b2-4b38-b037-31524bda4ace","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":143,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"fb05fb22-f189-44a4-bbee-cad19bf2af11","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":143,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"012b5b58-70c1-4e81-a5e1-948f50a3241c","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":143,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"d2f60242-bcea-417a-acb7-cd70e49096f9","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":143,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"89acf337-4e7e-4eaa-aca4-60f78e371975","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":143,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"ac1a3678-a2c2-4c99-827b-f87b9070e705","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":143,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"f38871b4-078d-48ba-82e8-187c4e449e75","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":143,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"cb922712-9138-4feb-bfdb-c7efabde8d04","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":143,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"43814740-1927-4222-aaf2-e0c545384e4a","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":143,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"b002f05c-2567-4c1d-85c2-95a47d7ef6cf","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":143,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"659d9077-7017-4f60-978d-405dd720a4e5","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":143,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"eab564f8-6cfb-48b7-b63d-ab82bcc951a2","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":143,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"27705b37-22a1-49c9-8290-6a96f48ffc13","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":143,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"015c47ac-055b-41a2-9483-868fcb531247","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":143,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"71a4d24a-5faf-47d2-be20-ac43c917a1c4","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":143,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"9065b247-9c84-496a-bdc0-cf19fdb77b1e","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":143,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"82b3c66a-16cc-4cf7-a58b-8931234ef7fb","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":143,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"21fcaaa3-adf7-466e-b16a-47a72636b770","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":143,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"abd6056e-2207-4386-9281-88d63157d453","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":143,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"0e9acccb-26ba-4193-bd08-04d974dadb41","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":143,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"1c8abee2-a7dd-445c-8c0e-f47cd1617ab6","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":143,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"084a25dc-41c6-4e28-9f79-7f9847929455","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":143,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"0cf04117-058a-4dfe-a45c-5517634c611b","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":143,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"f0d18b7a-1f66-43b8-84ce-514035a79085","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":143,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"541e1aa9-d341-4be6-ab4b-540831cd38d1","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":143,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"ac44da45-dd31-473d-a978-d66c0f7cfef0","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":143,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"c216f596-7c7f-418b-9c77-970c8da8e187","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":143,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"b17f44cb-67d0-4bd6-abf2-f2cb2f6a3956","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":143,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"13bbac4a-8542-451e-a0fd-e43b7968b4ab","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":143,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"ecd6cb78-d35e-42e9-a796-c2ba76f76697","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":143,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"80381495-fe56-4633-9dd5-924f531ab82f","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":143,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"09e01947-ef44-4965-aaca-d5cae0a14bca","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":143,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"9cf986d9-ecf7-494b-98f2-36746f9f77a7","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":143,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"486ae5d6-9731-4028-bda7-45e7ad70641a","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":143,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"516b8375-3d8e-48e0-8282-786f604fe99f","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":143,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"e3593d2c-3421-4587-8d90-394bc8ee6e39","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"9a8e715c-e6cb-4446-ba24-c27346792ef7","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":143,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"eb7a8ba8-b1ec-46f6-a304-8fdcc7a382d9","block_type":"box","text":"periods indicated.","page_number":143,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"86a95a96-36da-4486-a0a8-f60f96707bc9","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":143,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"7a356957-98a5-4ae9-be81-df639ffbe5ab","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":143,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"fa01a692-f840-4e46-be04-2fe38fa07742","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":143,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"7ac4db7a-ee8f-4e99-82b5-d6cf1575c3c5","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":143,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"de7d6d58-260d-4ac8-9a77-94eba1104a38","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":143,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"19e0608d-c7ba-4fbb-9381-d2094bcc55d3","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":143,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"ecc61f7e-1e7a-4eb9-abbb-ca34e3c1d8a2","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":143,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"8d24793c-afdb-4666-b00d-ccd4568069fc","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":143,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"1023ef29-57b2-4a49-8ce3-af485d16d333","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":143,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"cfe45573-3b98-4103-816d-084def97cff9","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":143,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"539c64c2-97aa-4781-81c8-4cd9732399fb","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"4e4d1eb1-278f-4311-8fb4-dd2138035911","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":143,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"20ef0e95-6119-408a-8a26-1101e28adf03","block_type":"box","text":"II-100","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2eb13db3-4aa7-4c2f-86be-c3d665e8845d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b0de4a4b-2fea-44bd-83cb-9ee3f0b10f59","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":144,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"91c57fb5-9ece-49f4-8343-6e6da7fe41b6","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":144,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"4f73116d-6db2-43ac-bc07-dcb25d4fa237","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":144,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"888c08ac-0859-4f04-9b66-f0809c983dd2","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":144,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"10b830ed-9906-4484-ad1f-ffac55de7d01","block_type":"box","text":"Reduced Initial Sales Charges","page_number":144,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"d5793f9f-28fa-44a8-b8c1-58317428e6e9","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":144,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"aa07e9c3-dac4-40d7-a86c-b605d80f4977","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":144,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"cadd9880-f916-4aa2-aa7c-dba318004fb8","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":144,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"2fa75127-44dd-4705-830b-24936576e4af","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":144,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"dd5b5593-7cdd-4871-a87f-577c4b1be30d","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":144,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"00f88ad0-d210-46d0-a11d-94540aacfdc2","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":144,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"6a19a9ab-a681-4748-85df-286c3df79d0b","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":144,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"b5607567-2740-4cea-a575-179081264b8b","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":144,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"1e96aa26-6ca7-445f-a279-8cf184e49441","block_type":"box","text":"Reinvested Dividends.","page_number":144,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"98a28088-59b3-42a5-af2d-35026f072587","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":144,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"58aa1603-e7a9-441e-877b-713a9b941418","block_type":"box","text":"reinvestment of dividends.","page_number":144,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"c0af595d-5eee-43f2-aff0-330731a7f57b","block_type":"box","text":"Right of Accumulation.","page_number":144,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"bf381133-7162-4ba5-b3fd-05432bd05ddf","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":144,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"3cbbe12d-5a5d-4ce3-86d2-8178ced3e9dd","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":144,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"da152482-fd86-4a2e-8093-6fa676ce2451","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":144,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"30c7fe3a-de65-40ea-80bc-3209836a492b","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":144,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"06e1b0d2-3cd2-46b4-9996-f4994cb04228","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":144,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"a3c1f81a-bac3-4b87-9229-ba8e392a8740","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":144,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"e7e50180-a655-48a1-9fd3-f0a97b927dd3","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":144,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"a4e5fd0b-ed09-4cf1-a635-c9a26c698847","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":144,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"00a9a5b1-60a5-4aa5-93a1-d963869baae8","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":144,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"6af6dfcd-a51d-4f06-89c7-cdd536347e82","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":144,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"a5400dad-d4bf-44fa-b049-cce17240da50","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":144,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"a641948a-d424-4ff6-aeb7-72b5e2adfa56","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":144,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"d031790e-d215-4dc7-ad47-1db3e773f1df","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":144,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"79878778-b596-40f7-9a1b-dcb6ecb4c2ed","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":144,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"d13fbe60-6ad4-4c40-9cb4-6ade2086ff9a","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":144,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"e55b9f07-1e36-461c-8f75-562a7257696a","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":144,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"03519ca7-f14a-4cc9-874a-fad9d9a0e07f","block_type":"box","text":"Letter of Intent.","page_number":144,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"275f4fb4-ed0c-4d7f-99de-8bd791a63d83","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":144,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"44788df7-1883-4f3f-8ad8-40752a8f03d1","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":144,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"de078207-ea30-40a4-8243-3453f4ec6c34","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":144,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"32a08033-ce3b-4313-9d39-79cfad78478e","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":144,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"53faca83-7518-4e9c-a5bd-0b30917b5c51","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":144,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"9f27369d-bdf3-4b31-a991-48ef34635c09","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":144,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"d9746ee1-e17b-41e8-a5f8-6c8a224c49c1","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":144,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"f5877cca-d49c-4ef5-a8a6-5aef441f1982","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":144,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"2cf35583-9947-475f-8fcb-7bba3382757f","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":144,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"b1de591e-37d6-4e69-8714-f4799f2df389","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":144,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"8f1f5362-05b3-41d1-bc19-4a9675998688","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":144,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"5f6cdcd1-6689-464a-b423-ceab43b026b4","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":144,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"952b93dd-59ca-4384-aa87-f3e94aab91d7","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":144,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"481551bd-3d05-453d-aed7-8204d422fbff","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":144,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"7fdf985f-64b7-4372-918f-f6bffca2cf3f","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":144,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"25906d39-e600-4991-8873-db3adf2c73a9","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":144,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"6ac6d602-c96c-488a-b58b-2398f11266ad","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":144,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"27103dbc-7b11-4f69-bde9-9482cffb7789","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":144,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"909108ea-c2ab-4770-b9c9-297870288b49","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":144,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"96062349-0b22-429b-8d39-a63955abefcf","block_type":"box","text":"Placement Fees.","page_number":144,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"a263dfc9-14c3-472e-983f-febb35072226","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":144,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"1ec96a1f-a856-42f2-9feb-b7a90c46dd22","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":144,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"82cb17ab-9009-4f14-a641-9981e7c36599","block_type":"box","text":"II-101","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d308df5a-89f5-40ce-ba1d-5bf96e0ea2b5","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bf8f558-6b31-4a46-9f60-8e951e8a6ec2","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":145,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"5fd5bec7-12ad-413f-98bb-dd93fe5826e5","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"dcf39891-f7cb-4eab-88a5-2cd5fa1dfc9a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"e0c320b6-ff08-40d4-b2d0-c2e2239623ed","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"9b9a83e7-64bb-4109-99dc-957463ef3dde","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"5a5b67c4-21a3-4710-a2fb-081e99d31465","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"63df4c90-3d34-45e7-8114-0201ede2133a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"43c9c085-7a80-4a9a-b74a-c88a5ba4ec38","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":145,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"b988396c-73df-4009-a732-44e70e04ee9f","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":145,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"3e39de47-cd47-44c7-b343-84c7f823dd17","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":145,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"e47f08db-4dda-4d98-a4cf-0daba16454e5","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":145,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"15c7449e-3a05-4dc5-bcc7-30a6bfedf18b","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"400ebace-b862-4091-b4cc-323aa408c834","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"e55ff509-bd54-4dd1-87a0-ff2db5692a23","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"267a7ad2-5bc8-4105-9d88-6c0b9298976c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"68e5e27f-606c-4bf2-8e53-499157d6c203","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"680d1595-6c8f-42a5-ab9a-e38271ec7e22","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"8af5cb9c-1de1-4736-920a-c1325da04488","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":145,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"e4f34348-631d-4ea8-ac3b-c20cc550d07d","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":145,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"f664c6da-11dd-4f99-94c9-1cf888d9b7ca","block_type":"box","text":"SM","page_number":145,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"4d43003e-2f8f-4d59-8950-d28320151d52","block_type":"box","text":",","page_number":145,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"2cb43def-ae30-4604-a046-fec927b3f8cd","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":145,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"eeb17b62-8083-49e3-99e0-ade33d83d0c9","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":145,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"bd1a9341-c102-41d7-a790-de9d82c24405","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"2a441d50-838d-4a89-a628-3103e40b1711","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"aa663454-bbb3-4dfc-8d08-1110bffa6ac8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"96571ba6-2811-4814-ae73-abe33ee110ae","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"b719e7a1-3563-4fca-af1b-e770ddd46667","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"a0f3bbe3-64ee-4a45-87f8-aa20c59117ff","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"d4af3501-1bef-4fcf-b03f-4374fbde550f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"f50adcc2-82e8-4b30-9cff-196040e7cc83","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":145,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"82ece857-496f-4ba8-94e5-fde9fd3ffaff","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"69b2f005-2940-4290-8183-fc25e8869b6b","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"4acc28a3-f533-4ff9-a1e3-150883a3641f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"d6f50ac4-69a4-4b97-bb34-6c24ffd4abb2","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"f0360afc-596d-4234-804d-e2df6e077154","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"e33b45ee-bf78-46c1-889c-d1f7b4de109e","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"477fefe0-cc50-475e-b59f-599c767cd3e4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"f3fea601-6f69-48b8-9b0b-8d110f6bb200","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":145,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"7835fede-7310-458d-870f-95ca267100b6","block_type":"box","text":"may be up to the following amounts:","page_number":145,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"f6181d8a-ee11-4cf0-9a0e-ce9efa02efc0","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"f439de76-4e86-470f-9baf-39729b696721","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"08b87598-e7af-4a6c-b9d1-b3287cc13199","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"f24ad20c-87ab-40bc-a37d-63679d8d76df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"89f2e866-74fe-4dce-a783-efc487642df9","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"2c37eb60-7641-4174-b46a-f727957dc8fc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"284b50a8-ae60-4ae2-8c53-e9001092511e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":145,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"47e109e2-2faf-4241-8c14-9b6c4b2e992a","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"d9462974-b67b-4e87-a8fe-00b2ab0230d6","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"d893278f-ac66-42a1-b7ef-99560f31a906","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"87cf3155-0d09-43f3-95ef-e3e44eb0e1b4","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"d42ef250-10e4-4c2b-bee5-88257629b384","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":145,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"829af8aa-6f6b-4c43-828e-12e24bf66975","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"5f58aff2-9a2b-488e-bf3b-3859bcc36a26","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":145,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"f8597a19-f248-4ab9-bc04-6d2d8c33cbb9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":145,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"719ab977-0f2a-4dec-81f8-60f66c7e0f57","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":145,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"7cd9dc2e-76a7-40ef-899f-9ec1721d5eec","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"24558848-3763-4646-b60a-d398a7e9a162","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"0d6a78e2-5f06-4a08-9a0e-4198c99a2d98","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"5301231c-6803-4437-9a1e-0726a727e013","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"8075467e-7d2d-4ded-be50-68f541d42f14","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"7a0de046-b3d6-40f1-83d0-6729934c60bf","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"1d223b64-d442-4db4-af1c-2e1229de0d8e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"7128a5a2-a05b-4aa5-a957-cc40e558f1d6","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"66a8c6db-142d-465d-ba58-d34735fd65fa","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":145,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"2f48a203-a3c4-4f97-a6b4-c179954d6c38","block_type":"box","text":"$250,000 and above . . . .","page_number":145,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"3bfb43b8-9026-4fe7-bb7e-259abfe7fbcd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"05ea0258-eb7d-421f-94a1-e9bb2fe8110f","block_type":"box","text":"II-102","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"538d1a96-581b-4c11-a315-6ab60516a644","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"340a8b94-b9f0-4257-8f83-115b884619b7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":146,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"ba50e510-1d97-4751-8c9a-7464a6ef99de","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":146,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"1de9757e-3b67-461d-83e3-13efeac2a19f","block_type":"box","text":"the following amounts:","page_number":146,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"89b91415-5c30-44d2-a18a-c97f55acad71","block_type":"box","text":"$100,000 and above . . . .","page_number":146,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"5396a3a4-c5f2-4f83-91ea-ec5415de13d0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"7f0a0990-b163-47d9-8e23-dd090781d9d5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":146,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"ff8bdd78-9d73-41a6-b922-4040489cac9e","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":146,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"f2cd6e33-1974-4403-992f-1e3b184c78eb","block_type":"box","text":"$250,000 and above . . . .","page_number":146,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"20403afc-896e-4a20-adec-4ae1ef996f7d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"09f3cd5a-9605-4b90-8722-14edf601cdc0","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":146,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"e5821b48-6720-492e-8fc6-4a5a55040ba7","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":146,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"d5b766d4-a159-48c1-a90c-01c661047c33","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":146,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"fb1e3461-a57e-4001-ad4e-d70553e9dc90","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":146,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"bdc14122-e858-4ecc-b40b-a9457ba5eada","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":146,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"8ded37d8-cbe4-4c94-90f3-c50e0d8c08d5","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"b2498eb2-a990-44cb-a830-69c6bb579cbf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":146,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"c8df9245-f5f6-46e3-bf2a-9c560cbe384b","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"af9938dc-7e02-487c-87e0-9ea8420a0b43","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"433b4faf-400c-4ac7-8ca3-f5d854782ee8","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"25b21e41-091a-4f3f-98de-94323924c16c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"373ed1da-bf80-4fc5-b1aa-c89167ec5139","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":146,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"acacb2c6-c048-4d93-beec-b5b02c75103e","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":146,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"76343934-3da9-4550-8bcf-59ec0b165376","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":146,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"63f97b86-849f-44d0-a4be-3c7df23a15d3","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":146,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"8addccd1-6b2d-4d4a-adf9-85a47c066f18","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"3e0d2c98-c1ca-491f-b2e6-2fa7bec55e10","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":146,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"7a9fa1e4-a081-442d-b59b-ebfec6688b10","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"f9ad4a7b-3d49-4d99-b035-f5d5cb3a5bd7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"27a19a97-850f-4c16-a3c1-b6bd462304f5","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"051d5806-e323-4170-9212-ec367a5a1b71","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"344edef5-83dc-4aa5-b34d-0b24e2a1a437","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":146,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"2e2b1e97-9fd9-4410-91f6-98bac3980c39","block_type":"box","text":"®","page_number":146,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"c2a7e78d-a9a2-4ae9-972e-40c1d4790495","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":146,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"cdc98bd2-5b3d-499c-bd82-b07f75398085","block_type":"box","text":"®","page_number":146,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"464f4ce5-9abc-44a7-9fc4-b8e95bf5f15c","block_type":"box","text":"Index 2035","page_number":146,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"aab3a292-d46e-4f9b-b1f0-689a6202a335","block_type":"box","text":"Fund, BlackRock LifePath","page_number":146,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"f104fda9-3940-4da5-afce-71dc5bfd61f5","block_type":"box","text":"®","page_number":146,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"e947e79c-ddce-42d7-be51-f8d152eb1d54","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":146,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"727e7671-0847-4729-abe6-5a69767de740","block_type":"box","text":"®","page_number":146,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"b802a9ad-d071-45e4-bd46-8093c5c1b82b","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":146,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"76fa4784-0a05-4640-89ab-7a2a8dd5575b","block_type":"box","text":"®","page_number":146,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"ee53f101-ac07-4939-a3ce-ca0569176f88","block_type":"box","text":"Index 2050","page_number":146,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"ecabadc1-3495-4a8e-aea1-3143c8c7ab17","block_type":"box","text":"Fund, BlackRock LifePath","page_number":146,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"cee0ad7b-6987-44a7-b48b-f28be255a54a","block_type":"box","text":"®","page_number":146,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"b6d0cc45-67c7-453b-a5d1-7327a889f8ef","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":146,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"3f4a1d6c-4976-4aaa-bafd-68395ff2f2eb","block_type":"box","text":"®","page_number":146,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"37cf2ed0-b268-44a5-bede-97abf4a138f1","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":146,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"d4becf6c-bc7e-439e-8a62-0ea5a4881564","block_type":"box","text":"®","page_number":146,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"36fc8e97-ddf9-41a1-893d-2bd8e517910a","block_type":"box","text":"Index 2065","page_number":146,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"870beb39-c4e5-4c44-9b0b-4a658a623aa7","block_type":"box","text":"Fund, BlackRock LifePath","page_number":146,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"08ccec12-ee2d-4f01-bba2-0b90264343ac","block_type":"box","text":"®","page_number":146,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"e539a4df-21ec-4c5f-b4a5-b10091b181fd","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":146,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"8a5306c5-f2f7-4a5e-b179-0b10eb12b0c2","block_type":"box","text":"®","page_number":146,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"b11db98c-6474-4db8-b796-d7f74672c600","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":146,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"296ca441-22e7-449b-bfb9-2aab35dc52c4","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":146,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"29193256-41a7-4c01-aca0-558ccf228510","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":146,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"ca0fba5d-8175-4f31-b6a6-b14720f14d64","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":146,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"eb0c97a4-0a20-4f2d-80e8-ccf458be671d","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":146,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"c7cbc7af-753d-41b4-bc44-d419b35ca2ef","block_type":"box","text":"SM","page_number":146,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"afee40f6-626d-48bb-924e-cd96fc2f83b7","block_type":"box","text":", the placement","page_number":146,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"72e99f05-a7e7-4969-825b-e926bafdb273","block_type":"box","text":"fees may be up to the following amounts:","page_number":146,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"02f07a5d-9a93-4869-baf7-a687af838fb6","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":146,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"97d1e2a0-011b-4726-8de6-12a122ab7a1b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":146,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"f065920c-6197-4c09-8af7-b292ebaebfb7","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":146,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"706dfae8-e9f9-4a53-81f3-edf112c92acc","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":146,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"e74fddf8-6e44-4219-8a0e-33aa18ced81c","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":146,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"ab43d085-26b6-41b1-8a16-ee85d8c4aa1f","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":146,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"f4c1db11-254c-4bec-adc4-25dd066e8530","block_type":"box","text":"example, a sale of $4 million wor th of Investor A Shares of BlackRock Impact Mor tgage Fund of BlackRock Funds V","page_number":146,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"831452a8-b7ab-431e-9dfe-eb90837c4238","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":146,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"494a777f-51e0-450e-9653-c8b60a8c6c86","block_type":"box","text":"$1 million).","page_number":146,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"daa8c24e-cc61-4066-806b-a3c4d7bcd366","block_type":"box","text":"Other.","page_number":146,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"71c53f11-c7f9-4298-ab32-9109413ec609","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":146,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"e3679140-f797-4766-a392-fc5c64b3a4f6","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":146,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"82e703eb-ed08-47c7-bb7f-8d01681fded8","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through cer tain employer","page_number":146,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"039125de-9223-4802-ab9a-e55a26ea9a05","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":146,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"ce736ef6-c9e9-46e1-89b9-1c3dae4b59ff","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":146,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"0896de86-762e-45eb-91c9-a9a37fcfb45a","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":146,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"f4b65637-3696-4891-8151-18c5f3f81e5a","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":146,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"813f89a6-33e8-4776-9320-084639dec307","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":146,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"8e7e4d9c-ee40-4fbe-b098-833501a0872f","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":146,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"91410817-9257-4555-bef3-50410dd5cf85","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":146,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"4c7f2084-095f-4f56-a3e5-92e5992bd71b","block_type":"box","text":"II-103","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"29db60ba-bf7e-4200-824e-f64ee8004f88","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a4763fb-7da0-47b6-a3bb-27cf200c2121","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":147,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"0ccc6822-f6b0-4b25-a88c-5c2fcd6c8b24","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":147,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"368342a4-77ad-4d4c-9c93-13ad2597a1d6","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":147,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"ef680a2e-627a-4ffb-bdd9-ff846e1a7956","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":147,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"587b01d9-c562-40c6-b62d-0e0db6c93ffb","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":147,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"956bb79c-901d-4c64-82ad-ed0f419bbb93","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":147,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"7e0e2398-1cdd-4b06-8443-a177edf58c87","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":147,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"dc5a4efc-2e46-47ec-87fc-0f252381a7da","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":147,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"49b13b99-30b3-4b05-827b-d110cee64af2","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":147,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"dab9bd51-7d2e-44e1-a735-987f27ffff19","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":147,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"d66ba4f4-78c4-4e13-88d8-673dc37f7cb1","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":147,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"2c798360-2622-49f3-a74f-b18430c4722b","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":147,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"791fb029-e02b-43f1-809c-f6f38ad35cf9","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":147,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"91be4ed4-9d74-4201-92dd-9fdf4aec591f","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":147,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"c78d5c56-5497-445d-8a6c-39c2511df84d","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":147,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"f83173c9-ab71-4ce3-9137-1b6bfdf2ddb7","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":147,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"5910668c-70e0-45bf-8991-9cffc819bd86","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":147,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"5d13f5fe-e846-4b0e-a77c-6e440e418fe6","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":147,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"09e051b8-116b-44a7-8593-45b25a5834cd","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":147,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"d51705ae-1cd7-4775-aab6-dea6530cd994","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":147,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"8c4494fa-cdb0-4bed-9d03-44f876bce715","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":147,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"b8e9e863-b38b-47de-be5a-749e00fec9cd","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":147,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"b422dc4d-2a11-48fb-a868-94c1885c41ed","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":147,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"7e7e9bca-4de6-4221-a08c-65ca8ab19b72","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":147,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"7de1b21f-74d9-4d1c-ae12-f555793e9c57","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":147,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"c565cc95-a5a3-44d4-9928-bbdefea20986","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":147,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"4f97273a-2318-42a2-a3d8-10452b2b0949","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":147,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"ba0cd598-f187-41ac-8c08-fcbb185415ac","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":147,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"3b097855-25be-403e-afb5-7b86369b45bf","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":147,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"ce5a97c7-20a2-49c8-a852-ffae05383af9","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":147,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"d59e0a61-a6ca-436d-91f7-6a995a241727","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":147,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"f8902919-10c4-4220-a038-ca10978d59da","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":147,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"098a3d69-78cb-48ca-9364-0fd80ea514c4","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":147,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"2a62ade7-9540-4f3a-98ad-06a8593fa80a","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":147,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"2dd2e6bb-21a2-4ddc-a8e2-4ea2ed12076b","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":147,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"45fc1f7e-977d-4381-a8e4-b58e3b7d90c6","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":147,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"9d7c9db8-2e69-44c4-9a3e-748fe6969f9f","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":147,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"9ebf0105-d01a-4e43-981e-6aedc13a5c8d","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":147,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"e7d7c91c-3d7b-48ea-905c-22d0f163e5c5","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":147,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"06b035f3-88c7-4cbe-8951-b0f21e4c25d3","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":147,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"28346e8e-7056-4b21-9dda-eba5df542f27","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":147,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"c94b643f-770c-4299-9bfd-fcec89e38259","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":147,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"f2251850-e1e6-4192-8de0-c91e2a2f187d","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":147,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"86957d2d-8a07-47d0-b0f4-001e02b874b1","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":147,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"075386b6-98c6-4ecb-a8f0-2b858b24e28f","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":147,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"95219f84-6d8a-459a-beae-d65125cc8308","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":147,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"c4db8047-7eba-4b2f-b327-19f8448c8f0e","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":147,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"f8ad92cc-d221-48fa-8d1f-b6a3d3e4d8db","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":147,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"27a98c74-beb0-4a13-bc77-acb1b5c7f656","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":147,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"bd27d702-6bb8-4ae9-8a56-c26f4c256b3a","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":147,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"22d3a697-a566-4df5-83f2-6205049cb192","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":147,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"7eec663b-a04e-42ad-ada3-1ff063045c97","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":147,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"d64685b9-08be-46bc-b409-801dfc04a5dc","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":147,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"efa6f130-e8ea-4671-bcf0-b61ae70ea189","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":147,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"66e26083-6aea-44f7-8909-57d5d0caaf33","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":147,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"47867655-3ad6-475c-a797-9cb5bf5a2d79","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":147,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"9fd05c6d-7d9d-44ee-ad80-4e287918afec","block_type":"box","text":"II-104","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"32597de3-6f36-4d99-b3c4-b608bbcfb8c5","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7748c497-eaab-4a3a-85c2-7280fa8b3df6","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":148,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"b7ff199b-7eb8-46f8-844e-b0e739d928e1","block_type":"box","text":"the absolute discretion of a Fund.","page_number":148,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"131bc3d9-dd30-4f32-bbc7-a3feec30d9f4","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":148,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"bd8d5097-74dd-4803-8fe0-07da02bda839","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":148,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"5cfbf9a9-ff82-4781-a263-e73029831a66","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":148,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"5cec5338-2476-4d8e-b406-ebfeed7b2d26","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":148,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"4ef6446a-8756-4749-8a86-fe7f462a5520","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":148,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"77a14561-507d-4715-96de-a4324b447c71","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":148,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"8b2816b9-e91d-4aaf-ae79-395dc64bbbd9","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":148,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"c86ceeb0-1b86-4724-94a6-aed3cf549e32","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":148,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"0af52b2d-16b5-4d9b-992a-07b08ec42d9d","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":148,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"4333ef08-0299-4e99-b847-0facc91221c1","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":148,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"b7ccfa89-5324-4620-95a2-3d2c02468998","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":148,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"5008748c-68ef-4ffb-90bf-0a4ef4326c31","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":148,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"28927d6f-6562-4e7e-9532-bf1fe22f39f0","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":148,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"256f10f4-69e6-4447-a3a7-524666257f9d","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":148,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"4e5f7cf5-82d2-46b9-afbb-ca79476ffa30","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":148,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"99c62b62-a3e5-41cd-94bb-4ca8c646007a","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":148,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"d361e566-baec-4b10-bece-6472d2d87037","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":148,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"ebedb226-ec1b-4bfe-9bc0-d94b75861c6a","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":148,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"97811a4b-0634-4819-9f3f-83e7406ae557","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":148,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"c5552aa7-36ab-4eb9-8d22-a954c0e89409","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":148,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"8272989e-d07a-48b6-8c40-2d8a702105fb","block_type":"box","text":"public or private investment company.","page_number":148,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"deb7c667-3166-447a-83bb-798387180b5e","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":148,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"570a435d-6b07-4448-a36c-1c8cea95dc08","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":148,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"7087cab1-3bbe-4cc7-b566-b5a380e711bd","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":148,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"3a1eb3e7-b09f-4316-a9cb-4a8fd8235d6e","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":148,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"3e9bc438-ef85-4813-84df-869f44cb7a13","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":148,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"dfc573ef-c74d-4a36-86f1-87e6ca4329f7","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":148,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"c569fba5-ca86-4489-8cd4-e0c765bcb23e","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":148,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"6103c8f5-0630-461b-a83d-aa26b01017cc","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":148,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"e6a41ee8-a98e-4f3c-97c8-2721d96e6e55","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":148,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"438f1366-7fd4-46f7-83e1-49bcaac7a5c9","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":148,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"dd91b180-81bf-456c-8227-1027be770b51","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":148,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"61c5ea71-7733-4a3b-980a-d7f459328fcf","block_type":"box","text":"intermediary associated with the account.","page_number":148,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"014132ea-91eb-4001-a8e0-be6e9d88ccb8","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":148,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"0e88b31b-344b-4048-a897-8e2f16785306","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":148,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"83859ed1-dd0c-4438-ab5c-a63aad4fabd7","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":148,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"5b82dc56-c4c9-421d-a6f7-4cb9e2f66765","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":148,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"6ef8301d-ec69-4829-919c-fdc73a77d495","block_type":"box","text":"CDSC shares.","page_number":148,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"8a8adeff-411d-445a-a4cd-371c8546c0a5","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":148,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"667c8339-a475-4bb4-986f-10fb3a4c3dc5","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":148,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"60914615-0f1a-4f2b-9973-97f2ad8fdb83","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":148,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"e8150c15-66c9-409a-9c4e-fd863ced13de","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":148,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"9670c11f-9acf-433a-ae41-113b5b10cbd8","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":148,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"6c3779c2-c2cc-48db-b821-04edf49eea24","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":148,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"185c673e-a875-4919-beda-762c56bd8421","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":148,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"9d331a41-a9a2-408b-ae4a-705973712e58","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":148,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"26f51260-9700-4e13-abaa-4633827732ed","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":148,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"f88845ac-c9fb-4d51-9b99-c227b5185a92","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":148,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"d6ab8834-c9fc-4153-8b75-ae23e5515686","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":148,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"9371d961-9ff1-4d37-b51e-ed564e9251af","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":148,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"3832f442-7662-4a83-af7b-139851270682","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":148,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"44bbf4bc-27de-4820-9a52-186d0886d2e6","block_type":"box","text":"II-105","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9a12ed1b-231e-4df9-b264-31f4ff14aa05","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25df7d3b-8ac3-4c7c-935b-d566f8bc1f2f","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":149,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"9acfcc8b-f84d-4e50-be96-47fc0a63f6eb","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":149,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"bce4f63f-d1a0-4a1a-bd44-6112d90bdead","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":149,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"b1f59e10-102e-4a7d-a59f-eaf028a00311","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":149,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"a1da80e6-a4f1-4e76-838b-fc14da86d332","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":149,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"7f1bbc56-872a-44fb-a84b-69bd82e12f19","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":149,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"429da519-211f-47db-9eba-60b96b459d10","block_type":"box","text":"Investor A Shares.","page_number":149,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"8282dca9-7c56-4a0d-b244-2298615ca899","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":149,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"638b8aa4-7200-41fa-9ca8-fe58aef51f29","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":149,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"bc283832-5006-4d12-9ff9-4e64fec35e01","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":149,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"99d9de91-5833-4143-866c-e79acf67f4d2","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":149,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"4aa24f88-7b7d-4f23-bf66-04e846c9d72c","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":149,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"b208b46a-e2ff-417e-af5d-a6ca47413805","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":149,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"e0244c8d-f184-43c2-a80a-61b6c6d2ef7c","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":149,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"a6b29279-e687-40b5-8c48-ab7ad5cf9860","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":149,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"16a444a1-f37c-406c-b6ee-35093ec588f8","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":149,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"bfa41475-7e7a-4bdd-afd2-3e53c4f28f8c","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":149,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"54c9488a-ca23-4f90-8196-0f807a6417fd","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":149,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"6883938f-85d9-45ee-8ad3-2912ccdea3af","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":149,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"6e18cb69-b827-49db-aa6c-e866a0fb0871","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":149,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"06418293-44d7-4859-a67d-0f2b55d867f5","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":149,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"a2a56719-5b3e-4011-9fd0-3c1242a09826","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":149,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"7c8d40e6-6768-4f72-9192-ca0ffb61000d","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":149,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"45930b75-1091-4e18-bdd1-e317d121e48f","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":149,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"a6f93359-0578-42b2-b64a-7524645f795f","block_type":"box","text":"“Investor C Conversions”).","page_number":149,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"3e9463ef-0b3f-4c10-8015-8758e0012171","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":149,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"44bf8025-6f8e-4549-afc9-b45ca2e35317","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":149,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"8c25d644-6b90-476d-8021-72449d73df45","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":149,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"f389ec3d-de58-40d7-adc0-d5427d69dcbf","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":149,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"3483bce6-8d56-4cd1-8aaa-807c062d06c5","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":149,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"ab055b5d-2d4d-4d34-9a54-6e087d201664","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":149,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"35cae5bc-13aa-4c96-9139-77cd338c2ec1","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":149,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"cc13ad63-a1e4-490f-b9aa-de34daad0cf0","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":149,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"14754389-0911-4ac3-9a44-6189f39effe3","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":149,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"41d8ac8b-3324-4968-8dfc-8f87cabad533","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":149,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"4e52bfb6-e099-4de6-80b3-1498f785a06b","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":149,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"c10674c8-5a94-4cff-831b-2fe5e4352109","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":149,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"accc7103-f0fb-4516-95df-62bfb320be38","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":149,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"3b8bdfab-1921-48ed-9b2c-95649391bb35","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":149,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"4ddc4080-8c90-4175-9f2f-ece7a5fc9c42","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":149,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"45e452dd-8df8-45a6-b706-e551a54fed85","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":149,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"2cfc221c-b147-4eef-8d82-2215fc6d9a5b","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":149,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"d1b3f6e2-61a0-49c5-8ef1-d010cffb34f6","block_type":"box","text":"redemption.","page_number":149,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"57c7ba01-1c5c-4e01-ad6d-bcf3bf6e53c4","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":149,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"01ea4949-bee3-4d73-865c-86de661a5620","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":149,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"c78cf5eb-9e15-4c57-91fc-5495acfec55a","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":149,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"df3b528a-9508-43cf-bb4e-c95615cd924b","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":149,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"12268af6-f328-4368-b30f-5650bfd6df2a","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":149,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"6b9821a2-aa49-4491-aa13-c435a73005b4","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":149,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"c506b692-a917-4af0-a59c-bd6d2af26fbc","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":149,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"fd69d637-05fa-4bf8-afbd-811ac2670ea4","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":149,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"96a5a3bd-eae3-4304-8e21-820e4472c631","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":149,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"c23506ff-efbe-4fa8-af74-76b5e9655b81","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":149,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"46f9cc17-9a84-4f1e-99d6-371fa529d497","block_type":"box","text":"II-106","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f76899d3-684e-4b20-8a93-0afba383a10d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f0c6a4c-8d99-4ecb-b788-290c75c3a8b6","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":150,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"dbee12fd-f3f8-4741-b7f7-1ac050fe19eb","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":150,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"f34c88a5-3e8e-42c7-b75e-5ac5f30faea0","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":150,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"a4244c56-127a-445e-a307-8d807a3291eb","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":150,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"65f00e35-6aeb-4514-af4e-eeed85a4b6c4","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":150,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"2bc15dad-74ab-483e-b995-95355b9ed194","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":150,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"8fc31423-56e3-4357-995e-631011493d7f","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":150,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"1feb0c4c-5759-4413-83bc-aea221719fe3","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":150,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"daffb98e-99bd-4d2a-997c-953fdcdc2d1d","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":150,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"259c96a2-92d9-45fe-bcb2-a73644651533","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":150,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"4708634f-ee97-4ac7-bc46-5751408d6188","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":150,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"d5d39308-f703-432c-967f-f38317810ebf","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":150,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"8560d022-17a5-4f51-b9b6-c1f1bef5da76","block_type":"box","text":"Class R Shares","page_number":150,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"b0961dde-d332-47f9-8f9a-4bc5f91da69b","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":150,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"2f276f72-2fb0-440a-9bd9-11abdc535123","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":150,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"ad0cc03c-5c63-4a84-805a-295b2357097a","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":150,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"38a94392-5b9c-4301-8b25-7f63d14eb1b2","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":150,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"551002cf-fa1f-43e2-824d-c8835f0d2997","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":150,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"45e2a1b1-5729-41ba-937f-f26b17fc2c7b","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":150,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"692d1766-baac-4d90-99a3-cc9866cfedf3","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":150,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"77aa0ab3-46bb-4c37-b651-04746ebe1f32","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":150,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"b49eff22-fa66-43cc-965a-5f2ced021dfd","block_type":"box","text":"Class K Shares","page_number":150,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"a272ff26-6954-4300-8002-3dfe42bd01d1","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":150,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"4e88fb81-d09b-4e14-9547-484161cb5d20","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":150,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"a86bbe77-dbec-4e94-bdbc-ad277cbd4ef4","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":150,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"fccb0fed-1dd4-4f7c-b48b-6c8ac2941c41","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":150,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"84805bd2-26da-4db3-8d78-0d99f6a7a427","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":150,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"47e5e9af-99c5-41d8-b049-578cdf2fc7ae","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":150,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"eb19c920-8506-432d-a137-fe60e5f2ebce","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":150,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"ae03e5a1-47a6-4130-90c4-2ab0a9a407cd","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":150,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"1d26e8fe-7b06-413a-8780-4b837cd82738","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":150,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"98aae850-4202-4d55-8cdf-09cc0dcac31f","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":150,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"ac451fc1-2e7d-45bb-a372-c383f871b926","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":150,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"540fb11a-98bb-46fe-af3e-3273e8f2a589","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":150,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"352ff8c8-ee91-4f43-a2a8-d344ae0ce6c7","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":150,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"bfdbfffe-c928-46c7-a4e2-cfec20e446cb","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":150,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"9f3cc8ca-9d34-4290-ba0f-f0dc6de69333","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":150,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"04259cf4-d496-41a2-a1a7-f82d2cd480c7","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":150,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"0f976f5e-2e5a-4261-a126-6bc227eb14db","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":150,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"6467015c-1147-4e02-ba06-cd85251b0865","block_type":"box","text":"distribution and marketing agreement.","page_number":150,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"d39589ba-1596-48af-8dd0-5a874eae3f4c","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":150,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"0388bacd-d53f-4dd9-a6b3-e79337c269b7","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":150,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"006c59d7-3921-4e67-9224-3f8fa04004b5","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":150,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"786c4ba1-e3ce-4667-987d-8cb93b379d14","block_type":"box","text":"Class G Shares","page_number":150,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"6efcd80c-2ade-4a11-9449-1ca31d1e5af2","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":150,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"645fc50d-116c-48b6-bf85-710f6c997f17","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":150,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"7a236e7e-28d9-4762-aa02-920f23010e2a","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":150,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"997cf0fd-5803-4cd1-b9e0-5703f0ebe348","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":150,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"eb503adc-f29f-4b52-89ae-16165b1d9105","block_type":"box","text":"eligibility requirements.","page_number":150,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"dce1c0a6-1e14-43bf-92cd-2e4dd2e1e530","block_type":"box","text":"II-107","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2c85d66b-9d9b-4c5f-a222-d79a6b60e70e","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a64bd75c-c77d-4cc3-adfc-ea38438ec48a","block_type":"box","text":"Service Shares","page_number":151,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"9c7282df-34ef-4426-a5ac-1cd2cd994679","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":151,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"8246406b-33d1-4521-b7c2-a04824cfd9f7","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":151,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"a0ebf159-9484-4ab6-a5fd-fdd51a719483","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":151,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"2fad30dd-5754-4bb9-8afb-20225401bbc3","block_type":"box","text":"®","page_number":151,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"ed32896f-bb93-43df-9e8e-958eec85c1ee","block_type":"box","text":"Fund in 1996; and","page_number":151,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"8cd56638-712b-4a4f-be08-e60b91d8d92f","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":151,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"a574632b-14c8-4afe-81df-6b38b712e863","block_type":"box","text":"SM","page_number":151,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"9532d85d-028a-470f-ac09-4245143795a0","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":151,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"0e6aa11a-dfa6-4448-ab40-47e909e80024","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":151,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"3883f961-0da5-40e7-98ec-a43a5ad48617","block_type":"box","text":"BlackRock Shares","page_number":151,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"6bf6c609-426b-4d1c-96bf-2a5081771423","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":151,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"67c3b494-efa2-41a7-8d6b-94f05bfdc91d","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":151,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"97b8cd95-60f1-4ac4-a3eb-19d5abdd5e24","block_type":"box","text":"fee-based programs.","page_number":151,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"970b876b-fd92-4de3-83c3-7dbc46f082e5","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":151,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"d49b7c43-b876-410d-98b1-f5f818d4aad6","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":151,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"ef361cae-5d2e-42ae-9c28-160a23808518","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":151,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"b3995556-f7a1-4936-a282-06b8e7564079","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":151,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"0770d1dd-eb0a-426b-953f-ec6e00f05f11","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":151,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"78e2b7fc-65c0-486f-9d80-ddd874d79244","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":151,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"ce513aaa-eff0-430d-85ed-219620905229","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":151,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"41ef7f07-b86a-4e84-955f-61bf6f197be4","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":151,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"108ad298-c702-4838-9d4f-67b96e861473","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":151,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"f1b38008-37ef-42fc-b4a6-e67a4de17222","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":151,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"871eca5d-f7f4-4046-82b9-8f4dd09b7926","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":151,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"bb9369e7-8de2-4326-a893-85914b58fff2","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":151,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"305632db-5f04-4613-ae01-cc14c59e78e1","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":151,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"0b3d4dab-fd49-424f-bd56-a57dcbbca036","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":151,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"6495bb39-7b20-4603-beb1-53ecc6b239f0","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":151,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"ed28aed8-5bde-4573-a400-3aabdcff1075","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":151,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"1f623760-d09f-4819-bae3-86a6b40b3cc3","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":151,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"56006051-3743-409b-b9b5-67e6a22a5fd4","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":151,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"595824d4-27dd-4f2e-b0a1-4994b886d471","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":151,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"e338432e-bbea-4f10-92f9-a81f7e02d5ee","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":151,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"014a7451-bfb2-4caf-ab9e-2ebeb9322b1c","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":151,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"e2a76638-139a-403d-9eba-a24d6c90cb59","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":151,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"800cecf6-60a7-4738-b70a-aca84ce5cd5f","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":151,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"f09513ed-4c28-4f13-8e10-b8f84f38c7f3","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":151,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"d38122af-09b6-4781-b974-6e929aae950f","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":151,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"0939b009-b512-4327-bab6-00e54fc4dd2b","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":151,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"4ca1923f-6aa1-456d-a3fe-b752ca434830","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":151,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"e1e69284-8305-4eb3-a13e-dc4d1a8552c6","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":151,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"45770d6f-a3cc-45d9-a31b-2b86c400980e","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":151,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"a731c8c1-0af7-409d-b9fb-b63e4289d109","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":151,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"53a2f0e1-59cf-40fd-9708-7ed00dcc0a06","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":151,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"d4860e4d-a951-4e12-90a9-68b9127c0b41","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":151,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"f086033b-847e-46ff-8e5f-59cf1380b7c6","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":151,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"2ebf6969-9200-4964-bcc5-6ec580499132","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":151,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"e2eed49c-bdf9-4c56-b120-edb262237222","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":151,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"2f9872f5-65fd-4145-a1cf-86b0ba0e3c5a","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":151,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"107c1687-f36a-4599-b75f-3c63f92c3409","block_type":"box","text":"compensation for selling different classes of shares.","page_number":151,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"f18faf91-571a-41b0-940f-87e125b78395","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":151,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"a8a09dbd-19ba-4df8-8f3a-f8b59b5a1885","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":151,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"b4b9806b-b669-4f64-95c0-f2e0edd62a2d","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":151,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"d718808b-9221-4007-b7f6-f851e30caa84","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":151,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"9cee4f53-6c13-4781-b465-017237c00cb5","block_type":"box","text":"II-108","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ebe35a28-2ce3-46b6-99e0-e80546fee06c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"955116db-d5cd-47d8-acf2-b1ee97ef51e4","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":152,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"43254a7d-d62d-45dc-9d22-6282cb4ca052","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":152,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"4b1b7d90-5cd3-4e49-9547-a7c250d0304c","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":152,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"7a193aba-d0c7-40f5-8499-1fea9974bfed","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":152,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"018800bc-f925-4f26-b24e-a46866aa0e56","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":152,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"e6b42ef3-4751-4dff-8c37-0a6453e7e7db","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":152,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"7e2f2a1e-77ac-47c9-83e8-5553955f593c","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":152,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"d5fb5bc4-e7f9-4e39-a4f7-0765c5916ecd","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":152,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"78cf041f-9375-426f-96b7-b48a209d28db","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":152,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"f60bfcac-5fcf-4b91-bb56-de3986c6db44","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":152,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"f4f3fdd8-5d92-4553-bb4a-59ef15e88a76","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":152,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"b2cfd63c-cb68-43ae-b6ba-46b297e93d3b","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":152,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"c7dce92c-9d34-4385-a16c-e2cc8faac0b3","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":152,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"d72b0661-5278-46d4-ac18-ab6c5b35ac67","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":152,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"9b358176-74af-4218-be18-64c8071e59c9","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":152,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"21e41b32-8eda-48d9-9932-050b608c7675","block_type":"box","text":"easily accessible place.","page_number":152,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"1f889f23-8f34-4b79-9ac7-51ca5f00f215","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":152,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"8e1bb65b-6cda-438b-9c31-185e92a9904d","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":152,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"e5580e98-a618-46d1-8386-a4221f9aeaea","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":152,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"34bb085a-6cab-4a39-b726-20e1a06a8725","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":152,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"d5f5ef96-a968-4ea3-baf2-b6009837b451","block_type":"box","text":"fiscal year.","page_number":152,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"2c23179e-7817-4a56-ae67-847d693161c1","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":152,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"dd4ddf9b-58b5-45c8-adcf-243d1c625ea4","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":152,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"07de98cd-62b7-46bb-842c-9da69d269f99","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":152,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"7129777f-da92-451f-8035-ee9909fbe45b","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":152,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"1d85c2c3-42aa-4b60-bbcf-d86afa916f4d","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":152,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"519e36ff-e7d9-422e-ac96-10b2685cdbbe","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":152,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"7b6b07df-815d-4d57-b984-7df438bbb7cf","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":152,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"0cb5d921-9b8d-4785-8746-a1c5857cdef3","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":152,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"d267ad6b-1f30-4dd2-8461-d689aff82fe1","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":152,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"9ac32afc-24e1-4c54-919c-01b8ed465443","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":152,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"418fe9a0-7ea4-4f85-8ce2-7e3828b26230","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":152,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"7f8cb8dc-f3f8-473e-b442-86e7966e6c19","block_type":"box","text":"and Class R Shares of your Fund.","page_number":152,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"83fe811d-7cbc-4bb9-ac6b-5b9fb65f4982","block_type":"box","text":"Other Payments by the Fund","page_number":152,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"c333bdd0-37bc-4e46-9a5f-a8c73cdce043","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":152,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"590e990e-ebe5-498b-b89a-b9da2eee9ec2","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":152,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"11df212a-847b-4d7d-a3aa-258334d423f0","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":152,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"c2fb4228-0bd8-415f-9fc9-f4fae8307a09","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":152,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"e91312a2-3b0c-4855-98f7-d6fb7ec0e327","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":152,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"25224267-5fd6-4e59-9327-97ff2b3679b3","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":152,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"91e04b99-0609-463e-8654-84781e1d38c7","block_type":"box","text":"of these payments may be substantial.","page_number":152,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"34e34bc6-fc6f-48c2-a8f5-d891c27d95c4","block_type":"box","text":"Additional Payments by BlackRock","page_number":152,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"27000c50-8f6e-4847-afcd-ae05a7c3478b","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":152,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"304106c9-de72-4523-bf95-57b2eb36bb3a","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":152,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"735f5ab2-4a8d-4ecd-b022-c427882dbd92","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":152,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"a47e1697-4a32-44c1-8bfa-5086dadcae8e","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":152,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"3881c5a1-0de8-42da-a1f8-acbe61e60842","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":152,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"851746b1-e8c8-4374-9ff8-1dc0256a21d7","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":152,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"5b1cd4af-5af1-41f8-8cf0-8badd8c92c21","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":152,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"4eb61a2f-143c-4e74-ad7b-3f5daa71cfb6","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":152,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"667afe70-fcc8-4bd4-ace8-e8e458fe26fc","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":152,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"ea086506-4960-4f44-bcc0-23c5a943fd9f","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":152,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"cdb7d7d8-1746-4693-9c66-f0504ec27495","block_type":"box","text":"II-109","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"eb508da4-02ac-4ec6-ae67-faeca653ae4c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1d818da-152e-4eee-97ad-51c4cc421bcb","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":153,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"9c423826-4c62-4f7d-a105-8f864604ddf4","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":153,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"514b316b-f7aa-4ef2-809b-6d7057d53a94","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":153,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"d71e0bf6-8d8c-4e90-bfed-5fbc02ff7f0c","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":153,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"7d7ff09a-ee92-4a38-b205-802d89318f73","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":153,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"f4f75832-5594-4027-8f38-431b259e2edb","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":153,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"8e11dab3-f910-4a6a-8245-6f6fabd8c823","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":153,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"c0a998de-dead-487e-b209-9a3cb6dc7870","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":153,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"8cfda9dc-f2eb-4786-99ca-6bf3faae99ba","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":153,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"31320eb4-48f7-4c1e-b97b-beb5d0a9890b","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":153,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"c27a22bd-2b69-4af8-897e-3f01e785dbc4","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":153,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"fb0b95e7-fb30-4338-a912-a246f9cf2850","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":153,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"dd8ed726-242d-4438-aeee-ae88948ff664","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":153,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"18d7691d-6c09-40de-a8c9-55228b269aab","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":153,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"cadfa50f-1ae6-4b91-b6c7-920d0cbdfc70","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":153,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"e5ea62d0-1cf2-40ce-8dc1-f8e90176b39b","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":153,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"2de2ddc8-8eee-4d91-86bc-82e1132431a5","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":153,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"5a7f85fe-fdef-4e8f-b325-f167298c3836","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":153,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"9859e1b8-cb3c-4d67-90d2-e71bac8156ea","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":153,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"91045e12-ead3-450f-b70d-d06d1a7cc74a","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":153,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"2e48eb3c-8200-4413-928b-9e1eb4483f70","block_type":"box","text":"Funds.","page_number":153,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"99e24aa6-955f-4670-b45e-a3b51aa914d8","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":153,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"395aad1b-2635-4317-a54c-5791d4da10e2","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. 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These payments","page_number":153,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"10589336-1760-4696-abb5-056313262501","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":153,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"a6dea64d-e0ad-46ff-b00d-52510b47e00b","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":153,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"90bf0a32-bb4c-451f-9fb5-3c9e98758f1c","block_type":"box","text":"B. Shareholder Services","page_number":153,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"8582c56a-89b0-4435-9bb5-5f284a181a09","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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BlackRock","page_number":157,"box":{"x":70,"y":341,"width":833,"height":11}},{"id":"361ff82b-c0de-4664-8920-ffca2d6d6d1d","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as par t of its customary","page_number":157,"box":{"x":69,"y":356,"width":817,"height":11}},{"id":"05d93640-f7e5-42e5-94d6-a55c94ac919b","block_type":"box","text":"digital marketing suppor t and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":157,"box":{"x":69,"y":371,"width":815,"height":11}},{"id":"3f7a0a80-3a32-43ef-97d6-3344ffa7523a","block_type":"box","text":"traded products.","page_number":157,"box":{"x":68,"y":386,"width":116,"height":11}},{"id":"531d5aeb-c453-4656-87e0-84b57af621e5","block_type":"box","text":"F. Conflicts","page_number":157,"box":{"x":102,"y":409,"width":78,"height":9}},{"id":"11ebe339-1333-4452-9c48-bf51030ce4ce","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":157,"box":{"x":101,"y":431,"width":710,"height":12}},{"id":"3a681b8b-6c6b-436f-bc28-75a38e1c169a","block_type":"box","text":"arrangements may be an impor tant factor in the Service Organization’s willingness to suppor t the sale of a Fund","page_number":157,"box":{"x":69,"y":446,"width":803,"height":12}},{"id":"5fdbac42-773a-46cd-9014-e7e616668a5a","block_type":"box","text":"and/or par ticular share class through its distribution system or to per form services with respect to such Fund.","page_number":157,"box":{"x":69,"y":462,"width":788,"height":11}},{"id":"22e22d98-ab66-420c-8f22-e988201770ca","block_type":"box","text":"Additional Payments and other incentive arrangements may also be impor tant factors in the Service Organization’s","page_number":157,"box":{"x":68,"y":477,"width":819,"height":11}},{"id":"18dc2b77-4f44-4bc6-bb7b-219fe6db47d4","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":157,"box":{"x":68,"y":492,"width":473,"height":11}},{"id":"80018137-166f-45f0-9d3d-60425bae91f6","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":157,"box":{"x":102,"y":515,"width":793,"height":11}},{"id":"1eef9f19-e720-43fd-b579-2ea78bb93675","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":157,"box":{"x":69,"y":530,"width":835,"height":11}},{"id":"0578b224-792f-4c22-b4dd-aca79c027ae1","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":157,"box":{"x":68,"y":545,"width":833,"height":11}},{"id":"9b5e05de-e8b4-4670-ac64-73836e07dd0f","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":157,"box":{"x":70,"y":560,"width":830,"height":11}},{"id":"25a3f5cc-3454-4bc9-910a-cc34db5c1662","block_type":"box","text":"Service Organizations may have financial incentives for recommending a par ticular Fund, share class or fund","page_number":157,"box":{"x":102,"y":583,"width":774,"height":11}},{"id":"b45347aa-1f43-4791-b1b8-ad8d79b4cfbb","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":157,"box":{"x":69,"y":598,"width":794,"height":11}},{"id":"4609da63-4dd6-4493-b096-283e98e730ad","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":157,"box":{"x":70,"y":613,"width":818,"height":11}},{"id":"f083b80a-4acb-4c1e-9832-59d566640c4a","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":157,"box":{"x":69,"y":628,"width":836,"height":11}},{"id":"64104e9a-5622-4c92-924b-0ac8818b5699","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":157,"box":{"x":69,"y":643,"width":723,"height":11}},{"id":"73d23e98-8035-4a7e-8e78-130f80c00490","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":157,"box":{"x":102,"y":666,"width":759,"height":11}},{"id":"56045943-6300-485f-aa98-b333a4973672","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":157,"box":{"x":69,"y":681,"width":760,"height":11}},{"id":"6cf090d3-3a2f-4605-8302-dc3077d259fd","block_type":"box","text":"appropriate.","page_number":157,"box":{"x":69,"y":696,"width":84,"height":11}},{"id":"5cd9bbcf-b809-41b4-9088-6edbab916449","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":157,"box":{"x":160,"y":696,"width":738,"height":11}},{"id":"42a02917-6e70-4505-b0d5-19bcf257c18a","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":157,"box":{"x":69,"y":711,"width":795,"height":11}},{"id":"b22e5c86-c8ec-4340-be06-751fc213858a","block_type":"box","text":"described above.","page_number":157,"box":{"x":69,"y":726,"width":122,"height":9}},{"id":"0fbdd7a5-6779-4978-8ef0-d758d71ca96b","block_type":"box","text":"REDEMPTION OF SHARES","page_number":157,"box":{"x":385,"y":756,"width":208,"height":9}},{"id":"238f6c3e-e245-46fa-902c-81ac1e2927be","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":157,"box":{"x":102,"y":778,"width":798,"height":12}},{"id":"256b7896-6d53-4569-8116-9e4245a6b4a2","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":157,"box":{"x":68,"y":794,"width":836,"height":11}},{"id":"ac2b8419-0d70-43ae-8f12-faf8f5f409a3","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s por tfolio holdings at the","page_number":157,"box":{"x":69,"y":809,"width":840,"height":11}},{"id":"cd58ccf7-2a06-45bf-93b5-678cf066b147","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in por tfolio securities and other assets rather","page_number":157,"box":{"x":70,"y":824,"width":814,"height":11}},{"id":"6d488e56-47f2-45f0-8c97-150121e11a19","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":157,"box":{"x":68,"y":839,"width":809,"height":11}},{"id":"5ae458b9-0a7f-48c2-83ce-830d09385462","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":157,"box":{"x":69,"y":854,"width":827,"height":11}},{"id":"c82cad91-c279-49bf-9a7a-b17b98492979","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to conver t the securities and other assets to cash. Each","page_number":157,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"9d98bca2-53cb-4332-af49-5e116cb7c6fe","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":157,"box":{"x":70,"y":884,"width":797,"height":12}},{"id":"3e67b13e-c1bc-4a03-b5cc-65a7b0728fec","block_type":"box","text":"II-114","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ea4a9e93-5dc8-45bc-be2c-13bfab66fb51","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7c6c0f3e-9cde-4143-bd1c-76ac5c4394be","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":158,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"4998e345-8d37-473d-9d16-efb82a4ae9a3","block_type":"box","text":"for any shareholder of the Fund.","page_number":158,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"3ccf350e-017a-470b-b764-8bf4ece77692","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":158,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"02b0c94e-e515-4568-9d1a-f1a20c08de1e","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":158,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"2f27a78c-ad16-4f8b-aab6-81e184fc1968","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":158,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"e529c3b8-d4de-458e-a077-78625c675a2b","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":158,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"00f65cc5-1530-4b8e-abc9-eded19b37ca1","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":158,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"493bda36-e470-48fa-aad0-349fa03dacc6","block_type":"box","text":"redemption.","page_number":158,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"76ab660d-1cdc-4f98-8ae5-2c96049d0d4d","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":158,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"ee2293b4-48d6-4fc1-8e03-5f2173136ca4","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":158,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"60c615a3-7c5b-4d7e-b914-1ccd132881d5","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":158,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"8168129b-2ee5-4f9c-98e5-fea13d60200f","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":158,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"a1f33303-a02f-4ab1-80a0-d702584d9218","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":158,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"0144baf4-6580-4d13-b0fb-ce5595f7d365","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":158,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"e2c6a41f-b6fd-4cb2-852f-5fd9e69e3862","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":158,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"6f07e215-981f-47fc-a80d-1bc1503da073","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":158,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"0d34dd1d-758a-4f29-9e18-8497aaf460ca","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":158,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"a1d21411-f928-4bab-be99-09293577a730","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":158,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"ff225203-b3ac-4de0-aeec-6e18067b7d28","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":158,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"0f87f085-c544-4b20-8e63-05d362c0e777","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":158,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"a9cc7b1d-9894-43f6-baf4-6f09a3dee668","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":158,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"6552d500-4e08-4a3a-9883-60b9a132cbcc","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":158,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"bd2afbd7-631d-4a2c-b661-8646214ba40f","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":158,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"91eb37a1-840c-4b08-ba2b-d31da650b720","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":158,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"ac8748a2-4604-48f2-ab7a-d10b9d42df24","block_type":"box","text":"Redemption","page_number":158,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"1bd511e6-5800-4f48-b1fb-5d47ec062fa6","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":158,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"613d170b-fa37-423c-a368-38067572ffce","block_type":"box","text":"Redeem by Telephone:","page_number":158,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"27f162f4-6f71-404d-b771-9d7482233d09","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":158,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"fe7d8d45-f1b1-4b9d-a846-42314da9db77","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":158,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"f3bdbb41-d0ec-43af-8bbf-6a6e015d7a18","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":158,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"26332250-0597-42dc-9dd1-0f6e9321cae7","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":158,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"692efd24-7144-4ab9-ab98-767c509c66af","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":158,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"9a97a19d-381f-44e3-b0b1-9e2b403aadbc","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":158,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"39784483-e046-4293-921c-c8a5164cc11b","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":158,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"dee725a6-0efd-4c1d-9dc8-0e1e0bc3c1ea","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":158,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"87a3eb2d-0439-47aa-a7f8-8d0474457012","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":158,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"4c17159e-4b24-48d7-ad7d-25668a777ff4","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":158,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"c0628770-226a-4c96-9b89-3af056fbc7aa","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":158,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"d644b7ab-6d29-48f9-8c07-c0531002d601","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":158,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"efea2738-9830-4b81-b452-ebdcbff1394c","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":158,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"0efb6205-9b63-4e1c-aa9e-10fe07728939","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":158,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"bdb685d5-fffa-486e-8e34-1f33df6320c5","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":158,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"2f197c1b-e4a7-4c9d-9655-a0342ecfb6c9","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":158,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"f99a24d1-ff6b-4a26-bf15-135358ccc28a","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":158,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"df1396de-24de-4b92-a2c5-5a7475f299b9","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":158,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"a0055b93-4716-4b7f-86fc-82756e40a0c8","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":158,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"7dcbdc10-07dd-4ca2-98c9-5e81a1ed2f3c","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":158,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"39e7ecd6-8901-4c57-882a-509b150223de","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":158,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"13d8b428-0dae-4e88-8f02-b935a6894e05","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":158,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"cad87682-8707-46d7-a00e-3879a5144eb8","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":158,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"d69870a5-c700-442c-8f35-2975faf0c883","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":158,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"c4e0aafc-c798-44ef-ba1f-585d5db84bea","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":158,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"4571173b-64be-4368-9daa-5fae2e6b8b04","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":158,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"8d34f9c0-7753-4d98-9bb8-cf2fbdcf61dc","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":158,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"5a5167aa-5f6f-4bd5-887e-8376791290af","block_type":"box","text":"II-115","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"44159b04-70a3-4247-a376-dcb16f24640d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8bcba23-3cdf-4a9e-9e49-da3eefd0d050","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":159,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"4dd22f96-bdaa-4d9f-9060-6dff9021fd7e","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":159,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"1e1e77af-b6c8-4ddc-9f4d-b05d985656cc","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":159,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"bce24c05-7b6c-43e6-bc37-ead8ecba3b21","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":159,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"ca70967f-1498-4363-9a73-d96aaf1f8466","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":159,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"85d2a91c-53db-4d1f-ae1d-bc441b23e30e","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":159,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"389989c6-ea69-4533-9342-3749d9961943","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":159,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"a33f2ca7-f4e0-46c6-8e92-a29f756c6ebe","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":159,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"30002ae3-fe0a-43a1-8fc2-ee3c5aa98a6f","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":159,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"db815210-1e1c-417f-a7bb-f0cda1d5bf18","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":159,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"93519c70-a485-4da5-9622-f0b1c3abcff2","block_type":"box","text":"Redeem by VRU:","page_number":159,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"62f63316-34cc-4eaf-9081-a729f561a0ab","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":159,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"5b7ec517-3f63-469a-aa6c-d5d44a074773","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":159,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"fc3cfd5b-e742-42cc-ae53-3bff3a4def66","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":159,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"48329065-3865-4a63-9ab8-ee4a6eb2d117","block_type":"box","text":"Redeem by Internet:","page_number":159,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"2ab106c2-8344-4a0e-9ea4-8820eae0c3f4","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":159,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"75b52280-d34f-4cc9-8456-9ad8ca9f59f3","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":159,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"bba3419a-c772-45c4-bc52-e620ad161020","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":159,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"597ac597-fd69-441a-ab13-c9ca16f3f352","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":159,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"8b00cd8b-9a44-4f29-92f1-64cfba3c0b33","block_type":"box","text":"institutional investors.","page_number":159,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"f0d776b0-cd1f-4d72-a008-48ccbc0b839d","block_type":"box","text":"Redeem in Writing:","page_number":159,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"3c63426d-56d9-41ed-92dd-720d7e281402","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":159,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"34484813-fc27-473a-acd9-27554f01690c","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":159,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"f94b2c55-46b6-48b1-af26-c2d9242c1fee","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":159,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"2eb8d707-4d89-4f30-8bfc-d6ce14f236f3","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":159,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"9393e253-f7f6-4cdf-975c-64b5b48c6cb5","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":159,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"ea6228e7-2353-4abe-968c-1ce5d32b3dee","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":159,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"3e92eea7-3d05-43af-9d45-53032f0fe7f6","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":159,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"367baa6a-3d9d-481e-98e5-be34d85816d4","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":159,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"5342ff31-21cb-437c-bf24-8aa174760039","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":159,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"1b0ac569-07c9-492f-b8ab-518a434b7b9d","block_type":"box","text":"or wire to the bank account of record.","page_number":159,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"83de1b3a-0385-443d-82a4-d4256861cdb3","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":159,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"2acffc03-52fb-4498-9530-9893dcdf88c9","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":159,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"fcae8c8f-7d92-453d-b1ee-b2c27f8e9112","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":159,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"badcf371-8976-4112-84f9-ab83622301f3","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":159,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"f68dabe7-35cd-4c14-a0d6-15114f976f9c","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":159,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"53950d27-28b6-4aed-8e71-d8af555ca155","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":159,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"06521d25-6557-4f22-ba44-05d6214e7e92","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":159,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"ab2210c2-daf8-4c46-bcf7-01b817accb7a","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":159,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"0223210f-0bfc-42c9-8221-05e3c103c09b","block_type":"box","text":"redeemed by the Fund.","page_number":159,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"27010877-c174-43ca-b5c7-fa4e937bd5c0","block_type":"box","text":"Note on Low Balance Accounts.","page_number":159,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"7a5803e5-a49a-44a3-b8b6-b7242e5afa37","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":159,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"7170adfb-42d0-41c5-a05f-d612fdc834e5","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":159,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"d5416e53-3ec0-4bfc-9184-e182ea3e93d1","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":159,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"293c7600-5dfc-4f45-8fa9-d60f9bbc80a4","block_type":"box","text":"for any reason, including market fluctuation.","page_number":159,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"9d2315d2-c530-48ee-8d3c-77c5eb94c84e","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":159,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"a0af1fbf-e039-4174-a10c-67d1f317c794","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":159,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"a0dd638d-8748-4bc8-8e45-be4bbde1c0bb","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":159,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"84411782-b1bd-49ec-a806-da294d4e99c1","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":159,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"d8239b52-b658-4d81-8304-e68a1a57b92a","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":159,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"8e65216f-7d68-4691-8a28-a4051f62d2f8","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":159,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"da6ab257-a3ef-4d0e-8c86-ea09031d4b0a","block_type":"box","text":"Redemptions in Kind:","page_number":159,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"a9d6c70b-0390-429c-bc75-7cf4f493fa88","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":159,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"40e37cf6-d9d6-4a88-9106-30621db5a0b9","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":159,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"c0cf962e-a1fa-4e9f-9011-e2c31d9a4edf","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":159,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"6d41db48-f492-453e-a389-f989551153af","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":159,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"5866d98d-ee45-4fa2-b1ca-e3c793889fe9","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":159,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"ccd318df-c801-41a7-a072-721defad34f9","block_type":"box","text":"II-116","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"22808483-da26-45e7-ada5-c3675d176aa7","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bce9a1a1-3172-4a61-ae62-ea1abb922baa","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":160,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"b3222c86-8f35-4c6e-a3b4-b6c69bd5f857","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":160,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"66cb9d27-3320-496d-b968-1f36d36319ec","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":160,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"3a6026df-608d-4fde-a85d-6e2407b95722","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":160,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"c4a0bd1a-0b68-497c-be5d-8783510c53e0","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":160,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"7d87c752-ce46-4699-9630-e273a4637e36","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":160,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"2cb3116e-8a03-4332-88aa-1aa5143e9be8","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":160,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"a8cd8b8d-a370-4ea3-940d-2b6c93adbeb5","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":160,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"4318b7be-5fcf-40c2-a6ff-ea188d1417fc","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":160,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"7b87485c-e32b-43da-86f5-d704e4413665","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":160,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"b84b5861-6bd5-4d1e-bdc6-e06013a6daeb","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":160,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"e9bb1546-4d37-4c5a-ac38-db442aae4c17","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":160,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"44a935a3-209a-473d-8326-d2b38575cf2f","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":160,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"cbda6ac8-f238-4743-b060-33844adb4c82","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":160,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"46406b3d-f051-42b9-a219-def0714ec351","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":160,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"8650d277-dc46-47c1-8b8d-4d20a641dcea","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":160,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"159ed980-efec-48e4-a001-890c7e3f3ba8","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":160,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"67b42589-c7ae-4d4f-a99a-c785f7f4d270","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":160,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"6329aa5f-63a0-4d37-bb76-a7ba9a4f4232","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":160,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"e81d8bf3-fd4b-44a4-a055-72cb27411de3","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":160,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"57f4a214-f83b-4c52-a80c-d98678d7dc76","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":160,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"8f4e25e5-edd6-4d3c-b348-85fdeda72f0c","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":160,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"121354f4-ab10-42d5-868f-9110e408b041","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":160,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"17dd154c-2cf8-4557-993e-f7c2bb1b4874","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":160,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"d43e3524-734f-4461-b6de-e38718f96fb0","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":160,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"ccd78476-8237-44de-97b3-e23ec5cc9c31","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":160,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"faf416f5-de5c-4e86-9a1f-1a883fd738bc","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":160,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"e2e7c548-166d-4d9e-85c2-88eec4d81dbb","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":160,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"52c0cd34-c198-42f5-b575-9ade105ff28a","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":160,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"9fe0fe10-da4f-45db-ab88-d1e7f85467df","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":160,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"d2d1b0e0-5642-4c32-bb0a-de38418f5ad0","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":160,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"8b73974a-3d72-4406-be00-f28828550510","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":160,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"1dee287a-41ff-4a9a-8cd2-ca7f151525f1","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":160,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"6c00dec1-210f-499d-ba75-fb997bf21fac","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":160,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"f717cef1-5d5b-49c4-b0ba-abb4085c5dcd","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":160,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"474e32d1-2408-4879-adf0-3dae4c2fdd1a","block_type":"box","text":"Repurchase","page_number":160,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"94fa970b-1bf5-435a-a069-f5763cb104ad","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":160,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"0f87c428-5dc8-4790-b876-fdf92442f87c","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":160,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"5eaa2b59-10f8-4ea2-82a4-2b193faad2c6","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":160,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"d26a5ee4-65d3-4cf2-bb5d-a2288717b0e7","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":160,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"cc0f33a8-ccb3-45f3-a17a-445ee7a6c931","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":160,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"82f8e083-fd92-4468-bcc8-fb2708f5ec70","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":160,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"a6f53abf-ceb1-43fd-8396-7fcb60aaaf0b","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":160,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"c9cabc36-6c72-4f3d-ba0f-9387d5e8ade9","block_type":"box","text":"next business day.","page_number":160,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"a0862388-8d9f-4ea7-a5bd-e7c197c887f2","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":160,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"60643564-f4c2-46d6-b033-55034aa42ed8","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":160,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"df10ef6a-a95e-471d-9e59-749b0f89df62","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":160,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"f949d389-6b67-4a93-a208-42fddfcfd213","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":160,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"f7a90cc1-bb21-4e5a-ad77-42c6767343a0","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":160,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"ecc31195-5032-41f6-b687-ded3f0bab595","block_type":"box","text":"redeem shares as set out above.","page_number":160,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"9954ef1c-c37b-4000-bfc7-8735a30b324f","block_type":"box","text":"II-117","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"77378c16-163b-4c81-8b4e-8b54d3aede1d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6983e09-043f-4c17-b533-dcda425fab15","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":161,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"e36bd9b7-3635-4618-a68b-6a2d65214802","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":161,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"0f4a4e54-0191-4b22-bb3b-1d0bd2cc1217","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":161,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"01530e7d-bed6-4812-a5e7-fa1b5d141003","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":161,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"a9272086-7f91-4f9c-b153-401d8b53959d","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":161,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"12e0829b-ed0e-44eb-a169-fd0701648fa6","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":161,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"5aa5c5ae-e5dd-47e4-a854-1726c9854d01","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":161,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"113050d2-f9e1-4783-9f70-eb199b5fe1be","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":161,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"1a6df9af-20cd-458c-bf2a-f3d6a6ca84fb","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":161,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"0fa9dd6c-59d2-469b-b05a-f1a7b13378ef","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":161,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"3059621a-33de-415a-b098-c985a36b3243","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":161,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"a9c386c7-3543-413a-88bf-62dc101203bf","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":161,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"870bac9a-7911-45cf-9089-f93709cbb4d3","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":161,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"a5505cea-31a7-4670-b58a-218ec99100d8","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":161,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"0fbda136-e187-48fd-a731-c990e4b861ed","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":161,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"b290e86a-477d-49b2-ac3b-067ab876f9f0","block_type":"box","text":"Investment Account","page_number":161,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"fd3c4510-a15d-4c63-ac07-ecd60a9bf917","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":161,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"05a06a8a-d81d-4092-97a7-a7dc48812fed","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":161,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"b0fc955c-eb11-45dd-97e5-f117ef6a71a8","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":161,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"1ce5b435-8aa8-4eb1-b01b-1dd4df5b4cb0","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":161,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"bf92e1de-46eb-4c85-8447-72c2b777bbfd","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":161,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"d5e20f23-8c25-42bb-9a1c-c1190eed7b4f","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":161,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"0e87cf91-ac6b-4e9a-9951-0ac5b8ecc3b1","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":161,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"8fe6bb5e-fdac-4e59-bdb6-14a3ffa0aa75","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":161,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"a95340c6-127b-4dcf-844e-534979b15d87","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":161,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"8eeb9322-4418-49d6-aa31-bdec22fbd360","block_type":"box","text":"automatically at the Transfer Agent.","page_number":161,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"42e8898a-44fa-47ac-a115-14e45d4bfc42","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":161,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"c1f7c7a6-1359-469e-a458-28d3334f062a","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":161,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"7bc92bc9-7fb9-4c87-96f9-50015339d0f7","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":161,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"feab37a4-065e-4f77-ae64-9abbbdf7f69d","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":161,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"62e17bc4-c12f-4d73-be45-698d41c5564a","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":161,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"f673a882-b917-4301-afb4-e2b27205cac1","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":161,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"be85185b-df8d-40e5-9069-969ca4d6e1b9","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":161,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"8cb9a2f0-c497-4bb1-802e-7896858716b2","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":161,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"99e91e83-5f11-4005-a942-ea01ef09cb87","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":161,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"2c7e80a5-7425-4f84-9fe3-be4f7ae3a68f","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":161,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"d379df97-54da-49d9-bda1-8a0b9ca3decc","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":161,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"def34911-7447-462e-ba0f-8b15207c852f","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":161,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"6b7187e5-4e3c-47eb-ba01-968de4131cfe","block_type":"box","text":"issued.","page_number":161,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"cfe3a3e0-5d8c-4e70-89f2-94799a40f22c","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":161,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"146961e4-729e-42d3-a41d-db53c571adb5","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":161,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"c9cec832-1b11-4442-98cf-45bd4dffd68c","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":161,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"5df6c703-a648-4410-835d-657ca26f7192","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":161,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"6dfa0339-4970-4704-89ba-1ea1f13d0496","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":161,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"56208e70-0c3a-4409-adc6-4a2ae83b01ee","block_type":"box","text":"Exchange Privilege","page_number":161,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"5ac9d2f8-8940-4c32-8e38-419b57ad2020","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":161,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"9c58c390-f5a0-4917-9bc2-da4639d7e620","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":161,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"83dd2454-239a-4218-9bb5-ecb228ef7c60","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":161,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"7492dac7-9720-4f1d-8052-80d179f8bd34","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":161,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"72462cf4-e440-4490-abaa-8a6ffcf31270","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":161,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"c6a23e64-f47e-44fe-ab03-6049064c06cc","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":161,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"8d959862-d6cd-4294-9d26-b41a644d06a3","block_type":"box","text":"II-118","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ddb837e6-ea9b-4374-9566-d5d890de27de","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66c3ad39-2a7f-4622-8c1b-efa595be6edb","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":162,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"103f9bf6-8961-4b23-8e9c-41cb2e58380f","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":162,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"916da451-084a-4709-a9cf-570e6d913aaf","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":162,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"9edaaf6f-eba2-4acc-bec2-2513a7709fdc","block_type":"box","text":"Institutional Shares","page_number":162,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"c21da9c2-28ab-4775-ba95-60041296aa29","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":162,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"f6e06358-3d28-405c-8fc6-49b609c66ac2","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":162,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"ca4cd010-b1dc-4f90-9863-e1d770ce29ab","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":162,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"3b656ab2-f4ee-4da7-ab66-f65ad796f525","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":162,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"a7f1ea63-5829-4874-a8f9-72b6670187cb","block_type":"box","text":"for Class G Shares of other Funds.","page_number":162,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"232b8618-1bfc-4ece-95aa-ffc54806bde0","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":162,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"ae36f9f7-019d-4842-acb2-ca4cb857940e","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":162,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"1af5610f-23e6-4363-8548-e182d6e667dd","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":162,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"e1e02841-6ffc-4220-8c80-e6847359d197","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":162,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"6e095bc7-c4aa-41f1-9ab7-97ec1fa8e83d","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":162,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"5aa8f425-1d94-4a6b-bc8b-91425bd09b00","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":162,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"5471b824-1078-45f3-94a7-e26317621925","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":162,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"3d405afc-76f2-4234-8040-6109a810b5f0","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":162,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"81ff5bdd-51b8-4a6a-9d37-a64f7df49f65","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":162,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"1b2f4177-eec7-4808-82f5-74e0f13354ae","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":162,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"6cb543d0-790b-473e-be3a-64dd53444883","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":162,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"adefcafb-90d1-4f01-b09c-f3afd4953b3f","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":162,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"fc0ac070-8c55-44d9-bb8f-65fd33a0d7d0","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":162,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"6998a9bd-e07b-4403-ad7f-f06fd2710bb2","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":162,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"da98c99d-d40a-4a95-a727-b1d1fe1ac514","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":162,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"f60f8fa0-3514-474c-bd7d-2643abdc487b","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":162,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"f2b322ae-003d-47f2-8387-c300f6da3ade","block_type":"box","text":"Exchanges of Service Shares.","page_number":162,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"e413f0c2-5a7d-4443-bf7a-7fd434aae742","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":162,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"5039a3e7-7eb9-462b-9d3a-fd381c9fa964","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":162,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"d66c2d8f-cb6d-4d4b-89c1-4392a0f1f9a3","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":162,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"bd644aff-589b-413b-881e-f9fa3ca9d2d9","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":162,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"2c6916c1-345b-4a93-b4ab-14d2f806f63f","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":162,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"fb06f451-659d-418e-bbea-48156d6596a4","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":162,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"cbcd1086-54fb-4553-8180-bcaa499159b7","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":162,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"a781cbaf-c08e-42f8-8360-a73d9b046eb0","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":162,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"f985e69d-2308-4bbe-b3cb-74bb8282a26a","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":162,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"ad11ba92-b995-4cb0-a749-af18a3bd10a1","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":162,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"fe74911e-8dca-4063-b6d5-c30b75884173","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":162,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"a40c303c-66e7-4b3d-8b6f-10b59929d130","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":162,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"3fe9a335-b821-4b35-8410-c72d67678ec6","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":162,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"bb629c7f-614a-4d88-ac2d-177b30535920","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":162,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"3826bb48-ed74-434d-b63d-2087c994064a","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":162,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"71c2e30c-6fac-40b5-a6ee-f1e07864b187","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":162,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"48419e39-7e46-4fcd-93a3-337a8f397032","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":162,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"a0c275c8-e4a5-4330-8946-41c016cf2f76","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":162,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"73c1ca6a-3e87-4061-b23a-6280d31b5954","block_type":"box","text":"exchange.","page_number":162,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"25a531d4-970f-4bd1-9fde-7d85ac8aa87d","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":162,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"a4ca9179-aa4f-4900-835f-bb5cbd8187f9","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":162,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"99610f11-1837-48f5-be98-255d85fb0f51","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":162,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"daa70607-26da-4103-aa5c-245accdeaecf","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":162,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"fc85712a-26df-4369-8806-a591563b639e","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":162,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"c1db5e34-7bf8-456a-9baf-3caf3c8baae4","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":162,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"ba9d60ec-68dc-4cff-a5df-6b09872f3ee2","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":162,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"a7b3c93c-4c1d-4b45-9aff-db0c52c9e4d4","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":162,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"5b56f589-36ba-45a6-9470-91ddb3b90699","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":162,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"088e0a26-ab37-402f-abc4-5773658ab4a2","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":162,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"520c43c0-7f1a-4328-acab-307642ccf29f","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":162,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"72877659-6d3a-4762-8652-78462dd4daad","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":162,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"d3174744-ad0b-4ccc-80d2-ae521f7c7299","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":162,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"2c2f6337-a4e2-4337-8e5b-2afb0a5a28b3","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":162,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"3b90641b-8234-4ba2-a3f4-140a4c4ecf56","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":162,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"23d12ea3-34ae-44d7-8f43-3b89f3d41950","block_type":"box","text":"II-119","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0063715b-32c3-4a85-95bf-74f2910c18ea","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3a0f4e0e-5fab-4f10-9c63-247864052ccf","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":163,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"b34a1790-9c58-472d-9726-9c3f240ba9df","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":163,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"9e267f80-ecf5-4837-8bb3-95410a8e50ea","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":163,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"8de205b4-bc52-4c94-86c4-8f38a0d21890","block_type":"box","text":"Transfer Agent in writing.","page_number":163,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"4fe44b0b-efb5-4528-9137-82eb686e67de","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":163,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"32c58c42-b023-4eae-876b-debc901af617","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":163,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"480d91b6-25a3-4165-af6d-b71691014827","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":163,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"3f343ad5-016a-4bae-a4a9-f47d48b0ef11","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":163,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"646d690d-fe09-4214-9750-b94709fd2a3d","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":163,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"bb666da4-f00e-474e-8013-46325c6bfec0","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":163,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"79b65d07-3cc5-4164-9859-940c600dae37","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":163,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"0891e452-2455-477f-b8b4-f5b37b1a18a4","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":163,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"79798861-a88b-41bb-b60b-cb5831f44171","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":163,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"879d50dc-3e83-4bcc-a1d2-09ffb58919d1","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":163,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"39b20c1e-bddd-4f48-896a-6b1612b428a1","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":163,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"093ee333-5552-4ea6-8706-ed8a39e4be22","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":163,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"b6416207-1df3-4189-b687-3f7d876b563a","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":163,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"cded579a-0123-4061-9f1f-6253dcc73194","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":163,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"77a034b8-72c6-4620-a741-fc10d86c6d39","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":163,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"549e6899-7787-4abe-9a18-57b60a981757","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":163,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"9746c2cb-0abe-437a-bfcf-77b6fb67807a","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":163,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"d7d7ee5d-26fa-4785-a822-e9409ec6665e","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":163,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"971ab7e6-dd1c-4533-92e6-ac443c748a77","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":163,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"a9495f67-c22d-45fb-84db-77285c25b087","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":163,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"1723ea06-0737-4646-ae5b-5f45a3ebe231","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":163,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"f740c0ee-dd68-4b5d-97ff-823bbfcd0181","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":163,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"8a869ec1-f926-4a72-939b-187e3dc5abd3","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":163,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"d62da0bc-0de2-49cd-b329-d1489051070d","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":163,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"d7ad4535-7a40-4bae-a26a-f3d10997bd27","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":163,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"786c4d8c-c1f1-48d5-a02c-3be51206937e","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":163,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"e5d74c48-5074-4e5c-9fac-eab35e9bac4c","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":163,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"1149cd41-8946-4d9f-ae01-f11cef408c30","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":163,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"1c014e62-c688-49d1-9386-fc6c8c590372","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":163,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"aac3dcae-233b-4142-972d-8cd42cb894eb","block_type":"box","text":"may be distributed by the Distributor.","page_number":163,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"cea2af7a-f210-4089-8a3f-e03002dcdb9b","block_type":"box","text":"Participation in Fee-Based Programs","page_number":163,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"2b7ab3fe-7332-4a58-ba05-b6197dafc6ad","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":163,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"d8fb53af-2174-4e01-beee-9751c47c28f6","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":163,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"b853bf22-5ba6-4809-959a-eaad57496413","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":163,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"7de81ab9-e005-4ca5-a6e8-98189cbd5b0b","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":163,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"641f18e6-fb5e-4153-b656-9df2f266a9ae","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":163,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"52c2fbaf-149b-4553-aaaa-c30c39489284","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":163,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"ab97aec0-5543-4d40-a762-23a75538030b","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":163,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"061ebcf2-08f4-4e21-9dbf-3d9c10954c93","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":163,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"4efc1076-f778-48c9-b94f-e961f5c54d88","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":163,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"3fd98698-5394-4246-afcc-e0b4cc22a7c2","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":163,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"8fe39c5f-01f0-41d7-a21f-f21028ab10af","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":163,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"f7540861-7d90-486b-8ca3-5f6b2c6ea12b","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":163,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"cd9743f6-b9a9-4622-b99e-6c38fb41d3ce","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":163,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"0d59af95-f36c-416e-b33d-1ecd9cc212a6","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":163,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"22127a20-9df6-4252-bf8f-a0c842ff8a83","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":163,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"6d9234d4-b85b-4db1-b948-cd72ff81b09a","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":163,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"4fa9c507-f157-4cea-b771-3ce074baa1fe","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":163,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"7841f519-42e6-4f40-b5bc-0a253cc86b23","block_type":"box","text":"II-120","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"82bc93da-1bdc-4224-a730-08d425495099","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3eec6836-16d6-46f3-b056-58e6c6feb472","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":164,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"dd5ff49e-97c2-4402-a1f9-265294d4359e","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":164,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"e6986af3-bf3d-45ae-9c27-a870d685fc56","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":164,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"fa58c67d-23f9-497e-a54a-56c1d99dba57","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":164,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"f4330f95-fad5-430f-acb6-d0d7ce851615","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":164,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"e3c45b37-1b30-456e-a533-db97614c10ad","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":164,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"380a17f6-d467-42cc-8417-c5f8ed37d523","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":164,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"e7c20630-85c6-4b6d-a600-8ebd6bc2f7e1","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":164,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"ded2ed21-3049-4c05-912d-aaff2f1d4dcf","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":164,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"7279a21a-3cd1-4d1d-ab5f-6212a0357037","block_type":"box","text":"information.","page_number":164,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"e06c69fd-7079-4ea7-b756-af2d2cfba6ca","block_type":"box","text":"Retirement and Education Savings Plans","page_number":164,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"3dd1daae-b8c5-4526-9400-66746948d373","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":164,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"3a264c02-7f19-4834-befe-c3f474357fc8","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":164,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"18bd371c-d7cd-41f9-95cc-6920d91c0a69","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":164,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"06873c01-8322-4162-bcb4-8d46e12ab6c6","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":164,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"6ee03008-b59f-431f-adc1-ca5e7e36cc44","block_type":"box","text":"your financial intermediary.","page_number":164,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"bb8b7439-8fd7-451b-9daa-e7d686672362","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":164,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"22a519df-5add-4f5d-9904-32c8f2f719a4","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":164,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"7ee91722-0134-4494-b3f7-c64b66b6fa43","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":164,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"dc3bd107-f5b0-41c0-8e7e-b0c101f83604","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":164,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"0c371453-946c-440d-865e-3c13e71eea6b","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":164,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"a288f686-58bb-4ebe-81d1-e183c84680da","block_type":"box","text":"Automatic Investment Plans","page_number":164,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"ee54252f-a658-4e74-b532-8324673f2916","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":164,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"b8753871-4686-4b84-8eb3-c55e535ce017","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":164,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"1c88db72-3ba4-4441-b943-9a63ecd39007","block_type":"box","text":"®","page_number":164,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"2e730b88-47e6-41f5-9e5f-2e7036a87d65","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":164,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"4f47ed8c-ec13-4848-9833-3ab04b28757d","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":164,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"c756effb-890f-44f0-b66a-1b5d30934097","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":164,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"6730bc08-61fc-48ed-9876-f361f40c3178","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":164,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"a7b3745f-1952-49df-b70f-00486afc3a4e","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":164,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"52de446d-c10c-45b8-968b-75d13a0d05b5","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":164,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"7a420ac9-aaf3-4c2e-a9fb-192709600b81","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":164,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"67e6ed99-e52e-4016-ab54-7066881c4dc0","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":164,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"dcfc911f-279f-444d-8ff5-3e2eea80c4eb","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":164,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"8c04debe-6b0f-44aa-a35a-3b2dac119fc7","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":164,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"320e6532-8f43-49c6-b9c7-4428253721fc","block_type":"box","text":"Systematic Withdrawal Plans","page_number":164,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"169ce79f-3094-4371-a1bb-6a22eff34cb7","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":164,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"c92575ea-e335-4201-9819-97e8c55d3871","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":164,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"a3401b81-6228-4d25-a163-a1075624f82e","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":164,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"be3b8f36-7335-4447-839c-81cc72b73be8","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":164,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"56286e43-6fdb-42f8-9322-bf61ad548483","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":164,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"729aba87-a02e-460f-97e8-6396da81247f","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":164,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"3b032588-fc44-49b3-b46b-2f2093883ad8","block_type":"box","text":"www.blackrock.com.","page_number":164,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"35814bf3-ad75-4daf-a2a8-b4721006c40d","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":164,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"385d6faa-da18-42b5-b1c1-93418edd79d9","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":164,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"ae289a51-ab3b-4a6b-a934-55377ce4a4ef","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":164,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"58636424-94cc-4a98-a8b9-5a92d7c6114b","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":164,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"1edc61b2-b4dc-48fa-99d8-e9ffa27c25c0","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":164,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"7d81b125-25e8-48ce-8677-61b5df78841b","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":164,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"2ce9dbb0-e8fb-4e6e-a15a-739a863d4f8c","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":164,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"2c597e83-e418-4682-a4cb-82339adece40","block_type":"box","text":"II-121","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bf4cdc2a-d595-43f5-8bd8-6a749a2ac2c9","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f8edb4d-ea68-4377-ab7f-a70351457606","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":165,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"00a52e18-4f14-486e-a358-cb50f4582c21","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":165,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"b146f1a9-759f-4680-a980-590fcbe7035a","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":165,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"a3e119a7-3089-41fd-8dea-e7226e13412a","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":165,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"c3579115-042a-4ff0-bf1c-920e48a35bda","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":165,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"92b6d505-dae4-4868-a5b3-d14f425d4572","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":165,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"f93bdf82-3ffa-465e-9e92-f62a6d371e7f","block_type":"box","text":"Dividend Allocation Plan","page_number":165,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"ca7011cb-4181-40a1-b7a2-7e3c7cc41262","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":165,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"814dcba0-eeb8-40df-82f0-992d6260ad55","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":165,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"64bf2ac4-ed9d-43f5-9e6e-c1d3e3b7e039","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":165,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"6dacb477-cb73-40fb-a0c1-e97d098ea152","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":165,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"74c0aa72-1f69-47ad-85ae-62e05d58fc71","block_type":"box","text":"PRICING OF SHARES","page_number":165,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"19060e30-6091-4db4-80d2-c1d079259f33","block_type":"box","text":"Determination of Net Asset Value","page_number":165,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"b51ebc9b-0811-446d-8b4c-66bf4144bf7c","block_type":"box","text":"Valuation of Shares.","page_number":165,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"38c7cad8-c6ad-4471-864b-3155176a9a58","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":165,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"94cd00fa-2ead-4079-b25a-7ef207dde4c7","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":165,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"37a6561f-7723-4a4a-9552-1a395ce6ce71","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":165,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"1e54088b-6d8b-4ff6-a12d-bedff663f7a0","block_type":"box","text":"Equity Investments.","page_number":165,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"018cc5eb-cbe4-41d0-b910-10df198b85b2","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":165,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"d41697d5-859e-4e0b-b5f5-5eb1f9401094","block_type":"box","text":"e.g.","page_number":165,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"f6f586ba-a761-46b2-b154-2b431ef8b7f9","block_type":"box","text":", NYSE), on separate","page_number":165,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"6466b387-4613-4cb5-a423-9e9b053ed7f3","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":165,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"aaf7b68f-3e11-420b-b837-e7437734a012","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":165,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"3d0497fb-5fde-437d-b265-20a97c48fa35","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":165,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"ab554a71-df16-4304-9e1a-2ee142ee43e0","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":165,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"d51f6e63-3007-4826-85c0-4141d36439af","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":165,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"033638a2-5aa8-40d1-bdc2-9c2cee3d8945","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":165,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"b33a809a-a073-4d5f-8fe3-186c1e499623","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":165,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"9207de2d-d6da-4863-90ac-a1a8d75f9081","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":165,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"66892799-9336-4d7b-8607-166d6d7cc364","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":165,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"d0644fbc-6668-4277-a438-e741ecedab82","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":165,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"9a3e6648-7e99-4ec4-8b57-90d0baedc1a2","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":165,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"f3294628-177e-444c-b6a8-76014b33b3c2","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":165,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"22f36cd7-908e-4f4b-bc97-27ff83be3a20","block_type":"box","text":"defined below).","page_number":165,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"13241b59-6b70-4d98-87b5-10e2bb1a57a8","block_type":"box","text":"Fixed-Income Investments.","page_number":165,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"51d80167-ac8d-4a26-bc5e-e9d5c97742f4","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":165,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"a4280c9d-de61-4e12-827a-769eeea6120d","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":165,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"b3aa200d-5a27-483b-95a2-3c9f8f11279c","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":165,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"74e8a427-55fe-44f4-bc70-bd672d5cbc95","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":165,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"015bd8de-57eb-4d67-b4f7-dfe2c689e8ce","block_type":"box","text":"e.g.","page_number":165,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"c98ab410-5a4d-4507-b485-2e9385475ec9","block_type":"box","text":", recent representative bids and offers), credit","page_number":165,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"a3cc9aec-6ef1-47f7-9cf6-8cacabdfbb99","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":165,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"e1a95ac0-cc5c-4f38-8a8a-e9fdec7b76c4","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":165,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"0849581f-1ce5-45cc-9256-d212d9b46708","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":165,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"18275b9f-1507-458f-ab2b-710fc3fe4eb5","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":165,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"049044f5-8958-43c3-bbfe-1f8ccf34a298","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":165,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"00bd95ab-c5d3-420f-8369-8ac606adb61d","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":165,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"4579e9e4-1e53-43bd-b0d3-b2dd0bc5e58c","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":165,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"577075ff-9965-46ee-b3c0-66d2dd0b9579","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":165,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"d6f3acfa-68b3-48bb-b3b2-7c91cb0b6498","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":165,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"1d144c65-86b9-47a1-969c-e5870141c5d3","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":165,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"969e1260-314e-49bd-99dc-7738bde80087","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":165,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"daaf8a18-19da-4d3f-b7c5-ca283c0fdf44","block_type":"box","text":"attributes of the tranche.","page_number":165,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"800e2611-dbc2-4e5c-92d0-ad822e4a495e","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":165,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"7041a7e9-533f-4981-b253-41e8c5b962aa","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":165,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"a9a7e6e9-d3cf-4817-9880-433ac54f76a6","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":165,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"4b3e8b64-d218-4d08-9f47-00490147d3d1","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":165,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"84f49826-fbd2-4544-ae75-5b92ed1ac464","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":165,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"64c25a53-7821-4ac2-a51e-a93896303733","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":165,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"54098786-a082-4a0a-9429-3e18ff78a654","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":165,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"84ee9934-8267-4fee-b907-417657549a2e","block_type":"box","text":"II-122","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"467ef9e4-6a1d-45da-b21c-111de6a19868","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71892982-aa98-4f7b-ab1a-7f09534b0d0f","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":166,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"d23209b8-0bd2-4993-bacf-e4a7700f10d8","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":166,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"313a6145-4bd2-464d-a37e-85407a5bbfee","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":166,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"dbd20728-f3f6-4e87-9351-63e58ca58a74","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":166,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"f2e951b3-41cd-4bcd-ae89-15b7a0175ded","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":166,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"5423f52d-c3ae-4d0a-8089-b7647cacf50f","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":166,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"cc81427e-4538-4a73-9e80-b8595c9c7eb7","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":166,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"cdc5324a-4f03-4912-b3f3-ab886275b412","block_type":"box","text":"Underlying Funds.","page_number":166,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"2352a74c-2569-4ea4-9474-1fbf224e502f","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":166,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"c48fdf96-046a-4007-9d93-977ec4010ee2","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":166,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"3cb766bb-ff01-4954-8138-f985ab8649f0","block_type":"box","text":"at their most recent closing price.","page_number":166,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"b5188639-dd2d-478c-8066-47bf22b64030","block_type":"box","text":"General Valuation Information.","page_number":166,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"4c52ca85-505e-4761-a458-ccd6a55073e4","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":166,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"245fe413-5ed6-40c7-bf00-b149c74b63cd","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":166,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"d2b58fb9-3468-454f-8f27-6ac74ffbb035","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":166,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"2710e363-6605-4d82-8369-275e6859047d","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":166,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"7ad60f35-4b5e-4e5e-a384-bbc745d92662","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":166,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"c2657d55-0219-41c9-99a3-29efa16f80d7","block_type":"box","text":"the revision.","page_number":166,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"f6bd0fa8-f2f2-4b36-ae0d-b85582bc1ee5","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":166,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"a9ba0730-8b80-4e48-bf17-691c7c61492b","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":166,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"147f8b07-012b-4aa2-bf7f-f93638cdea61","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":166,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"26c974ca-7a92-444e-9597-f5158d815321","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":166,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"64a17bbf-76e7-4196-98c2-8cdaaf725b8f","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":166,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"c40190a2-a75e-410f-9a56-773b20ec54e5","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":166,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"aceb8a36-8c92-40d2-b0e4-a0d77c543ce1","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":166,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"66abd9f5-a511-4e94-8288-5fef66fd103d","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":166,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"4133c934-8f68-45b2-827a-5126a92f79ff","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":166,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"3ccf9c83-8c2d-4050-8cb5-20ee70ffd4bc","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":166,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"555830e3-3a7d-4074-9408-c7bc2f83ab96","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":166,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"b8a8f259-3ea7-41be-9187-443b9037ec83","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":166,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"a12dbcda-5177-4672-9492-88a2b424ae67","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":166,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"bc05d7a6-19ac-4173-b920-76c9e212e76e","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":166,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"0de8173c-c933-449c-96bc-29a1cc6e927f","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":166,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"1c6b7607-381d-43e5-8f50-1880654ac5b1","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":166,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"e4bf9f73-f1ae-4922-b55c-0bf6a554baea","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":166,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"8d75e469-c7a5-4a04-92b6-d4b08cd200a0","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":166,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"b22646d7-eb7c-45cc-96de-92c4c64b60a8","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":166,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"a614d280-4861-40b0-8adb-665deb87e068","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":166,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"8d263a26-3f1e-4c0e-b490-88f7aff56954","block_type":"box","text":"Fair Value.","page_number":166,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"fd59cf5a-edd4-41cc-93c7-50e3e8e5ed77","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":166,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"948c7cba-b070-4c6f-8426-257752276bd5","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":166,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"9f615ddf-f471-4236-9189-9e481a520e5b","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":166,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"f3604b6c-bcba-44eb-9e77-b4dfaa4b63af","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":166,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"50a31096-b463-43e4-b045-95a491cd1249","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":166,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"4eec8e96-31e1-4d20-ac2e-78a79492f41c","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":166,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"14372bae-c617-49ba-8e89-2e7cc0fbcb02","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":166,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"474f58d7-a521-44ec-9cfd-998f7bcb034b","block_type":"box","text":"(","page_number":166,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"85cf0120-03fa-4e3c-8567-bf7467e1d271","block_type":"box","text":"e.g.","page_number":166,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"ffaf5418-33ee-4ab9-bce9-7037cee2fbc9","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":166,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"d4eb0cfb-f526-47ff-97b5-69a353c81dc4","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":166,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"616ecb4b-3870-447f-9d8d-060cf928ee14","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":166,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"aaa5e55c-a5fe-4c42-a3a2-32437e6e65dd","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":166,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"f2ce62bd-755a-4cc7-94bd-697c599f3a50","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":166,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"0e67ef42-a13d-440a-be83-b5b1933962e9","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":166,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"2ad26062-f74f-47d4-8ba6-3fe4a3e3fc5a","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":166,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"744c6b39-2903-435a-a165-33803d2edf30","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":166,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"0445e0c9-753b-45a8-90db-8895738d5786","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":166,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"b28dd429-a1e3-4bca-94a1-1b93205416e1","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":166,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"ff820404-7fdd-45d6-8402-b504a832696c","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":166,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"b17374fb-41fc-4e28-b201-61cb124337fe","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":166,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"77d8f09e-ec33-4507-8c2d-54b7b459e952","block_type":"box","text":"II-123","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"251585fa-2e4b-4fa4-a57c-bdfb641d6b07","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a8b92d27-6cbf-4444-b3d1-93f8547bdecc","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":167,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"ad07f05b-8958-4cb0-92e9-8c80d47bffad","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":167,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"0ecc7e74-400c-4e37-beae-a66cc85823c4","block_type":"box","text":"pricing time.","page_number":167,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"e9585257-adfd-49ef-93a5-81dcd2a1457d","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":167,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"d80b2606-cac3-4ad9-b500-cf6365157034","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":167,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"e46f5563-47c4-4b1e-9240-8e3444293b93","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":167,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"056c8fda-4dcc-4ebf-bb39-8aeace07f0ce","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":167,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"b90fbb7b-7371-42d6-ba70-e4c049901ea9","block_type":"box","text":"assets and liabilities of the Funds.","page_number":167,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"4b0ef092-d957-41de-a804-8e31f864a653","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":167,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"0ca481db-67bf-49c2-929d-e48c9d19f73a","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":167,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"38ba35f0-0ef3-4062-b3cb-60e38427e6f0","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":167,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"85fc8f65-4451-4d55-9d32-385c601bacdd","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":167,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"7aaac03c-1f36-4dbf-aca5-ae0962a240d9","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":167,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"19964266-131f-44d7-ab0d-bf4bd1e112e0","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":167,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"2dbc8d2b-5a3c-4bfa-b027-c94b6a11d6d0","block_type":"box","text":"valuation models.","page_number":167,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"033e0b0c-49f3-4296-97ff-f5946d21d11c","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":167,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"b16bbbbd-689a-49e2-8c36-743b00ef924c","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":167,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"a271fe94-80f4-4803-ac9c-c312ba244c53","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":167,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"0cde54d6-2614-436a-af4b-8bff96c8848d","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":167,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"8dda64c0-9133-4d5e-adc1-025f0ec5a300","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":167,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"f743b4ff-0a87-4e77-9098-57ad219ac3fb","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":167,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"4bf50348-9277-4148-9e0e-78ee68ea36c7","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":167,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"e7eedb76-4795-4914-bf3b-8c703a38aaf5","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":167,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"6084fdd1-cf1c-4cd3-9e0d-547e5ae78749","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":167,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"d1f693e5-84a5-4764-a02f-2822698ea650","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":167,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"6eb9913c-1592-47a3-a257-522dd551c370","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":167,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"1d9f07b1-066f-4523-8f34-75d8975b2aa7","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":167,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"676e91be-da04-4860-8fbb-618e74265d98","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":167,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"4ae59ab7-2208-4a2b-a2b1-1e694ef6d614","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":167,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"4cc33e88-93dc-40ad-b107-f82856ec3b8c","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":167,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"47f8b2c0-6811-4c01-a8a6-80cad24a4e68","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":167,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"aa67d42b-1a2f-4506-aac6-758befd8aa92","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":167,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"91e03013-7ba0-43ff-92c3-e7d223ab14e8","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":167,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"aa98fbf0-6194-4da8-8832-b334edb59690","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":167,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"f4110805-19c8-4ed5-89c7-a7ae23c7f2a6","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":167,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"c1bfd48c-bb67-42fe-b066-958a3fabd3a9","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":167,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"274d824f-8644-4616-b8bc-b197acf365a7","block_type":"box","text":"par ty determination of fair market value.","page_number":167,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"255729b0-4e15-4ce9-9f08-b5cbf264052d","block_type":"box","text":"Computation of Offering Price Per Share","page_number":167,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"e87cc39e-ba8f-4188-b873-449cb902accf","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":167,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"cf1d620a-7583-4ead-918d-f586b731da4f","block_type":"box","text":"the offering price for shares of your Fund.","page_number":167,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"77d8d8c5-75e2-461a-9448-bac9b7935718","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":167,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"a35c70fc-156a-47bd-b761-6e187dfad3e4","block_type":"box","text":"Transactions in Portfolio Securities","page_number":167,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"dc24469c-7d8d-445f-9663-be60c318f1cb","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":167,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"28c28f51-29b2-4efb-bed2-1c74148810f5","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":167,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"41ac16a7-b6eb-4899-99c9-9b03f3dda9d3","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":167,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"116ef06c-6a28-4501-820a-31840cb28a5d","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":167,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"c1bfda41-71df-44dd-8783-35b80eed8723","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":167,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"1ba56426-3048-46db-857f-561216246f5e","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":167,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"69854404-4814-4c21-84e1-ceac781e2819","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":167,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"3d9a5202-eeb4-4817-ad11-46ae3dfba61d","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":167,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"4d4fe704-f8d6-47fd-8800-028d78c9019a","block_type":"box","text":"II-124","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a088221a-b6ad-4a5f-9a30-d7e0cfbba396","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"739eb448-51c1-4cdf-8038-4c78a30b8199","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":168,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"1cb0b412-9752-4057-9712-2ef01695e9d9","block_type":"box","text":"reasonable in relation to the services provided.","page_number":168,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"53624432-6979-48b1-82e6-f9e43352516c","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":168,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"7da3a7c1-6f5e-4374-befa-1ab090ac8dd9","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":168,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"3019221f-51af-4706-ac71-f1209f7c68a3","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":168,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"6f63182f-0dc3-4dd8-82da-7d6cc6472281","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":168,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"6258b88c-7f5d-46f3-9b2a-be3a3e4e3fc5","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":168,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"d1e96188-3270-46b0-9159-762b5652c653","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":168,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"333bfa13-8983-4933-8cf3-28d3fc772cc6","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":168,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"cc5200f4-e9c1-4fc9-9d06-11f829733a30","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":168,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"9f0fd19b-a237-4d4a-848e-cc28d42a7f6f","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":168,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"946896b2-6491-4d0b-bdea-9720010311f3","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":168,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"449c097b-e120-4fa5-8704-202f7378d764","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":168,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"668e0f8a-02e1-4c9c-b9dd-5964d51f015d","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":168,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"68a72b84-ab26-4e7b-8cda-721d7035517d","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":168,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"1581e2ac-0535-41b4-ad09-5bea8c82d960","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":168,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"14bebc21-2fa7-433a-b2d6-f4bc411f91c3","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":168,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"6334ea59-36e1-438f-b88a-296e50adcec8","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":168,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"8c00c381-6930-41da-8666-e7f4b5ef27ad","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":168,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"7b7ce00f-f387-422a-95fc-1496af06efe1","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":168,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"1caeb63e-875a-4727-8f0b-f739da015f17","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":168,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"34c8800c-5070-4c54-b8c3-0ddbf7e18d96","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":168,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"6b6fda7b-8182-427d-ac77-54e305412c2f","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":168,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"03edf282-1ed9-4934-94e0-6f837a622220","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":168,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"8b1bed1e-46e6-4434-8cc4-0d1740178ff3","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":168,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"4f423b30-0137-407f-86ee-7f95b160d4a2","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":168,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"a5fc45e9-39a2-44b0-a6c7-9eb36241fb3d","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":168,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"8f91b542-f9fe-451b-bd27-9df53ffc6a52","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":168,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"2980087c-b030-4850-8cae-d69008e70f43","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":168,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"03731d19-6f96-4df4-bb3c-8fbb697e0eb4","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":168,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"93d38638-fce9-4de1-9e81-799ea3895e97","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":168,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"4dd19504-4886-49d8-bc43-b9574b9cd2ec","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":168,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"0b780b0d-3c76-4649-b0e4-a8dcbdfee4a5","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":168,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"38113737-aac2-41e5-bf25-8ddf83839908","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":168,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"b5d54054-d7f5-402a-93ba-12f50940b5a5","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":168,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"c72d45af-97e2-4b33-8502-5db60dfb6d74","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":168,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"35b0d85f-3e08-4fa1-bac7-e9d6050434fb","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":168,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"4aba1ce1-b567-4f2b-9412-1defbfec9de5","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":168,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"4aeb8da2-b824-4e3b-b601-ee99a7aa309e","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":168,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"8c421378-f474-4187-b9ff-389f2b8760d5","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":168,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"b997d7a5-929b-4e7c-844b-8f0e7bc45f40","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":168,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"887c0ff4-7c01-4401-aec3-dde193eb2509","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":168,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"f3ffb852-6715-4c88-b3dc-21dfd15eb90f","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":168,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"25f3f81b-d927-4259-8e23-67518f0fe69c","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":168,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"6a48c5fb-2cc8-4df0-9d0a-dca62336a2a3","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":168,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"fd699726-600c-477b-8fbe-be47c57087e9","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":168,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"b493a260-b6a0-4280-97d4-77e9b5d902fb","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":168,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"7654b760-b5bf-4402-a8c0-ee3b45ee2543","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":168,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"d6946700-24c5-461b-91db-6980b97d27f9","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":168,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"b8ef65d3-3f13-4c84-b337-1fb51b26c5ba","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":168,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"16a93ea5-966a-4669-8c54-6db8c58b4432","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":168,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"ff11b022-994b-4adc-81c3-405f4d819a75","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":168,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"d32b88ee-1f92-41eb-ab77-b59a37ee7b5a","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":168,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"fc873161-235f-4250-b260-e7c5ccb43090","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":168,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"212907af-23b2-4696-94ad-f9b3030eb7f6","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":168,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"e1fd2773-ccd7-4195-aa04-ab4817dc3510","block_type":"box","text":"II-125","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d883550f-9ec9-417a-8475-27c93955328b","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24b93cc7-3922-490f-9bba-abcbafed7d74","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":169,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"0c14cd73-c2d0-4de3-97cd-8d69e8e17b99","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":169,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"5e88432b-5217-4865-9a21-32ac4304e6c3","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":169,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"c84d994e-659e-4da6-8c9e-441654cd02b5","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":169,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"a65b53d9-bbf1-465f-89a2-c0f5831abf9c","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":169,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"0dc65c94-efc1-4287-92af-f396b3c6403d","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":169,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"fa589a6a-689c-4e42-8dfd-c0df34553841","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":169,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"a415eb3a-9fe0-47c4-aec6-9e843a4cf44b","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":169,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"a978e1b2-4ba0-4bc8-9d96-d8fd32fe7e6e","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":169,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"1518db08-d07c-4b80-bb5a-f5227da53bdd","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":169,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"c2373eeb-9032-4ca9-bedb-09c2d916f69e","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":169,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"75cc8937-e82e-446a-9d19-57ca54f5dd11","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":169,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"e19f90a6-9352-4655-82e7-d2d1a9a64eda","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":169,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"a15d8ed5-4636-4b0c-ab11-c300610df6b5","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":169,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"a7819cb0-6f8e-408c-8e8e-a9ed371916ce","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":169,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"1b3b0702-24e8-4152-b0b3-eb279deeb60a","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":169,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"42d33554-907f-4df0-8c2e-6a86bdf74524","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":169,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"db73fa54-e2c7-438f-85ad-4d15e7609423","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":169,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"d8b860b5-df5f-4a16-b375-d4b276f6e0c0","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":169,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"60ad7405-3f7a-4864-b0df-3bc6f16409b5","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":169,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"99ba2a52-2a65-4abf-a9cb-e93153d28715","block_type":"box","text":"brokerage.","page_number":169,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"8bc19217-1442-45d9-b600-4c3b1788991e","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":169,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"48d7da50-9620-47f3-891a-70ae75db7164","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":169,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"11b74173-3c38-473d-98ef-f7ce62b03dda","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":169,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"21d5196d-2353-4c59-abf5-435a5672945b","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":169,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"529bd45d-733d-4212-88cb-6bc02e89a9ba","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":169,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"087345a2-3fa9-44f7-adfc-130a8905d3db","block_type":"box","text":"Section 28(e).","page_number":169,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"fc7f1460-3090-4de3-b7eb-2a9411ee089c","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":169,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"7a5867e5-35aa-4310-a14d-1c76de4d0a56","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":169,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"8f97dd4e-2e84-4ace-b777-6943dd5bf92d","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":169,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"3fd5ddca-4e14-46e8-90c3-3115be839c01","block_type":"box","text":"execute transactions for those mutual funds.","page_number":169,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"418a08de-de04-4354-9d21-66574cd21aed","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":169,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"40c67295-981e-4042-b588-40eedc734c0f","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":169,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"c72a963a-c4d7-41fc-938b-67c92c41aa09","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":169,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"a5921d8a-fa00-4c4d-b419-483fe4ae1ac5","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":169,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"b2b892e6-55e8-40c4-93de-167240f2deee","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":169,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"4e727482-a21d-4d69-bc32-ca6123e58498","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":169,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"ff6143ee-1836-44d0-954e-0da9db10908e","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":169,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"ca849f42-5a01-4bfa-935c-4e644f60e922","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":169,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"fd08f55c-164a-461f-a91c-e40369aa8d58","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":169,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"a365a27b-c932-4eae-8170-02fbd843ac6e","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":169,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"d37302d1-c100-45a7-bf64-648714846fd7","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":169,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"881be5c0-49a1-44b1-b93b-155cca6383b3","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":169,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"2c409a05-17e7-4b5b-be17-552742902ab0","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":169,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"9c1a7beb-d00a-4d47-b3e1-0c25d7abfcc9","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":169,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"3af04719-fd05-4032-b760-27bf018d20bc","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":169,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"a7d11eea-e076-4fe9-98d6-9624a8ec5c77","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":169,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"31da562e-16d7-48f2-bfcd-d917f18fd8be","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":169,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"ed8aa50f-5568-4a4f-8fa8-41444aaefc14","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":169,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"41bba83d-9b96-41b4-8f7d-59e3dcb7ee9c","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":169,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"c7866931-2df5-48be-95c3-77b47babc9c7","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":169,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"1ee5eab6-6a27-4a8b-84e5-7f1927a1ba08","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":169,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"0faacc41-dd4f-43ea-8876-189bf5225d32","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":169,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"0eaf3671-aaa7-411c-b6d4-f4c2422ccbf6","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":169,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"38b200f1-350e-4d05-8592-4935be26e312","block_type":"box","text":"II-126","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ac0ad7bc-d9e0-474e-94cc-af9b14adc106","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39048474-9fa2-4959-a352-0075dd9ad09b","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":170,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"b3f26981-f475-4c22-94fd-f168bccc1723","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":170,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"84d278b9-bebd-4f05-b632-223eba3c2582","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"7be2d7b9-f9cf-4bbc-80af-5627d6b55ad4","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":170,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"e39a6319-a517-4fa1-abe6-24e8f1c57a2a","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":170,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"c46411cb-4170-4937-9b07-827e87a28b13","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":170,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"45e48df0-3f85-474c-b546-1786ab089f23","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":170,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"37de5380-8228-40cd-a4fd-07b35cb9c9b3","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":170,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"597a9a53-06b4-4719-8b7b-14269727d9ba","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":170,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"1fa8752b-aee6-4360-969c-f7b9eab94386","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":170,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"29760a3a-cb56-4934-a369-716614e6c5e6","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":170,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"65eef771-305b-471d-96be-231441de33cc","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":170,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"2a8555ac-afe7-4274-aab5-2637e5c74a15","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":170,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"f0ae3247-bead-4f28-b27b-0895ac33fb5d","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":170,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"2a5eed0a-49d8-471b-a64a-dd63e2c5f162","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":170,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"5855bd11-75ca-49a2-a614-6e53b0685bcf","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":170,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"ba918fe6-9e63-493f-807b-26ebc0957498","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":170,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"243cf267-fa95-46a7-bf15-f036064df25e","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":170,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"03e3455e-bfbb-4be4-8ab2-cd33fb392291","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":170,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"cbd16dc7-658f-4531-80b9-281d452591ca","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":170,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"79dde7c8-3118-4f53-b064-0a86c545ad73","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":170,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"66ee638e-2233-4282-a8b2-2539cd62709b","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":170,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"aca16fab-ce12-4a85-96e4-ffe73e7f818e","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":170,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"87d6aa1f-8cdb-4107-8932-8e064e4d2ed8","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":170,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"7c78cb8d-fc76-45d2-8a82-fccd9542f449","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":170,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"bb1a8897-04d5-477b-bfc9-d657b84ee361","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":170,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"5e8c4255-e717-4306-9d0e-59d633d182fd","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":170,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"f6d85e95-e3b1-4488-b89a-ae5f21f58efb","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":170,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"2d82b898-f718-4100-9c7f-d8439171d2ca","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":170,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"a451e9c2-bd82-48be-aa48-a857c79fd9dc","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":170,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"002addc0-9ead-4059-8b69-a41aa292bc94","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":170,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"11ce2788-4966-4680-828f-3123b47d6a46","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":170,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"fe25e246-08bb-4ee9-88df-d0827e85e0c7","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":170,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"5774b10d-57f5-4160-a012-08c5617d0474","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":170,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"996dc775-fff5-470c-85c7-7c62f5512a09","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":170,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"fa1bcd8d-8d02-4514-9b5b-32a3f5e02e25","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":170,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"9edeba92-f384-473d-9a86-ec35f9144494","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":170,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"c9922617-4f32-4a39-b363-2ea44b495f81","block_type":"box","text":"accounts and compliance constraints.","page_number":170,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"4057ec11-b5c3-4925-8235-1ca5e1c59dec","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":170,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"0c77a528-0f48-4aea-95bd-6100046b90eb","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":170,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"68fd718c-7eed-475b-b879-ef9fb283e4f9","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":170,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"97d3175a-690b-409a-aeb7-fd13fabda1b2","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":170,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"73e55734-b1d9-4bf4-ac38-1f36a7b5182d","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":170,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"5b669651-9b84-41a1-a611-7edb5e455d04","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":170,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"daad0774-be8a-4f16-9d37-5daf3935cffa","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":170,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"fc4bc5ff-4466-4953-a56f-a43d48892b04","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":170,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"162d4a78-1c54-4d67-9f2d-532f7f4211b1","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":170,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"52ca03f3-fb14-440d-aa1e-7bd6f8d5ec51","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":170,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"82fdfd2e-3de5-42df-b5ec-bf6c2d946c54","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":170,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"8c0fee73-c39f-4e07-b840-5aac0bcfbcdb","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":170,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"0cdcf5e5-414f-4b28-b982-c8d0f29893cd","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":170,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"dd1f77f5-bab4-4a0d-b401-be39b753291b","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":170,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"db89472f-9eb6-4abf-89a5-77316cf8afc2","block_type":"box","text":"clients may be used as well.","page_number":170,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"603067c1-65c2-4260-8695-9319a93d7b91","block_type":"box","text":"II-127","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4d6c6f11-6e3c-48b8-9f51-1851b0f9172d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ecc513b-42c9-4d70-9db1-73fe27f65b4b","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":171,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"93a027f2-9ba4-4bee-aa9f-769c97b418d1","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":171,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"26827bc7-da25-46ca-b85d-55285d72045a","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":171,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"842db646-87b9-4903-b2a6-c143c95df316","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":171,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"f8e66e98-1e71-43d5-ab90-bc67b116e759","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":171,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"c7a7e260-a828-4b14-a3b9-2ccdf39c2207","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":171,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"8d8a109a-0079-4b97-b981-3429cfe50db5","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":171,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"e3d22cdb-1be3-49dc-8516-b3cc7cc0c5ef","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":171,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"049703ce-5c0f-464e-ad36-c3555d549b0d","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":171,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"548a040b-7612-4542-adb7-cfc931b9b3df","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":171,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"049f9854-ee1a-4753-8ba4-33f0d4b6394e","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":171,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"d3e4bc02-7890-4f07-842f-fde5aa214401","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":171,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"c307acff-dd8f-4089-9fbf-78adb44c7ffc","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":171,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"0e4e475f-42c9-42de-92a9-54cb94c14905","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":171,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"1e7e9fe4-a7e4-48b6-a315-4ee6127a151e","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":171,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"70f894fb-f03a-48ff-bfb9-ac19bed36900","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":171,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"eb47bffb-eeff-42e2-93b8-617624201a2a","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":171,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"35af11a6-704a-4301-8602-cb51a7750f9c","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":171,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"3e378d3f-e7f9-4d98-a445-ccdde157b520","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":171,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"19c21039-7ebc-4ffa-a9f0-b6549dbb85c4","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":171,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"098b82b6-1e6f-4e18-b787-0acd004a5948","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":171,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"614e29ac-b5b0-44fe-ae82-6f608e35a3d0","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":171,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"d42e395a-2a45-48e2-ad9f-cc55a4e56cbb","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":171,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"c826552c-2b60-439a-ba44-9c4c7b27235d","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":171,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"59d7b4e2-9282-488d-8fd2-d0396626b950","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":171,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"d2c0c743-e70b-4b46-8515-1c681369c784","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":171,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"16d05ee0-5821-4502-a321-2aeaaf7423a5","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":171,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"1091de2e-4a76-44f0-89a6-0b6bc73d6cc4","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":171,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"420f8df7-fe0a-4ec2-b8aa-45108af42ca3","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":171,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"b78f9a96-ddfd-41b4-919f-38fb5289b67e","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":171,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"9d3f9131-8b2d-4343-91b6-05b180690f3f","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":171,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"e29b87dd-f734-41ef-9c78-889d2642e4c9","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":171,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"fa1b2d95-58a4-4fbe-ada6-3a0f59b56ad1","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":171,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"5d5e52cd-77ac-4fee-8d4b-ce7ec0e27017","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":171,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"ca84b5bb-f041-42e9-b4ac-619e05df3f9d","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":171,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"d7a77e08-033a-4c01-bf73-2a901c970b4f","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":171,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"3b0535a8-a70e-4608-9dc2-04179f0fe1d3","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":171,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"08de59d0-f3f6-48d2-832c-a4b1d16fb5a4","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":171,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"767f4954-6c74-4d9e-9ab7-08efb5faddb1","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":171,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"24e16386-a56c-481c-887f-b71ca1146451","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":171,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"7e6160b5-f1bf-4bd8-9a87-774eb971b833","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":171,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"95aa83a6-54c6-42e3-b517-165450555a8b","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":171,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"2a78b038-3945-4a2f-9f23-6ed9bce3dbd9","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":171,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"079c754a-23e7-45b8-9f1d-aac21488b997","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":171,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"95ef637f-d4c7-4ccf-b160-88fc93afea30","block_type":"box","text":"Portfolio Turnover","page_number":171,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"39a76430-ac92-4507-9f0f-016e8c402df8","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":171,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"1485394e-9cb3-4867-90ea-8db5c6a791fa","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":171,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"985ab498-e3d6-4b50-87b2-01e572c82f0d","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":171,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"de437b21-761b-4d8b-b95e-6ec3e34290a8","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":171,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"46266582-3d20-42c4-84ae-8710d2da5a6c","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":171,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"a04247ec-8ee0-4e39-b3b7-8ec5aa5aa3b5","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":171,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"a9b06188-5157-4ccb-9388-60c9fe458265","block_type":"box","text":"II-128","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"935ad833-67fd-4742-8af9-87c60da114c1","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fa4f197b-d61f-4129-b3ed-8d15031696c6","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":172,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"1f9c8a73-82f6-4086-9c9e-15dd0c843172","block_type":"box","text":"Dividends","page_number":172,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"d5b79921-8b72-4f7c-8c7f-3b02d82a1920","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":172,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"e74d8a54-e21b-4142-a6f7-0d07950e4b36","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":172,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"d4d3ffad-def3-47fe-b048-f5acbeb573e6","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":172,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"c2c4b0f5-2eb0-40fc-a82c-240647dc13a3","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":172,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"2d43cfd9-c36e-470c-982f-689e850a92f8","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":172,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"020ee7cc-29f4-4ba2-9d6a-c3a446a9bdf0","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":172,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"877414f6-561e-44ba-b7fd-0e0ed2adb9f2","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":172,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"12f64994-3b1b-408a-8df3-ae3bd1c636bd","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":172,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"d51d3272-5375-4005-88eb-213f76f17e5a","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":172,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"72980eb2-a2d8-42b4-a45d-284dfedf8ba4","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":172,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"46957d36-0a99-4b7d-9034-52f7b6d6cee4","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":172,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"f01933be-7203-4b1d-9ad4-22a2ca1588cd","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":172,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"909076e6-fdc8-47ef-b41c-941f03c9cbf8","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":172,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"b9799406-c169-4617-a3e8-5088efaada8d","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":172,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"bca84a70-eab9-47dc-a1b1-bef157d3e290","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":172,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"992df5e7-a340-415b-8fa2-86614552e455","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":172,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"52e796c9-5d65-4c86-95e7-9df5829b7cec","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":172,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"476393cb-8ce8-413a-8af6-68b7e45b4eb6","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":172,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"3329a9ce-41a1-40dc-8cf9-5dee1c9f7979","block_type":"box","text":"Taxes","page_number":172,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"e688b354-86aa-42cb-b449-dc09442ef1a3","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":172,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"c2ed4624-24d2-445e-a1a9-c1adc9d6d8c9","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":172,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"cad5b8b4-36b1-4b85-8ce8-7fda1e1a209a","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":172,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"8d629584-0c3f-42d3-80b9-32e13a8490b9","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":172,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"2cadfd79-a3db-4124-9426-0c24fe896399","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":172,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"aad37e4d-7056-4861-a5ab-74d9fcd3cb36","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":172,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"ecc2d73f-3bde-4d41-8c82-d648cf8c4224","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":172,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"c62668d7-82a8-415e-8f1d-1a5e8694f41f","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":172,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"a1f34d2c-ebf0-4497-ae5b-b2f2d557ab76","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":172,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"20e66ccc-ab53-4b4d-abe4-5d2b8760b5f0","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":172,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"3899c056-e01d-4855-a7af-81ee87752eba","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":172,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"2ad5214d-a58e-4743-b2f7-93085140c0f7","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":172,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"5807199f-50f1-4845-866b-2ba1ae474a11","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":172,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"a48c40b5-2acf-4078-a883-0969bb6d1c9e","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":172,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"a8290d8f-7c8b-4f00-99d5-15abbaf2d70a","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":172,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"20f9aaf6-c080-4de0-8f00-eacf3e076b4f","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":172,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"af162338-d8b7-4458-823e-9092a30ccb77","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":172,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"ec286dba-7c5d-4132-9d9e-ad6348908ee0","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":172,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"9d2f9868-0d09-4a6a-83c5-fee91a27c9a7","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":172,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"b90f4814-7c95-40bb-9070-cee97f79f445","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":172,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"f0ab229f-50c0-406a-8aec-3b42ed40d3ee","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":172,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"e80fe619-0569-4184-990c-a02d4e0c7d74","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":172,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"6fef0a65-26f6-4339-8538-f3e49d0b681a","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":172,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"68bb290f-2d58-4cf4-9f60-68a045697536","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":172,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"a1e1dc34-07bf-4a8e-9f25-eeb45976530a","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":172,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"8339f343-bfd0-45a0-add8-ff8b145e640a","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":172,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"2d0482e5-c1be-47bf-9752-d8d47ebbbcb5","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":172,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"15055d34-cbf3-4873-8f4a-6d203344170a","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":172,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"cb12e211-41ee-438e-b52c-04b695bd89fd","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":172,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"bc29b5c4-5212-41dc-8234-92cf490c4ded","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":172,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"224e07a8-cf5f-4475-98b9-c950de2b435d","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":172,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"116b3bc5-0e71-4bc7-9981-a93467127eb8","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":172,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"d729079b-16e0-4329-8671-704196167e52","block_type":"box","text":"II-129","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"025b77fb-49d6-4f19-9c63-2de0ea51dd73","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a28be23c-c342-4391-9fbe-977880c01c22","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":173,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"7e78dd54-6531-4b97-8427-863a10c01e18","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":173,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"50e298a4-6898-467b-b469-294278762c92","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":173,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"3f43c9ad-d430-4692-9a73-6045708eccbe","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":173,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"27b9eda2-d6a0-44a9-91ca-31a2451df2b9","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":173,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"42f8404f-0017-41c9-ac3f-adb8f05205a1","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":173,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"965f8f1b-b40e-41e4-b62d-575e15543a42","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":173,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"dfc741ff-d77e-47b3-a477-a1b806b90f7b","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":173,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"8a52a463-9996-4f47-a30f-ab051fbbd465","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":173,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"360d448b-e72e-4891-867c-5b65ebc8a3a2","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":173,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"1d9f4f9c-8e46-470c-9633-7c54c653b9c5","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":173,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"280b794d-447a-4b70-8339-8bc2d3c7dcbe","block_type":"box","text":"limitation.","page_number":173,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"e23d45ed-99a3-403e-ba91-219820c8cd54","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":173,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"8291752d-5d58-464a-a33d-5792acd9c5ef","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":173,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"c9fb8da1-21e6-42da-bb45-f9ba4ccfb197","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":173,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"9b020a4a-2634-4522-ae5b-e5d92c5dbbcf","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":173,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"2eaf24b9-59f9-489c-a9e8-3e937395f249","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":173,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"e53a15fe-494d-429a-b908-711f2d5c8d72","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":173,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"a4343f3d-b170-43ee-9113-034223437318","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":173,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"8cb14678-1956-486b-bfce-52eb23c993dc","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":173,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"40e09d3c-6e93-4d64-912c-3c622800818f","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":173,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"5e8a6b2e-a531-4c78-af29-866090ff4f79","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":173,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"773186be-0482-4dca-98f0-def0d9779188","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":173,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"ec74ac49-9340-4e68-bbd6-0eb2cfc14613","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":173,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"a90ac86d-73b7-4e3f-a72f-934f1da53779","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":173,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"b35ce1e4-d084-4d45-a169-fdda3db6c913","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":173,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"98307385-bf9a-4234-a183-72834f0cc840","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":173,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"765aafe3-63af-4158-a78a-734001ff802b","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":173,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"178bf3e9-b812-4f3e-bc60-ea857f03082b","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":173,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"0c6b3ddc-30a5-4911-80bc-230c65a3e871","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":173,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"bb335eee-74ea-4508-9efd-5243dfeaa82a","block_type":"box","text":"constitute “qualified dividend income.”","page_number":173,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"0a19f907-7030-4908-b8d8-deeef96a28c9","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":173,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"2d8b648b-9c38-4b30-b849-6bf3f36342be","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":173,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"b133401a-cedb-4e10-a31d-cd41be814565","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":173,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"e9bc72a4-f23d-4f65-9ffb-fad6a76f1062","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":173,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"81c47102-d3f3-429a-9109-218cb326fdbd","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":173,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"bec2cae4-23fc-4337-b50e-3d8b5d078b32","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":173,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"751de5c0-7de1-4809-8378-4dac537ced13","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":173,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"5c0f1c7c-6b7d-44bd-be69-6a49c6eb5c69","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":173,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"2c5afe8d-593a-4dbf-bfa2-7b50b25c7b07","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":173,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"dd7a3287-2a10-4e5d-a2b5-3f69cb8bd59e","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":173,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"6a6979f4-51e6-492b-bd08-bcd48c968178","block_type":"box","text":"against their taxes.","page_number":173,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"d3b06d0a-8293-41e3-8104-2e6df06ae752","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":173,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"6658c788-67e0-4650-8abf-4745a0c4f6b4","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":173,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"33cd09be-30bb-4efa-a103-07b76dfc6ace","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":173,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"858d8e23-4769-4f69-9305-b4949a66c5fe","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":173,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"240aa403-3478-4fcf-b11d-ba86a579c3cc","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":173,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"816e4709-f059-46e0-8993-0f56fbe138ac","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":173,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"308242e8-1d36-420c-b9dc-801b90c6f78a","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":173,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"d79e16bc-0f41-4df1-a0a6-a42e0215e6eb","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":173,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"1c6b0f01-685c-423e-a98e-8d977214a0b1","block_type":"box","text":"dividends received by the shareholder.","page_number":173,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"4ee63aeb-c2e9-4670-b2b0-928995729ba4","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":173,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"ef17b514-ada3-4738-99fc-ca70e05f3c3e","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":173,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"33407793-08c1-43f8-98f4-8e6362be987c","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":173,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"23dbe273-f885-483d-b74a-db421ce1a507","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":173,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"f48d0458-52db-45e1-ae7c-c6a7f06cda4c","block_type":"box","text":"II-130","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2b3bee02-6849-47e0-a711-4b5b54fec035","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aec26704-a2c4-46bd-9483-903f0bf6b078","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":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"a1545650-8326-4d2a-a928-ab52e1b05a46","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":174,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"c81c3564-1359-4f15-bcca-998fec8c1966","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":174,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"74edd789-0730-4a4f-a4fd-fbeb1f3794c7","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":174,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"ec922f67-e7fe-40d3-8b4b-d6ed415c2796","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":174,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"972e22d5-8a9e-4ee2-900c-c52f1e90594e","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":174,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"bde0156a-9f6d-4627-9c3c-4f58b4808bd3","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":174,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"6e309838-fefb-452b-822c-9ec56679c42a","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":174,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"4f886916-fd6c-478d-8a3b-de62b0ab94e3","block_type":"box","text":"taxable year.","page_number":174,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"83760deb-67aa-4b1d-a03e-d61fc0727a7f","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":174,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"d6953da1-5d2c-41bf-9817-ceeedf059d04","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":174,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"a55acdd7-3b6a-481e-9ced-7285e81d7dd2","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":174,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"6368df1c-6936-43e2-8e26-585be9f4bcf3","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":174,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"7bd4bd38-c644-4e39-a47e-c389b7aaa5a0","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":174,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"7b86b0fd-10c2-4857-8a56-bc63379bb94a","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":174,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"e33f7783-0bdf-4e35-954a-084b011ae532","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":174,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"ea2e416f-6f56-4348-90a7-bd1e9b083b57","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":174,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"fc4cfb76-5b53-401b-ac5e-eae030dc7f1e","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":174,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"28b8dc35-e183-4509-833b-5fcc0cda418f","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":174,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"600336a8-297d-46c0-a5fc-dc9885035b74","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":174,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"a97c7e99-4ce4-4e85-8b80-ec064a0fe1fe","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":174,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"5d6f5047-1f25-4dc8-8ddd-d5efddba404b","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":174,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"e557f00c-a81b-4219-bade-7fc76a3aab89","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":174,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"e905b7fd-2b4f-44d7-a47d-1eaad4a4e326","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":174,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"f7d5e26d-3821-4edb-bd84-ad4d308bf28b","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":174,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"d3bc1842-8e50-4d3b-bf19-3b2abb076d66","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":174,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"09f63e99-9309-432a-8c64-c59864b96117","block_type":"box","text":"special tax rules that apply to their investments.","page_number":174,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"d5027a5e-7d3c-406d-8430-81d552ededbd","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":174,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"94368a1c-7716-414c-8eaa-81a8f03a0d23","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":174,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"340f68f8-7559-467d-a1bd-16516a0448de","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":174,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"a178903a-5f50-40a8-8ca0-0ce600defe35","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":174,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"3776b06b-8e87-4ea0-93a1-1cc12c78bab3","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":174,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"7883970e-d922-4e10-81ab-f5ec935bace0","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":174,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"d1e48e46-189c-4003-bab2-53dd8e4bb479","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":174,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"5761a174-ea07-4492-8b58-a89a7e53e785","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":174,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"aa00064f-f63d-491e-8436-0b3d9c4f2fd4","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":174,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"f4103212-8be6-469f-9be4-b0b39dc3dad1","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":174,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"875c2f01-dee3-4125-9f65-f8b6a55a1dbe","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":174,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"4cc3db59-9a64-4aba-9f35-ca461a8256de","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":174,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"887eb014-3ae1-40dd-80c6-5c64a9350439","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":174,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"f227c991-ca48-428b-94b9-b98e6a5f047b","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":174,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"8766f292-197b-4531-b37e-31244e809eac","block_type":"box","text":"redemption of such shares.","page_number":174,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"c9f00a27-3b46-49c5-9081-3a72082b5608","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":174,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"9053b1b9-87ae-450a-a4a9-10dd734c33e8","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":174,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"1ab004bd-d9f5-421b-9dd1-e267d9f63f91","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":174,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"f064d7d3-efa8-498e-8d05-eec7b2e4e9eb","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":174,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"311323c0-7d67-4418-9368-33e31031de38","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":174,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"4ac38b2c-6abf-4315-834a-8a8e380812c7","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":174,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"b8ad5306-4c77-4408-a7cc-37de79c4e92d","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":174,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"6d2486ad-d67a-4a20-9188-4a4af5d5a577","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":174,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"444177c2-0168-4ed7-80b9-74daf2fb5753","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":174,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"746ad9cc-1d92-4f8c-83be-d1f92594e4ea","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":174,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"e50f63aa-d72d-4a86-bb06-3c57f2dc3ec8","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":174,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"29f5a70b-fa11-4bb9-b13c-1973f19d876d","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":174,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"5ed35473-f6ea-4d23-be67-b77680086e57","block_type":"box","text":"II-131","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ab9705cd-8d1f-460a-b0b7-cad033465dcd","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"683f45b2-3e78-4201-b97b-23b4d581de2a","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":175,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"e071091b-4ef6-4f0b-8c54-588a2b1eb7ef","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":175,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"b9bc052d-7323-40c5-bc74-75e129a9fe25","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":175,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"5a47d73a-83dd-4a68-b15f-5cd7dc55a2a2","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":175,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"ccbd4245-0d74-4d55-8236-c740e43c75a7","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":175,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"caefe1b9-fb05-4226-a5a0-51dda82ff9f0","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":175,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"70235ece-13e9-4529-b855-fc43be3c2ddd","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":175,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"fc91c5e5-a0d3-4734-98a3-6d2f9b9b975b","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":175,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"8475bf03-65ea-4ca7-b961-0b994690451d","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":175,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"4190aa6d-472c-4399-bdf3-a7695d8e4e00","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":175,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"ed6e614a-3e07-415f-b03b-7b5512c0f091","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":175,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"48f44fb3-f113-4dee-bb14-a9c984cb13d3","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":175,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"763fd7bd-e5d7-4472-91a7-46392fc18f8d","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":175,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"e1dd183c-6b9e-4ff7-a5d5-029b1bf02dca","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":175,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"a556b8df-be59-4dab-9f07-4c7b51ff89ec","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":175,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"95e7ba65-f51c-4c33-b6da-65b8bc42461b","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":175,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"88b2dbde-9681-4e78-a860-8267d1ec4f3c","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":175,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"80442c7f-3c96-42a0-908c-0923ea19ad23","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":175,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"c934b1cc-6d39-4a15-870c-34099a70a821","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":175,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"be056bb0-cfaa-461b-bb30-70d8c6f0d850","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":175,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"e7cec9bf-f702-409f-b727-38726736aee3","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":175,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"dd58202b-c425-43a4-808a-c44c72b63893","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":175,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"76661810-9a14-4869-a9d2-33e4ceb54776","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":175,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"defcad86-7fe8-441b-af17-bc36443fa6d4","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":175,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"59dd0d12-1129-413b-8025-f53fb74ba140","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":175,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"864854f0-77f5-416d-ae89-37b9b78404cc","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":175,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"ae766b17-2576-4642-892b-a53b3dfacea3","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":175,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"c9113cd1-187c-48ff-9e52-9332474ed201","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":175,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"117980ad-f5d9-421c-a92c-f186bb742800","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":175,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"6267409f-8530-466a-b178-ac1e57cb7c6f","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":175,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"00c72dc9-304f-40c6-b2f9-d42cf44465cf","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":175,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"9ec5f0a4-302b-461b-8c2b-96770895e1f2","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":175,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"4473fdb9-3558-4871-b7d9-7428b20c23ef","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":175,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"32a3a33f-170a-4bd6-8337-6a0d623e3ad3","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":175,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"3b91c8c3-8bed-4b6e-87be-54e7515e5280","block_type":"box","text":"in subsequent taxable years.","page_number":175,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"ba46e6fe-daeb-462c-b730-de8a3b76a42c","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":175,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"a52a1ad8-fadb-4348-bc20-acd14e843cf4","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":175,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"de1e757d-9cda-455d-8fb6-380354a75539","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":175,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"e8a06e33-cb08-4c4d-9059-2bc043586c46","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":175,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"9b5115d8-bbfe-4f5c-832e-8810e5649aab","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":175,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"ab8490c6-c093-4baa-acaf-8261caa2cf19","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":175,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"7692edcd-d1ac-443e-a6ac-22945348a479","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":175,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"7fff0c94-4d03-47bd-94ea-e41cfe2fcaa0","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":175,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"2ee3d7e4-7cd3-4540-8754-79d7ac8297d9","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":175,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"66109950-82f3-49a5-81a3-74eee5111315","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":175,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"b4f0147d-2c82-4ded-96f2-851f70d87f39","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":175,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"6945c404-ce7a-49f0-b533-50c92d6325b9","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":175,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"6dacad09-06da-43a8-b7fa-77e2a44e5a50","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":175,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"7efba7c9-dd25-409d-b9ee-4feda4f4e7a6","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":175,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"829f04ca-dc57-46da-af57-cbbf75805e7f","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":175,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"37c9ebae-c05a-4bb7-8e10-631fe910a746","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":175,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"7238801c-5d78-49e5-ab22-cb8d0fa30217","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":175,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"702b7fae-f87f-4d77-9b7f-54443c7a158b","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":175,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"e9fcd90c-2255-4d15-b617-e88fb63d6e99","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":175,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"9e68de2b-14b5-4447-939c-a7ec37b781c8","block_type":"box","text":"dividends under these rules.","page_number":175,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"d897f642-7694-43d5-91bf-9f7d591d65af","block_type":"box","text":"II-132","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a2463882-27bd-4655-b791-71a73054bbef","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6aab455-fafd-4502-9845-6c1f1d345ce7","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":176,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"70caf8ee-d43e-4162-b603-850684434b15","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":176,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"92eff03c-31ab-4e80-a6ec-f6d1c7727f0a","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":176,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"c3bca14f-d752-4179-8ae5-0de6fa3fce63","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":176,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"8755c055-1757-4437-bdc5-e2ed2f8fb847","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":176,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"9a7c5ca6-d768-459a-beb4-53db6b8654eb","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":176,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"f23696ec-3270-4ac2-8b3b-a9743d05fc4c","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":176,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"61159d84-7400-4db0-bd21-12373f8875f8","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":176,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"6100bcf0-1036-4e9c-be1a-63fd30c8c805","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":176,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"3f4a2177-f264-4604-b32b-b06331fb9950","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":176,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"da13339a-fa4f-4b73-bffa-2e91fd5b575a","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":176,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"f25ff34b-1318-4f4f-b733-50fc5b39be78","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":176,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"e73b8ade-77b8-48f6-be6a-b0815e9c9c4c","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":176,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"69bc29fa-7465-4295-8278-24ae6f64b608","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":176,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"8ba259a9-ce0e-41bf-9686-c032b68ac217","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":176,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"a3eabeea-b8ea-4d7e-86bb-8f01638d114a","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":176,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"c70ab38b-14e8-4a10-8456-154f535efaa7","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":176,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"d080a264-2c31-4c55-9ee1-cb7c4b2d9ab3","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":176,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"7f295d76-9ee1-4ec3-a407-1b12a247d605","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":176,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"e07d7fa9-a81f-4c39-bafa-6df2cd95947d","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":176,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"309c2980-6807-4abb-8ca7-4e4b992fdaa9","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":176,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"56b29d7b-7c70-477c-ae87-2fcd99e23e04","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":176,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"a7d5f46a-0d4a-47b6-96cc-5deb5c54e978","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":176,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"4293b515-a729-485f-95d0-0867341d1639","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":176,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"eb58a364-0761-4013-9d72-b587f42bd5ba","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":176,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"5444d268-32e0-4b9a-97e5-a10fad4dbbe2","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":176,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"01b2e908-8aca-4630-8985-de98e24c50f1","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":176,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"3aeed424-0872-44cd-82bc-5798a78e2911","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":176,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"15dd7f3a-3230-49c3-94c6-bce088423e0f","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":176,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"58ff7d28-965c-425e-8694-9d079b70c5b1","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":176,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"577c86ed-a10e-4894-9224-cb94089c1321","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":176,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"5c4f74e9-651b-4799-b9ee-cc6fc203b679","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":176,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"cab696b4-1afe-46b9-9268-a7ae089d1506","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":176,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"a588458d-3509-4978-900d-b6227222cc4c","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":176,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"454b0abd-3159-42f7-af05-3223db2c7bb6","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":176,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"ef5cf3d5-ce9e-420a-9c8a-ddedf8cf2e4b","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":176,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"925c6453-646f-469b-ae27-334611a07756","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":176,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"16ee2922-cc81-4a75-81dd-64c8b482746c","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":176,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"3bf0656d-77a2-48d2-b039-1480cf98c85b","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":176,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"6722c58a-9a75-4c66-ac7a-ac0ac8ccea13","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":176,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"a07abccf-01fe-4a54-ae03-a0faa8a53470","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":176,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"8e48159f-c526-4c02-8ddc-1f6059383fea","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":176,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"acfc5c48-0576-47c9-bba3-7b1f0ab44467","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":176,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"3a555f6b-6ff6-4116-bda7-130ad71a801c","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":176,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"3118e615-e8c8-4bef-8c6b-82363e513745","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":176,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"22efc0e3-42c4-4e3a-a5ce-0fe6b21b58bb","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":176,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"34f83705-0dfa-4fd3-861c-057ba63fbc71","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":176,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"33c1939e-4f59-4cee-a73b-1298a007fbe8","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":176,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"26248c95-e0be-4201-9b3f-f587b1009472","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":176,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"4b14188d-f93a-4437-be7e-d7ef0cbf997d","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":176,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"e4973487-ba4e-47d5-ad79-22421ce494ca","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":176,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"f632f61a-f3bd-4e72-8b03-373c55a23811","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":176,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"6815ea60-78b0-409d-a991-5870d01154d2","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":176,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"8ba80b3e-493d-44fe-8d05-6c372d5d88c5","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":176,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"e87597d6-70bb-4b56-8157-4272ad7dd524","block_type":"box","text":"II-133","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ef27f896-0e2b-4004-af74-c62e96cc465c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4fd5ccc-e409-4489-a181-c2c3307acd9f","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":177,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"417df0e7-eb78-4e16-afae-10e7e88f2958","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":177,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"fecacf3d-2e82-476c-962e-0df74bd89040","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":177,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"6ffef9e0-f306-47f4-992d-60e8c8491484","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":177,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"3692ffa4-2a21-4691-9262-9599f9629de6","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":177,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"97501d29-1a58-4585-84b8-6bcd43a6b735","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":177,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"ed506a5e-8f77-451d-8936-785fb6f2e5b3","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":177,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"f41d89cd-c5d4-412e-ba9f-185e23e7a08d","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":177,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"f16184c2-d461-42c6-995f-d91c07177091","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":177,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"f0bc1401-f44b-4d70-9831-a71b44eb587c","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":177,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"6aa2f92c-c546-48e1-9ddd-09606d6fc968","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":177,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"c7555ede-291b-4fda-bbe2-15caf6934935","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":177,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"f70a32f2-a433-4d8b-a0c7-eec75e9e2660","block_type":"box","text":"investment oppor tunities.","page_number":177,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"6533d802-c04d-4308-8c32-56e2da2d158a","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":177,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"0d59361c-8616-42d5-91e4-ef6f2a8813b6","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":177,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"b5ed30ad-9b57-4148-a469-df566d20eaeb","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":177,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"d1911e42-fb08-47fe-b065-8b17402a1686","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":177,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"776e7857-f336-489b-9135-47f4d20844be","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":177,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"798048c1-f61b-4342-8303-2baac469f6ca","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":177,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"90ebf0e7-0395-437a-a5a8-5f38dbe51f69","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":177,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"d9497e66-bc91-41a6-9ade-e665d39c71b5","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":177,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"2057cfc3-dc74-4ae5-ad08-1cd573fd63f6","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":177,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"7af5dbfd-a7f9-4066-9bd7-33cb5fe8ddd0","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":177,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"14a6a4da-1866-4b0a-ae5b-523d1c94b761","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":177,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"e2db646a-df63-4614-a2fd-4e629db02aa6","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":177,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"bafd99ab-1292-4f63-9241-e5fd874c4478","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":177,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"ef061cc0-a749-4c6a-8aaf-36fb7a205c2f","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":177,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"cf7d310c-2784-432a-b07c-829de7645640","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":177,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"24d02ff3-ec7e-43bd-b90f-c5a3c519a67d","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":177,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"e7f565a7-8c8f-4722-adc9-0880f0eb290a","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":177,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"bcf59298-44c4-4701-8623-15791438a3b8","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":177,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"ee60cc9c-0589-4c81-a43e-c6a2746d5f79","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":177,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"ca3037e3-016c-43bd-976b-29b1eafb4238","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":177,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"aecd2165-d01d-4a1f-bc68-59615afde5f2","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":177,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"21ac14dd-b124-42bc-a810-6f9b6e511d07","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":177,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"9b890f8e-7fd8-410a-85b6-69c699354de5","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":177,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"520a931c-ccac-4b14-9548-198a270104d6","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":177,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"a5fe6790-077e-403a-89b7-6806c5c79b44","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":177,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"b9e71827-996e-4746-a92a-1d7c0f20d5bf","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":177,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"b74603a1-1ad6-4d78-9dd9-042105a6ccf6","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":177,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"6f6bcedb-c527-4b94-a57f-ec1ed9f0107e","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":177,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"e65f0283-16b8-4470-8a54-b096ad8ca702","block_type":"box","text":"positions in its por tfolio (","page_number":177,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"9d151271-96c7-4635-a058-11d93c1f3ff7","block_type":"box","text":"i.e.","page_number":177,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"28d3a7ca-d9c8-4e40-8f29-43febe4b886b","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":177,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"27f75b8d-fc8a-490d-9484-fb3b3766376d","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":177,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"2c6cd8c3-e186-4242-97a9-1308bad4dd84","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":177,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"485c0bc9-dcee-4573-af54-3c0cfba5ac89","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":177,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"a5be9744-bea5-4454-9cc9-09497b4a2080","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":177,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"d36e13c5-c0b6-4dee-a33b-614a08124638","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":177,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"75824b17-ceab-4052-aa5d-2bd728df3446","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":177,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"867fb7ad-4f53-4d1c-9ef2-0edff08e9e20","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":177,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"71cf9a0b-19e4-47c4-85df-c97ac332a688","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":177,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"ec60fa29-459a-4fdb-9d67-d147864d5ff1","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":177,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"ae512eb5-ae93-4ea5-8fa8-435cd0b03f52","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":177,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"3d5a45e5-ed0e-4899-837e-f9d9195c6ae5","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":177,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"494e46d3-b1d3-4fe8-aa72-ab65f4728261","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":177,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"be89d548-0184-453f-90ce-c00811eb57af","block_type":"box","text":"II-134","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d3131814-5c86-46b1-af0d-d0f24388fd67","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fde252bf-3632-4d21-baf1-e1f0e714f1f7","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":178,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"9c203c50-0e0f-4d47-8691-4877f15eef28","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":178,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"f97ce9fc-ff15-47ac-8065-2b74d3201650","block_type":"box","text":"capital asset.","page_number":178,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"6a311023-cea3-49f6-b65b-78ee256633f3","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":178,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"a7f0431d-86e3-46a4-9d18-9dc1df99da3e","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":178,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"49d4d481-dfed-4c0f-a584-fcc0538f798b","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":178,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"b59a5121-d0a3-430c-ac56-54e1cda82f1e","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":178,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"ede0a184-3e82-497e-8fd4-20ac6aa78a64","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":178,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"09f85a75-1265-46bf-ba15-4d8372f34492","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":178,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"a8b09f73-b826-4e86-9906-453ef0fd8e1f","block_type":"box","text":"Fund were to invest otherwise.","page_number":178,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"6b4d0c9e-bf5c-49d5-89b3-520acb83c724","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":178,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"fb795634-3d6e-4524-9839-da6d0b69d99f","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":178,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"6ef48b87-2fed-49ed-a4d8-571e36bddbad","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":178,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"69e8c1e3-1eb0-46e3-8158-5259feae2054","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":178,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"841e5a99-2882-48fa-a358-bb606e48a795","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":178,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"f56ac181-64fa-4a9b-b0ff-170de643037e","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":178,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"f0da2829-deb6-40e5-a70d-cf8f6bf20af2","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":178,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"9ad1a62d-770c-41ff-9de7-b35e92a22b0d","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":178,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"68d490ac-c541-45a4-8856-314ac547b7c4","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":178,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"e8baa4a3-f5a8-4564-bdf5-3c21625ae3c1","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":178,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"562062ca-a7e5-49e2-afed-5670570ea7e1","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":178,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"30123bd6-cefd-4244-aac2-7d67a3d5b17e","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":178,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"706579b7-96e7-415a-8cf0-a81f3c2c7c0f","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":178,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"5806c249-a88b-47cc-b0bd-dd30d90bc61d","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":178,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"2866bc35-ddf0-477b-a117-ffc83fc8a795","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":178,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"cf83f6e0-0386-4223-83d6-9aadf0910781","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":178,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"a90e63cb-f777-4bd2-8dab-7e1dd7c7495f","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":178,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"6bc86083-137f-4a8a-a24a-d3c69b41032a","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":178,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"83050b59-f9d4-4e4c-be12-669a21ec8be2","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":178,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"3f9f88cc-80cd-422a-bd0c-10429b33443c","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":178,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"48110293-ec6c-49a4-ba37-a051bd010092","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":178,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"8a58f1fa-7996-42d8-a550-4ffc0053cbb4","block_type":"box","text":"PFICs.","page_number":178,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"58a87102-c92b-494b-af53-6c0b8f74df87","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":178,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"a39cdfa5-f263-4e7e-b9c7-34f35576a93b","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":178,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"4da443f5-f67f-4d0c-adc4-c24bae7d7492","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":178,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"d179ae2c-be61-496d-ac80-f295528c2b44","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":178,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"542a4db0-e6c2-4e6b-96e1-9cb9c7a8d796","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":178,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"84278263-5982-4198-acf2-8df654de15c1","block_type":"box","text":"difficult or impossible to obtain.","page_number":178,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"ad6e3dff-5aee-4609-8ec4-66e82af98591","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":178,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"ba367ded-9c08-472b-8708-b36346134db6","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":178,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"97dc7c6b-e6ec-4985-94c6-55566e62fa4a","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":178,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"40bc0c81-5744-44a8-aca0-3bc547cc0e8b","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":178,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"f3d84e3a-08b8-4dcc-b443-3c449e1159cd","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":178,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"329fa6f0-2366-4d4a-b892-1a6411a61d64","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":178,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"1796778b-c4b0-409c-b395-e9e047050c85","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":178,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"b74e9848-5a2e-4300-a715-9d48f2e27c27","block_type":"box","text":"Municipal Funds","page_number":178,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"ac7cdc76-9b19-48a7-b71f-9b21196e7e38","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":178,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"fd8d0a3f-e898-4084-8c89-b22b2034b0a1","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":178,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"fd522a24-b347-490e-8036-304ff16a4c89","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":178,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"aec39f98-8b86-4447-9e21-a70501f9377e","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":178,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"a69725ac-f206-4873-a3d3-25fd8b8084f5","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":178,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"ad2698ea-6cdc-4934-a7b5-ea7093a6bc44","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":178,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"c98e551e-a1f3-4b54-93d4-6067581c39c8","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":178,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"eee6c59b-03fc-4f62-a483-e923ba3e3777","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":178,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"a6a70b29-dc79-48fa-804b-510b6a79fa6c","block_type":"box","text":"II-135","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aa9ad4bd-430a-462a-a5e7-7f1bcc963036","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"984e8b22-80d9-446d-9df4-733eb3990db2","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":179,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"f2686e5b-cde9-4d51-91ba-b26c3c0e6d36","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":179,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"3b5231f8-df39-42ec-b8c0-7902500f5dc9","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":179,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"0efb3090-6c1a-4500-83ac-61e718f0f8c2","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":179,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"8212640b-3aa3-4217-9e1e-d08ded996f3d","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":179,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"d2488d59-0826-42b1-a2d0-795d9582f7aa","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":179,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"4e35afad-1bb0-49fd-add7-7029f3e98055","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":179,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a014945f-48cc-4916-a129-83edbabff3dc","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":179,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"4508863d-bde1-40a2-97a0-6b88a3e69399","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":179,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"f591dc2c-4145-4e86-b396-dd7ee4c66d10","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":179,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"b8f06ec7-4075-43fe-a18c-1d12468b9833","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":179,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"17c6ccbf-e200-41dd-8110-9aaac9000447","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":179,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"22399544-1f2c-43c7-8379-2ed0b8737058","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":179,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"4e80684f-d6e0-4f80-8ec5-14b045626d06","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":179,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"2e6cb1ef-3414-420a-b700-fa4e5e4d365f","block_type":"box","text":"constitute exempt-interest dividends.","page_number":179,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"7d9389f0-634b-4e1d-a3bd-a7b908a124ab","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":179,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"e279ebdc-9972-41b7-b992-26d641a09c5f","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":179,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"e3db2345-5a1c-48d3-adf7-82d43e33e861","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":179,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"cc8b04d7-44df-4dc1-8f61-d40af784f7f0","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":179,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"3111d871-85ff-4cc9-98e2-3e7607ce38dd","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":179,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"29ca24d7-16fa-4a4b-ac85-4d4e7fa9894a","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":179,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"bc4d3c11-e2c3-41f6-9029-914a616cad68","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":179,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"cc3a9276-b822-4931-b204-9c742b67c1bc","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":179,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"99c69560-b2ee-4611-b92d-cad859481216","block_type":"box","text":"income dividends received by shareholders.","page_number":179,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"6f58cb67-87b0-46d9-9068-c1d671263752","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":179,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"bef16922-01cb-47ce-8d86-524272826c69","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":179,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"a1192719-4a46-418b-8d54-908488411035","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":179,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"2ab8a916-1c63-4cba-a899-83a8d6ba43fe","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":179,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"3dd18a77-9b4f-49d4-b8a5-791f6e08d254","block_type":"box","text":"the accrued market discount.","page_number":179,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"fb83e7ec-0bea-4579-a489-b75779f669f8","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":179,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"6b98b774-bb0c-4701-986d-71f982f81b94","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":179,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"2d7c0de1-1f30-496b-8a52-f59c29f43017","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":179,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"5d72704f-c95a-4172-864d-c4f90ef769a7","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":179,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"50a299a3-81f3-4062-b9f9-bee186600d25","block_type":"box","text":"e.g.","page_number":179,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"9ca6540c-bbe3-47f6-abbd-e96395e7901f","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":179,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"0f4fc82b-c000-479c-ae9f-2783a2cd92fb","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":179,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"229c6c7f-85c5-44da-a735-fa2b7ae008dc","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":179,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"37ac949c-51d4-4638-a7c6-6b10429fee58","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":179,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"0ae62d3c-e4f8-44ee-8be4-ced6fdfdc46d","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":179,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"8d391b91-93a7-4544-b56b-23bc14981751","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":179,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"5b407550-2185-4b18-859c-5a7c1feb79be","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":179,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"e2357c25-d717-4587-bef1-7b5bc09baa60","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":179,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"220d0669-3846-4fe7-91c3-96272716e49f","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":179,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"04a478d7-1929-4985-bf3c-d86d823892c8","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":179,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"8da44b1d-bdfb-4739-be4c-1a3038d0be09","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":179,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"69a3cec1-2d6f-489b-a477-7f0fd4d3f219","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":179,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"1c634208-ade4-488a-ace3-956916389fa3","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":179,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"aec16ca4-a633-49d4-b910-9f69353a4b16","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":179,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"3a0f43c8-6bd7-4dc4-a56a-78ffaa6e2805","block_type":"box","text":"within each applicable state.","page_number":179,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"21cafe0b-027d-4c64-892a-80f08f1a5707","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":179,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"3469cfdf-f499-4750-82fe-86160bfdc9e0","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":179,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"1d90ea18-0d3f-4a66-a75d-8921f63d04fd","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":179,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"7b401caa-2c13-47db-9425-130bf7ac2ee8","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":179,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"4117e3fd-217b-491e-955e-f541e3cdcd0c","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":179,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"aed05ad5-23ff-4854-9e4b-14b675972733","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":179,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"b950c1ff-14e7-4142-ae87-23132a7189a5","block_type":"box","text":"II-136","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d5a1d35f-f903-4905-8e37-28d531374c0d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4f6f20d-6d75-412a-8993-ce86689ea29b","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":180,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"ec6a2b96-1575-4901-bdad-dd41959d7c03","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":180,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"c75fb7eb-353d-4e3d-85ca-1b3d44b9cee1","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":180,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"98a6fbdb-0888-4340-bd3a-74e342679f73","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":180,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"99a3a010-340c-41bc-a2de-8fea2c63a904","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":180,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"3218aa73-2fed-4562-8625-a5d2711414a6","block_type":"box","text":"exempt from state income tax.","page_number":180,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"a6fd77c9-c075-46f9-b8db-a592409b56f9","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":180,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"62274da6-d292-4813-b868-cec3453b8193","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":180,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"79388961-26d0-4fb0-8d5d-0ed1ca25561d","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":180,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"4f6af12c-4a04-4832-a2cc-d0cca03d3724","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":180,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"d941e578-ddf6-4992-89c1-6f39f025f83a","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":180,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"3cc51ea3-7298-4599-b822-d0f30c1f10f5","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":180,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"796954e3-e372-4ead-bc77-a3cd45f2ebe5","block_type":"box","text":"decisions may have a retroactive effect.","page_number":180,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"064d0d5d-651f-49b3-bb4c-b3d89272b9eb","block_type":"box","text":"PERFORMANCE DATA","page_number":180,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"588ff7a1-dab9-4a6f-a5e2-956bdc52b159","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":180,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"cc991cab-cde2-489b-b2a8-1937c5d89c9c","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":180,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"f03cdbce-9c07-42a9-8f5d-cd205c5a9db9","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":180,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"36ed93b7-a9b7-42fd-8b0a-a6eca17d299c","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":180,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"78b6a911-a6cc-4d24-bcb1-98a97f4fa70c","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":180,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"b2f3523b-b07f-4bd9-99cd-7bde09faf8a8","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":180,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"1465fca6-65f9-45d9-acc0-d8f96e8ae6f7","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":180,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"2cf3ce0b-af6a-476c-882c-5cd2baf3ebab","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":180,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"ced117f0-bac9-4ec8-9743-fb173f6b7659","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":180,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"d0e9e37f-bcad-4690-a9b8-6044e8e37227","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":180,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"72017f45-6dab-4502-b553-8cb47486791d","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":180,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"b1b47bb7-85ad-4215-b1d9-c5d7df19fa55","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":180,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"fc447d16-6f4d-4ff6-be1d-cbf4e50c6712","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":180,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"778ec4f3-b368-4675-97d9-110a612368c8","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":180,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"2d8f6a3e-0cc4-4d33-8054-43e3355a8b92","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":180,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"6d028570-0d42-4a9f-8d15-3d4218b2c722","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":180,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"748e7576-e2ba-4465-9e4a-a5e3cba99dcb","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":180,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"aa8e6a55-17e2-4ec8-8a1e-6ee4869eaeef","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":180,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"26ff7eae-f915-4aee-891f-158cd193d8d0","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":180,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"0fb6ef6c-acbb-495c-8c83-747f76d6d5d4","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":180,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"a68df593-dae0-4176-bc44-25a2acba488e","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":180,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"8bb4ae1e-b3c8-47f9-ad8e-42c7155f447c","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":180,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"dfdbbf86-7ee5-432f-9194-fe61ea9db8ab","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":180,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"47e4c959-1517-4914-8e47-91ef2aa8ecb5","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":180,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"08498fe9-2124-4f45-aa20-abf50b11276f","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":180,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"97bb8d09-82ff-4b83-8d9d-cd38bd7d2055","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":180,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"51d5b3a8-0c91-425c-a54b-e24445a45952","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":180,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"68f9c347-6e52-4e11-9f6d-0b6a9c5fd9b5","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":180,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"48a2b25a-80db-4e72-9c22-af18a88bd155","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":180,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"f5611f26-21d4-4b6e-9904-42ed78b8c866","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":180,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"4a418e2f-216d-4fbb-a645-e53d2b231701","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":180,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"3f294a4a-1f74-484e-87a3-d05c9e2d5f19","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":180,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"c263d757-8cc6-4bec-85b7-0163e0d57e48","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":180,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"96889e2e-c4cb-463e-adba-ed71396b86c8","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":180,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"bd4c00ce-838b-488d-b2da-ab4bd7119bfe","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":180,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"0fc24ecc-9915-44e9-af87-872a503d1790","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":180,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"c131c26f-01e1-4ee8-9df0-501fc114e471","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":180,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"e6858a85-094a-4de4-a5af-f2d1d2e54cae","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":180,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"60bec4b7-a084-45a1-979b-d2ba054911ae","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":180,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"f0d741b8-98ec-435f-ae9b-412184276118","block_type":"box","text":"II-137","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bfd4d4d2-00a9-467f-8e1d-621944b0ff0a","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ac0b338-0266-4a1e-9882-a6909c0412fc","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":181,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"31b41808-6780-4a84-86ad-10bab993fdb0","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":181,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"b2d7f8af-a011-4cd3-a320-7195f689023d","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":181,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"5ce78351-491a-411d-b552-c19c3beb8936","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":181,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"b89907ec-5703-4a79-892d-5b1d92aea3c5","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":181,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"279fffac-b865-4005-9475-f78247effa6d","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":181,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"084ce407-6efe-45e3-9e86-31054412f267","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":181,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"d8ddf94b-921f-412e-9faf-1cc8a642a620","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":181,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"d6314dda-dbfc-4855-ab77-e9bd2f85f451","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":181,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"f8d64f11-83ff-458c-8ffa-ee39e32c288d","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":181,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"6b0019b3-048a-4550-b587-ce79d78b174c","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":181,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"cfb12734-4bb1-4ce0-a137-cdd28119323e","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":181,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"0311626e-8798-4e72-83a1-36ce6be68036","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":181,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"c415019e-1acc-499a-b39f-0e80de731417","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":181,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"94a57062-cde1-43e3-8e6c-d3bf29f5fe78","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":181,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"0afa7915-0502-4d45-b896-9e2d031dd9dc","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":181,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"e29ac320-448b-4aeb-b553-0672fa5f9b5e","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":181,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"672534fd-76f0-41d2-8ea6-51049155bcf5","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":181,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"5acf0d61-6116-4984-8f71-ff098f7b51ab","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":181,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"9d5681bc-9915-42d4-995d-d0b590b8d8d4","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":181,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"83c75f63-4354-46d8-967f-d933fffc4c4f","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":181,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"6d60ca4b-a79e-4b77-958b-d90b33c370e2","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":181,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"4a3a17c1-1aa5-41ec-943b-36605320b4e8","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":181,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"b2c27dce-0cba-4961-bbca-31591a637854","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":181,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"462de490-7eda-4da6-bc72-bb593fa1fd73","block_type":"box","text":"less than their original cost.","page_number":181,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"ee564242-f0ea-41ab-a925-388ada3f3113","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":181,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"4831b546-646c-4b1e-9b9f-eda7e5921f55","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":181,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"bfc48ba1-c00b-46b5-afa1-a0d2e2353780","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":181,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"8b703acc-cab4-4a5a-94cb-202dfbf5e6aa","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":181,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"d644dbc6-bc1e-4f3b-b006-3eab9f439436","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":181,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"430e12b6-2d46-47ab-9325-850da6c64853","block_type":"box","text":"lower amount of expenses is deducted.","page_number":181,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"70a2f7b8-fba4-4ce0-b448-b53048c7eaa4","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":181,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"cd945aed-616c-4543-8aa6-12f4fcb34b6b","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":181,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"19d08abd-3f0f-4563-9b25-32a7a91f4903","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":181,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"af06e5ac-e7f7-42bf-9bb0-f627ba361fec","block_type":"box","text":"Money Magazine, U.S.","page_number":181,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"0802eabd-1988-4588-ab00-9e34a2a57de6","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":181,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"8917afba-bbd2-451a-96c2-25c4e413328d","block_type":"box","text":"or other industry publications. When","page_number":181,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"529a0002-2929-484a-827d-6379b90fbfb2","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":181,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"0dbf5e71-2b3a-4fc9-9f71-4324a0a2c6fd","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":181,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"491be258-4692-4b1d-8aa8-992577b0e9b3","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":181,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"5919220f-21ee-4dfd-94a0-c03a5ead76d7","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":181,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"2d421384-526d-4f6b-b9ff-2ef02118c1f6","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":181,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"d7852003-05d4-4e50-9ecd-c5e606762fd9","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":181,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"17233902-038a-4db6-93bc-68ad199c8592","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":181,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"571364d0-5375-49d4-a7f3-964f3dbcdc71","block_type":"box","text":"developed by Fund management.","page_number":181,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"1932dd40-d4c3-4193-9b7e-0d0f1ff04dad","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":181,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"43d79621-04ad-4f31-8685-95314aa9f173","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":181,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"3b6beb66-995e-4748-9780-e2c0af5e334d","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":181,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"484bc838-acf3-41e7-a207-95e59f0e23da","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":181,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"3b56408e-9454-4d1a-a207-fad420c67553","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":181,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"a343e31c-cfb6-4b5b-b0af-99bab22e4f30","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":181,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"034e8feb-7e13-40ca-98ad-00b32fd331dc","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":181,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"465f2710-b2b7-4633-b9f2-0d149eeb35fb","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":181,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"16b3fa69-5e8f-4f95-a121-33ea109fba74","block_type":"box","text":"II-138","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8fce758a-757c-44f4-a121-f6aef7e36efc","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27a9c1dd-224e-4949-afe5-53a1aee5e117","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":182,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"9b98d9f6-235f-4ac8-ba48-b5ec47224dc4","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":182,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"4773db4e-573b-4dbc-8749-9698b69961a3","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":182,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"e2d26940-01d7-49be-b196-c92a3a926a31","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":182,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"3c9bb13e-6014-4021-bbed-6886874bab4a","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":182,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"43200a74-d37f-4a95-bc1c-63573e232853","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":182,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"ff3c8010-35bc-46e4-81ef-ad1d2132dbb0","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":182,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"f131bb27-99e2-4be5-93dc-f884e0dd3b28","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":182,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"7585d227-edf4-46da-8da1-b85717707272","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":182,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"93a491df-3d37-4b09-823b-073ef41c14b1","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":182,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"39579167-d871-4483-8b12-596a0e4242ba","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":182,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"de688f15-9239-426b-9485-9cffbc6fd23d","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":182,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"64741cb1-5260-4791-ad54-3451a8b9810d","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":182,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"5f3c8274-729b-4332-bcd8-8fa7e9b69b2a","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":182,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"c4908a9d-0385-4dc0-b6f0-0add4ff236f9","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":182,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"7679b793-5938-4af0-8e44-8b37430c71e3","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":182,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"439c17f0-d17a-4ffe-95f2-b767cccbf3c8","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":182,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"e73a871e-ff86-409a-89a6-ccba3d51205c","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":182,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"0b58e669-43e3-47cd-9229-fbc747cfd996","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":182,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"a32f95f8-26d0-4d3d-ba38-7f25da41f8d6","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":182,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"33ded312-a37f-486a-b459-222c048234ee","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":182,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"b81ca4bf-c4a5-4912-813d-0c91767c5e1e","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":182,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"13da00cf-a025-4f4f-92c2-d1baa2af51bd","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":182,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"17f62982-ff0e-45cf-a98b-0cd740cb8676","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":182,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"0a75da89-502f-4f53-8eed-d0adc4a6264a","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":182,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"f7ade079-b3ad-454d-b0eb-87fb3d2550fc","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":182,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"8e864db4-6933-473d-85e2-438d7d1a01c2","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":182,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"84208a16-bb8d-4e31-81d0-93df8b2df95a","block_type":"box","text":"GENERAL INFORMATION","page_number":182,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"0f813205-dba8-405b-8ba6-d9826229c88a","block_type":"box","text":"Description of Shares","page_number":182,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"2307976e-83d7-42a2-85e6-7af0e4ef18e9","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":182,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"1a7a5723-faec-42f2-8527-476710f98ec1","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":182,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"eef1f6c0-797f-4bcc-a7ea-6ab9279e05a6","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":182,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"bd95af1f-b815-46ed-a7b1-26576ddef57e","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":182,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"f62f01c1-4bd5-4daf-bf7b-09b83309b40f","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":182,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"2e709602-02c1-4bb3-a714-5ca97ce22377","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":182,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"e7119496-8d4d-486d-a269-9277d765b795","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":182,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"6ce3256e-5b4e-4050-892f-84f66fef29c8","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":182,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"6e7d5426-d9eb-431e-8a59-d16ae72aa4e6","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":182,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"aae4200c-4050-40df-b791-39d521275c7f","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":182,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"4b622a7f-86b4-4b45-a419-cbaf742b173d","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":182,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"eee1261a-76a6-47ed-bbc3-704b98d6388b","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":182,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"41f18357-c2c5-4b6a-9420-669d82ecdb9c","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":182,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"0a1624ea-435c-4f8a-93e6-9b6bcacb98eb","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":182,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"2dc2d249-394b-483f-85ae-40bb57562bbb","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":182,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"839cc9b1-cb93-4f0d-8a84-f3762e133f2d","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":182,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"0562e8cd-f07e-494c-b538-fd516926289e","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":182,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"a91537c9-70fb-473e-b8ec-6bbe316bc5fe","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":182,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"aa687cb8-8cd4-45f9-842e-b12ea7588cce","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":182,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"7d796f5b-3f3d-46ad-8c97-b78b0857f017","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":182,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"5a2cec58-c7b2-418a-b52e-035675ab067b","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":182,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"4a35b951-42b3-4a63-8450-21504210dc02","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":182,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"ff9173a6-f423-4826-81cc-6b8c6302ff32","block_type":"box","text":"II-139","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d3a0634a-a82e-4ca4-a570-c1571fbf9245","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f69e024c-ae73-44c7-ae1f-f8840e3468c6","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":183,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"3d7dfe71-4616-4d55-bee8-5d46dff7a540","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":183,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"49e4b142-6027-45d1-9a0f-e64f2816c93e","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":183,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"916243ca-fa12-424b-ab5b-c89eb5792268","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":183,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"76f9fb3f-8272-4603-81d2-db8521443f5a","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":183,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"3c1096fc-3e6b-460f-91f3-d8ab06ab8ee1","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":183,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"86977969-3ce7-4f8d-b8c9-073aabb40764","block_type":"box","text":"Additional Information","page_number":183,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"534263eb-2a38-452e-a86f-d954a4b7e5bb","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":183,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"d5d48fe2-5678-4149-84d7-98c41abdaafa","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":183,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"a4762bb2-91d8-430f-9bd7-ce59ee533560","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":183,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"6313d611-8ce4-4138-804a-43352f79d6d7","block_type":"box","text":"such name to any other company.","page_number":183,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"c455b440-84c3-431f-ae58-f885541fc2f0","block_type":"box","text":"II-140","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8a1274c4-1e65-4697-8c35-ca3c5fc3f9cb","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0cfb819-e664-48e6-8613-506add3ebdeb","block_type":"box","text":"APPENDIX A","page_number":184,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"1a43df8d-df6e-4b11-9aa1-80a860c4c912","block_type":"box","text":"Description of Bond Ratings","page_number":184,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"7a32e795-a7db-4712-bf58-43c4a13f3958","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":184,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"27b1a55e-0bf8-44f1-9518-8f8f508640ff","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":184,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"2f71b512-eea5-4287-8158-c90fd5a308b1","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":184,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"2dc5678b-bdde-495d-97d8-b0c6015225c4","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":184,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"a89c294e-60da-48ec-89ec-f239d0258941","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":184,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"812a00bc-3a82-42f3-bb98-3c9ad89fc5b9","block_type":"box","text":"NRSROs may rate specific investments (","page_number":184,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"1389b258-d405-4864-8f03-721d7ff6f897","block_type":"box","text":"e.g.","page_number":184,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"4cc28fb0-581e-4407-803e-227892b1869b","block_type":"box","text":", bonds), issuers (","page_number":184,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"0787bcc7-f534-4c04-97bd-7990c16c6f6f","block_type":"box","text":"e.g.","page_number":184,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"1c67a8fe-88dc-4a77-ac62-021e1c98e635","block_type":"box","text":", corporations, governments and financial","page_number":184,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"eaa6af4d-ff2c-47f1-9411-450817ccc944","block_type":"box","text":"institutions) and/or programs (","page_number":184,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"504ae7bf-c6fc-48d7-8679-5444a89bc773","block_type":"box","text":"e.g.","page_number":184,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"333602e7-a2c8-487e-8fc7-2d164f796104","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":184,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"3018c5cf-78f0-40f3-ae91-8f6c982bf6e8","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":184,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"c79b3061-b73b-43bc-a828-dc72d3928321","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":184,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"b9d05583-b142-4280-a1d9-d989e225eafb","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":184,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"2086c95a-6925-4501-91b0-b6093ccf5fc7","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":184,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"0a0b27b0-1022-40b6-94db-db7de9f53fb2","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":184,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"0ff83552-9192-4ff6-9957-a82042332be4","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":184,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"665738a8-6601-426e-ba32-1928db62ccf3","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":184,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"b41ded6b-68e8-41fa-a2fe-fc7ba7624bcf","block_type":"box","text":"security (","page_number":184,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"3d728478-32e4-43d5-a9cd-e7415f51210c","block_type":"box","text":"e.g.","page_number":184,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"236f3bac-9893-4991-a036-02a3b83d01ba","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":184,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"759beb22-3813-4b8d-b2fd-cd86a4a0f587","block_type":"box","text":"highest of the multiple ratings.","page_number":184,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"97aea15f-f5d1-43c4-bed0-ccd766db544b","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":184,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"f8ad296a-ad4a-4645-95b0-7e1e4bca5507","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":184,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"1a6bfa4f-63c3-4474-88a8-9a0ef2090904","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":184,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"f7bbb49e-467a-4cf4-a6e2-b8d7dc667f43","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":184,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"13db8849-d31f-427b-84e8-7b7043e3880d","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":184,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"f478cf3e-01dd-44c4-92c3-03bd359bc441","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":184,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"91d63ad5-67fb-4938-80d8-4c7ef99d1497","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":184,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"1ce41a08-9b9b-4074-b8f8-232eb4a46a51","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":184,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"6f26c3a7-dc46-486f-9084-1d54a6243edd","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":184,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"cb2d6c06-f545-4404-bfe9-83ad2294d424","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":184,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"b403db08-addb-4916-b96f-ec3a5318c365","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":184,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"aaedb77c-faeb-423b-bebc-cd0da465edd8","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":184,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"c9c3b6f7-aa91-4fb2-a2c6-ebd421a23681","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":184,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"3e1544d2-c02b-43e8-ba40-a20cb24f8997","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":184,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"eb570a0a-0790-4633-9a11-9496fc9b0fe7","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":184,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"5b869606-0320-43fe-81c5-e913015ec39c","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":184,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"5b059510-ba34-4de1-be18-db07fc5c0014","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":184,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"50d81c9f-3159-4155-8689-7338a3018db5","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":184,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"66ac90c9-31fb-4265-aa4a-7da7ca12c6ac","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":184,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"b2ef4dac-b6a3-44a3-8831-85cf278e9531","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":184,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"f1d4d00a-2d65-4ab7-a6f1-350dbf86e890","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":184,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"ff4e332a-bce8-4cda-8c24-874b96b67507","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":184,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"739f915c-6785-4faa-91ae-a6de26bf0d34","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":184,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"0ee1775d-8dd7-4852-843c-67187c96ab1c","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":184,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"ca62fcf5-162a-499b-a201-ecffd2e8d0e2","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":184,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"1d4dff3f-e73b-4fbe-a1a3-093459edd630","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":184,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"0baa7071-5b50-4608-8ba9-4e8fab9a6ca7","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":184,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"7498beb3-f553-4a8e-9499-16db888cae55","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":184,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"10de4cc0-4554-4c7e-bf1f-84962402a375","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":184,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"87bf22c4-49a5-4ecc-ada9-2af89c2a0ea5","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":184,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"4ee3724e-fbb7-4bd8-bc4a-7f3bd8eb05f8","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":184,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"6eaec528-b9c6-402a-bf27-4ca886a79e46","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":184,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"2fdc01a2-8080-422d-82c8-8f61def2048f","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":184,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"0d185fbc-4953-4d3e-98b7-d27b9271a52c","block_type":"box","text":"upon standard sources of variation (","page_number":184,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"adb9d873-a767-4321-983c-bca520f36ff7","block_type":"box","text":"e.g.","page_number":184,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"4a620f18-f317-448d-a988-1d8e72c74b04","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":184,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"1564b7f2-700f-43e4-9726-16ebbabb77c6","block_type":"box","text":"A-1","page_number":184,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"4cb1a129-ce1f-4d68-b132-e5990a8a33ab","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e1f793e-9382-493b-adb8-e44e7740ae2e","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":185,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"2c165060-5c04-4165-93ae-a67cff357034","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":185,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"338040ff-52ad-4678-a30d-765065401c14","block_type":"box","text":"e.g.","page_number":185,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"9b3f4c36-2da9-4530-978a-51ab5dbfe5cb","block_type":"box","text":", equity indexed), absent","page_number":185,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"0446f650-b2a5-41a3-b1ce-fe59d4436a7e","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":185,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"3de305fa-d1c2-4fc4-b0dc-d7b925b5a50d","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":185,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"00e394c4-b33c-4411-8b5e-5d5d5782517f","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":185,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"567dbc48-6b3c-4023-9db8-c1db315ee550","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":185,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"42704c50-44e0-4a47-ac2f-6ff6ae51ad0f","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":185,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"dffe1f9b-847f-4fcc-8ede-35cbd6e6dda3","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":185,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"19f8b094-35a3-44c5-97ea-646989f4c66b","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":185,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"92ad54aa-5cb2-4781-9b59-81b085334a77","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":185,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"7738a18c-1199-44e9-8733-f941dad3c101","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":185,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"5af351a8-13a9-4ba7-9fd1-c09cf908eabf","block_type":"box","text":"i.e.","page_number":185,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"2015c66f-cbcb-4a37-8a9c-65ae4fc3f1e6","block_type":"box","text":", ratings on nonfinancial","page_number":185,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"7d7ae9e9-489a-4e29-b420-96c967ba1602","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":185,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"dffe2c39-c088-4652-be38-0706de38927c","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":185,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"89df4370-7eb5-4b9d-b9e9-1f0a89556cba","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":185,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"6a5388bc-207f-42b4-8b32-222531585705","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":185,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"badf35bc-e8f5-451a-baa9-7354b83d0b55","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":185,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"f2669b42-2f20-446f-ab27-87bfe5bef886","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":185,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"b07b1a1b-49e9-48f9-920a-c2f72e7a8757","block_type":"box","text":"of time.","page_number":185,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"d79446ce-076a-409c-ab52-ef102eab7088","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":185,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"4b82ddca-85e1-4798-a48d-16abf397d5ac","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":185,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"618cbb90-af15-46b4-8438-dfead2130818","block_type":"box","text":"risk.","page_number":185,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"7ca846b3-305b-435b-9897-fc5483241512","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":185,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"e5ad7978-4201-4532-b3d7-ad90920cfd40","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":185,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"0955f9cc-09fd-4e1d-a7ec-9a99f1808327","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":185,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"c6fc835a-bf56-43e1-a2ac-40d2bfc30ad3","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":185,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"253c3651-906f-4c3c-b99c-bb852ca2a7f9","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":185,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"90758105-cb59-4416-aa62-2ef5097ab5ac","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":185,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"63bda3e7-8d82-4707-8b70-da882e21b084","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":185,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"5ab7e9c5-d12d-4c3c-8d4b-fb617c251cdb","block_type":"box","text":"credit risk.","page_number":185,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"fe394583-f259-49d1-ad8a-efd5a5224bb0","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":185,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"ba934030-5731-4570-b0aa-502b164df3d0","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":185,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"67f3ab4b-2a46-4a7a-b24a-c4b2e3dab24a","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":185,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"dce685a7-d966-468c-8d71-8049d7c868b8","block_type":"box","text":"of principal or interest.","page_number":185,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"c0379cb4-0508-4126-8fa4-32c0b69129d0","block_type":"box","text":"Note:","page_number":185,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"1445869a-2fab-4460-b08f-8a28040bb82a","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":185,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"501d0ac0-193e-4dd0-8537-a75ae80af686","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":185,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"08c69e46-8a1b-4970-9a77-82bf73b62f9f","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":185,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"0fc942fb-b109-4e1b-8d16-8f24964dbd91","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":185,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"78231f5f-f296-4dd1-a3f4-994ab1a15962","block_type":"box","text":"companies, and securities firms.","page_number":185,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"03e578ba-7793-46c2-986e-313d7e836876","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":185,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"63b55861-e52e-4f69-a3ef-3e8d4cf2b2f0","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":185,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"6836928d-2622-4236-88ba-e9ad2c6b3751","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":185,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"b931e2dd-73e1-4394-a5b9-bcb2a1c1484f","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":185,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"1a4049a6-e741-4ff0-b26c-87ed382c6d0d","block_type":"box","text":"that security.","page_number":185,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"71366cae-14ca-4758-9e44-4a5cd2ddb0bb","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":185,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"dcc1ccf0-7150-4d02-9afe-6aa2fd16c10b","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"2c1e5480-d4c8-414e-93cc-83b033628144","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"5632aae7-f469-4c74-85e2-2378afffe56f","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"acc88ec4-4a61-4653-b7ec-5374224dcf2e","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":185,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"2fe44d16-9bf4-4431-a7bb-2779bcd0344d","block_type":"box","text":"categories.","page_number":185,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"a2dcb3f5-1853-4683-b724-b035fb74aa6d","block_type":"box","text":"A-2","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"6caf92f5-c980-4411-9899-f65b3dc4668d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a21fdb70-3a9d-4b33-8004-df92f585f0ac","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":186,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"1f7cef0e-267d-46bd-88a1-6260eb1ca381","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":186,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"bb965fff-393b-42ce-a4d4-1c9779b0cd51","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":186,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"93dfce2b-bd54-44b4-9562-441990f72bda","block_type":"box","text":"an issuer’s self-liquidity.","page_number":186,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"f8c88a24-8220-4df3-a74d-44f12c201944","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":186,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"c7b8307a-f635-4f59-ab5c-c750da4a92aa","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":186,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"8f9ddfdd-2f9f-476a-99c8-faa6e32de194","block_type":"box","text":"MIG Ratings","page_number":186,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"00883de9-cfef-4d49-8156-93883d8aaabb","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":186,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"167cfc64-1795-4ea2-959a-6cf06e504d08","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":186,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"b0d8d361-9465-4213-aa4d-101a9c510687","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":186,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"8700b477-fa18-4fdd-b65b-23e1d8b5bd56","block_type":"box","text":"MIG Scale","page_number":186,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"5786ceb9-3861-4245-97dd-c14e65ecf4c5","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":186,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"b5caca33-1f80-428b-bd1c-978044663ca9","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":186,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"b72525ef-600a-419d-9090-eb36cab10108","block_type":"box","text":"refinancing.","page_number":186,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"a0ed92f2-dea1-43af-9b1b-34ba9ad170ef","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":186,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"f0dd1b86-5dd6-4d30-a46b-28ab242fbca5","block_type":"box","text":"large as in the preceding group.","page_number":186,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"065a8f52-4f2d-40dc-a39d-0793f2b52ca3","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":186,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"338f231b-1fbe-4431-b54d-b09eba5d412e","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":186,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"51fc5897-3065-4cce-80f6-e102c91aa5f7","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":186,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"9659d99a-baaa-4e62-bb10-6f11ee73fdf6","block_type":"box","text":"lack sufficient margins of protection.","page_number":186,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"6d3fc4a3-fa27-45d6-8862-c3a08898f305","block_type":"box","text":"VMIG Ratings","page_number":186,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"d1bb8d1c-b748-4123-ab69-3455a26b4e38","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":186,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"bd498a88-8ea9-4dea-a6c4-b3b0afc68834","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":186,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"80bfed97-f57d-40f0-a3fc-34f9057032c1","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":186,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"bdfdd03c-1c46-4e09-bc39-db893ecbe42b","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":186,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"0827e829-5a83-4453-8e66-04b9f7be6b2d","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":186,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"70ae9cce-fa8c-49da-99f3-53141acbde8f","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":186,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"be898270-49b5-4e0b-93ee-d8806aa4c9f7","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":186,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"dcbfac07-000b-4e76-afb8-cc4b8350c645","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":186,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"aa05980e-9399-4287-87e3-be418316ee03","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":186,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"4e881ede-dba2-4e2f-8c2a-8da720d31879","block_type":"box","text":"grade.","page_number":186,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"4d5eef8c-a50e-44c6-8464-b63aa255214f","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":186,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"a14e84b3-fcb9-4465-8f44-384a84eb9ccb","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":186,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"e5343c96-45dc-4e1c-8f60-434922abdcc1","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":186,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"ede61693-a68d-425f-8f28-684ee7ddf7ce","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":186,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"1098906c-c83c-4c98-9813-c1c998208016","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":186,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"71569230-84ab-421e-a3b3-ac33598c8644","block_type":"box","text":"liquidity of the corporate obligor.","page_number":186,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"9ad672d9-b18f-40cc-8594-680b1f375664","block_type":"box","text":"VMIG Scale","page_number":186,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"9dfb7ad4-73a2-4b07-b088-c2abbf1883f8","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":186,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"3555f1d7-1de1-497d-b344-0d80d522ff01","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"59ebfbf8-b2f8-427f-ba57-27a9a5f94649","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":186,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"3d669c49-445f-4a0c-a646-12b906530f69","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"4e330b99-4ed8-4e82-b4b8-5106ad51a215","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":186,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"f2dd9aca-ac57-4218-a2b6-681945f48535","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":186,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"46c4f911-3f94-49ca-b479-68ae3593c376","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":186,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"93c2beb4-f43e-47de-98df-6032a011e584","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":186,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"adf66f8d-7b0b-4a6e-9a11-ada6735de0fb","block_type":"box","text":"may lack the structural or legal protections.","page_number":186,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"e7bf8111-8b7e-48f0-8265-67cf0718538f","block_type":"box","text":"A-3","page_number":186,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"27e8bb32-b566-47bf-87e5-80e66a4d1788","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ceaaa479-474a-473b-ac2a-4a31780e74b1","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":187,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"f297c93b-0761-481b-a15e-8f11e286d36f","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":187,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"e6f770a8-9cc8-4ace-af47-ede06daec59f","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":187,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"3f2084f0-5c3d-40e2-8973-12039e7b0900","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":187,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"300df8d4-79ef-4b4b-b9a8-359269dc0805","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":187,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"cfd92269-f5a5-460a-b91b-6045dd4a596e","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":187,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"f0e9fcec-ae7f-49bb-88ba-ec79d402898a","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":187,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"cc3a0159-47e0-4979-816f-2a9ec2c70ba6","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":187,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"ad65edf3-434b-4359-8d1f-09c3f136690c","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":187,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"cad4766e-8a5a-430c-87d9-2fc2e2179ba5","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":187,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"c2cab236-4d25-4c70-935d-35f7a5a2252b","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":187,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"385bf9dc-f842-47e5-a5e8-519b67e86c47","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":187,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"a1bc0c57-0fb8-4d23-b539-a0f1e97ed0aa","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":187,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"5b937886-0cf1-42f0-8ab3-4bf15dd7f351","block_type":"box","text":"from these guidelines based on market practices.","page_number":187,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"72c98c49-8b69-48ac-b096-9877d25a31f3","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":187,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"471ae80d-39e7-4a5e-911b-2a4e3797428b","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"186c95fe-ae53-4840-b104-f5fdb5cb9111","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":187,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"6947c5db-e58c-4839-9581-dc6c8b243a29","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":187,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"050caa73-77cf-4102-a20b-a7fe86e7ab37","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"4d1fb4ab-8394-40ee-93f1-85c0db152b03","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":187,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"6dfcc84c-fb97-47fd-b412-e61397842d46","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"f0dc5787-8cd5-4c53-80b4-34130ba00a95","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":187,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"9af3cdba-ad40-42f0-a466-8fbd3dd9d43b","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":187,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"2d3777fe-eb88-4ed3-bad9-1acd6ff48b8b","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":187,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"5aaa0de9-1bfd-473e-9480-15e322a6babf","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":187,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"0b4bdf85-d611-40b6-9650-1ef810616892","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":187,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"c2eb5a45-1a02-4bae-ad57-0fd16c51755d","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":187,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"6d54f963-9326-4be9-a77b-2411a2dc79b1","block_type":"box","text":"obligations.)","page_number":187,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"4a422446-ca45-453d-8f7c-b1a02634f8ce","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":187,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"d26d360c-73f3-4904-a3c1-c90ae0094368","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":187,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"b7bc56a0-66b2-46b8-b942-c317473a5f35","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":187,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"fcebb8d2-8057-48e6-abe7-23568becd9fc","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":187,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"2454e7d5-1bd6-4ad0-8d15-657fa67a5249","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":187,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"edf17c9a-e29e-4a7c-8286-7370754d1f9c","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":187,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"31553f10-2445-4286-a419-867fe8324734","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":187,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"c9d8548e-7bb8-4463-a218-3ab02eaadd73","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":187,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"c73471ff-481d-4011-88f6-27495ce326b0","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":187,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"c56f98f0-f4ad-46c8-99ff-9b7bebddf72a","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":187,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"35adc02e-9a92-4cb3-aab1-19f50527ed30","block_type":"box","text":"financial commitments on the obligation.","page_number":187,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"895c09c0-bb03-47fe-9b66-a6b9e014eef1","block_type":"box","text":"BB,","page_number":187,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"f455a967-ce2f-4356-8bbe-947799908189","block_type":"box","text":"B,","page_number":187,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"65661a4e-9b50-42fa-a622-5a78550ea0bd","block_type":"box","text":"CCC,","page_number":187,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"6de2f46e-222f-4870-8f96-49acf8cbec13","block_type":"box","text":"CC,","page_number":187,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"eee5c028-4d83-4a58-812e-93b0019b0208","block_type":"box","text":"and C","page_number":187,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"6d780255-f4c0-46b1-a512-507718c6511c","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":187,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"f5c1b5b5-190f-4d70-9e7d-00cd82bab9b9","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":187,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"1a6a3314-53eb-47cf-af6e-a3dd0cb73ebd","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":187,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"ca000403-1a62-40f7-9ca8-44a6cabe0ddb","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":187,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"1c8ba38b-4d37-4be2-bf60-3d93934d067a","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":187,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"a6d0db78-448b-4640-8790-6ec3f53c8434","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":187,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"fd19c98b-40d3-4d62-a72c-b9a0d76a96de","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":187,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"41b7b078-d526-45b6-9b28-9f9ebb62fd57","block_type":"box","text":"on the obligation.","page_number":187,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"38e025c7-fc22-43a4-92fe-371abce87280","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":187,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"b70c0ad3-ad09-44df-a524-2f1b7011c6b6","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":187,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"3da73736-bcdf-438a-889c-b626ee435849","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":187,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"bb311f79-9fd7-477b-9b2b-181f6333bc14","block_type":"box","text":"financial commitments on the obligation.","page_number":187,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"e38e3d50-5594-40ed-af69-c175854b965b","block_type":"box","text":"A-4","page_number":187,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"d3df9137-7c81-4416-8a24-753932c4250c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc8b75af-196f-4766-9c9f-063a664d1b82","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":188,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"019492d6-769d-4d76-8a9b-391d2f1b60be","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":188,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"b3495f7e-92f0-456a-bf9b-91d71a1885e5","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":188,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"1ce68288-48d3-41d0-8564-ff701da61e41","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":188,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"80487c1b-e205-452a-8f77-84e2ad8cf66d","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":188,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"9547d6f7-dd59-4ca8-9d9b-e27206435efa","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":188,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"16cb8842-fa77-4d74-bd18-3f0d67d8997e","block_type":"box","text":"anticipated time to default.","page_number":188,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"697658de-20a4-4bda-85a7-b045edb183b3","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":188,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"12d83f07-0a91-49d6-8eed-be1a7fb30c84","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":188,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"203ed805-6696-406a-b67a-424d0537e9e4","block_type":"box","text":"higher.","page_number":188,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"4612c5bc-ef15-4bc4-a3b3-77663b8195d6","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":188,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"a6123930-ccb7-44c6-8616-3080f2b9e9b6","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":188,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"1a6f4c91-8fa0-4726-bdc4-d98f97398b61","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":188,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"13a970d4-7497-465a-bdf7-038adc1974b7","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":188,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"cfa43d3c-6c19-400d-a671-e276899fb7dd","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":188,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"ed888c8a-18a1-45f5-a642-25aeac7d68b5","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":188,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"f35bc1f3-ccbe-4951-8472-3abd6748ca93","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":188,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"5f9c8f77-e8b0-436e-bf4a-a577ac4122d7","block_type":"box","text":"restructuring.","page_number":188,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"aa553e61-e5e7-482c-aff6-e9d573a723d0","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":188,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"c1eb73c8-152e-4d6b-87ef-bcb65bfb4280","block_type":"box","text":"standing within the rating categories.","page_number":188,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"41984099-2736-45fb-b9db-163ac147dd9e","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":188,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"df870cf1-0ee4-406f-a8f0-1182b754ad9f","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":188,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"784c69a3-bee5-4369-be2e-26481d36f78a","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":188,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"4e1b8879-7297-46c8-a432-e68ab078f68a","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":188,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"2fe505e9-01ae-4de4-b5d1-4faefc65736f","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":188,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"af4e7d8c-9b1a-43f4-a843-76fa53a1c0a1","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":188,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"fa5c6442-e3f9-4d14-8557-5105ca730141","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":188,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"9e569e0b-1cff-4d4d-9af9-7193437eb81c","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":188,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"438c12da-1a38-4670-9229-a27999e17c5e","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":188,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"0b9ed968-6092-4647-8a64-d5afc231f22a","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":188,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"a7eeba05-73c6-4b87-9e8d-e2412f66d3f4","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":188,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"a173709e-9aae-4787-bfc9-d0df2113a44a","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":188,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"f7d2c68d-e3b9-4ce8-b25d-9e5b5a0bc04e","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":188,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"f365d767-27e1-4e15-b522-788cea139248","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":188,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"79797e5b-5049-4792-9249-4bfd3e7e910d","block_type":"box","text":"financial commitments.","page_number":188,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"515cb969-8b32-49e8-9e4b-729f198a9542","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":188,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"d917ba9a-49d6-4fe8-83b4-1ee0ea7e5a66","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":188,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"22fdfb22-0d42-4408-8958-9690d7ae3e12","block_type":"box","text":"commitments on the obligation.","page_number":188,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"f5c605ae-c3a0-4946-a039-bf9664d57f17","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":188,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"bb9ecc37-f0db-42b1-ade3-413ed1a983ee","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":188,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"5ea43e87-858c-4a2c-92d7-6729663f8db6","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":188,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"d5cd2e09-5a2e-4ae0-9a3b-c26bf6a3afea","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":188,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"c183f091-721b-4baa-8e33-cc4189d02347","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":188,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"82a7b48f-3f38-42a0-995f-b20125c268d1","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":188,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"45d26057-aac1-498d-a613-a1b9bf427eeb","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":188,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"04987489-8927-4952-a756-ef95e04b1c82","block_type":"box","text":"debt restructuring.","page_number":188,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"6d6c6268-ed9e-4cb3-802c-27aa24f17a92","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":188,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"e8cbefe3-d0a8-4ca0-bd6f-455e843e3ce7","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":188,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"e00ee661-e275-45fd-bc18-2cc127141a2b","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":188,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"f004de51-7651-48a3-a280-1434e02e101d","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":188,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"85dca57f-55b4-4aed-b54a-097dae43e7dd","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":188,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"1269f29a-720a-4c68-862d-e5b6d914d327","block_type":"box","text":"A-5","page_number":188,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"17b4db3a-3773-4160-adcb-bc9e2be9ac0f","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a08eb04b-1dd5-4ef5-ad0a-9d913443c309","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"7def7474-259a-42b2-bd0c-9df9582f504f","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":189,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"a0531a9b-1adc-4f47-a085-f8f32ed4957b","block_type":"box","text":"as a note; and","page_number":189,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"7e94ceba-1202-47cd-a8f4-31f24a935516","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"473354e4-181f-438a-8d70-a09d6a56f952","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":189,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"71dfc07f-a364-4631-8f8a-f422ff1ff074","block_type":"box","text":"treated as a note.","page_number":189,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"84899b3e-1a4c-4371-8438-bb30db8d4548","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":189,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"ba60349b-9dca-45ca-aac0-10b77372bc1e","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":189,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"c0adc503-d1a8-4ea4-b6d5-54f07fd481e3","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":189,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"a8f6583a-0784-4aec-bdbd-1adf69f4c553","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":189,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"0da06b03-c826-4d10-aad7-1592b42eaa64","block_type":"box","text":"economic changes over the term of the notes.","page_number":189,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"8d1704a0-aa73-4b49-bfa7-d2f515ebf837","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":189,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"5eba0138-95a5-46cc-bb62-35ce6ed35915","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":189,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"6b850194-0a1d-4218-b4d4-f316ddbfea5b","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":189,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"a22bb091-eb6b-419f-80dc-45f04a75baee","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":189,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"83125a53-682b-4a9c-83fa-d2cef80f2954","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":189,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"0bc437c1-5a56-43d7-849e-fa7a35025f6a","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":189,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"584d4f59-3db3-4e75-82a5-202ea52102a3","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":189,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"6170ec26-b346-473f-aa5f-3cbff657c2db","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":189,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"650bcf67-7ff5-4759-ba9e-8dc6428b2049","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":189,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"d3be7b8e-a83d-45ff-9c54-5cb4d637caf2","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":189,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"a416d16f-fc81-4a58-bd3e-6f0b23cc19f9","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":189,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"7e513a99-964d-4b43-b5e6-c529bcadbab5","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":189,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"806c5cb2-957e-4ee7-b8ce-c8e002a6ab7e","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":189,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"33ade139-33f5-4757-b45b-5c5b984892c0","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":189,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"339ace1e-88df-40cc-87a5-e0b38e03fe1c","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":189,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"3124b6d4-e2ca-4139-aa03-366d2ed55f0d","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":189,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"3a8a1d31-e365-4ffa-a2ff-57fc4fa3ba0c","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":189,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"2b8fea7f-b3f2-4230-82a8-20541bfb8a6e","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":189,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"7cee7300-48ba-4c2b-8b0d-783a7caa9e72","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":189,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"f58b0a56-b835-47dc-98c0-162a87e52b8f","block_type":"box","text":"receivables or other financial assets.","page_number":189,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"82dd30a8-4fa4-4ccc-ae76-d73a5116007c","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":189,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"d724eb16-2153-4518-917f-57cbf6030592","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":189,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"8aef49da-84cb-4154-8b84-046cb58386ef","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":189,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"bd0ec58b-e10c-4ebe-b6fb-4c2dbf5c7c4a","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":189,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"e6e471ca-9d8b-405b-a8de-4fb132b2968b","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":189,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"83509b40-d7f0-4218-84d0-b9e6be97a90d","block_type":"box","text":"occurred.","page_number":189,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"17da71d4-eadb-4177-b317-019e41e77d60","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":189,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"bf73852e-2a7a-49f3-8f40-ebbdcb284051","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":189,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"200e6a8e-37f7-4ff2-bbe4-17e2e3e55ed3","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":189,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"6825cc47-eb6b-4192-b89e-36f13c8796c9","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":189,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"53c59830-389a-4a89-a03e-7a6c286c3a8f","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":189,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"4ce6fb75-dbbe-4240-8bdd-f1ea5298c312","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":189,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"8a827beb-07b4-47b3-891b-c78de42cd995","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":189,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"653eaa19-77ca-4cf3-8c48-357970ffb1c6","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":189,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"f9c88013-54a6-446d-a3d4-c59ed72223f9","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":189,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"e1a8a08f-91b0-4489-a255-094a28861e45","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":189,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"48319988-637e-47c4-a19c-b77a4d966a07","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":189,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"4a37201c-17d6-4fc7-92af-bb8480f6ea85","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":189,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"6de089e8-19af-4749-9d94-e206194e6a6e","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":189,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"b62dcbc1-4026-4d86-ab3c-084487046d03","block_type":"box","text":"i.e.","page_number":189,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"667a8acb-43f6-4331-8877-0a51d7e95d11","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":189,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"e9188a3d-711b-49bf-9956-a6c7fe7eb3a2","block_type":"box","text":"the obligation’s documentation).","page_number":189,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"fa1a484b-136b-430e-8c1f-ddc3536dc421","block_type":"box","text":"A-6","page_number":189,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"25976c64-4bae-42fd-9c20-03943846991e","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78178168-2d04-4b36-9240-1f557e0dc4a3","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":190,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"a1d72032-8ec4-4e41-9748-23e30962a42c","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":190,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"9d858f69-2616-4d7e-a60f-72d855a02e62","block_type":"box","text":"agents in the form of a rating letter.","page_number":190,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"f8e1dc2f-25bb-423d-9771-dceff9149627","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":190,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"e8edd4b6-4708-4f03-b14e-170d62209dd7","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":190,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"6a20cd47-75c3-4689-816a-a21619187e28","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":190,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"c55283a0-2bb3-4c09-a46a-91a54adea46c","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":190,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"3f230988-1065-413b-81c5-08dee39f1f4a","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":190,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"c5cc24cb-f74d-4c35-b172-a81dc7412a90","block_type":"box","text":"e.g.","page_number":190,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"9ac44c5b-eb0d-4786-9b1d-a8535f1fa9b2","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":190,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"c9441a82-c568-4925-a3c4-8c6cd179217b","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":190,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"b6451d0e-a950-45b0-8ac3-bef7b7cbdd40","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":190,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"899c0d3c-4840-418a-8e42-71415fbfdc76","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":190,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"1c3bfe68-7d01-4d7c-88cc-d3e0eb00faf2","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":190,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"4f627d80-f597-42cb-a68b-7a3a700376c5","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":190,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"bada3c14-ebfe-406b-a205-1432bf464e54","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":190,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"d05d4a6d-948c-4be7-a8cf-bba4815244e1","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":190,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"2dcbb7a5-b3ff-4555-96bc-52d872484b8c","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":190,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"cc1cc9e9-db24-4377-808c-29f704dfa0d9","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":190,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"8e29fb35-8440-4587-ab25-2d6362654559","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":190,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"f625d676-391e-40b3-af38-d20e2afd37a5","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":190,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"02c1855a-7aa6-4122-9568-35e72cda3b19","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":190,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"3661a429-5215-4ded-9ac9-fa426c6b905f","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":190,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"68991749-952f-4bdc-a67c-2cfb999081c2","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":190,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"78411321-b45d-4148-95bf-d59b7e056e40","block_type":"box","text":"Ratings.","page_number":190,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"464676c2-9162-4255-81a3-a6ae26f9e560","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":190,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"45a58aba-0a59-437b-be6e-d1dc9edeb52f","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":190,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"5cd3fe90-4bda-4789-a084-6407f5584d60","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":190,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"e1db09fb-ba94-4ee8-86ab-7a2ced0d2bb1","block_type":"box","text":"obligation ratings.","page_number":190,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"9260fc2b-3fc7-425c-9b3d-c5cb0b79cae2","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":190,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"90b28e84-3b70-49f1-b53d-290e95188fa2","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":190,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"80b3d0e3-2c17-4864-a40e-61a7537c3bf1","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":190,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"76998802-def9-42b0-a808-9fd863142d75","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":190,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"e471af29-857c-4f6d-a57c-cd877d93335a","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":190,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"4c957a25-6c3b-4073-af1f-f2a5e47238bc","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":190,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"81e28520-0caf-4e2b-bed1-b6ad971d7a9b","block_type":"box","text":"to foreseeable events.","page_number":190,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"e4f55334-4587-4163-8801-f92752b4391e","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":190,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"0bad6def-3be4-4a53-9570-b310278a51a8","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":190,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"e30325c4-1ca7-4cff-8259-722e2063b95d","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":190,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"95360411-1fb1-4b27-b0c2-0d02eefb4ed3","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":190,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"867594d8-ffc3-43a8-8de2-7b410205cd76","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":190,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"69ec83d8-acac-4a72-88b5-50042470c049","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":190,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"acf550e6-0e10-478b-a243-cdb90532006d","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":190,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"033f6abf-2099-432f-86e6-b675177d47c3","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":190,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"f9573add-e681-497e-99f6-b91e29d10411","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":190,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"d81a0b8a-0788-4589-afd1-e5525b4cbc37","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":190,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"f74bf53c-91f7-4be4-85cb-e9300e0cb416","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":190,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"ce8b3085-f653-4287-b54c-810dca309f2b","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":190,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"f12f3138-de95-464a-a9ae-0f3781909a29","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":190,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"34d2a1c4-748f-42c2-bd33-4a3f5625ed92","block_type":"box","text":"possibility.","page_number":190,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"80ff91bd-a199-424b-a8cb-c450503ac123","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":190,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"346c8c9f-e270-4584-988b-28d46ec9f6c0","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":190,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"9e69c57e-476b-4b7b-bc7f-999af31a9805","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":190,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"d0442f5d-e9e9-4d35-b9c6-fe9d3e6cb758","block_type":"box","text":"A-7","page_number":190,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"ff73746e-3bba-455b-96a3-8b6dae2f13ea","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47fa57de-ab96-457b-8782-7ba4fcb8149a","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":191,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"b4d46272-f6c5-4c10-a160-64c361eb47c6","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":191,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"2c9d22f3-76d8-42bd-a0d6-8c85e6c54baa","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":191,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"81fe14d2-fbb8-4382-8bcb-a56e5433ebb1","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":191,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"dbd34a7a-ae41-45cd-a4bf-1d4ff47fd7a9","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":191,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"7bb92fad-f268-4398-9c19-2067fd47f459","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":191,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"b9b55514-eead-4e36-a5ad-0aba8441f185","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":191,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"df5eb6b9-c09b-4383-a06c-0d09e91518b8","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":191,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"5993967b-030e-4120-b639-d2813096a1e5","block_type":"box","text":"relative status within major rating categories.","page_number":191,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"b124d181-eaf9-4137-ad77-b0f052c38b21","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":191,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"b0c4cf59-a042-4e27-949e-0c2a077b4171","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":191,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"d360d7c0-fe24-4786-a29d-2dd6cc507110","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":191,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"ad3f16eb-79ae-4f1c-a33a-7bcd0a565ceb","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":191,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"f24d18bf-4444-4f79-96fe-41c69517e133","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":191,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"8914ffff-5320-4fc9-ae9b-9a68e1a297aa","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":191,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"e5f2cf64-6e35-4461-a29a-b7711290bd5b","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":191,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"fbc44a00-a5ec-4f89-8a83-a235d9a0d236","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":191,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"72467697-3eaa-444e-800e-19135f1ee890","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":191,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"92dff64e-4b8b-450f-b64e-bb9bf3122f3d","block_type":"box","text":"finance markets.","page_number":191,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"de3705ac-886c-4f99-883e-a4f9c095a8c6","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":191,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"0a70818a-3516-47c8-9adc-596df5e54ab3","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":191,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"6eb8262f-95c7-4eae-96f2-2d99e73df699","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":191,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"a7e92311-5bb7-4348-9138-bf92b0957760","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":191,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"3fedd8a1-2372-43a4-8476-7dd7c647ecf1","block_type":"box","text":"commitments.","page_number":191,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"9a61b5df-4843-4ccd-8925-a53177dd8e47","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":191,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"09050902-84f3-4e5e-b54c-b3aaee4e3f00","block_type":"box","text":"adequate.","page_number":191,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"ef9ed688-a406-48a2-af7f-f4e3ca525c06","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. 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with","page_number":196,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"dc6984b8-643d-4e13-94f9-f07bb8c99bd9","block_type":"box","text":"issuers.","page_number":196,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"550dee68-41da-456d-b1f5-65d827cc2a63","block_type":"box","text":"1","page_number":196,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"ee67d17d-49d8-4de8-9b1d-1909dc870e41","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":196,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"f3127f81-a098-46fb-b9ef-be22bf01b25c","block_type":"box","text":"2","page_number":196,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"29cf82d5-b0d3-4405-8ce0-8fdbd4a6af38","block_type":"box","text":", providing exper tise","page_number":196,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"8e94fc69-25a8-458e-9318-161ecb982504","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":196,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"5378d811-4e8b-48b9-98b5-af3ecec39447","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":196,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"813c63d6-82cf-4a0d-b9ca-ed090d8f4bb3","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":196,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"3336fdce-c547-499a-8931-8e39a97cd93d","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":196,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"715ad0b4-6ef5-42bf-a7fb-91b90c339b0c","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":196,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"f142ee4d-431a-46e7-bbda-d5e5b26d0a53","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":196,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"c2aef88a-547a-446c-9a97-e645593c8813","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":196,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"7354e486-0778-4834-a309-b46b6aeab1b6","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":196,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"ac6d0c15-21c7-44bc-bb6b-917714675325","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":196,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"05c67551-84d4-4958-9491-9f2c985bbd39","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":196,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"69448f1d-ca29-4532-857f-a343cfa79c41","block_type":"box","text":"1","page_number":196,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"b2d1139f-7b20-4c10-9bc3-1042d9c5b479","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":196,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"5bf2e9b8-df65-4527-97ad-598f343e1ead","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":196,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"f17b2c5c-6596-4647-aef7-433ba518f368","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":196,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"c78e738b-2432-4a09-811f-2e53ee08c6fb","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":196,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"f9330704-7aaf-4878-a0ac-95c7af5d5b09","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":196,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"cee45bd5-50ba-4bed-99c9-0b40189494c7","block_type":"box","text":"2","page_number":196,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"eb69b353-4dae-4168-b5c9-377c559dfe5c","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":196,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"1fbe13cd-33ee-45d1-9dac-1fda02ca14d1","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. 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The money BlackRock manages is not its own — it","page_number":197,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"7495be80-f079-444b-91c0-9410d53d82a7","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":197,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"e5aaa7be-b1cb-4c78-a247-605707661122","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":197,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"247bb7dd-e763-467d-ad22-3670765d0659","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":197,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"a7e1670e-2d6d-448e-a0cf-11e7f62fcea3","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":197,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"dd7ffcc8-a50f-49bf-b81f-bb0b2b55afe5","block_type":"box","text":"this work with research, data and analytics.","page_number":197,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"6318a950-28f4-4641-abd0-d71b86cc493a","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":197,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"344e2c43-abc3-42ea-9466-3027d652b66d","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":197,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"d74703ee-9bd5-4f5e-94ef-b15987e06c52","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":197,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"b2c54328-1dc8-47e9-b361-d450a5f80e74","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":197,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"e48696f7-9f10-45f6-8967-58132434de03","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":197,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"eddf226a-2a4d-4982-add2-5e96e4470251","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":197,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"74c15127-0494-4e72-83c8-2a64525917b0","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":197,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"e2dbf09a-67ee-47dd-8044-3e13a7ea3069","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":197,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"8772ee4c-7310-4fa1-bd2e-b85cd394f26d","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":197,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"2b53fc2a-d0db-4647-bba7-4c882e98bf47","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":197,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"17361124-b612-4d59-9187-37d14fe63dd0","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":197,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"ef63d42d-eb83-4f49-bf2e-68a9ad6018f8","block_type":"box","text":"shareholder meetings.","page_number":197,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"028932b7-f60c-48b2-b4f1-42812087e4fe","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":197,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"aa829d37-3b62-454e-be62-656326b06a06","block_type":"box","text":"investing.","page_number":197,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"7276e3a7-f3ad-433d-be30-2b6090968ff5","block_type":"box","text":"3","page_number":197,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"b37fdb11-3ebd-4334-a985-e8f04174769b","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":197,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"0daa6c6c-6235-4794-9b72-0436fa2cecbc","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":197,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"3fa36475-9c0a-43f6-ac41-c7d921ac95ff","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":197,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"b653f62a-8d8a-430b-a328-049caa228874","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":197,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"58eaf5ba-8724-4fcc-bf00-176b192632a8","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":197,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"ece3c70f-a854-4dfb-9956-fad1e920bc7d","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":197,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"8fe21935-d8de-4cf7-8012-e35254ccb813","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":197,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"39b14403-10bd-4d0f-87c9-059cf655b600","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":197,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"738ec771-c9d5-4d89-b159-5a6c283a9cb0","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":197,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"0c5337e3-4d45-4033-8e57-833a16453d2a","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":197,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"08286ea1-590e-4416-8fec-ac7b491edcc6","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":197,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"0de87799-d5ee-4f54-a18f-dd8e53e7ba0a","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":197,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"ce1b2d53-e6a1-438a-b766-471ee1e91107","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":197,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"73a71e58-635f-4525-8ae9-6a524fe2b6df","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":197,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"876d2dee-06de-41a9-8e2a-cf429f81f52d","block_type":"box","text":"management teams and board directors","page_number":197,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"792fc6cd-95b9-4cc4-b78a-5f3fc9641125","block_type":"box","text":"4","page_number":197,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"f0842ba9-8d7f-4f05-9728-f3329a4873ba","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":197,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"7894bb33-b01f-4a07-8746-4820312dc272","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":197,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"3f0e16ee-e5d4-4ded-abef-917241b1d168","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":197,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"ab315b98-9fdb-4b4b-997c-bd09d9b3616f","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":197,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"5c6f2ad4-d0e1-4ff2-b2da-7011f459ae51","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":197,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"69cd8935-16ab-443f-8cfb-e0b52c3ff351","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":197,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"67d0b3cf-9080-4ee3-a97b-2af2652ead72","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":197,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"b1a88209-731d-4b8d-95b9-aa82e0102446","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":197,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"90fc7404-0a4d-443d-a2bb-a8c1b437c6f8","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":197,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"464f0314-e47b-4f51-b11d-ef1d52d4fcb9","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":197,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"b93e5a11-0249-42c1-a021-23f5681cf286","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":197,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"5356cb70-20ab-4161-8cbc-79e008306035","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":197,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"15c368e9-61c9-4246-a163-95a1b2bbf5f5","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":197,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"70ac797f-4a39-4aaf-ab22-0e7bbcc5ccc9","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":197,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"9992d20c-1370-41f4-8d3e-bb2865d9727c","block_type":"box","text":"3","page_number":197,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"d0abed4f-5fce-43be-8912-a4e842d8cece","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":197,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"2ba8dcc9-cee0-4507-8c33-fc89ca9bafe5","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":197,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"c89bc848-4d0c-4c70-97f6-868a17c6de53","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":197,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"2c52ad1d-33b3-491b-abf2-2f5f6f105a41","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":197,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"2d477e32-c6ae-43bd-af31-0ff6f7f7a2c1","block_type":"box","text":"4","page_number":197,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"4aabe299-117e-497a-ba34-af56d0b95d91","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":197,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"9a1d7a8f-7d9b-47e2-95a5-3e94c0bf6de7","block_type":"box","text":"boards and their members, where relevant.","page_number":197,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"34e3e9bf-5aaa-4624-becc-4edf41835181","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a2a1a02f-6497-416b-8aad-adef88f6013b","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"18300738-4f39-48f5-b716-a11a63e4d439","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4563ef3-ffdc-41a5-b322-ccb842dbc7d3","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":198,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"f839cff0-5a9c-4ac7-9384-c2e254a4d8ed","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":198,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"a6fc35a3-4e18-44a1-84ff-7d4c3252054d","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":198,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"83cf978b-c973-4d31-9b0a-c6e263996b0d","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":198,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"a624c25a-7533-40ac-8df4-4c8893112c89","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":198,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"3ead8d5d-7a73-45e2-9a23-d7b832fec1da","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":198,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"e2b5a313-0976-4d8c-94d8-f0f19c571d1c","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":198,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"51845512-53a9-4559-b9f1-a2080377d144","block_type":"box","text":"5","page_number":198,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"5b886430-78e8-4f61-a969-612b3a63be98","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":198,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"e471da32-195c-43b0-93c0-c90e5b3ffefe","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":198,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"29ef9ff8-cff4-4ab4-a485-142d14c96823","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":198,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"c97928c6-893a-41fa-98fa-05f107030241","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":198,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"9001b632-43f6-4755-b67d-5fd66e3c8d56","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":198,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"0d468b04-e003-439c-91c3-716a3738bd76","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":198,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"9bff17b2-5567-4dfa-92a8-5f70a1290c67","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":198,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"9cf42623-ac74-445d-bad1-6b5ee78e4a90","block_type":"box","text":"5","page_number":198,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"6e85740b-db37-41b5-9cd0-05edcd4bd62f","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":198,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"c3619476-e645-453f-a59c-30b06392ddae","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":198,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"7a6c555a-00b4-4319-a8b6-7ee262f1c249","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":198,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"f41c6c7f-ff81-40fb-93fb-2b6d62d94387","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"62c25f65-f40f-4629-8827-dd130a6369a3","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"fb50c60c-43dc-4d0e-87ff-3ad97f9f479d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7349a32f-8744-4021-8069-ccecdc94a701","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":199,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"de5955f6-64e7-492b-9594-47f241a8b56e","block_type":"box","text":"Roles and responsibilities","page_number":199,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"44497966-1a1a-4181-a667-8b4aeb78aba7","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":199,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"c24a3cc8-bb8a-4e6d-ae43-2645f9418b37","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":199,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"4caf96af-8ca1-4f7f-8f29-ea0d3f5b90ba","block_type":"box","text":"6","page_number":199,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"c19163e8-65a3-44b4-812a-6247ab99a57a","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":199,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"4185b7ef-9d8a-4b32-9c07-725127fc3ead","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":199,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"54f1d99a-f592-4ea2-ab3e-a02a2860b25c","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":199,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"81ca589b-2fb6-4e8b-b8d6-81f0a604837f","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":199,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"f56ef263-bda4-45ac-ac1b-38f84a0d2b7d","block_type":"box","text":"per formance over time.","page_number":199,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"a47a29cf-5833-4cc8-9f7f-2b58c5fc2977","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":199,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"b025c149-4c5e-47e7-ae3d-7c8f73457b06","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":199,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"a3d06a31-8c7c-4909-9818-06494e6e794b","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":199,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"86ac4343-f40e-43ae-ad2e-3dbd58042d04","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":199,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"2881c4b6-3d61-4a93-98a9-ddb4c97d2e2d","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":199,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"c9482e7c-3c6c-4488-a06e-5e5909c17ad4","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":199,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"56018d71-7ae4-4b08-8583-0e6c74ea35df","block_type":"box","text":"Composition and effectiveness","page_number":199,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"a59fece3-c281-445c-89e3-0ce32cc71057","block_type":"box","text":"Appointment process","page_number":199,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"d7e12b0a-c452-4b0d-ac77-b85f7f241b1f","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":199,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"451fa9d2-b982-48f0-b29d-8323722f46f5","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":199,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"597efba6-264e-403b-a595-3e9efbbcda88","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":199,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"312ba3dc-d715-47b3-a7c5-ff21ff355b9b","block_type":"box","text":"e.g.","page_number":199,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"d43d8caa-8c73-4559-b99f-c73c83b20f4c","block_type":"box","text":", sector, maturity, geographic","page_number":199,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"c02d7165-a856-4d04-b98f-78a850ff8c37","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":199,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"deb4fedd-c450-47e7-b431-e3174dcd0e76","block_type":"box","text":"e.g.","page_number":199,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"26ee9263-fe25-4556-888d-512689ccf1ee","block_type":"box","text":", financial exper tise, industry track record). To","page_number":199,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"cde0ce79-64a1-434e-aa56-8cc86884b064","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":199,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"e5d96432-0538-457e-8567-5a68daf30699","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":199,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"bc9eb3a2-ab4f-4019-bd27-91cb8276530d","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":199,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"93da01be-8ad7-4cfb-b6e8-96babab676cd","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":199,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"129fa039-e5d0-4737-8d15-8a678dd4e7b5","block_type":"box","text":"and local market requirements.","page_number":199,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"3a705611-be98-408a-8b4a-57eb400fb857","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":199,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"ecf558dd-e13c-4a2a-be92-70e8d89c6ce8","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":199,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"c71ee1c3-67f5-45c9-ad3e-e0c96eec2330","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":199,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"799c7092-4abb-4057-bcdd-39eeda107392","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":199,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"e690f918-bf17-426d-bf8f-61a7d4a327bb","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":199,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"a6a9f65f-57da-4ab6-9d70-f97a795b7936","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":199,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"29d19771-c4bd-431c-82f2-e614b9250949","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":199,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"184c9b5e-7769-4a16-b448-245fd0a8b6ad","block_type":"box","text":"Independence","page_number":199,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"92624858-e6b9-42e7-9c0d-6c1885c6280f","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":199,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"fa5e8bf0-e579-487e-b651-80a9ec5b1b70","block_type":"box","text":"e.g.","page_number":199,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"eb760575-8e22-4058-913a-704681a53eb5","block_type":"box","text":", government or","page_number":199,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"e50650f3-e9ed-48d2-a48e-639e4469fceb","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":199,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"019fde5a-b66a-4791-ad8a-deb3a2c89a1a","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":199,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"30c15967-3906-44a7-b8a2-f64ead318d5b","block_type":"box","text":"conflicts of interest or undue influence.","page_number":199,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"a32dc0c4-5d95-464b-8d42-c1710a0d95d9","block_type":"box","text":"7","page_number":199,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"7d0d7095-1e8e-459b-8d36-4075bb71a5d3","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":199,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"c3484943-7c2a-46dd-93d6-bb107a811a5a","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":199,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"4b9a940e-43aa-48e7-87f4-3428f273699a","block_type":"box","text":"independence should meet those local requirements.","page_number":199,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"ccbaac78-16ae-4120-80a4-53c589967c44","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":199,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"35a76217-48eb-4ece-9819-50d6dcb6fdd3","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":199,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"6c4e58be-9f70-47aa-bb9e-562f1066e0ff","block_type":"box","text":"composition if this is a perennial issue.","page_number":199,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"4fecaf3f-dafc-43c3-9fa4-02c477bf6685","block_type":"box","text":"6","page_number":199,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"a3a3202f-0866-4629-8722-da2403163767","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":199,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"c7a9080b-50c9-4dbe-8811-90ebce9f7e51","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":199,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"6a454abf-d1e0-498d-b2ee-43fae93a3f54","block_type":"box","text":"7","page_number":199,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"cec4a425-ae75-4217-b2b5-0a852b650f7e","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":199,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"9f7631ac-b98a-43b1-856b-7f37d5b1596c","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":199,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"3020a262-8169-410c-b01f-bb9679ac5b42","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":199,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"6821edcb-2872-4a10-a32c-f29139be6963","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":199,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"e790775b-1614-4990-b89a-b26651b94693","block_type":"box","text":"of the company and shareholders.","page_number":199,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"f424ab4b-962c-4d05-b95b-54973a7c6e31","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4ad55d58-3bfc-4c87-81b0-e7525b1cbd05","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"059c012c-52e3-45b4-b742-cc7a6b5dd0c8","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e83284cb-7e63-4227-b4ee-110b4c64b4bc","block_type":"box","text":"Independent board leadership","page_number":200,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"7a9c6847-dec6-4763-8f70-ea348acf2641","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":200,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"32e05edb-ef67-4c6c-81a1-225c6d70ff32","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":200,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"5522fb96-6156-4556-9b1b-6ca8145a28ce","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":200,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"e3a6dfa6-d6bc-4103-b39f-f884a58dbfa9","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":200,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"39363a81-6a8f-4c4c-a35f-a380920180da","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":200,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"93605cc9-92d5-4f64-8203-49bd7cc5818a","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":200,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"13610bc2-16aa-437b-aba9-bfd285a45459","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":200,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"bc3cb96f-b1ed-49b5-a984-cfdb1331a4f7","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":200,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"9a0c904d-4c0b-451a-8d0c-4d61e675ed0f","block_type":"box","text":"how it serves the interests of shareholders.","page_number":200,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"16a5f70f-be42-4c20-87fd-be863483c379","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":200,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"7783ab6b-f50a-426c-ad3c-8cb5256c50a8","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":200,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"6194dfba-0399-4b1c-bd1b-5e36d1353252","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":200,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"b87009c3-7822-4942-a7b0-3fcbe212b7ea","block_type":"box","text":"Tenure and succession","page_number":200,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"898dca86-3498-4dce-81b0-95b7c0fb52a7","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":200,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"6ccc44e8-a4bb-4193-bfed-e63d34c06f9e","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":200,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"c0a4fdeb-99c3-4786-82de-1f7024f1aac5","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":200,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"39dc5bc9-9581-4be8-9b16-d564f3ada89c","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":200,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"9badb03f-fd52-4805-8b06-bee02f410de3","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":200,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"a0ee49d2-4f58-4a64-91f4-9b10a656a7a4","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":200,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"ef3ce87a-cd33-466c-898a-fdc59bf72f73","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":200,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"836f38ed-1941-4381-a208-13c7f3bfb556","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":200,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"a429b97f-80a6-4c75-841c-3a0917d4286f","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":200,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"6737e419-a01f-466a-88de-91b5f4597503","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":200,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"f9489196-79cb-4755-b4f2-4c9e24cdea08","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":200,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"de3b3bc3-582b-4c59-90a3-4fd3fe546b6f","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":200,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"b1e53186-cc4d-413e-b5f1-5c62ee859f3e","block_type":"box","text":"for their continued service is not evident.","page_number":200,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"bf3b4440-e891-4b57-87b6-6ba3dc1e81dc","block_type":"box","text":"Capacity","page_number":200,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"c4a70f4c-c207-4e5a-9914-8ee70a09a77b","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":200,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"0142408f-947b-475e-a0c6-abf1dfd14f3f","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":200,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"3d819ece-5f38-41aa-a458-1001cd2a4903","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":200,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"56ea715f-7afa-4bf7-b72f-940787185758","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":200,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"ba5678f2-e4a5-4fdb-a7c6-4bb5f31af774","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":200,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"6bd4ff8c-f2d7-4f1c-9379-15794a93ae5e","block_type":"box","text":"determinations across markets.","page_number":200,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"43a23231-6c25-41a2-8417-4c795521fb24","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":200,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"a39b8776-d4ba-4d3b-af56-459766091950","block_type":"box","text":"their duties to the board and company.","page_number":200,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"bab66c27-4922-4859-93cb-ba24007614b8","block_type":"box","text":"Director elections","page_number":200,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"c0a9d818-f1e0-4b57-880c-5be2c3bef54b","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":200,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"620d58c4-71e2-474c-a8ce-f617a804b481","block_type":"box","text":"structure","page_number":200,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"35b9c5cc-67cc-42ab-a6fd-5eae50856dd9","block_type":"box","text":"8","page_number":200,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"981a8873-d6ab-4895-9fdd-c29d5811baf3","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":200,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"0196deae-6d8d-43a1-9f16-40cc85c0be24","block_type":"box","text":"basis of its business model (","page_number":200,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"b386c9c5-6ea5-4797-b388-4da7faa2c8b5","block_type":"box","text":"e.g.","page_number":200,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"184a854d-4478-4123-8a3a-d1e36d177c4f","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":200,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"38e70787-18b9-43d2-8fad-ea7cb0f7b2c2","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":200,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"6bc28273-5d88-471e-9997-335ddbc285f0","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":200,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"52382af4-9c44-4d51-87bf-ccdc9ba9b821","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":200,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"d16f66e5-0818-449b-ae44-d80b742e46e4","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":200,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"04e4cdae-f646-40e7-82fe-56e00e8fe793","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":200,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"5df50013-fe51-4baa-bcb7-9c18e9657b10","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":200,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"84d2cecf-daad-4b83-91c5-72634db3ed26","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":200,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"d9e0bc51-dc07-4b3a-baf0-9115074b49e0","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":200,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"48e87bb5-e769-4a23-8e48-081d42cffc8b","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":200,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"9e59c417-a89f-45bc-909d-f2de8ab5b0d2","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":200,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"aa9c01cb-acbf-4fbb-aa6a-1080dc6e9c06","block_type":"box","text":"8","page_number":200,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"584fc80c-85f1-4e59-85ff-ba2c1a396d8a","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":200,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"20310018-ad31-4a5b-a460-2d25defd1a1e","block_type":"box","text":"directors stands for election in any one year.","page_number":200,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"53603635-0a3e-4945-bd56-1b78cbcc199b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"089b4a33-dc7a-486d-9e98-a8ea9544de79","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"37b6ce7c-f67e-439c-87d5-21d003ee7f94","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9846e816-42fe-4101-81a1-b8dc1ddb8954","block_type":"box","text":"Committees","page_number":201,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"94c16356-5734-4368-8b31-bdab0e009a5f","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":201,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"24f8f610-e55b-4adc-a057-07584bdfac0d","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":201,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"a47d97b5-94ce-438f-9774-121bb004c0f9","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":201,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"489ef762-e0f7-4c60-b332-bf10f4177fcc","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":201,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"17a9459a-8373-4c2e-8180-c9955d3c614e","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":201,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"e2c3675e-1358-444f-99e0-dd67ee917e14","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":201,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"ab1a64a0-1f60-42c8-9ba7-e097b4c09449","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":201,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"7e7cca43-64a4-47a9-9ad2-680594383b8c","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":201,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"340c613c-7ae7-4b0e-b588-28e846f70a74","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"0f6db056-f046-4e20-ae4e-181577c3d6e1","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":201,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"e3ba2506-1d54-44e6-89c6-72e69c4d0bd8","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":201,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"ed4f70ca-07fc-4f88-95d7-f3d8dc79f4f6","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":201,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"b1c67a19-4ef2-4bdd-94d1-94a20ac914bf","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"051266bb-4385-4726-8a90-272724111585","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":201,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"48b86f8f-90db-4166-b8db-f4ba37b89be3","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":201,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"5dbab73a-9925-4999-b935-4c8327b3fdc8","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":201,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"b13d5caf-f599-4064-a858-79f8e61f6c4c","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":201,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"3a094c25-9e8b-4b04-b64d-841706908254","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"bc2bd7a3-4ea8-4157-a5d7-e2ec225bbd97","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":201,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"65873d5a-6a1a-42dd-b1ef-df3e5f316526","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":201,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"9272c1bf-000d-412a-805e-479e47b03429","block_type":"box","text":"firm-wide compensation policies.","page_number":201,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"3f316977-2e4c-4bad-b551-ab375042f966","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":201,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"84281e8a-32fa-46e7-b2a3-5f2829d24bc8","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":201,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"fcd2fe54-7c0e-4787-8127-3def7abb4efe","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":201,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"ab98f1dc-b8bc-49d2-b161-b66061d169bc","block_type":"box","text":"Board and director evaluation","page_number":201,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"9f528422-6409-4829-92b1-464d6f954ab7","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":201,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"63ff2c23-5e1a-45d8-af7c-adcb49c3b806","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":201,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"d28e4ec5-fc0c-4445-bf85-ed997ac17290","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":201,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"bbcc3272-eebb-4af4-9be8-3ab5c77f635c","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":201,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"1185c57b-c579-4e1b-9d66-13581b01ee92","block_type":"box","text":"a result.","page_number":201,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"693bea11-955a-4199-b601-4d2492b6eda5","block_type":"box","text":"Access to independent advice","page_number":201,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"87ebc8c2-6a28-4b7e-b804-60e165dc7102","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":201,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"df07c0c4-b488-4fb4-b51b-852d2ff19ab7","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":201,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"bcd8a30d-3877-47dd-89ca-b4eb1002e136","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":201,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"8767a464-4f63-4f4e-a9f1-796880a67b43","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":201,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"81cafaa1-d7fa-4f38-a929-60b54cb9da43","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":201,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"4838002f-e51b-44b7-9a2b-347f5e8590e8","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":201,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"e9d0f18a-6efd-4e81-a051-584f148e0f2f","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":201,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"3370af9e-64f7-449a-998b-f1ab2dc3dec2","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":201,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"7c4c5a09-08a9-4630-9b4b-f3518e2d07b0","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":201,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"ff42f5ea-4f0d-4f4c-a7d5-9cd299866627","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":201,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"c7a18cf0-39a1-40b4-9b37-f5d740edc5f3","block_type":"box","text":"per formance.","page_number":201,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"47d91411-0726-4dbc-85a1-81ab8145af56","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":201,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"9115d9a7-b03c-4618-b4af-b6858b34d8d0","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":201,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"3f74ff40-8a42-414f-a63d-0bdd09c758d3","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":201,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"9d5fd147-dd32-451e-835d-321af10c1f08","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":201,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"881484ce-11b3-47ab-ae45-bf80a9bc5b99","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":201,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"ac1e3e4a-a14b-4443-8074-0a62fa3143f6","block_type":"box","text":"recruit and motivate.","page_number":201,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"707c185c-a940-4952-a6e5-50bcb9b937db","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":201,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"2ae36804-0305-4315-80c0-5e82baa352b4","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":201,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"e827d857-e244-4b0c-b401-b01c42ff5c49","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":201,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"1ea43139-af7b-4241-a6bf-3ea3a211b1ee","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":201,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"f5c22e11-7031-468d-b74c-12ac77509c5b","block_type":"box","text":"arrangements include:","page_number":201,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"96b44024-9267-4915-85a9-689463e96032","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"6e47370c-8628-4110-b27c-2229edf459f5","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":201,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"642a7b2d-6cf3-4824-a6fd-c9fd8c85fccc","block_type":"box","text":"the company’s size, sector and market.","page_number":201,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"a7cb2d73-0f80-49aa-a11d-2b4c097667b5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e9e6b773-f871-4674-b8b0-287e9495da43","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"57b53abd-710c-480e-b947-bacd203ff92b","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2822fa7f-f9e9-4350-9573-9e850b584c75","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"59757e96-3a08-494e-8296-052d51c13636","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":202,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"1276ac2f-5b85-405a-a13f-f07898a28800","block_type":"box","text":"strategic objectives.","page_number":202,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"04f8e2c6-fa6e-4675-83a2-6ef3f58bffd9","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"c8fcf59c-f192-4d9b-b35a-e3c961c59519","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":202,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"6cf2b216-fa12-4229-8b0e-ddcb9e5e68df","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"dba47e84-1b23-4167-8c41-14c8e88a34ac","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":202,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"55110dd3-0265-4884-9f63-793fb0425445","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":202,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"b97b8fde-160c-41b1-95be-c7c55abbd7b5","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"30b28086-7df5-4274-8723-36d493c9294d","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":202,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"62179973-1501-435f-9628-d9d0ed2172b4","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"4eea1650-62ce-4235-993b-3e47b7892ee2","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":202,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"53d5a02a-7d8e-4303-a7d1-22c2c7064f32","block_type":"box","text":"transparently.","page_number":202,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"0ceccc97-809f-4b0d-b81c-3f15f2dbe0f0","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"0d07dcf5-7b38-441c-baa7-f233f610cc29","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":202,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"d363864a-0230-4c07-9672-4d51f7b30bdf","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":202,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"a25ff15a-a517-4cbd-9e27-63705e584355","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"afcb0dee-98d1-4b0d-b0cc-46ddb08ce484","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":202,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"6a48c418-89d6-48a5-a25f-af9248fca9ce","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"8e111051-b2ac-475c-bb5c-df6f04b03de5","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":202,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"6290cd5b-e038-412f-a466-0f429ccd92df","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":202,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"822ca5ab-4ac9-4ce2-987c-909258c06fd4","block_type":"box","text":"misconduct.","page_number":202,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"707b3c75-95bc-4232-8dbf-44f5bb30304a","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"358864ae-f08c-408a-b979-548d35c55f70","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":202,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"83ccd14a-a38f-44ff-aa5c-8497f4ce8fa6","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":202,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"a89cc27e-9474-4a17-9347-7eff7033612f","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":202,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"092ecfa9-c671-4f69-b6ac-78c4c65b3bbe","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":202,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"5b429f41-9df4-48ed-aa34-93cd509542b3","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":202,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"891f72a1-ae47-4e5f-9c65-0f4c624e694d","block_type":"box","text":"committee, or the most senior independent director.","page_number":202,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"aa7f7945-8ccf-457a-b9a5-dea298bd59e4","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":202,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"7014e9ea-b28a-4481-8696-7ec3bbb1e743","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":202,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"d4139bb8-83d8-4c7a-99d9-74eb15bcc120","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":202,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"4844e558-faf8-481d-923b-4e316100d47f","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":202,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"79f8cda8-1310-46e1-b7eb-958d7c4ad731","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":202,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"b77b258c-86bd-4ec4-95ed-221c07fa22b3","block_type":"box","text":"CAPITAL STRUCTURE","page_number":202,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"189e6073-3212-4c74-9e4b-3582f4f63286","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":202,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"9d6a3ebf-0505-4119-80bc-e7f2daeccb43","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":202,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"42e63eaf-b996-45fb-bf5e-248270ea2909","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":202,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"a13fd532-ffc9-47e7-ad49-cd59bc93dab0","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":202,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"1569d029-88d9-4ec3-9b3d-1bd1cc7847ea","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":202,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"08cfeab1-7e58-4e49-a6d9-3a43bfb74fc0","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":202,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"6acca0fe-abe1-4858-95d7-4c63404df85b","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":202,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"c4ea096a-c90d-467c-a2d2-015aca5d96d2","block_type":"box","text":"Share issuance","page_number":202,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"67cb9455-77cf-436d-95bf-1d6c03a165cc","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":202,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"8fce8286-92ca-4f8e-a5d9-f20d8103af42","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":202,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"098f683d-6fc6-40f3-8496-344e7696fbc6","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":202,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"5b8399ff-db73-40ae-b441-a43783a28361","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":202,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"92a15158-1ea5-4e8b-94f6-b47b40bba9a1","block_type":"box","text":"market environment.","page_number":202,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"f3487b8f-306d-47b8-805e-8c9b5c72b310","block_type":"box","text":"Share buybacks","page_number":202,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"f77de496-933b-4aa8-9d2f-bca10de3ee8d","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":202,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"c719901c-de44-4ada-b912-8db411f50ec5","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":202,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"2e40467f-c0fa-467b-937d-db2385919740","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":202,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"e95c72c0-42e3-45cf-b5e9-7a3d753f3c36","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":202,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"b356dbeb-d11c-41ca-9a25-d5b325ba0efd","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":202,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"caf870bd-1b53-4566-ba43-b21d388299b8","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":202,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"d344abd0-41fc-476a-9db1-028cca268474","block_type":"box","text":"of the company and the market environment.","page_number":202,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"c093de93-d512-4300-81a7-adf25e76fe44","block_type":"box","text":"Dividends","page_number":202,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"43a0b795-225f-4c2d-b62e-c9a9c40fd036","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":202,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"f7fb5784-f35f-4045-bb42-05fa3fae06f2","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":202,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"a798bfd7-32bb-497a-bf25-2cd092ddab5c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ee9536e3-1887-48e0-8956-357fd7a4c8ad","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"72ac2bc0-cd88-4d73-91bd-ff9781671268","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2e5a87c-cb89-4b73-b95d-6d362a1a0742","block_type":"box","text":"Differentiated voting rights","page_number":203,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"a471eeef-6fd5-4473-bd69-f40df64697e9","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":203,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"540fa166-1402-4ef5-ab21-595cf9874c6f","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":203,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"7e13ac5f-427b-4799-b3a8-c12ddad11e32","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":203,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"686bb022-e986-4b5e-8b37-4ed165a3d304","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":203,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"eb34b9d4-2fcd-42e9-ae79-5ee14959e766","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":203,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"773b1d0f-e8dd-4b1e-b6cb-2a31f77d99e8","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":203,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"76ef4776-a719-4381-b83a-c2b9a8dfcb78","block_type":"box","text":"analyses of proposals.","page_number":203,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"d6a9a3f3-7fa8-4fcc-a0f2-42b29a117fe5","block_type":"box","text":"Mergers and acquisitions","page_number":203,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"3e202da4-fa45-4eb8-9770-af914cf96230","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":203,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"6c479689-de9b-4501-82f3-5ca419b1dd3e","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":203,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"9476c519-d292-4fdb-b75e-bb469efd2cfe","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":203,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"96beefe2-833e-4e9b-a8c0-ce8fef7007f9","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":203,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"bcfd610b-21a3-4108-a356-d3fb2d415077","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":203,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"eeca6b5f-cdc9-416f-ad8c-9811855473f7","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":203,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"bd396e9f-318c-45b6-8204-3371471ceb20","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":203,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"80a924e4-cfa3-4ebb-9045-9cd2adcf568c","block_type":"box","text":"Anti-takeover defenses","page_number":203,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"33974eb8-38d9-4a40-ab02-164aeeef3ab0","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":203,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"bb7028d9-8ea3-4c9e-9b12-f35d89fc7f7f","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":203,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"112714b5-dbc5-4fd3-b3ae-1c5639a3e49e","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":203,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"37982c77-61ab-43ea-b504-af3ebf3762d4","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":203,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"84931937-4a7a-40f3-b46a-4e91f0d4c98f","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":203,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"23e6d37f-5ea7-4e98-bcf2-30c56e11c3a9","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":203,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"c3c7d18c-d140-477f-a2e0-7b7b2fc5b287","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":203,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"1a4a54bc-19b4-42cb-b09d-31483043249d","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":203,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"45cbf42b-744e-4246-b628-1b6fc7fe716b","block_type":"box","text":"Shareholder activism","page_number":203,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"4e6b68f8-8433-482a-95d8-0192419d5d6e","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":203,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"73fc00cd-ad8b-4ac6-9ee7-d706ac4584d4","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":203,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"7dbe3c03-303b-438f-8b8d-57c13550d377","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":203,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"41f080d7-3cb7-4c8e-994d-e96754357d9e","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":203,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"2ba6d6c7-9d61-448f-b2f4-3c31893bf3d1","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":203,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"7fa7ab9d-3ca5-4725-9ad9-f9fb703d1c5c","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":203,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"b28e2919-71b5-4f18-a752-c12c47dae8c0","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":203,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"b6055a6b-8926-49a2-bbe3-cf0f5748be89","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":203,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"3d151c6a-5177-4711-8a5f-4a3bdb561b8f","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":203,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"64cb1825-8c44-411d-a038-59e0f1b74b69","block_type":"box","text":"protecting shareholders’ interests.","page_number":203,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"326715ee-855b-482f-8cee-8ffb71853e5a","block_type":"box","text":"Significant shareholders and related party transactions","page_number":203,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"4d7dd7a3-2c04-43f4-9c76-58fcbf4b196e","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":203,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"de610413-2afd-40cb-8b70-c67199062297","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":203,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"995c9cea-5c98-4a62-8cae-091993b81f27","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":203,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"46ba1d19-c5b2-4bfa-8f40-81d77ded83b0","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":203,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"3c77ccaf-84ba-4ae8-a805-08498add7dfd","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":203,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"c9960eea-0c28-487f-a455-f31b963129f5","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":203,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"22208ea7-ca19-4dfd-8eba-ea7d06666590","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":203,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"41d81b3e-0947-48ed-a910-d836db05d210","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":203,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"605c5a15-0958-4d43-8cf5-bc43c1c67651","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":203,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"eaa05ea8-9598-43fd-adea-ad13db8f4c2d","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":203,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"b7d716b4-ab4d-4133-b7de-a97b7217a7ff","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":203,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"c5375475-b610-43d5-849e-9ba9dc272974","block_type":"box","text":"audit.","page_number":203,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"ae697618-92b2-4ea3-bed9-5349d162ad22","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":203,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"8ac38b29-4962-4af1-8d74-846519f41491","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":203,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"31999f5f-327c-4dc4-b83a-bb747cac4462","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":203,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"494f5698-a742-446d-8c9c-7721ff4f77ff","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5522249b-6a70-448f-a867-6769b80db7ca","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"5c629a76-13f1-49b9-bd2f-21ada6247d31","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25f929ba-e6ee-4da5-8be3-0fab59448139","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":204,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"ee5511d2-7d3e-4b45-b25e-fb2d57a49a60","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":204,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"b4be9c1e-bf62-4fd1-b854-8151ffcae9f0","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":204,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"e33d1a26-d592-4a0b-81e9-212930f6cb84","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":204,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"2406ac51-0f77-4fb6-bb24-229d404fa2d3","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":204,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"5f519e05-df92-4275-a94c-3c58a67bb2a9","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":204,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"29581a2c-4965-4b72-9322-fbd32cf695da","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":204,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"7b41b3c5-9e5f-4e4f-8d52-866fa3fbd4ea","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":204,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"eb988897-0dec-452e-931c-b40d363a1354","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":204,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"e29fd650-eb76-49da-9878-b1e8dde2eae6","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":204,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"0dc5ed2d-f6ec-4813-9f5e-6d0bde15a33c","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":204,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"7f083570-4b99-41d8-9636-bbdb44cc0c35","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":204,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"e8fbe9d0-e38a-4dae-89eb-8b42be09543d","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":204,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"54a42261-81a7-406e-ba90-833e2deb3fd8","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":204,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"412fb512-32bb-4e12-8877-b416792147b2","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":204,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"98dba7d8-880f-4698-8893-14cf6837e739","block_type":"box","text":"9","page_number":204,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"d6f26016-6d99-401f-a2f3-06fa3135bf2a","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":204,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"f66499ed-653b-4283-89e1-d450eac73606","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":204,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"ddd29de8-9548-4bb6-9a3b-363f0cb26419","block_type":"box","text":"standards specified by policy makers.","page_number":204,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"a91505d4-0b7c-4a28-9cd1-2935be0a97f0","block_type":"box","text":"10","page_number":204,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"dba0c5a9-e1b7-4f87-9baf-b4a99b2e28a3","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":204,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"b481c0f7-678f-43a7-8db8-42e6297f5f1e","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":204,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"2ea6647b-39f1-43bc-8cfe-dfa00082a7e2","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":204,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"1bf2e668-ac9a-41cd-8afe-b483078ccd6a","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":204,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"e13fa370-e559-4137-b0a6-ddbfbe42273c","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":204,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"cee041e2-477c-4fe2-a306-0005ecf0aa48","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":204,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"bd9cebab-cea8-462a-92d8-b4bec3656e50","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":204,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"a2418162-1fc7-45c5-978a-ccefa351e160","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":204,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"9eedfcbc-4f7e-45b1-a41a-72b81bb231fb","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":204,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"a5b66a8a-aa35-43a5-a2eb-8bd708af6a96","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":204,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"0aa2348b-3bb4-45f4-85ff-b08757f8500a","block_type":"box","text":"remained independent.","page_number":204,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"0b045554-d070-427c-a044-94491c6bf3c6","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":204,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"324790e0-382d-459c-8787-543f10330970","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":204,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"35d835ad-608c-4fb1-8264-b1a0d37acb59","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":204,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"9b97cd35-e9f2-4509-8f73-e139e7139adb","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":204,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"ce99eb31-d768-4d22-a43e-29d3f3a46024","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":204,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"9416602e-efa5-45dc-b2de-e625c6065979","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":204,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"12fd1f16-9b83-4652-ab4b-b7b485aa917e","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":204,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"8c3bf23a-5ca7-4197-bd05-78653bee7d81","block_type":"box","text":"General shareholder meetings","page_number":204,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"8eb9529a-ee19-47be-824a-351e927ba100","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":204,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"a6b88c02-3daf-4bcc-9fcc-09973327d864","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":204,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"7800c25c-1206-4344-b5c9-ed4652dbe2f6","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":204,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"842d310b-37d6-46af-a708-41068383a518","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":204,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"39dd3be5-3e6d-4065-b241-adc51f3363ef","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":204,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"8bb166fe-a680-498b-a372-517bee8763e3","block_type":"box","text":"an in-person meeting.","page_number":204,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"8d75bf24-ed06-4d93-bbef-8baf7fcc0078","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":204,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"649481f4-ba81-46b5-94ad-74f7c8b8ffea","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":204,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"8a936da6-e33a-4462-b0cf-2e196eef1703","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":204,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"3b446216-0fac-4b58-a3e9-82d640fdd0d1","block_type":"box","text":"par ticipation.","page_number":204,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"daf518c3-5b8a-4849-8672-805327c99f13","block_type":"box","text":"9","page_number":204,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"c8de075e-ff49-48c2-97c9-873f6703f4d3","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":204,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"dcf882ed-edcf-4ddc-bb31-46500d52e273","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":204,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"1da1083a-ddd8-4d25-af89-bb3c4efe6c50","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":204,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"a9ab969d-6402-4732-9176-299c8f392fad","block_type":"box","text":"Disclosures.”","page_number":204,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"1bd977d8-24a9-4595-afe8-fe3cad42305a","block_type":"box","text":"10","page_number":204,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"0b4e4132-4ce9-4d0e-9a1d-c2be9076896c","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":204,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"f4dc6e2c-7526-4b2e-919a-c65f518579d7","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":204,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"d5b67308-8d14-4511-ae83-9a3c1eb6dd9d","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":204,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"278b0046-4074-4127-b344-f2a9524b2bad","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"59d5576a-83b7-4597-8d29-ac3482ab66e5","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"1cde5fd6-6efb-4c47-a79d-9c98b27c082d","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"91d654cf-415f-4988-88c5-df7e3f0c1dee","block_type":"box","text":"Bylaw amendments","page_number":205,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"be936675-3665-4dcf-bd51-44471dd63c07","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":205,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"2fc7cce3-434f-4f38-8178-c8e2d352f800","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":205,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"a4974cc2-a53d-49ab-a604-d309f02f6df4","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":205,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"e6956b6d-71b2-4d94-ae07-2b40f52ccdde","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":205,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"25257f8b-af92-40ee-820c-1ffb6deb1e64","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":205,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"b6c86d8d-0ab5-412f-8fec-367f1586a06c","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":205,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"6fc98be3-f34f-4f5e-8032-38f7ad59a228","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":205,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"3169888b-b32c-4ccc-8291-06ec75589668","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":205,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"eea9e16f-0c0a-45b4-ba41-2b765fddae19","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":205,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"2c063d4b-1cda-4a7f-b174-e8c6efea6013","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":205,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"f33af3a9-39ad-45c1-9da1-e63ea76e462f","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":205,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"31a141a2-0bc8-473d-b75a-103d9d8044df","block_type":"box","text":"nomination process.","page_number":205,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"5c669be4-1a19-4784-8bec-ba010012b3ef","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":205,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"cb3d054a-5f52-4125-b9c2-b042fade2832","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":205,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"8b98a5e1-67ae-4dce-8d58-e6ebde810dd6","block_type":"box","text":"Change of domicile","page_number":205,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"f671388e-6a7d-432f-8199-8fbeb02294c5","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":205,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"447c11d6-c174-4af0-b858-798062f8b5dc","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":205,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"433ae6a4-d4f8-45a3-8453-b94964ce3685","block_type":"box","text":"immaterial.","page_number":205,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"3b6af356-f9fe-4405-8bb5-4f28ce7021b9","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":205,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"84def1b1-40ca-4b31-97ce-42dc4e15ecd4","block_type":"box","text":"with our clients’ financial interests.","page_number":205,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"c86c3c0b-bd07-4a22-812d-c081447538ca","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":205,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"a38cb522-a2db-4018-83d7-12eb591f589c","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":205,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"65c1f511-7819-4060-9ed7-571cf9a69f6c","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":205,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"35fc2e9a-a692-4fc0-8201-68d820a4ccda","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":205,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"6368bb9b-fcd9-4de0-b027-d815cf9dbe03","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":205,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"0597db1d-924e-4dc3-bdbf-43cf76d79d3f","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":205,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"5b4f5935-101f-4c4d-8e9d-f12764c92c7a","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":205,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"f70420c1-786f-4394-a829-c913c6a33f03","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":205,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"927c2147-8bd9-4ed6-b3eb-5f19e64ab3ae","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":205,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"2cfb26c3-c123-4c4b-b8af-3e5e45f0e9ef","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":205,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"ecb5f657-d46e-49bf-94e4-fbb3a51087e7","block_type":"box","text":"relevant to a company’s business.","page_number":205,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"c703f77b-97e1-482d-a838-6c6922f84d74","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":205,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"792808bf-52f6-416e-9a77-30b2238a6241","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":205,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"ed5e72eb-3988-43bc-80fb-0e5ea6c1ab54","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":205,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"89a7b339-0a86-4f8c-b0db-e4454c82b183","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":205,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"009ad6f8-7d31-4ae7-ba59-f30ea3711257","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":205,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"3256c504-0ab0-45a2-bde1-58f8950ddea7","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":205,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"eccca0ac-c8c1-4da1-98ea-27d4560585f6","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":205,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"dbd4e878-e52a-4132-a530-a9704508f6ed","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":205,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"d42d3bc5-f2e0-4a11-b8b3-6e0636dd09bb","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":205,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"2e12f8ca-0949-4291-87e9-0684d8b8e195","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":205,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"2cae540c-fa75-41b5-aa7f-b032c3cd8164","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":205,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"16647779-89a1-4226-8cb0-85b6da7d18bd","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":205,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"68dfe44e-a7db-4f61-a84a-b92437ddc13b","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":205,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"8c39ae41-5d62-466c-97df-7b5b3b563b8f","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":205,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"e1f11a7b-9286-4baf-885d-a54a594fd842","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":205,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"881d8e53-6885-43be-b712-126edd8578bd","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":205,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"19c125c1-fd14-4083-9eda-c9478b06a298","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":205,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"7144c1cb-f892-4714-9784-4edb78b9e13a","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":205,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"8efc7407-46fe-410c-881f-7b2a5e6d3cb3","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":205,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"483c47d5-707c-401e-8dd2-fc06ac4ec6f6","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":205,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"68bc0776-98c6-4b18-8700-bf769ce709ec","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"59b3b7b5-9924-4f63-a8bf-35702581bfa3","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"cc5903f1-454b-4563-abdb-26a1e36adcc7","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e6627f46-6c03-4b2d-bdcf-43f2ca2c59d6","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":206,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"6eac1eb1-eee9-440d-8665-7596f697ce2e","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":206,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"0f525193-309b-4ba3-99e8-ac4f5ca52468","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":206,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"90256a52-c26a-4687-8643-735b7c749da3","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":206,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"1c0c25ed-a449-4aca-af86-7bc4a62e51fd","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":206,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"d58d942d-a5fd-4484-8750-57e9574bb098","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":206,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"51e7395a-1d16-4e23-bde4-5f33fbc233f1","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":206,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"458981b6-fa3b-4074-abdd-051e3e79d149","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":206,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"ee3536bf-71d4-47d6-a0f2-94d6ed8346bc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dae19e2b-0637-4feb-b2dc-476b72e11b29","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8319c8f2-91af-4bf9-9b4c-7568d7bd4f86","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c99231ba-98c4-4b4d-8745-9e384c0952a7","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":207,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"aafafa03-02bc-4ed0-acf0-9cbc156d4435","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":207,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"079cda8a-3a9a-4f3a-b73a-e1794944f79f","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":207,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"2b4ac2f4-8645-4dfb-964a-7487ab3fd39f","block_type":"box","text":"11","page_number":207,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"857ca297-1649-4dd9-a841-c54d1fd11b48","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":207,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"45b7342f-2e37-4306-b4f1-bbd3e78eba97","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":207,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"82264e0e-987a-4c06-b17e-3d97973f5d49","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":207,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"15e19b4d-45cb-4e16-ab2d-f687adf9eb3e","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":207,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"a8645f49-47b9-4cb6-8136-6246bf35ea50","block_type":"box","text":"regulatory requirements.","page_number":207,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"5af41b16-469a-41ac-8b7b-d7a8633d9903","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":207,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"f8786095-8423-42a4-95ba-6141d5576248","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":207,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"18458dbb-1cf6-457d-a784-2763ab821856","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":207,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"bd8ef14b-fc13-404d-98e9-55d427bd016b","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":207,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"8ef2df5c-ab30-437c-85b4-9f54c7d15a01","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":207,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"51c51238-13f5-49cf-869f-85d0ed19f88d","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":207,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"f7740868-dbd6-4b93-b1df-3718bc934abc","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":207,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"941f5d44-0c34-41f0-baa2-336ae3b80a6e","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":207,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"32084285-0cab-476b-962f-44cb82e2a294","block_type":"box","text":"returns.","page_number":207,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"ad5915ba-d236-4acd-afdb-e04497efd3f4","block_type":"box","text":"KEY STAKEHOLDERS","page_number":207,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"faf06a7f-df40-46d3-86f3-8b72951ae8b0","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":207,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"677107ec-5cd6-478e-83e3-8e50489fcedc","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":207,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"89888b75-7cd1-41b1-8055-4822a97a127b","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":207,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"29c01a8a-e770-4d08-be3a-42136e1613e0","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":207,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"a9414a57-7ed8-4d63-a825-b95d787f96d3","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":207,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"e566bfab-04d5-4ca6-8ead-d1b011d94d2d","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":207,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"bd2646eb-4517-4c75-a81a-f1bf8328fb71","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":207,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"6696cbe6-f4aa-4fe0-a764-7d826d00f7b8","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":207,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"8df9e33d-4485-41eb-b5b7-af4a209b5175","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":207,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"0391e56d-5c72-4367-99da-8c25798013fb","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":207,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"cc3d91af-68bc-453b-845c-d8d172673658","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":207,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"84773de5-b82d-4e5c-8fd5-ee84c1c89a75","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":207,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"df1d4fea-33b4-417b-b391-07199cfb5bbd","block_type":"box","text":"i.e.","page_number":207,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"38245b77-0f37-491d-acc8-da01a35de1dd","block_type":"box","text":", one in which global","page_number":207,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"e37817d2-6a19-4cb9-8c79-a3f5be60f69c","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":207,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"e7cfe6a3-e43d-4666-96d5-99db99591d20","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":207,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"45faf649-02f0-4a43-bca3-3534793fca9e","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":207,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"d57ab1b5-71ac-4c94-b4e5-ab08b2a09ee6","block_type":"box","text":"client.","page_number":207,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"866fc44d-555a-4c83-ba5b-4ee829150ca7","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":207,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"f023c453-cf11-41c1-ad89-2f607680ed8d","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":207,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"e8852969-6388-4a10-b8ff-527fcc59c285","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":207,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"6f75557b-ffe6-4c9e-b8c0-683c289a9e87","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":207,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"ad09ecf9-96b5-460f-b9da-993874ac3602","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":207,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"380628a3-d2b0-40cb-b847-5eb9ef5ec97f","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":207,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"bfa21288-d765-40a3-8a71-48a4240570ed","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":207,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"bb297b76-d057-4f0a-b611-af0454dbe742","block_type":"box","text":"1 and 2 emissions.","page_number":207,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"b1308e61-157a-4e19-9fe4-201898d9297c","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":207,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"0c88dd55-5633-4a40-8adf-daba5d08e0e9","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":207,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"c2aceccc-3d92-497a-a05b-c568343ca6b5","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":207,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"c39266f3-f767-4cd4-b104-073373389567","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":207,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"d8f79b21-8f2e-4461-8f1e-d195a9ee7f2a","block_type":"box","text":"11","page_number":207,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"2f8e92c5-74d1-4b6d-ae25-c684e9c75c5b","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":207,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"e2fec180-ec85-4f71-9614-190c9bc9c2e1","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":207,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"cf1d3e83-c2bd-4e32-83bc-b03b2fca7875","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":207,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"a6e127b9-ffa6-4308-b11f-ddac53b2f65a","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":207,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"2dc781da-2d7c-4bf2-a88e-ee10f78eaeb4","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":207,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"568be04a-d4b0-460c-92ca-2dbb4566412a","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":207,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"8eb39c8d-106a-4cce-b1de-89ebbd6e058d","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":207,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"336213df-c0e1-4bbd-a1af-0ba294938df0","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":207,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"ab6ffbdb-85a0-47a9-bb29-697e829ce1e2","block_type":"box","text":"sound governance framework.","page_number":207,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"cab31f39-2ddb-4809-912d-dc975bba2f1e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"bcc06f9e-5db8-4d3f-a8c7-d20323d23457","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4a74d501-1888-457c-ac08-1585da0ed841","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3503d42b-d59a-4d6a-aecc-40589c7f3da6","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":208,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"392929bc-d07f-4ada-853d-9efd34e38f47","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":208,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"c1a3e734-1699-498e-90e1-7c3c4c112066","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":208,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"a08465bc-d992-4944-a58d-63ed232d9752","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":208,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"d28d4708-f7af-489a-8de9-7b555bde4fe5","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":208,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"d955e144-88ee-4c9a-a782-76b3a8611f16","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":208,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"2d3d4201-aa7d-4603-9432-61eba10bc5b6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4120fede-7c24-4411-835a-08b82f22df89","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4e95488d-d1d6-4789-a1d9-10771f6dd193","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d66f3ea4-b622-429d-bb77-94de30dd9139","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":209,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"d3fb163a-2ce2-43fc-b454-29c598cd1b2e","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":209,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"7bedd75f-5c1a-4771-9c1f-b665f1237c8c","block_type":"box","text":"Oversight","page_number":209,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"cbdb5fbd-8ab5-4832-b4bc-07690b2a9f54","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":209,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"b2d2d372-abc2-46e1-8b90-fcdc5f826102","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":209,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"772a6478-1c3e-4432-8ee4-81fb0ab55233","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":209,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"42a355dd-de54-4190-a1fb-8298530366c5","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"2433eef2-997a-4ef9-a939-53024ee0cc1d","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":209,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"8eaf14df-c2cf-48a2-8f06-d575b8fc4638","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":209,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"60430492-11fc-4b97-9f7b-c3c1665dadf5","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":209,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"2a6f476e-b61d-4b5b-9837-cefa83108c40","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":209,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"8b11f2e1-0276-4794-b9df-55525aaba23d","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":209,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"c84ae8a8-fa17-460c-98df-a5a65a7514b4","block_type":"box","text":"relevant active equity investors.","page_number":209,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"00483006-bf9e-494f-82fd-0a16690b13eb","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":209,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"4371c102-6bae-4827-a6ac-3710a7c593fb","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":209,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"cac8e468-945d-4346-be67-c74083e280fe","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":209,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"548474f5-9605-4f23-a292-b055965edd6e","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":209,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"a0da99f4-ba91-4347-b670-7bac380edd6a","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":209,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"b307bff5-f99b-45d7-b719-1b3b13430dbc","block_type":"box","text":"third-par ty vote services providers” below).","page_number":209,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"05e03cbc-846c-4148-af50-e3e3dce2380b","block_type":"box","text":"Voting guidelines and vote execution","page_number":209,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"a08a0ad4-8a4a-4672-a8b4-8a4a4f4cb8af","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":209,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"a85ba4c3-0781-45b8-a321-6f40f584f0af","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":209,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"eeb8487c-e572-44f1-8ac4-dde07898cf2c","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":209,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"e6972343-4fa9-4891-955a-3d8b19075153","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":209,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"940f8f9f-4bc5-4892-a88e-3a5258c37b94","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":209,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"1a1e2aeb-e362-4190-a293-4cf7cfbd5c00","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":209,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"323b2222-007c-4019-a49e-7e7415c6519b","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":209,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"6bf70ea7-1409-46b7-b5fa-f4d10bd89bda","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":209,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"83477e4f-cf50-4cc1-a71b-992ccb32e712","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":209,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"140604c7-8fa9-401e-bbe9-b7679c67c146","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":209,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"b64d8a83-edc8-460c-8a40-59dc44003850","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":209,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"718ab30b-b039-4ef5-b182-3b96ab73bf53","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":209,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"05245555-0e11-49df-a4af-14cb61e00550","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":209,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"45a4f685-243f-4be5-94c3-3bf1cfa1c9dc","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":209,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"50b1a494-7a8e-4353-bfef-8af9199e4cbb","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":209,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"ebf99761-16fe-4d96-a4cd-ebcbb8abe87a","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":209,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"ead058c5-8a4f-479f-b793-4792a1854f1e","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":209,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"e317d014-ff1d-4272-9691-e7c5ac937c96","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":209,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"2912890f-8888-4428-803a-a199b7d0ebac","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":209,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"2213985a-60e9-4284-9308-cd781f7c1f58","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":209,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"c7e68203-f2ed-473d-9b33-05f0ab6f72ea","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":209,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"ea1b0dd8-ea9b-46bb-9b30-3ddd7f7413fb","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":209,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"49360e13-014f-4c05-94b6-ba4228f5681a","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":209,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"c278705f-5c94-41c3-888a-ba17660df3de","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":209,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"2314a761-bad5-49a9-836f-fe54e0655bfd","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":209,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"f8e8c9f7-4d78-4f51-b960-672bad2e6d71","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":209,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"57867a03-6799-4413-899d-1b7d6dafaa5a","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":209,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"a8c4b757-938b-41a0-a18c-9ad09485ed79","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":209,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"bc265818-ed66-4a30-9ea2-6bc2440eca07","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":209,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"dfae33e9-bb50-4664-9a3d-a9e10dc24729","block_type":"box","text":"Voting Choice","page_number":209,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"fad12ef4-0a24-40f1-8f5f-d157a15ef439","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":209,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"15410753-691e-4446-a1e0-9e8ac89e54f9","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":209,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"3162d28c-7c74-41da-bd19-e35105a841b9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2a7e5efe-fbd4-4e51-8ba3-5708e986184c","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f4710d3d-719b-4b13-a517-958e9522c2de","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d083bb44-9852-46e8-9085-d3bf24e1d667","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":210,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"4174e40b-c52b-4d76-a227-e8a95a44e227","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":210,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"ec582b68-3f6e-4570-aedd-f324f347366c","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":210,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"c8fd61a6-7099-4ad3-8c36-f596c7fd6442","block_type":"box","text":"strategies.","page_number":210,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"4f91791f-2aef-45a1-8a5b-2d9ed20abcb2","block_type":"box","text":"12","page_number":210,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"ac1abbf5-f3e3-4e7e-bc24-c54dc4189dc6","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":210,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"e3c9965b-958d-4844-9d20-d980e839341c","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":210,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"89236c5e-7694-4ab7-9fab-2381a11d19fc","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. 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BlackRock contracts primarily with the vote services provider ISS and","page_number":210,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"8345b92b-19c8-4b5d-b6c9-0975e843dfbb","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":210,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"bdbb2452-dc9e-4367-9b4b-94f538e60dc3","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":210,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"ec424b97-5737-4ea4-9311-687b65f6bf83","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":210,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"924707c5-27a7-454e-9f1f-c06afc562e28","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":210,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"99840969-a9d4-4bdb-80da-14f20fa12ddb","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":210,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"aa71cf57-b921-42e4-ba55-14c653a526f3","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":210,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"15abe627-7404-40c4-ae89-8d5d60f72ee3","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":210,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"d1cedeb1-17f7-4260-8b14-3dd0c36c309b","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":210,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"cd32b9da-b2e0-4818-b6e0-302971d4aa13","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":210,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"94cd2855-e067-4163-8462-8bb53c876122","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":210,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"af67b379-767e-4798-8ee7-eee6ffd06bd6","block_type":"box","text":"monitor securities filings, research repor ts, company announcements, and direct communications from companies to","page_number":210,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"5ab2a440-24be-45f6-a312-cb1cff45febb","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":210,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"78af1479-03e7-4ec9-a93c-d47c4815f74d","block_type":"box","text":"BAIS closely monitors the third-par ty vote services providers we contract with to ensure that they are meeting our","page_number":210,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"0cfdf8d6-7703-46e4-a36c-44052ce5a63f","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":210,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"8723e586-4c31-4759-a3a0-693015da06d5","block_type":"box","text":"interest. 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outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":213,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"1510b582-0ad9-4a1c-baa5-d7a32948c1df","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":213,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"49260b72-2d5e-4b1b-9342-71dc2c0ca780","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":213,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"7b30cf02-5745-456f-b581-d47348cd63b8","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":213,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"26b4fc31-d545-4e64-8bbf-0c465dd9462c","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":213,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"775f9d51-1959-4778-a325-1723842b9241","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":213,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"b2487f32-91af-4f32-a054-613f67717387","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":213,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"c5e35db6-ec21-49c0-ab70-6a57f4a4d21e","block_type":"box","text":"Appendix A.","page_number":213,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"cccee8d4-4a91-493d-8dd2-5d02dbf6487d","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":213,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"5dae33e3-b657-45d4-b046-20d3d60bad74","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":213,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"4a459609-8308-4a46-8966-6c9f085171c5","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":213,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"17068b0b-b0b7-41dd-95c6-3db0a1b4677e","block_type":"box","text":"Conflicts Management","page_number":213,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"c519675a-3da8-408a-aa67-65a2d62e9014","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":213,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"4b66279f-94f5-4d24-8358-1a715415971e","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":213,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"342f58f1-8cd3-44e8-9277-7c89c2610895","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":213,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"fe27708c-7a68-4d5b-8d06-f8e2585ca579","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":213,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"e73f541b-9203-4efc-8b26-653b1e3f3737","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":213,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"01a5c32e-acd0-4fd7-a6b6-42653de10878","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":213,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"8d2b5cc2-a463-43e4-a3cc-b52ea4bfc69d","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":213,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"73fb8f0d-b2d2-440d-ba23-5340cd1f7801","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":213,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"ab55e7f1-10bd-465c-b37b-0eb4065517d3","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":213,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"24462202-edb4-40f9-8aa5-9b5f3aba1ddd","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":213,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"a5d4568e-3a0f-47ee-941c-1242b4465f0b","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":213,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"32736f0e-9372-4509-acd1-8fa7d3a48949","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":213,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"550e7ae7-e2df-49a1-8983-e90da985ffee","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":213,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"300bb186-806c-4be7-b9e2-722bed467ff0","block_type":"box","text":"connection with proxy voting.","page_number":213,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"d20060ba-f4ca-41d6-9221-02e3dea25fc1","block_type":"box","text":"Reports to the Board","page_number":213,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"5d091763-3534-4f71-a1ad-70ff27bfd70f","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":213,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"0ae353e1-8b7f-445b-bf91-8dd7ee0ba2a9","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":213,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"fd0a71b2-431a-418b-ab37-5f7208a4c311","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":213,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"9c430da5-242a-46f1-a9e1-b51447bdcd6b","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":213,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"175694c9-a6cb-41c9-b528-9358bd420c33","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":213,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"aa3b0671-04fb-4ab8-8869-e4939d2d51fb","block_type":"box","text":"been repor 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BlackRock offers a","page_number":217,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"8f7c6e87-7c47-4d3d-8cc6-1b2c490c72f0","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":217,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"62b3785c-16a6-43e8-990d-074d33085f83","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":217,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"0b1d27ea-6e66-4d60-8499-8fa0fe9b3c9c","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship effor ts, reflecting the","page_number":217,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"f6dc9c2d-115f-440e-894a-7953fef09679","block_type":"box","text":"investment horizons of the majority of our clients. BIS does this through:","page_number":217,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"9936297d-5cf1-4539-9699-55a77ced177c","block_type":"box","text":"1. 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Voting at shareholder meetings","page_number":217,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"032f2b04-c1d2-45a1-999a-6ad5e5e787af","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":217,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"03d8a94a-8fb2-4d7a-a6c0-fcc5f03f97c5","block_type":"box","text":"to vote on their behalf.","page_number":217,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"005b00b8-9e5a-4d67-b2be-a82a959c244a","block_type":"box","text":"3. Contributing to industry dialogue on stewardship","page_number":217,"box":{"x":69,"y":256,"width":388,"height":11}},{"id":"789f6632-ad18-4b79-b49c-9da0f8085e34","block_type":"box","text":"to share our perspectives on matters that may impact our","page_number":217,"box":{"x":462,"y":257,"width":412,"height":10}},{"id":"2e1a55c7-bd27-4fdb-975c-4d9dada58b16","block_type":"box","text":"clients’ investments.","page_number":217,"box":{"x":101,"y":272,"width":147,"height":8}},{"id":"cccb0358-d39c-4a03-91d6-108915734e3b","block_type":"box","text":"4. Reporting on our activities to inform clients","page_number":217,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"1c7dd3b9-ab96-49c8-a5c4-65fc38c6f2f6","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":217,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"bcacd6b9-5c1f-46e7-8393-c248b8811fd1","block_type":"box","text":"publications on our website and direct client communications.","page_number":217,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"96f0b329-c0c4-41f5-b427-e58b8499d1d2","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":217,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"479b04d3-a353-407f-b106-9b06348c346f","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":217,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"f950f2a6-7f63-4609-814f-4582f91d9f7d","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":217,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"3da43abe-ac4f-4762-b906-12e92cee344b","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":217,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"1174f749-0351-4072-95b8-6ee5cd3a2a59","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":217,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"a37fc103-fd88-4caa-966f-0dd8d13b2cfb","block_type":"box","text":"2","page_number":217,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"d3bebcb9-a30a-4f1b-9ad8-a4dc6183acbe","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":217,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"8e71626a-42db-4fdd-b465-603248bb1a99","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. We maintain global","page_number":217,"box":{"x":102,"y":443,"width":751,"height":11}},{"id":"3598f055-5b11-4435-87dd-1e880e568a29","block_type":"box","text":"principles on corporate governance, which guide our approach to stewardship across jurisdictions, while recognizing","page_number":217,"box":{"x":70,"y":458,"width":824,"height":11}},{"id":"a41a397d-9797-483f-94f3-73397c945a93","block_type":"box","text":"the unique characteristics of the different markets where companies operate.","page_number":217,"box":{"x":68,"y":473,"width":553,"height":11}},{"id":"2ca6f675-9c40-47b3-9332-8600ff14a97d","block_type":"box","text":"Setting, executing, and overseeing strategy are the responsibility of management and the board. 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Our role, on behalf of clients as long-term investors, is to better","page_number":217,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"bdc69d3c-80db-47b8-bd2a-07b2eb00e973","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":217,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"fb6c2cd8-fb0b-4059-83f8-499c8bf080f9","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":217,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"70e73b78-cdec-48f6-8c57-5f6351873046","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":217,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"39675fe5-6b04-4ccf-af0f-5f9b83eed184","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":217,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"7b4dd450-5fc6-42cd-9c76-8cdf9d932ac2","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":217,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"cdba0432-83a7-47d8-af38-7bef8a11fa1d","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":217,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"f335c105-907d-489e-8b56-b17b99c5dd37","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":217,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"088da9a3-b8c7-49a2-95c0-dd1ea4a0d046","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":217,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"cfc31947-dcbd-4c9b-9812-e95289a78d2c","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":217,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"c256b8c5-3c89-4b8b-bbab-466a2d2cd529","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":217,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"bd678f22-a5d1-4547-b043-89051b8e249a","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":217,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"8a84c5ca-78b0-468f-aadb-a02c4e205f85","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":217,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"a596167e-3235-4d65-ab04-8896e3e27e1b","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":217,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"96509f14-bd07-483b-a62a-75d773df5948","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":217,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"e63d70ec-a729-4e84-b3d3-c093795c308b","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":217,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"2def3001-24a1-4cb6-a29a-d21c1b813819","block_type":"box","text":"1","page_number":217,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"be2ec080-13a9-49da-8e09-682b1e082c18","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":217,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"fa9e7f13-ff10-406d-a681-772e9dbae126","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":217,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"6ab72c28-0f2c-468e-8ac0-723e6fece5ed","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":217,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"05af876b-4e9a-4aff-b7a3-38388bfdaa00","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":217,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"8904e561-d367-4d03-bf5c-1c91c7581a05","block_type":"box","text":"2","page_number":217,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"325c6bbc-736f-40b6-9335-e4c410641142","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":217,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"f229ea06-2810-4042-a33f-0194a13d3fc2","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":217,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"eff32c9b-2f05-4d98-8748-3890b25ecb17","block_type":"box","text":"material business risk or oppor tunity.","page_number":217,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"323edcca-8ae1-4c6c-82ee-88957a8f1cb6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5096d8b7-ab40-400d-9854-6d93a323f9cb","block_type":"box","text":"Global Principles | 3","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"57146dbf-a6a0-4187-8cbe-759195710c28","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"89d63f70-028b-4738-afe6-0ad1551bd730","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":218,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"703d4674-3418-4c93-86af-80bb4be862f3","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":218,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"bba2514b-99ac-4c20-91e3-408993e3d1d2","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":218,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"89e506f7-3ce5-4c17-bb48-e926e9be2519","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":218,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"d42d6459-5f45-47f0-81b4-83c7d7519338","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":218,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"237b7e4e-cfd2-4379-8d90-7dda4f352f70","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":218,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"a0940df4-aa54-4b3f-b704-43909e462668","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":218,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"385e4aaa-99a5-40de-8648-33468ca667f7","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":218,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"c5ec60de-d6ab-4bcd-ae3a-152d27c2672e","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":218,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"6bfb6f8b-6f78-4e3e-8cf9-7db465ab3b5f","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":218,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"dd9b9249-55c8-464a-95f1-95fd78dc7b60","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":218,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"42afb2dd-6cec-4757-87c6-d768960186ad","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":218,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"2f904be5-11c1-4bfd-83ae-ac8b2d01fae5","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":218,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"4256b824-0714-4264-a653-7f480f5ddbd2","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":218,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"09d4129b-9cac-447c-89f1-8ef4dcb6eaa6","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":218,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"aa3453ef-f4a3-44cb-a79b-66e979aeb15b","block_type":"box","text":"3","page_number":218,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"396d37ca-8bbb-45a7-a41b-294e957cefee","block_type":"box","text":"For example, in","page_number":218,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"2493f951-1693-4906-a2d0-5c2feb0eae14","block_type":"box","text":"most markets, shareholders have the right to:","page_number":218,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"c61bda41-8804-4127-9c4d-9880cd28e90a","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"26fe8c0a-0971-43d0-b79d-32b2bda10cd4","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":218,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"c5bedb78-3c70-4c2e-9b20-75cd8431cec9","block_type":"box","text":"char ter or bylaws.","page_number":218,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"3e38c6b3-a7d2-49fc-87f3-33bfd21cc631","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"bd01a396-0370-41fc-bfbe-b0439ea554a3","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":218,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"8b3e274b-0363-4bcf-add7-23546940f918","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":218,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"c07cddc0-dff9-47e4-98f9-334fea9860b4","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"dbea9f45-1a9d-45c2-9eb5-8ce027faaa1d","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":218,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"7fb35b1e-9074-476b-a091-715301ff1552","block_type":"box","text":"are material — to make informed decisions.","page_number":218,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"66508a91-d7cd-4783-be8e-4b7afbdb1d01","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":218,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"1ca7ba02-6a5b-40c0-86d1-950764c426e9","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":218,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"83461a47-4671-4da0-b934-c79cc57bccfc","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":218,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"cc18ed25-d6dc-426a-8354-d4c6764c75b2","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":218,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"6f7c3294-9082-4f77-bce1-69f621b7fa60","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"514b9fc1-e466-406d-b417-397da45f9b0e","block_type":"box","text":"Boards and directors","page_number":218,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"88374e97-d180-4931-9fd1-61d235414412","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"88f2f69b-5320-4d74-9cfa-e217725e2895","block_type":"box","text":"Auditors and audit-related issues","page_number":218,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"6a2ee5f9-d591-45a4-be91-8630a7437a0b","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"c4ef9eca-74c1-4bff-b943-bc4f3117b1d3","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":218,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"54a78651-74fa-4cba-a418-2b815ac48bad","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"acdfb28c-5051-46ee-8541-0235f1588e98","block_type":"box","text":"Executive compensation","page_number":218,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"f962ac30-1068-49b6-aa13-48875d48a660","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"d83d17cc-1a21-4c72-9694-e2f0f2faa417","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":218,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"5e75d0a1-e979-4917-a1f3-3d66fd2ecc24","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"d33a7715-a267-42c7-a6fd-4e7eab0bbe99","block_type":"box","text":"Shareholder proposals","page_number":218,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"cb0cfb45-6cbc-4a6e-b296-42f7bebccc98","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":218,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"ff35ba0f-fc1c-43b9-acb2-416520f4cc4a","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":218,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"48a5ac0d-aee9-412a-bda5-3a00c8f0ce71","block_type":"box","text":"which companies operate.","page_number":218,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"decd4e97-25a9-4901-8c32-16608c331110","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":218,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"05ae3ba6-ae09-46cd-9de1-8c711f7a6e6d","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":218,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"d7966321-a419-40e9-8896-0026ac34b413","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":218,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"8d457ec9-464e-4e5e-ba0c-463828774ef2","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":218,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"bd57604c-b3a2-4c70-8691-a9b4464c1675","block_type":"box","text":"4","page_number":218,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"6315f071-ea6b-49be-945b-53587c82321b","block_type":"box","text":"3","page_number":218,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"2886ac0b-23bc-4752-951c-aec08da3c277","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":218,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"4e7bb35a-284a-41b9-895b-c4dec565590f","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":218,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"461a46bf-df55-44b6-91c8-e54e7d113e4a","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":218,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"068a2692-97ec-4949-aab8-37dc6ad9cfda","block_type":"box","text":"4","page_number":218,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"dfe3c4f3-6f08-4f2e-8de2-ad85eb350b44","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":218,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"36274531-7661-483e-b189-eb2ae23c231b","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":218,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"b67f5965-31df-421d-8e17-5d30aafdfbac","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":218,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"6d4394dd-2938-4473-a93d-af11da1c4876","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":218,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"ff779f4c-9868-42fa-83f5-d9465b37858d","block_type":"box","text":"guidelines.","page_number":218,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"6b508d5f-0f80-42b2-903d-bff63328ddc4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a6db33ba-1c40-4121-8547-da2464420181","block_type":"box","text":"Global Principles | 4","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"421fd27f-8eec-43f2-b58a-9ce55c2a5736","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35bdfd0e-6d00-449e-9c5b-ac204f5f3168","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":219,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"db042678-9fe1-44f4-8d26-96d1c3b714df","block_type":"box","text":"Oversight role of the board","page_number":219,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"0c72ec5f-3eac-4f48-b1c8-d4aa7c25b2f6","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":219,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"a9831ecb-973c-4332-803a-c83e0db0446f","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":219,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"2ade929d-d272-4967-b752-c59cb164e8ad","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":219,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"5d60162d-842f-46b6-939c-453933410333","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":219,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"f9b2b81e-9ee4-42ff-ae00-2a8c87d6724b","block_type":"box","text":"long-term financial per formance.","page_number":219,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"e8626c49-eaf0-427b-9c61-ebe5206c2f3f","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":219,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"a18d9f0f-4114-4176-864e-fb27a7494af8","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":219,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"ddebcb07-77d2-47f9-93e0-d0d7c9b3a12d","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":219,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"7855a4af-b783-4a89-92f5-d002e3118c02","block_type":"box","text":"the business environment in which a company is operating.","page_number":219,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"d38ab42d-e3fb-42bf-9aad-6621c9cbde1a","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":219,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"e075f3ed-8520-44cf-94e8-98d111a4d614","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":219,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"5c841b83-2b5f-4b83-ac6a-d8200ca06c26","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":219,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"c8db0adc-b70a-4f7d-959d-608f1e012a18","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":219,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"8752f24f-1d68-466b-9641-399f4f4fad21","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":219,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"e312039b-6922-4306-91b5-faf8d85c7d55","block_type":"box","text":"mitigating such risks.","page_number":219,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"1a4aed87-2099-4c39-9dbd-beabe74a84fb","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":219,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"80c71970-5afb-4b8e-b6dc-eafbd8ac2d65","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":219,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"3fb05ca0-d420-46b8-a5a8-b95395dabb01","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":219,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"8656bbad-e062-4774-9a75-93a4586fe2be","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":219,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"07c3d75b-a887-4693-bc34-9522063dc325","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":219,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"159b5c01-a37e-4c26-a98a-58101b10bbfc","block_type":"box","text":"strategy.","page_number":219,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"d1c0fedf-3974-4cdc-bcc4-e9cfb9a42a99","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":219,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"bd85a283-cdd8-489a-a855-2b5db5657b3c","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":219,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"aa526d30-9233-4d39-8748-bf23f09bc69d","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":219,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"8775b31e-9c2f-464b-b9ac-cf954e8f74ae","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":219,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"006103a3-e7e4-4d3c-87e9-dc9ab296402b","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":219,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"e3cd880a-f8fd-4106-8a6d-c335192a241d","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":219,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"b20a6bca-855b-4679-badf-fc32ee43d284","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":219,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"e258b0a9-9a00-4953-831f-4666f48877d0","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":219,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"a2124e92-8981-47c4-b42e-6e64393d07fc","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":219,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"d9ac2773-54c8-4dd1-8050-da045e8e26bf","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":219,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"30814ee4-4043-488d-afa3-1a2f93f790c4","block_type":"box","text":"Regular accountability through director elections","page_number":219,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"81cb2471-1f48-4ea1-bebd-7fc5a7399860","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":219,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"71ff41e3-312c-4cc5-bb3b-d1ccde711a7b","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":219,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"b7b53b9a-8a46-4f63-976d-9e4177905b07","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":219,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"afb0c907-f85b-488b-8b6e-95b3cedd6a6b","block_type":"box","text":"5","page_number":219,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"1f47b96a-06de-4b88-aaf0-cefd8f640c6e","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":219,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"ff4374a6-f49b-4502-8f10-b6a4588cbaf2","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":219,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"a5712641-a805-4591-b193-48ff99eca6d4","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":219,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"ffb7c5f2-92f4-46bd-b03b-20a1d662c988","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":219,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"8c01cc3f-1a12-4040-9076-85bd64bc4f3a","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":219,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"8a389dcd-cb28-4728-be09-20a0b9c7f83a","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":219,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"67f2a199-5084-45db-bac2-681c690c7ab4","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":219,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"e3d66e8a-3fe7-4842-bfb1-ba8ca7fe7d93","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":219,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"b169b65d-2402-457e-bae8-26e0f7195bfd","block_type":"box","text":"5","page_number":219,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"960f3e83-8118-439a-97fd-d5d863e6132f","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":219,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"aea4eb1c-3067-40e3-b807-70174f292b3c","block_type":"box","text":"market regulation or voluntary best practice.","page_number":219,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"28f42f62-ae3f-4b81-b9e3-3dbe6f1c13df","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"aab86087-4bf2-4c7c-a78b-8c1b463fbe95","block_type":"box","text":"Global Principles | 5","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6cd65909-2fee-49ff-87a6-fdf6eb26f9d9","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c91f122e-59f0-475b-8f51-0af1c314e77d","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":220,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"248ceb0c-9978-4390-8fcc-7d60f5d4fb8f","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":220,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"8971bd61-56be-4099-94f6-5437932f4e2b","block_type":"box","text":"recently.","page_number":220,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"e753f5e2-cabe-42db-be92-1e05b356efdb","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":220,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"6adb37b1-fa78-4c57-952b-aaf0c7adb608","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":220,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"77c6aa95-23f6-4d0a-9b7b-89e98947d956","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":220,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"69d5b3c0-a8e7-400d-9e1f-87c673e49177","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":220,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"b4865214-ac2a-49d5-b533-6644eb2b6744","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":220,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"7bbec2ba-4280-4a78-8e8e-d9cb80a2bb94","block_type":"box","text":"Director independence","page_number":220,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"d440c18c-4e5c-40c0-9154-c39c6de41559","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":220,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"6299228a-b35a-489c-89a4-f5f20c1c777b","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":220,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"e5b01f35-9a2d-4b4a-9f2e-d9bd5e8d799d","block_type":"box","text":"6","page_number":220,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"efb3fae1-b8a0-46b1-8dfb-22a0e659ce33","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":220,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"c60bceb8-feee-4ea4-abe4-609520df9cdc","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":220,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"daa15e15-663a-4a20-91b3-2982a16e6a47","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":220,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"e6737f44-73bc-443c-ad44-c77b497e4f8a","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":220,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"e149fee4-b3a0-40bc-8e49-d7ab553e7c9d","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":220,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"dc0cbd3d-90a3-4487-a16a-9c0bc1acf33c","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"7d340a6d-487c-41e5-95b1-57e9abe808b1","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":220,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"dafd5db6-fccf-43cc-a48b-60160ff12a66","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"439bb2fb-f601-4796-beb1-78dd4c80a7a0","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":220,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"7eebb77f-a740-4fb1-ba88-1cb833c0d9f9","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"edd3d476-ce22-4c1c-8a71-88e35e888eee","block_type":"box","text":"Interlocking directorates","page_number":220,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"43c70415-f455-4802-aea7-d51e270414d5","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"97ea90ac-edb3-4b70-a17f-a4ca2fac6cf2","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":220,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"0fe11fa0-8cee-4f1d-9c74-6f6ed6e07468","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":220,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"d85e4738-2c82-4680-b9fb-8ba3e611814c","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":220,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"e7819cd1-3a6b-45d3-96d5-29ea0847c75b","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":220,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"fd16d2ff-b8df-4d8b-8451-4ac861c76b16","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":220,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"cb630a43-19f9-4f8a-92c3-e45cb0d232b5","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":220,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"e8f69ad4-aa3a-4179-b078-752ee332c05c","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":220,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"93e6925d-de48-4d68-be29-cf1277f02cf7","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":220,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"a2ac164b-e4fa-4104-9d5f-3e0717fdff95","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":220,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"3617f455-7e44-4c46-b036-d5916bdac597","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":220,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"815a9707-599b-4316-92db-265032b83a16","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":220,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"700711eb-0c16-4dad-924f-159508bf9d39","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":220,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"b9541de3-a677-46ed-9f1a-914997a3b211","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":220,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"6fe20804-af90-4df2-a6bf-0c919e0b6b4e","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":220,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"c51ad1db-a701-42ff-8a2d-5ed62b785aba","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":220,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"ff716c95-6ee6-4d7f-8a04-5e2f993726ec","block_type":"box","text":"Sufficient capacity","page_number":220,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"d7159266-0321-4c59-b89a-1ea8bacf2a55","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":220,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"fc88bbad-0aa4-4b06-a925-f80d42bcca10","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":220,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"ea0ae641-ccf1-4253-a6d1-9b31f894fee1","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":220,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"148b3a6f-1cfd-447c-b1d0-b382dd649a17","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":220,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"d7b0ff3c-53e6-4439-9d06-d7a73504a9e0","block_type":"box","text":"Board composition","page_number":220,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"5798fab1-6bef-41b9-b362-bc774e073ba5","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":220,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"582c2a6c-0a96-452e-a97f-e8d2cb129bf9","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":220,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"9a6d7cbb-47df-442d-a957-1e4837a336eb","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":220,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"8c8630e7-46cd-4730-a9f7-b684b4235a66","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":220,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"f451e9d1-e07a-478b-a647-5c0b70414178","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":220,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"33119b74-530c-4074-92ce-ced767b07673","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":220,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"07e3399e-69e8-49fb-a133-12d29dfb7e05","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":220,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"d80b4ac4-14a2-4939-8b91-e51d141be350","block_type":"box","text":"6","page_number":220,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"be4d15c4-2d44-430f-ae8f-ae139685cdcf","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":220,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"a88ffa6b-c21e-4e6c-96f7-ad4e7929afdd","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":220,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"033cb81f-7750-439d-9c10-d25d48023ae6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cec50c93-dd2f-4f16-80ab-579cf0d26a4b","block_type":"box","text":"Global Principles | 6","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"44ce94de-b726-4a51-8c7b-276aa78094fa","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"686336ef-14be-4222-8b89-79c5683be8f6","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":221,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"8c8984b1-47d9-4e93-9ecc-ba79b1186994","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":221,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"c3816e85-3149-4295-b81f-c4569c385eb1","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":221,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"a82e627a-91d5-415b-9e82-10c40e1a3ca8","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":221,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"11d34c15-4085-41b6-96ea-038ab42d5b05","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":221,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"904699d8-948e-4ee9-b75c-4eaf2fbb4be2","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":221,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"73a4d5d3-3504-47f3-85a6-2486bc5a22d6","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":221,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"46bfe1da-2dd3-4b67-8324-778f10cc36b7","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":221,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"c0d25ac6-4715-47b7-829f-b4ad188766a5","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":221,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"fe71ec89-ce89-4832-877c-8cf08da0342e","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":221,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"fb876e86-fe84-4aba-ba01-69b117acacfe","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":221,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"f80b64d7-ad97-4328-9681-2d15a9c7942c","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":221,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"f9179e7a-fd77-4026-97fa-6233b498fe70","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":221,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"57fee6ea-4cbd-4033-b4be-49780a41a5d0","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":221,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"3972c8fb-7cd0-41ac-ad5a-70b0f4195579","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":221,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"86f6d68d-dfd7-4a69-b763-ae05e86de14d","block_type":"box","text":"systems.","page_number":221,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"1caa326c-e183-4df7-9337-a74972dc47f7","block_type":"box","text":"7","page_number":221,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"4ea23861-2d34-429c-a880-5b63c8799d18","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":221,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"fb39df9d-b188-41e1-b058-06501c0e7ef5","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":221,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"a2413b27-d73e-4efa-a1d9-917615fb42a7","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":221,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"851714e3-cbfd-429a-a521-332523a6b36a","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":221,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"92ffe0fc-79e5-4ffe-a0fb-71e4ad31f0cb","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":221,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"f69878f7-3283-4fc7-aada-a05a2e1a3988","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":221,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"aaf13c43-6ffd-44d3-98fd-c99329a565e6","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":221,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"c05718f7-c18f-4e94-acea-6dae9ae98960","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":221,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"e3363252-56d1-4556-b22c-159d0819ad9b","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":221,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"6ae286d9-c31c-4a41-b8e4-6de17baa2b31","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":221,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"b58af252-a5db-4e07-a809-5bd719c172d0","block_type":"box","text":"or internal audit function.","page_number":221,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"ac35ac11-178b-4da0-a45c-65eb839f8f8f","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":221,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"835b83c4-ca55-4700-80d2-77952120aa36","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":221,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"e936098b-d074-4b39-b263-f4b516054841","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":221,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"3e4c9eb7-187f-4c9f-a15e-504a488e3ecf","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":221,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"bfe33f96-8270-45a1-99fd-734efd40c022","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":221,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"64e53433-f47e-4b40-89aa-b8c132feafa6","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":221,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"95b5cff1-6b2c-4f36-89e6-b3c8f0fadb23","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":221,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"71de68d5-8073-4224-a002-af2779bb12bc","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":221,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"5b2d489d-43c4-4829-96ae-b8d664de7717","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":221,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"40560435-9049-4a28-ae5d-4bae17d5f8ce","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":221,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"39b2639c-24f6-44f9-a915-289791b41143","block_type":"box","text":"risk.","page_number":221,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"b4e2ad31-5ab9-41a0-a9ca-f3b6e2b07a3b","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":221,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"c573dd8b-94dd-4e0f-a725-7c748705f59d","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":221,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"d9f38dae-91af-4fe3-b573-d3ae998fbe12","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":221,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"10714405-f58e-4030-813c-33a1cbf6d1fe","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":221,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"c3eeb0e2-f8d5-4993-b978-f90060cddfa0","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":221,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"a2e00440-fc60-4716-b289-2d74853444d8","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":221,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"999c1659-3dfa-49a1-8181-6402d3cf2ff7","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":221,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"e8aed1df-1ecc-48d6-8c5d-076a5bdc4e9c","block_type":"box","text":"7","page_number":221,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"5ea03f66-a5e6-4b27-8f73-9f97a21cf0ee","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":221,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"fb32b900-3e61-4d9e-95b6-67b14e05c065","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":221,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"9d687b18-df50-46b7-9cd8-c0a412cc2583","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":221,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"73f9dd24-f99d-4276-9c31-1f7300c4fba2","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":221,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"a754a81f-9f74-4b0a-8267-8001b2853cff","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":221,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"2ff566a8-aa97-40bf-856a-c420bfce0f80","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"902c849c-e1e1-4c22-a8d8-7d65f0832d97","block_type":"box","text":"Global Principles | 7","page_number":221,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"d6a558b5-670e-48d4-8357-59b620ea8236","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d462600-4c29-40de-9b8d-7d2a2b5a94fa","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":222,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"36437435-b374-4b39-9974-39e062b2d9c0","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":222,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"10f54278-a5b1-4ae5-afb2-3d9975973053","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":222,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"588df679-9efb-46e3-8526-c1690852610a","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":222,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"0a256124-534a-4ac8-be66-d50703166643","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":222,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"2fc9ebb5-d790-474a-b718-26bb3c715a9a","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":222,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"d3660bac-773f-4736-ad41-79100cf5a88a","block_type":"box","text":"minimizing costs to shareholders.","page_number":222,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"2ca51b5f-2974-4674-81b0-b7494cfcbd8a","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":222,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"a173ee47-4e7b-412a-8a91-851987c86654","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":222,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"2dc2c037-5f05-41ce-8f45-4a8243ca03ca","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":222,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"1eff2893-4302-4994-85a9-8bff249097eb","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":222,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"d3729736-1439-437d-9c7b-f66171c5f8a9","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":222,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"26d789a6-38e6-456c-b489-a1089bc1c396","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":222,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"33d7483b-3510-4390-9864-ab4f1f88f295","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":222,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"3f86b666-52f3-4afa-ad6c-815989bf5ada","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":222,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"c8a39887-877e-41b9-bcaa-6238b66522ca","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":222,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"a23ae5fe-2e46-46a7-acf2-944cefc3cdd3","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":222,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"0a8ef669-74ba-4ca9-b03c-95375f2afbd0","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":222,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"6ebc8cbe-8d9b-403b-849a-564ae4319ce3","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":222,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"93047ee9-9656-47e8-80f6-f3b2f09a9a62","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":222,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"ecb512e6-abf6-4f9e-b286-2278289e9790","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":222,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"85d050b2-711f-4db8-8004-54b52d32f09f","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":222,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"792120c6-f9c4-4745-89e9-96a485c58bd6","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":222,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"b2d24d56-63fe-4ac7-874d-aab062af7235","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":222,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"e61cd34b-be90-4c4a-8dbf-8f8395001dfd","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":222,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"5b3d2297-498c-40db-88d5-b5f0f43bbb4b","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":222,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"c494fac6-c159-4fcb-8c87-53182693ac92","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":222,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"446ec871-7a9e-41ee-b3f4-e5c323cc247d","block_type":"box","text":"ownership.","page_number":222,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"75f05c46-4314-4c72-ae0b-7bd6918ad426","block_type":"box","text":"8","page_number":222,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"4c4ab49a-c0a7-43ca-b769-82cc08808a64","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":222,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"c99edcb5-d10d-4bbc-828c-09caf25ffa47","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":222,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"579a41e2-35c1-4f8f-80af-e5358b7f0bc3","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":222,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"c0d0273e-3c00-4011-8b84-b29af0c9633e","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":222,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"3261fb35-cfbc-4852-85e6-61b4daeb8f03","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":222,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"b5494df2-2129-4320-889b-b77ca4d673c2","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":222,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"fdfa971a-5613-4fd4-a848-436c4396058b","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":222,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"0251b5e0-501a-476b-b6ef-a3916a4fc1d0","block_type":"box","text":"results over a period of years.","page_number":222,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"d3ea4583-c290-4c6c-baed-cd95720c837a","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":222,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"f0375bbb-5023-40f5-9837-529e63bc0f39","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":222,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"ffac738d-36a2-4dc2-a5b1-e35700a1f0ec","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":222,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"18820393-e393-41e0-bc07-67a9d4d6d959","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":222,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"074a5dc9-20aa-4011-b5a1-74b3bd59d8e3","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":222,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"d7c18c05-70e5-48a0-868e-ac25e93e293e","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":222,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"facbde07-7254-4b47-8701-b3a8cdae3e39","block_type":"box","text":"executive compensation strategies.","page_number":222,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"5eba3e6b-023a-429f-ac67-0917094d76ce","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":222,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"a4735ad6-dd3c-4bf7-b5c2-b1b56c6abdfb","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":222,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"5d6b3f91-f424-4802-bbe6-057a0e0d4d3a","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":222,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"fca001ed-1159-49b0-87e8-b27063bf9b9f","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":222,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"321a8235-f5e1-422c-abd6-6758033a0521","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":222,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"4685f7c7-4e7d-452c-b778-da5c2d558f9c","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":222,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"0c497bbf-eeec-4916-be12-18f944aea3ef","block_type":"box","text":"8","page_number":222,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"eaccc577-331b-498c-b274-78ee61a89ad0","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":222,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"4e3aa37e-4b63-4110-8e81-826d68ac806d","block_type":"box","text":"different markets.","page_number":222,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"a6a89d09-b50b-4648-8d2a-8df84676350c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"10ba27b3-839c-49d4-9caf-039653843874","block_type":"box","text":"Global Principles | 8","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"f4abb176-c5dc-4f3b-b931-b8df2baea763","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4b3bbe3-2b28-4f6b-86ab-88e45cf51f8f","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":223,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"e921f3af-a527-4a1f-963a-fb74ac6fe9fb","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":223,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"926d308f-91d9-4fb8-853b-293e0f1e989c","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":223,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"7ac94e28-e14d-467b-88ad-1e72a90c3600","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":223,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"a0b43ac9-8e16-4ca7-87d2-660ece6de2e0","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":223,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"79cee5b2-0fa5-46fd-9af2-fac4ca04edc0","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":223,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"02075c77-f6dc-4852-912d-0250b83c045e","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":223,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"2d73724e-330f-4e02-b993-f9e10c85709b","block_type":"box","text":"whom they are charged with overseeing.","page_number":223,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"8ad58e1f-7179-49e3-b375-f6a7145bdba2","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":223,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"73af34e8-7892-49ea-ab13-4fc484bd1730","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":223,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"319c8b50-6b42-46dc-a8cf-4e490916ee1d","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":223,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"08cb8fec-d7b5-474a-9913-c9b0925662ed","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":223,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"a72121e7-5aef-4b64-b4fd-a8b31177b898","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":223,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"f63df744-9792-4e39-9248-dba8c957b750","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":223,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"19565aa8-9039-4708-94a6-6b19c7d49b1a","block_type":"box","text":"structures.","page_number":223,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"ed7142b2-0374-41d8-9597-892174565059","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":223,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"2efbfe71-e4de-46ef-9487-4754f1c839b2","block_type":"box","text":"Corporate form","page_number":223,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"a23ea214-dea1-43da-9bf0-ab3796e285b4","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":223,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"4802bd21-e9e9-42cd-bdfc-9e068a5c47fb","block_type":"box","text":"the company’s purpose and business model.","page_number":223,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"364533e4-5bab-4201-8a84-97433e9ca28a","block_type":"box","text":"9","page_number":223,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"4f60b0c6-9510-4b9e-a6a5-a60423318c5b","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":223,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"63dc1612-cea3-44fc-a6ae-6712fa5aa33a","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":223,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"f60b8537-e97a-438c-a830-f05f1b58e421","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":223,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"fe81fad6-1f90-4b8b-8d5e-d313f5a8202f","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":223,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"33074a38-ac97-4bec-a49f-b137019f891d","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":223,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"a95edd63-9839-4765-a583-d4b70d92401f","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":223,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"45cf923b-acc6-4789-a0cc-4ce773c303f8","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":223,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"6c60f172-92fb-4098-abd6-e5b8e41d0271","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":223,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"2310850b-8ca0-49f4-9181-30a6965cd7b9","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":223,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"d340ad9b-bd9f-4e97-b9ed-360d9ff65f16","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":223,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"5b45fc38-91c2-479d-a162-7f980bd671fb","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":223,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"e2ef2b20-ca63-48d5-9b56-f8bbdeae8d51","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":223,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"596791cd-5db1-42d8-8361-34c3d11218dd","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":223,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"1dada009-5357-4c28-bd17-25d5a2a83905","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":223,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"06d5dab2-5bc2-4192-abe5-5cda2f86e090","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":223,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"b7e27292-cb98-4b78-a3a4-d44fdbd2cdbf","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":223,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"f1c9f39f-839a-4a5f-99f3-612bb9ef9de0","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":223,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"a69c7910-1117-4cc7-88f0-26eda68f7fa2","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":223,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"205ca6a1-a67c-4505-9d8a-1fe352e7962e","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":223,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"b6824a85-692d-422c-9935-6ce377fe3b13","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":223,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"282dfa2f-ba2f-4739-b3fb-f54154ae5d72","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":223,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"7443013b-b9e2-443e-ba35-d252b31c4e09","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":223,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"6635a887-b209-4f8e-bfa6-a97f3343bf45","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":223,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"a04df8fc-5bcc-45a1-adb4-8eb3e877e667","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":223,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"267c1660-8f14-468a-a86e-16920a7ec2e0","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":223,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"a179e43d-f683-4b62-9fdb-478b94e9204f","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":223,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"f6bb43b0-73a8-4eb3-9a49-4602ea9c4990","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":223,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"d0d84e70-0387-45f9-b485-8f30453f5566","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":223,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"0a0392c2-e00b-4e10-853c-53fd083ae875","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":223,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"dac79058-d135-47e4-a042-7a5b01463808","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":223,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"d7a14825-91f0-41f5-8f5d-12802cc2b600","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":223,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"3f6fe241-d482-442a-ad4d-97fde9c923bf","block_type":"box","text":"9","page_number":223,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"a583435d-dc3d-48b8-8f2b-ebfbf189b122","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":223,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"63e449c9-c491-40b1-8260-a191fc2780eb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7973dfc3-9c41-46fd-b62a-3a72f54cac62","block_type":"box","text":"Global Principles | 9","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"1e705ae2-eb67-4b6e-bc49-1e7480365f42","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e3abf45a-eddd-4342-8811-f05e3cdeede6","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":224,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"5523ef74-e555-46ee-85e6-994b5f857a92","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":224,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"f1d88b2d-f0ac-46eb-a307-cbb56741f5fc","block_type":"box","text":"long-term financial interests.","page_number":224,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"217af4a0-9de1-4c91-ac11-c7f5be001c74","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":224,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"6b574e7c-3e77-4b66-9df1-245340a93f04","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":224,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"b936dc6f-fbaa-40cc-8571-cd2fe7052908","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":224,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"0e8fe25e-6361-497b-aa6e-f5bed5e78b08","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":224,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"581a6beb-a088-4ec8-8ce1-c3e11b3d932c","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":224,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"b971fdd8-c502-43ff-940d-ba522fc80d2c","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":224,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"43024d5b-f9e6-45e4-b6b4-7ecb2436e6d9","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":224,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"725bca46-e49e-429d-8623-8b450169d0c0","block_type":"box","text":"term financial value creation.","page_number":224,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"2a953036-a252-4a1c-8a8b-ad35c27a4587","block_type":"box","text":"10","page_number":224,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"f25edb7e-af96-453d-b962-7ba7574b77d2","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":224,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"229bf722-4bab-4c17-bcfe-779275c53d19","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":224,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"8ff4f008-8397-4c23-80ea-6b4637693b81","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":224,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"c8b6c254-9bea-47de-a274-5c02fde949d3","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":224,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"80bc6d65-4973-4f7c-a3c1-a5bccc8ce59d","block_type":"box","text":"industry-specific metrics.","page_number":224,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"30bbc1da-5e5c-48bb-ad55-e99f7022ba89","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":224,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"0a9d7041-144d-42c4-b1ed-d2eb2c87f4e9","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":224,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"414ae669-82c1-42ea-a51a-81b80c2ed7aa","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":224,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"84d6fc1b-7cc1-40b4-9691-0df056e94cc1","block_type":"box","text":"11","page_number":224,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"4516157b-b2bc-4f6e-8f7d-c255fb9f69ad","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":224,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"c45ea01a-dd6a-40d3-a3ef-441316a6489b","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":224,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"eb058f74-3054-464c-baef-fe2e13267da3","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":224,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"9311ca1f-6b21-4145-b97f-07c499f641e0","block_type":"box","text":"specific.","page_number":224,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"f77982ae-6ff5-47f6-8384-3ee8a089dda9","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":224,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"9e6d7557-861c-4b52-87e5-9056f66fa454","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":224,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"d855b10c-b562-4335-b623-23e0c072b93c","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":224,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"b6dd903e-60ad-44c4-9ecf-d6c4df7d15be","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":224,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"dc526436-b41f-48fb-bca1-2ba1759e786f","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":224,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"51a86661-cd7e-4ee2-a75b-cc37008ff65e","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":224,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"5b58d2bf-976f-4117-8185-7fa6544e4d82","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":224,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"32c882d1-46e8-4635-bf17-0b7ce1cc7f51","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":224,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"98e2ed28-d3a9-49b0-9074-c1bbefc9ed86","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":224,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"34f23c25-0198-4d2d-a846-4dd2b9f00937","block_type":"box","text":"10","page_number":224,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"44c37cf2-6be7-473e-8a57-566e65af0f2b","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":224,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"3e75f7d3-fb0c-48b6-8f95-60d2f328dfea","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":224,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"b67f0c0b-cf45-412e-8c9d-2ee8f80034e0","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":224,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"ad4d2bf1-850e-44a9-8d25-18aa3cab972f","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":224,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"61d2b2bc-e708-44c3-9c0c-7a6e8a0b448f","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":224,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"79a935cf-0b50-4949-acdd-38393d3d09a7","block_type":"box","text":"11","page_number":224,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"3d6b4ec3-f9c2-411b-bacd-59009d5387ed","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":224,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"5cc65667-9497-499b-bd9f-d7fe4c7d4988","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":224,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"b8c685ee-3ed8-42a7-a9b5-d4c8c9803c11","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":224,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"0b9db47d-69e2-4e09-8d6c-d89403b4b29c","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":224,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"d2691a09-1621-4239-a09a-154110bcfc44","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":224,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"ea923584-1bd7-4a7d-ac85-2ee6df1137ba","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":224,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"bad3804e-082b-4b01-a7e9-28b2539d6cd4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"48e8da16-c14e-49f9-9131-c8f9693eae96","block_type":"box","text":"Global Principles | 10","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"3c7b1273-4273-49a0-ba9b-1287ff97e552","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35cd9c85-7e17-4eb5-bbb9-6e9c2aa9fb42","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":225,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"ce20b4e5-a164-4cd7-8daf-c52d887d92f8","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":225,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"93851cdc-5aea-4b48-9744-81a6f5833a0c","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":225,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"5c971939-c12d-4b5b-b736-90852e13da9f","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":225,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"bcde5fa2-0bb7-4404-9f44-2a0b5299a2ab","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":225,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"f3f97a6e-4282-4459-b0f0-662d7a31955b","block_type":"box","text":"12, 13","page_number":225,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"73558ad7-3fd9-40a0-b38b-9afdc7a48ef6","block_type":"box","text":"From company disclosures and","page_number":225,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"206c4d9d-4cd6-421d-aa16-7bad92c0c207","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":225,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"bfe290c7-a049-4208-9d8a-adb373252a7f","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":225,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"83a06828-d63a-42f7-8a9b-5f74bd2d87d3","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":225,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"725a73c2-2240-403d-b74a-15ed918905a7","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":225,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"a5594af8-0d3c-4486-86ac-b53cb867d3cc","block_type":"box","text":"viewed as best practice in the market.","page_number":225,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"deb7024d-059a-4d4a-af33-8db9adabfcae","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":225,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"d69dc0bd-27ea-4303-a507-96a9caf2b5dd","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":225,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"ecf7901f-c7e8-4077-a785-83a24b00d91f","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":225,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"67d96bb7-7c30-42c7-b543-219239e1b6ed","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":225,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"d3f33fd1-5906-4d01-a4c8-c5547971a359","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":225,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"cbd9a5d7-9988-464d-b1a3-403e16328f18","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":225,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"afe49615-e83b-47c5-8955-0d12032cba5e","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":225,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"88e62d70-f62b-4154-b60c-90a0be3dfc1d","block_type":"box","text":"interests of their investors.","page_number":225,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"7ff8a22e-be14-432e-90a7-04f1a9b50425","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":225,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"4cd0023d-ed97-4d40-ba28-568f547876da","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":225,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"d894c070-8640-4765-9bed-9898a2f257e5","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":225,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"06bdde47-9a02-424b-9fa8-f0c90ddcf9d6","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":225,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"d54d4032-8b6b-46b6-b863-53192e586d87","block_type":"box","text":"good-faith basis as methodology develops.","page_number":225,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"bd08a73a-b84b-4b88-a6d1-1f365706cc0f","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":225,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"f98f0080-1ebd-4df3-98d9-02f6c04dac2d","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":225,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"993df8df-7931-4d3d-8839-5be921ee9bcb","block_type":"box","text":"generate long-term financial returns.","page_number":225,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"a22fcc75-5bc7-4f60-9cc8-9481cbbfc1d7","block_type":"box","text":"14","page_number":225,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"a137cc26-d1cf-4263-b313-65af6f51485f","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":225,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"7000406a-ca45-4111-8982-9a1a8826ff1e","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":225,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"719b6389-62c1-4673-a766-69409183e9a8","block_type":"box","text":"15","page_number":225,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"29ac3dfa-96aa-4179-bf58-282e4acac228","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":225,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"955ea1d1-64f4-4387-a561-4ec8afd09a33","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":225,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"80a2784d-e114-4fba-ba9c-7c4a52dce680","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":225,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"04bcd93f-5f5e-43fe-ac14-32e6862210ce","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":225,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"e71bc48b-1427-40a6-87fb-0f5bf55a1491","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":225,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"56a7347a-4dd6-47ac-8125-7abecd18a939","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":225,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"8184dc59-9331-463c-8aba-0fdc38d01baf","block_type":"box","text":"12","page_number":225,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"cc9ecf6c-f4bc-4514-b776-f4be41c14ffb","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":225,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"31740fa3-8cc2-4bee-bfb1-95d239460ef8","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":225,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"a8463f93-b16b-4629-b21a-8c255693b8e2","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":225,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"176f33dc-d11b-4254-9e5d-df347985952c","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":225,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"dcfd7129-831d-482d-92af-9c07a8682917","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":225,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"36ae005a-229f-49ca-8ba1-5591cdf11649","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":225,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"977c4ca5-80ba-4071-80ad-16112e3ff91f","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":225,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"12a44467-1d4c-4b3f-8f81-caed264951c5","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":225,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"b917d2e7-f74f-4bb3-a858-49469856f95f","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":225,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"18f44f4e-f4a3-4c9b-abce-08264cdf28b1","block_type":"box","text":"13","page_number":225,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"f9e4a727-6549-47be-99e6-2da0056b6e52","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":225,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"6353bf6a-b97b-4ba2-9827-1d1893210921","block_type":"box","text":"2025.","page_number":225,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"0aafd2c5-e9c4-44d5-b098-39836f6cbaed","block_type":"box","text":"14","page_number":225,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"c5cb7e2b-f425-49c9-bb1b-d7d6112ef3f3","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":225,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"b6fa3e48-0fbe-424d-8810-3344cf1988e7","block_type":"box","text":"2025.","page_number":225,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"06ba0109-c169-41ab-bb98-7d898423c0df","block_type":"box","text":"15","page_number":225,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"ee1dac35-fc43-425d-b698-2d6501f6e868","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":225,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"d5cf8642-d9bc-45c5-8319-a89fc1f4e318","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":225,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"99fcb8d7-bf0a-470a-b504-193ec5d51a98","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":225,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"b412f422-b840-4254-99be-6d1a65644da8","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":225,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"73ad3248-7824-44ba-9c19-0d65f53f9835","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":225,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"aebeaea9-d14f-47ae-a42e-a26b5ddfdcb3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fecba748-d444-49dd-8911-cac367d41f67","block_type":"box","text":"Global Principles | 11","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"24a0b3af-1a9a-45a8-a200-ecb0ecf016f9","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"63f5a43c-86bc-42bc-84e8-53c376ba391d","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":226,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"185562eb-0505-4f61-ae8e-f54473d75d9f","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":226,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"8ed75c16-5fd9-4271-917a-d382cac97546","block_type":"box","text":"16","page_number":226,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"3a734ff9-9444-4d03-b382-df895e6d6cba","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":226,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"e3313557-b2e0-4325-a9a0-6545d08b38a3","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":226,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"45dfdb39-7b33-4be2-9fc6-625c8c9ba982","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":226,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"99e1b8b5-9fdb-4bcf-8d0b-e18c1dc80820","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":226,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"ed14fe37-770b-4e11-b6c7-c173710c0a16","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":226,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"3ee0b5c1-b65c-45ab-b903-aef4d830fef4","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":226,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"5b0cee5d-40d6-41a0-8169-ecfc2fdeebf0","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":226,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"8eb9242d-a747-4929-b771-fb23a6ae72ef","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":226,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"bd98366a-f063-4c67-ad5e-a955af7d87ac","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":226,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"cef3e40c-c917-408e-bcc6-9e27e3468616","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":226,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"17dbfb07-cb66-4879-bd45-da5bd5d96f79","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":226,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"7944cbf1-1513-40f3-ad4d-20cf7f165c82","block_type":"box","text":"impacts.","page_number":226,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"8e0d7ca9-e98b-443b-8988-9afb09e61c41","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":226,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"6ad105a8-d302-4be3-aab8-77f096c44789","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":226,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"85be0070-f701-4585-b147-5d9a9e148d1a","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":226,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"2522136f-e231-4da7-a145-9c0089b0fee2","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":226,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"75b47ade-2abf-4644-82cc-8ca8519afe88","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":226,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"38edee60-4de5-4ba4-8460-970a19d376dd","block_type":"box","text":"clients at the global and regional level.","page_number":226,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"646da29f-c8c8-4ca2-a0a5-02720729da3d","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":226,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"9d78d2b6-784f-49d0-a9ba-d269e4c15e81","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":226,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"714ffdb7-31e0-4160-96b6-33843dd26140","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":226,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"4d750978-27d9-4f35-a67b-cd338f7036ae","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":226,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"b95b4cb6-d28a-4190-912b-e8e07ddc66c9","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":226,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"17487feb-4f0a-4575-83aa-954302dd395b","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":226,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"3feffef6-5161-4e47-a3af-bcff75958e14","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":226,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"dc8e791c-25c0-4e87-8f3e-fd73b2cc92cb","block_type":"box","text":"are independent from the investment stewardship function.","page_number":226,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"9e238e53-4984-4219-a504-649c7c772f7a","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":226,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"13e6fde5-c24a-435e-aae6-cb6a804d417f","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":226,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"0c37402f-c494-4b89-a705-9536d3180c3e","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":226,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"08a50627-771d-46cf-b775-eb0b54afad76","block_type":"box","text":"VOTE EXECUTION","page_number":226,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"7de44c19-ec30-48a4-b883-db7cd3526cae","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":226,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"df762eb5-9eda-46f8-b1f7-8eef5f3692e7","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":226,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"e4d0918b-ac51-4dfb-a0ad-4af6d0a99516","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":226,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"b8d56b12-5598-4271-b034-8c9ddaf41a1b","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":226,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"413d4614-91aa-462c-ac8f-18529861fac2","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":226,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"38adb004-b7a8-4875-ac72-dd05fc115b02","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":226,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"ffbe796a-df5b-4537-b2a4-ad03034dd11e","block_type":"box","text":"management policies and procedures,” below).","page_number":226,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"17879a9e-8fde-4dbc-8b27-896cd143996b","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":226,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"2b3bda14-161b-4a4b-a6af-75d37d953bfc","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":226,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"cf286ea2-8e28-496e-bd51-6194124740d3","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":226,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"e207c003-aaf8-4a7c-b438-a61781f99c2b","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":226,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"22826c6c-13f8-4140-8092-e6cbdc0a7ab1","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":226,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"6039c298-a8db-45ce-9817-57f332c1579c","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":226,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"4c1027fe-20b7-4873-9f0d-27b309061b12","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":226,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"8b4c120d-1bce-4db6-8d3b-93bcc8a52528","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":226,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"d449a078-5b0f-4e56-8b75-306a856684fc","block_type":"box","text":"16","page_number":226,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"1e1bedb9-2226-45ac-9a39-074562163626","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":226,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"7e9772a9-768c-4df9-b497-1c04e0396a59","block_type":"box","text":"December 2025.","page_number":226,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"a74cb88c-daf8-402a-9887-ad64bf77395e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ff24c484-59c8-4e83-924d-9c0986f06487","block_type":"box","text":"Global Principles | 12","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"c28155cd-4464-4601-ba98-5c22b991d4f2","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5decc7f3-22b5-49b2-bd06-b8b0ccc95028","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":227,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"8c1ea4f7-c907-485f-a80e-df210cb0336b","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":227,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"8288f57b-5f1b-4e55-a680-dd1ffc370bfc","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":227,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"256aad6c-dfa5-4ab8-bce0-7de79f336b7e","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":227,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"5d93eba8-2f8e-45fc-9ae8-8d711752397a","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":227,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"4be2be85-b310-4735-99db-df8d8f819dac","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":227,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"01697372-2d1d-47a7-a9ed-cb640ae5e83f","block_type":"box","text":"enterprise-level vendor management activities.","page_number":227,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"06aa9efc-16e4-4472-8cf9-94b3c1b4f9d2","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":227,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"40c779a6-6004-4c06-8e92-8de47806ad23","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":227,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"95a69d27-794c-4419-b9ec-f0079aef5a88","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":227,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"bb3a9dcc-bc80-4498-89ff-d9136ea22bd9","block_type":"box","text":"BlackRock employees.","page_number":227,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"0aaeb749-9134-49e8-8af3-988ae6d648d2","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":227,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"d56e58f6-6202-40dd-815d-e1adf80413a1","block_type":"box","text":"SECURITIES LENDING","page_number":227,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"723b71b8-d3f1-4b7e-92a5-376022be9070","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":227,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"e500192f-7d8f-4f48-96a0-f2a61c3acdc3","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":227,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"e96f8131-b809-46c4-8fae-b4f906ff15e2","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":227,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"bed060e3-db99-4ec3-8426-e9fa90d936a6","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":227,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"9bf6e146-4dc1-43e7-9691-082c83ba37c7","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":227,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"414997df-b793-4a65-beb6-86fa07010a9b","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":227,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"96fb4701-ceee-451c-a062-2ebebc5692a9","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":227,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"32e1d561-35a0-43ff-a7fc-00446aa36a18","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":227,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"a400e0ef-0d40-4255-b25d-95aa191316a2","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":227,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"78dcde4c-d189-4464-9d90-1f6ffbea3c74","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":227,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"593f0569-76ea-4236-b048-53851a361dda","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":227,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"1b7a8c4a-270f-4205-8ca9-ce5c1bb6cf60","block_type":"box","text":"of recall consideration).","page_number":227,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"9fbb58e1-06e7-4383-b375-76416b6dc5ac","block_type":"box","text":"17","page_number":227,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"d579e78a-66ba-4277-8e82-56692fdaec0d","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":227,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"a9afea67-51b2-4585-9217-a14054e2341b","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":227,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"0b748585-3a2b-4678-8f07-e6eac1879c30","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":227,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"4a7bf18a-9823-4ae3-a22c-7aa3af2f6334","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":227,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"ddde8161-68ec-4456-957e-4dfa1a280fed","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":227,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"fdec8905-980e-4767-bca6-d544e8f0e2eb","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":227,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"d5f97ae6-c91e-4510-b849-89afe5f5a054","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":227,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"b9889023-5ff8-4b56-b0dd-07f06e85701d","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":227,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"ea078b51-a646-4736-84f7-4be9524fcfa4","block_type":"box","text":"and may modify it as necessary.","page_number":227,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"fb7e1ab0-0ce7-4a29-9cb2-d66c7fd1bb8f","block_type":"box","text":"VOTING CHOICE","page_number":227,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"99061034-9fe7-4af7-b974-589c6abcde81","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":227,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"fa679bba-731f-40a3-9abd-ac9dafedbbb6","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":227,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"b85fd2db-c550-42f5-99ef-3ed719cd9a39","block_type":"box","text":"18","page_number":227,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"d5ecb537-4439-4445-b175-fa8879b84c32","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":227,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"dc97cc8d-ed36-497c-8f73-3c1f4fe773be","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":227,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"f66d5b4a-a9db-458f-b696-818cdaad0c0a","block_type":"box","text":"17","page_number":227,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"e891d02b-fd8f-4232-af0f-467085f3b412","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":227,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"fad72a9f-54df-46c7-b16d-711a7361409f","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":227,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"5a6ba2d4-f680-47f1-9445-20732bbfd7ad","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":227,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"d57b7aee-0e12-497d-96b9-0ea2dead70ff","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":227,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"dbfbb7d1-419e-48d6-8dd4-ffe6596072d9","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":227,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"489bd193-1a71-48a3-8993-2d33163ca5f1","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":227,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"f75984b5-280a-41c0-ac5e-9e2160bb9485","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":227,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"cbc7d069-b1fe-406c-892b-a2e86f5e8ca8","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":227,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"b7047b82-9601-4178-9d32-3fdd7f387f3e","block_type":"box","text":"18","page_number":227,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"ee5efa21-2152-457c-89df-bfa4ea9cd657","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":227,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"9dd2cebc-ff62-4488-935c-d614817e2109","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":227,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"a6027f5b-a1ad-4cd9-9de0-4d4e6975cf48","block_type":"box","text":"including the decision to lend securities.","page_number":227,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"4ae65471-fd79-46e9-8bb7-6f9eb152a121","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6ec019e4-aad1-4d46-ab75-99b4d5ab1f86","block_type":"box","text":"Global Principles | 13","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"a3f636b0-fb0b-4475-82eb-d1dfa3558c98","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"250dd476-fba7-4e90-974d-c3f47a27ec35","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":228,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"d514fd52-f97c-46f4-9dbd-20292e95190d","block_type":"box","text":"(SAE) strategies. 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Net zero commitments are sourced from respective","page_number":232,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"2f78cafa-8f9e-4ec2-8253-d4d77243a3b9","block_type":"box","text":"company websites, as of January 2025.","page_number":232,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"2505e957-ee5a-4a8e-8a92-391aeeb7bf0e","block_type":"box","text":"5","page_number":232,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"1e28bd6a-87d4-4ac1-aa0a-1e4dc1307247","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":232,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"204c9ffc-1152-4a10-95b9-f61a54d62c50","block_type":"box","text":"6","page_number":232,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"8b18dd27-bbe9-4837-9623-bb846d2f133a","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":232,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"e0b5a0b8-8b80-407f-b3d4-80f14822d6ef","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"470dd7a6-d0b2-47bb-a0d1-9579af25a498","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"0ae59ba0-2863-451a-a57c-f402f9e09d0c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"36bde293-6630-47b6-9b3b-9a1ecb07bf81","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":233,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"b3f6467c-8305-4dd9-ac6a-04e0655b8136","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":233,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"2adcffe7-f64c-4cf1-8fcf-55805542fe96","block_type":"box","text":"7","page_number":233,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"ab639aa8-e393-4d77-af0a-7a364dae75eb","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":233,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"b0c4e3ed-4732-4acf-8071-dc51793aa173","block_type":"box","text":"Benchmark Policies.","page_number":233,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"9433ccc4-7023-4940-8035-36c20cb3db26","block_type":"box","text":"8","page_number":233,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"d9d3687e-bcb8-4e6a-bf59-cee94a601410","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":233,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"055c738e-7c47-400b-9271-b348d6f07b18","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":233,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"080dcc3c-2a51-47b4-bb0c-4635913f0f9f","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":234,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"bf8521b7-ed83-460f-9f9f-9338b5b636d4","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":234,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"199c62aa-251d-4103-8de2-e40528c5ab1f","block_type":"box","text":"14","page_number":234,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"8c94331c-39c2-4854-9f86-30f537f1693f","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":234,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"9cba189a-a5a8-404c-9598-546d18b06ce0","block_type":"box","text":"(IFRS) Foundation. 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Please refer to the IFRS website to learn more about the framework and standards S1","page_number":234,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"36593e97-28e1-447e-8284-b84996ffdd14","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":234,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"29eaf1e7-f06b-4638-95d1-4dfb2ebb89a2","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":234,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"efb6c7de-2da0-4276-ad99-a9de0f119443","block_type":"box","text":"15","page_number":234,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"de26914a-b8b9-4770-8ea8-18b14ce3fdd7","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":234,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"d7f86862-0ceb-45be-863d-52f712624c0b","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":234,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"6f69569e-f8e8-450a-85ed-ae9f32e7da15","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":234,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"b8c8c7a6-cae2-45dc-afd0-876ee7ea0778","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":234,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"0f03a243-131d-4cb4-b647-efa3f6a687a2","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":234,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"a57e4030-9cce-416a-a0f3-57a586180de5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"38167d30-7fbd-4eb3-8511-e1735a5f8254","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":234,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"2a0ffd06-727e-4621-92ed-5b5035975e9c","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4df14112-6594-4836-8f65-f1417d5a6ba0","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":235,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"9154a563-3fb5-404b-903b-6a44dfff9948","block_type":"box","text":"16, 17","page_number":235,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"b327be3d-71e2-4b8f-a007-18085647a712","block_type":"box","text":"In addition, the dedicated team looks to","page_number":235,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"a2918699-ee7d-4cce-9d81-0b2103de41e4","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":235,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"a8837c51-fe98-4161-97c6-8d694e02e990","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":235,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"67c0b722-5433-490e-88ee-26aacd4ca6cd","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":235,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"1602f383-708d-44c8-8741-d1b32f81c3a4","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":235,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"c44472b8-56a8-4b4c-8895-e387815e357d","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":235,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"cb848619-b40f-4541-93fd-b6bdf5d3d24a","block_type":"box","text":"18","page_number":235,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"41ad6d2d-a25c-44c8-8165-340b7accc621","block_type":"box","text":"However,","page_number":235,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"a06ad6d0-5139-4ddf-9656-0c8cd907a8b0","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":235,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"e330e5e5-3eac-4483-8e49-ab98ff0a3485","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":235,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"83263b33-d28f-4d76-b743-1c985be7d6a3","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":235,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"ac95b2f4-f093-4f14-9f9c-5e8b070e0caf","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":235,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"2a7765a5-f76a-4884-9605-4828fe4a59cf","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":235,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"78f3e926-dd8b-4256-b98d-8ecb87a6e7a7","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":235,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"e44bb48d-cdf4-46bd-b054-42f0e69d1b2a","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":235,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"5d89179c-f16f-4f61-8237-47b78cd271f9","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":235,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"ffdce6b9-21b2-4b09-89a8-19f746ad7d30","block_type":"box","text":"transition risks.","page_number":235,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"ff776329-db7d-4e4c-adf8-c1f12c5c647a","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":235,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"a6b39389-2b0c-4765-8b58-08ce42c3d9d9","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":235,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"bbd3a882-489b-498e-aa1b-4c7d4e5ece42","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":235,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"906e35e1-70bb-459e-9953-7d9965be405b","block_type":"box","text":"Transition plans","page_number":235,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"0639cf02-e8f4-43c0-b350-3ee45cd141e3","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":235,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"86995d22-865d-4498-8657-af4d90504648","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":235,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"fb6547b5-e660-4dfd-a0b3-af7b6232077c","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":235,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"0af1701e-d017-42e6-a6d0-a884e3ea1f1c","block_type":"box","text":"(see Appendix 1).","page_number":235,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"19c2b8f2-f489-4503-8a57-9370968c7406","block_type":"box","text":"19","page_number":235,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"f3005ec1-1c45-4e51-8ba0-fd0a07722794","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":235,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"9e95c65f-f0b6-4451-8beb-059b9e219979","block_type":"box","text":"transition plans.","page_number":235,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"0ef79bd7-4a53-4bf6-92fb-13f18bef3168","block_type":"box","text":"20","page_number":235,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"6a5ff81f-b880-4cc1-a32b-345f3d1b5caa","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":235,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"e377cf78-9e5d-494a-b82b-36a596c9dfbe","block_type":"box","text":"repor ting approaches.","page_number":235,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"12d66535-1434-4c35-9f26-7986f30b5db3","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":235,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"3e2753f3-b5c2-429b-a57d-db08cf55c9f6","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":235,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"5ef3f3ff-6273-4b76-a95d-8e157d7b47fe","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":235,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"e4b5db6d-0cca-4654-a6ea-5149f81d9034","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":235,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"26846879-dd0f-43e4-bf3d-b9b726bde673","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":235,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"71f80008-52e2-4693-9ce5-399e03f3ff4e","block_type":"box","text":"informed voting decisions.","page_number":235,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"61568620-9d55-4209-b7b5-652dde5436fd","block_type":"box","text":"16","page_number":235,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"d0d7fbec-c2c3-4d56-a1bb-fece7fdfa4ce","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":235,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"5ca4d9c5-22df-4761-a938-425887f93743","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":235,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"8f1b08f6-e84e-4d01-81a5-f3312ec73264","block_type":"box","text":"December 2025.","page_number":235,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"474a0624-c666-45ee-b5aa-2e4ce4ca3a87","block_type":"box","text":"17","page_number":235,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"a938bab9-fc7c-48dd-998a-e0adaaa123c6","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":235,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"da6c29be-dc97-484d-b65f-a01913535813","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":235,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"9b226dc1-4280-450d-a5bb-f95804ab5a23","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":235,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"14dd3080-c546-42a5-9d1b-cd073ca2e1ed","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":235,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"33700d78-e77e-4fb2-a220-640c1f606b8c","block_type":"box","text":"18","page_number":235,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"bfbff3f6-d7c2-4ab5-a541-2b456fb189a6","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":235,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"6e1f281c-ea67-438f-924f-7e3c17ba7136","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":235,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"b3f5451c-c015-4f4e-a778-387386333ae0","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":235,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"628a7522-04de-460a-9623-1cb8c7c9e30c","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":235,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"c03718e2-822d-49a8-b31f-0bdb0c34ee82","block_type":"box","text":"material to their business models.","page_number":235,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"583d256c-8205-411a-b76c-e746d5771bc7","block_type":"box","text":"19","page_number":235,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"d6d7d540-318b-410a-bfc1-9c90f4104281","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":235,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"1ba6000e-8ea1-428e-8a98-0ea0568c2b63","block_type":"box","text":"December 2025.","page_number":235,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"6dcc90ac-088c-4ed5-92df-839bea213d16","block_type":"box","text":"20","page_number":235,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"e2beb554-bedb-43c3-942e-fc29973e6f00","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":235,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"ceb86bca-7ed2-4318-91dd-47f05a13ffcc","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":235,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"e9a9e5fe-a0b7-4eb5-8841-01af6d04db20","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":235,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"25dcb716-f1f6-4a1d-95ee-d9283b0b4946","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":235,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"8341a19d-9783-4d48-8ce6-ed791e0578dd","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":235,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"224d2944-3a3c-474d-91a9-1317e9a080cd","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Under the Guidelines, the team may suppor t","page_number":237,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"41548a0d-3792-498c-b284-23e5db1a0442","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":237,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"f3e89cd0-dda7-4683-8ec5-10d71bf7ca73","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"2df90624-cffe-49d6-8e17-dd7dbe92f7d2","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":237,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"191e5957-c759-496c-8d0d-901e64b6d359","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":237,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"f3ffd3e6-b7db-411b-b20f-5c6cc0adeec8","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"769cf64f-0a0c-465b-a6b7-e80ba597d0a9","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":237,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"ea46d06e-dcd2-4def-832d-5cd066766aa3","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":237,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"73dcd406-5b85-4a91-900a-1b7fa620b4df","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"ed398211-8d51-4654-ad79-7427e1d4734f","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":237,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"113e8f2c-16f2-49d1-8559-69f8fa50366d","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"13d5d53c-9f3e-4ad9-8d6b-9ec4d8e674d6","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":237,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"b7f88db2-2aef-4a2b-bc24-ca8c89654d55","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":237,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"31fdf27f-da0e-4a5b-be0e-f1da947c8081","block_type":"box","text":"25","page_number":237,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"0f2bec3e-b71a-4f80-bd52-83b28c2bd5f5","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":237,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"9a309b53-f7d0-4843-b3da-ace11407cfce","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":237,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"b3f15e2b-673a-4ce9-8efb-f6999315cb19","block_type":"box","text":"RELATED MATTERS","page_number":237,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"68d4c416-df3e-4d09-9af8-d19f64cdcfca","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":237,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"064bdb27-77d2-4523-b012-1bf2dda4fa95","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":237,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"d4d1933c-7ba3-4003-bafc-e9be3622573f","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":237,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"d92e6aac-493f-4b63-a71a-c15300b97a04","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":237,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"383170db-eed4-4bc9-924a-431c5129189a","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":237,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"3202cd44-cb61-4114-b2c9-5b7a6db44643","block_type":"box","text":"24","page_number":237,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"8f39da3b-ad7f-48c3-8832-b9030fcddaa8","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":237,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"936f1347-8c73-4d37-a043-0f9d5c364d12","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":237,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"05a392e9-e31b-41fe-bc42-c06a7c394569","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":237,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"508dca26-450b-4863-9908-a85b3ea4efb6","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":237,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"8602b16a-a8f4-4f1f-b1f1-03b1af6c2737","block_type":"box","text":"25","page_number":237,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"dfe10891-0b19-499a-a981-867f357161df","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":237,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"3d8a5d4a-c705-438f-a306-44ff849e01d6","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":237,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"14ccc454-561b-4128-8fa3-c42ef2dda3bd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":237,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3c4738db-e8cc-40d2-899b-5601e540080c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":237,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"a0e5488c-bc6f-4fea-bb67-1f9abc2ec2fc","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":237,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"52da57f3-fd0a-4df1-8d3c-feaef145f875","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":238,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"0bd6c3e5-edd7-478b-b6f2-f4920cf3982e","block_type":"box","text":"strategy and risk management.","page_number":238,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"07e787f5-c19d-47f3-a0f1-3c6010a6c0ad","block_type":"box","text":"Auditors and audit-related issues","page_number":238,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"71a5b6bc-2787-4d35-b21a-03445d841680","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":238,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"3c8ded6a-6168-4059-8011-61f7dcc6a769","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":238,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"28bc1467-1344-4c73-87f5-7a8a77785a3e","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":238,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"5c7220e6-e909-4b51-bca5-7fb074c3e5b6","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":238,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"8b22b950-436a-40ef-862d-1c98a88e6a37","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":238,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"3399198c-8a2c-4cc4-acf8-ad4f26b1763f","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":238,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"ad944e57-d920-4d0d-8039-e33b95311b92","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":238,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"00bc1967-4e42-4149-ace8-e926094d5681","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":238,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"dccc3533-86f7-4d92-be8c-0c2d6f7b83e2","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":238,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"70a8b489-34ca-4798-8289-109a6bf19bbd","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":238,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"c966907e-349f-477e-bcfb-c2e4bbed6aca","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":238,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"bc5e1ca2-7da6-4da5-9ccf-3de62a165880","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":238,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"8957ebf6-7197-4b18-a498-c5604369d7c6","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":238,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"a71a9a9e-4787-4249-baf0-ddbec04395e0","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":238,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"7e10a11e-a892-4fd7-803c-1703c4fe5415","block_type":"box","text":"stakeholders.","page_number":238,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"c690836d-2f48-4446-8402-5342aa4b8361","block_type":"box","text":"26","page_number":238,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"6f615190-0941-480b-acae-843a547a0f86","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":238,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"123f8091-12ba-4aef-b4d6-27defa75f6d1","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":238,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"0b1dc018-0ad5-42cf-b1ad-3895d7d6e552","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":238,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"5eb9cd95-f0cf-4d72-958b-9f5c9a314a60","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":238,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"86260380-3fa2-4624-88f3-7517cd76b428","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":238,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"b4e04d9b-3b95-48a7-ba6d-da368c7e81f7","block_type":"box","text":"26","page_number":238,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"420de67c-abfd-4cde-99e4-97768e0d1f2f","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":238,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"def6c1d8-0928-4222-bcfa-7660b96873ce","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":238,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"ed406384-d2eb-4aae-bb8a-29fdbfda16a3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":238,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"92468bc8-aeda-41c3-958b-29d27c459616","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":238,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"8fbf2d64-180d-40c6-848b-5b8badf2bfd1","block_type":"box","text":"BNM1026U-6032383-19202702","page_number":238,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d792685-c70e-4104-b5ae-047405a973e3","block_type":"box","text":"Appendix 1","page_number":239,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"0e6bd1bb-5db4-4ba6-87b0-6be9b8139d23","block_type":"box","text":"Terminology","page_number":239,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"44ddc560-0581-47f6-8409-a5f5bb6d06aa","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":239,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"0b356a87-25d3-415c-90a2-22b351331e84","block_type":"box","text":"Climate risk:","page_number":239,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"7f051a07-720d-4f2a-ba12-4fd3798517d7","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":239,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"9d3a41ab-e54f-4e83-aa31-d98aa2cd0b0a","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":239,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"33eb8a6b-4fe9-4a36-83b2-f95d1cf5defe","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":239,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"5a5e4cc6-7ee0-4453-8f9b-405a2a83bcea","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":239,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"b4791615-60f8-4946-b07c-5c03ef17259a","block_type":"box","text":"The global economic shift toward lower","page_number":239,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"b03c4d7b-e6e4-4db7-9a73-e7553a851e53","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":239,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"4f5ac283-a7f7-4af9-8611-7fa37aa577d9","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":239,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"57c4004f-dd61-4218-b721-4d28b33582ed","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":239,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"e6057678-7905-406e-b43a-df04328097db","block_type":"box","text":"Decarbonization:","page_number":239,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"bfd24955-b76d-495e-baa2-b495b2a320c6","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":239,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"b7cbcd36-6991-4bac-9a22-eb8aeab2e600","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":239,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"fb81e656-e036-4a70-b581-c3ee5a8e0176","block_type":"box","text":"individual consumers. 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